For many people buying a home is an important achievement and one of the vital financial decisions taken throughout life. When you have to make the decision to rent or buy an apartment, there are two broad categories of factors to be taken into account: the financial and the emotional. Although most people start their adult life with renting an apartment, over time one question arises „Would it be better to buy my own place?”
Advantages Of Buying A Home
– You have to pay the rent for your whole life versus the credit rates only for 20 or 30 years, depending on your mortgage period, or even less if you make early payments. Thus, throughout your entire life you will actually pay more in rent than in credit. In addition, in many cases the monthly mortgage payment is similar to (or lower than) the monthly cost of rent.
– Over the long term, apartment price appreciation can be significant. If you decide to sell the apartment you purchased after a period of time, you have a good chance of getting a better price than the one you paid for your purchase. In addition, if you do not sell after a while you can turn it into a source of passive income by renting it.
– Property taxes, fees and insurance costs are low in our country, so they are not an impediment to purchasing an apartment.
– You are able to redecorate, remodel, or make improvements as you see fit. Radically changing your living environment to suit your tastes is a great advantage of buying an apartment vs renting. You do not have to settle for the old, inconvenient or inadequate furniture in the rented apartment. Of course, the option to buy your own furniture remains open for the renting option too, but this makes it a much more difficult and expensive mission to organize in case you move to another place after a period of time.
– There are a few number of rules that tenant must follow, which include the ones related to tpets, children, and noise. It is often difficult to rent a home when you have a dog or cat because the owners want to avoid the damage they could produce to the furniture and equipment.
– You have intimacy and stability. No law entitles you to remain in your rental unit indefinitely. Often, when choosing to rent, you may find yourself in a hurry to choose another home if the landlord decides to sell the apartment or move himself or his family members there. Also, your landlord has the ability to raise your rent once your current lease expires.
– You do not lose your flexibility. If you have to live for a while in another city or country, you always have the opportunity to rent the apartment and cover your loan. Also, if your family grows, you can sell the property and buy a larger one. If your income declines, you can either sell it and buy a house at a lower price or rent it at a good price and move for a while to relatives or to a cheaper rent.
When is it better to choose renting an apartment?
– When you still do not have the money you need for your initial investment in buying an apartment. Buying requires substantial money upfront and endless paperwork. Though these costs vary greatly depending on the size of the down payment and the value of the home, you can expect to shell out somewhere between 5-25% of the purchase price. Of course, renting an apartment also involves some higher initial costs: the owner’s warranty, the first month rent, the moving expenses. If the lack of money for the initial investment is the only impediment to buying an apartment vs. renting, then it is probably the time to start saving.
– Buying an apartment and accessing a credit is a big commitment. When you are just starting out your adult life and the thought of paying the mortgage over a very long period of time scares you, maybe it is better to wait for your income to stabilize. If you are hesitant, weigh very well the advantages and disadvantages of the two options.
– You have not yet decided to establish yourself in a particular city or country.
As a conclusion to your dilemma: buying an apartment vs. renting one, financially is more profitable the first option. Which option is best for you isn’t just about money, it’s also about comfort and your life vision. We hope that the advantages and disadvantages listed above, will give you a starting point in making a decision focused on your wishes and needs.
