The property market: rental and ownership

People all over the world are constantly buying, selling, and renting places to live. They are participating in the property market. What types of home make up the property market? And how do people choose which type of home is best for them? Kim lives in an apartment in an apartment block with their mother.

Kim’s mother doesn’t own their apartment. Instead, she pays a monthly fee — rent — to the building owner — the landlord. Other types of homes can be rented, too. Some people rent a flat within a house, or a whole house. When Kim’s mother decided to move into the apartment, she signed an agreement with the landlord — a lease.

The lease states the rent amount and lists what services — like electricity, water, and heat — the rent includes. If Kim and their mother decide they want to move somewhere else, Kim’s mother must tell the landlord in advance — she must give notice. The lease also states the amount of notice she must give. Renting works well for Kim and their mother. They know how much they need to pay each month and there are no surprise expenses.

If something in the apartment goes wrong — the shower breaks, or a drain backs up — it is the landlord’s responsibility to arrange and pay for repairs. But renting has some limitations, too. Renters are not usually allowed to make big or permanent changes inside the unit. Like Kim, Aadesh lives in a unit in a larger building, but Aadesh’s parents don’t pay rent to a landlord, and they can decorate however they like! Aadesh’s parents own their unit, called a condominium, or condo.

All the condo owners in the building form a group called a housing association. Each condo owner pays fees into the housing association. The association then takes care of the building’s common areas, like the stairwells and outdoor space. But inside their condo, Aadesh’s family can make changes as they please. This would be the perfect spot for my in-home movie theatre!

When Jenny’s parents, Esther and Joseph, were looking for a new home for their growing family, they wanted somewhere with plenty of space. They opted to buy a house. Like many people who own homes, Esther and Joseph don’t have the money to pay for the house all at once, so they borrowed from a bank. This kind of loan is called a mortgage. Every month, mortgage payments must be made until the loan is paid off.

Owning a house comes with lots of freedom — the family can change the design of the house as they like, or even add an extension! But it comes with responsibilities, too — they must do all repairs and maintenance themselves. And if they decide to move, they’ll need to sell the house. This can take time. They might need to pay a real estate agent or lawyer to help.

These responsibilities are worth it for Esther and Joseph. They bought the house in an area that is becoming more and more popular to live in. If they decide to sell the house in the future, they will be able to sell it for a much higher price than they paid for it. So buying was a good investment for them. There’s lots to take into account when choosing a place to live, including the type of building, like a unit in a block, a flat, or a house, and the type of arrangement, like rental or ownership.

As for making it home? That part’s up to you!