The Pros and Cons of Buying vs. Renting an SCF Container
At some point in your life, you might find yourself in need of some storage space to keep your belongings safe while you work out a long-term solution. When that time comes, it’s important to remember the pros and cons of buying or renting SCF containers. While there are plenty of things to consider when choosing between these two options, your ultimate decision should be influenced by these 10 key factors.
It takes longer to save up for a down payment
You may have heard that you need to have 20% saved for a down payment on a home. While that’s true for conventional loans, it’s not the case for all loan types. For example, with an FHA loan, you can put as little as 3.5% down.
And with some VA and USDA loans, you can even put 0% down! So how much should you aim to save? A good rule of thumb is to shoot for 10% of the purchase price of the home you hope to buy. So if you’re hoping to buy a $250,000 home, you’ll need $25,000 saved. Of course, this is just a goal – you may need more or less depending on your unique situation.
There are upfront costs with rental
When you first start looking into renting an SCF container, you may be sticker shocked by the upfront costs. You have to pay for the security deposit, first and last month’s rent, as well as any other fees associated with the rental agreement.
While this may seem like a lot of money at first, it’s important to remember that you’re not just paying for the container itself, but also for the convenience of having it delivered to your door and picked up when you’re finished with it. You have more control over your space when you buy. When you buy an SCF container, you can customize it to better suit your needs.
Monthly costs are lower if you buy
The monthly cost of buying an SCF container is lower than renting one. You also have the option to sell the container when you’re done with it, which could offset some of the upfront costs. However, you’ll need to factor in the cost of maintenance and repairs, as well as storage fees if you’re not using the container on your property.
Renting may be a better option if you’re not ready to commit. If you’re not ready to commit to owning an SCF container, renting may be a better option for you. This way, you can try out different sizes and types of containers before making a purchase. Plus, you won’t have to worry about maintenance or repairs since that will be taken care of by the rental company.
Choosing between 15′ and 20′ containers
If you’re trying to decide between a 15′ and 20′ container, there are a few things you’ll want to keep in mind. For one, the 15′ container is more maneuverable than the 20′, so if you’re tight on space, it may be the better option. However, the 20′ container can hold about 25% more cargo, so if you’re planning on storing or shipping large items, it’s probably the way to go. Ultimately, it comes down to your needs and what will work best for your particular situation.
You can move at your own pace with rental
With renting, you can take your time in finding the perfect spot for your business. You’re not tied down to one location, so if your business needs to change, you can always adjust. Plus, you don’t have to worry about maintenance or repairs with a rental – that’s all taken care of by the owner.
Renting is generally more affordable than buying. The upfront cost of buying an SCF container is much higher than renting, so it may not be the best option if you’re on a tight budget.
If you do get into trouble, you’re on your own
When you buy an SCF container, you’re responsible for any and all repairs that need to be made. This can be expensive, especially if something major goes wrong. On the other hand, if you rent a container, the company you’re renting from is responsible for repairs. So, if something goes wrong, you can simply call them up and they’ll take care of it.
Long-term ownership has greater value than short-term rentals
Owning your own SCF container has several advantages. For one, you’ll have the option to resell it when you’re done using it, which could give you a return on investment (ROI) if the market conditions are right. And secondly, you won’t have to worry about renewing your rental agreement or finding another storage solution when your current lease is up. However, there are some drawbacks to ownership as well.
For instance, if you don’t maintain your container properly, it could depreciate in value over time. Plus, if you move frequently or need to downsize your storage space, selling your container may not be feasible. Ultimately, the decision of whether to buy or rent an SCF container depends on your individual needs and circumstances.
You build equity when you buy
When you buy a home, you’re building equity. That’s the difference between the market value of your home and what you still owe on your mortgage. Over time, as you pay down your mortgage and your home’s value goes up, your equity grows. And, if you need to sell, you can usually get more for your home than you would if you were renting because buyers are willing to pay more for a property with equity.
The resale value will probably be higher when you sell if it’s used over time
When you buy an SCF container, you can use it for as long as you want and then resell it when you’re done. If you rent a container, you’ll have to return it to the rental company once your lease is up. Buying may be a better option if you plan on using the container for an extended period of time.
On the other hand, renting could be more cost-effective if you only need the container for a short-term project. You’ll have more control over an SCF container that you own – meaning you can make modifications or repairs as needed without having to get permission from the rental company first.
Save yourself headaches by buying used
There are plenty of reasons to buy a used shipping container. For one, you can save yourself a lot of money. Used containers generally cost about half as much as new ones. Plus, you won’t have to worry about depreciation like you would with a new purchase.
Conclusion
Renting SCF containers may be the best option for you if you need storage for a short period of time or if you’re not sure how long you’ll need it. It’s also a good option if you don’t have the money to buy one outright. However, there are some drawbacks to renting, such as not having the flexibility to use the container as you wish or being able to sell it later on.
