Why the apartment needs to be rented, but not to buy?I Know that the subject of purchase of the housing is very painful for many people, and all - as the expert in personal finance, I am simply obliged to pay your attention to this “dark“ party of possession of own real estate.
When young people enter adulthood and begin to live independently, separately from parents, they at once have a question - “where to live?“.
The roof over the head is necessary to all. It is necessity - and for those who are still lonely, and for those who already established an own family, the “cell of society“.
There is a question - what is more favorable: to buy the apartment (having taken a mortgage loan) or to live in the rental apartment?
is more favorable to rent
Here that I think about it:
1) I will tell frankly, I am struck by the adults living together with the parents. At once the New Year`s movie - classics “A twist of fate is remembered. or With light steam“ and Zhenya Lukashin
Soglasen that (in fact - to yesterday`s children) it is obviously too expensive for youth to take and buy the own apartment at once. But, you see, every one is able to rent removable housing and to live life - but not to remain as the unreasonable child in the parental apartment.
2) Calculations show, it does not make any financial sense that to buy the housing , it is much more favorable to rent it!
Take the calculator and count - be convinced of it! At sale you will not be able to return yourself all money which you pay to bank for acquisition of the apartment in a mortgage. Upon purchase of housing by means of a mortgage loan the huge overpayment by 2 - 3 times turns out .
Therefore I recommend to you to rent the first housing and, at the same time, to accumulate money for acquisition of the apartment. At such approach you will be able to save up money in only 10 - 15 years (you will pay a mortgage twice longer) - at the identical amount of monthly financing.
Besides financial arguments, is also indirect benefits of accommodation in removable housing:
- you can rent housing where it is more convenient to you to live (near work, near kindergarten or school, near park, at the river, etc. - depends on your preferences and financial opportunities);
- you “are not attached“ until the end of life to the apartment (region of residence), and can move freely at any time and to any place at discretion;
- you do not “freeze“ the money in illiquid investment (what the real estate since is today. it is difficult to sell it quickly at high market price), and you direct them to commission of investments, diversified on different classes and the directions;
- you keep a peace of mind - on you will not press for many years huge freight - a debt of a mortgage and constant fear of eviction from the apartment in case of sudden dismissal (deprivations for any reason of the basic - and often the only thing - income source);
- you do not overpay huge money for use of a mortgage, and keep them in the family budget and reasonably direct to creation of the financial pillow, multiple sources of the income and receiving pleasures from life
of P. S.
A what you think about it - more favorable to rent or buy? As you resolve by
the housing issue?