Many people dream of their own house. But many can’t afford it. Is it better to rent a house or to access a mortgage in order to purchase? Let’s figure it out.
Not so many people can afford to buy a house or build it right away with their savings. Therefore, banks’ offers for lending are often used.
+ If you take out a mortgage for several years, then in most cases, your bills will be the same as for rent. Surely, it all depends on the specific situation (the housing itself, the bank, the term, etc.).
+ Buying a house is your investment in the future. Plus, paying for your own home is much more enjoyable than giving money to the landlord.
+ Property values rise over time. It can be sold at a higher price.
+ The house can be rented out with the help of Better Estimate if, for some reason, you don’t live there. Thus, you will get a certain income.
+ Real estate is an inheritance that can be left to loved ones or children.
+ Renovating and decorating your own home is much more enjoyable than spending money on housing that doesn’t belong to you.
– Mortgages are long-term financial obligations. Many people are also confused by the very fact of overpayment of interest to the bank.
– The mortgage may not be approved, or the proposed conditions will not be as favorable as you would like.
– The house is needed renovation and investment in furniture and appliances. Moreover, repairs must be done in both secondary and new housing. These are large sums that can significantly exceed your budget.
It’s believed that renting a house is cheaper than buying it with a mortgage. Let’s weigh the pros and cons.
+ Renting is more suitable for those who often change jobs or cities of residence. And for those who are not yet sure how the family composition will change (whether there will be children and how many).
+ There will haven’t been a problem to rent a house cheaper or more expensive if the financial situation has changed.
– Instability. The landlords can raise the monthly fee or even change their minds about renting the house and ask you to move out at any time.
– Nobody wants to make repairs in rented housing. It’s much more pleasant to furnish your own home to your liking.
– With frequent movings, you need to spend money on it, pay a commission to a realtor, and a deposit to a new landlord.
– You depend on the landlord’s decisions and can’t fully dispose of housing.
What To Choose?
It’s important to realize what is valuable for you, what conditions will be as comfortable as possible. But don’t forget about the real financial opportunities.
Count how many years your mortgage will take with an optimal monthly payment, what the overpayment will be, and calculate the time you need to save up for your place without taking the mortgage. For these purposes, it’s better to use a mortgage calculator or ask a bank specialist for help. Moreover, calculate the sum you will have paid for rent over the same years.
Based on the data received, it is already possible to determine what is more profitable for you (to buy or rent). It’s advisable to consider house restoration or construction cost, which is better to entrust to professionals, for instance, Game Of Stone. This will save you money and time. Good luck!