Rent or Buy? A mortgage is not getting worth? Rent or buy is for many both an emotional and a financial decision. Flexibility and freedom from debt are offset by investment and ownership, both of which can have its advantages and disadvantages. Before planning your mortgage, you should worry about some aspects.
Mortgage lending and property or flexibility and a wasted money? Rent or Buy? About this question argue tempers and each looks different advantages and disadvantages in both variants.
The benefits of rent or buy
Thus tenants appreciate the freedom at any time to be able to relocate to not repair itself have a broken downspout on the house and not to be in debt up to his neck. In addition, separation or a job loss not inevitable way into personal bankruptcy.
Buyers delight in their own homes and the Narrenfreiheit anytime walls tear or be able to install fireplaces, without denying it to someone. Most buyers are pleased, however, about a property to have a value system and not to have to refer you to a landlord their monthly payments.
Whether bought or rented is often an emotional decision
Buyers invest in their own investment. Once the home loan is paid off, they are free of charge and have possession, they rent, sell or bequeath can. Tenants have this privilege not - they do not come in spite of monthly payments to property and assets in the form of a property.
Whether you are buying or renting a home or apartment, is an ideological issue for many. Independence and freedom vs. debt Property and investment. Studies show that buyers have a five times as high net worth as tenants, but this can have different reasons. Finally buy per se rather people who have a solid income. At lower income is rather rented.
The home purchase is more expensive but has the advantage of the investment
Nevertheless - buyers also usually go with a higher capacity to retire and enjoy the rent-free at the age. By their own property, they are also hedged. Buying a property's worth especially if apartment or house promise a high return. From 2% increase in property value per year, homebuyers will benefit from your purchase.
The aim is to keep in mind however, that a mortgage is 20 to 30% more expensive than the rent it would be for the same object. Financing costs, land transfer tax and notary fees are utilities that are lost during a sale of own property. You can be more than 10% of the purchase price.
Through the property tax and insurance premiums separately the costs for its own property in the month amounted to an average of well around 100 euros more than for the same object rent. The argument that an object belongs after the mortgage but is a good reason to buy for many people.
Do you want to remain flexible and enjoy your freedom in your own home?
Everyone should weigh personally what fits better. Does the life planning it planned to spend at least the next ten years at the same place and the work seems to be safe, then a mortgage and therefore a real estate purchase is probably worth more than the Housing for rent.
Will someone remain occupationally flexible and appreciates independence more, then a property is probably a better solution. In addition, there are other options can be used for investment in addition to the rental payments naturally anyway. A successful investment in stocks or funds, the returns can be even higher than the increase in value of a property.
A mortgage makes only with sufficient equity really mind
While there are also real estate financing with no equity - so really makes sense funding request at a bank but only from a capital of at least 20%. Only then can the borrower really good interest and a real chance to complete the mortgage in 30 years.