A flat – renting or buying a flat on a loan? A banking center
We buy a flat or rent?
Finally, have you decided to move away from your parents and start an adult, independent life? Still, you can not make a final decision on whether to live in a proprietary or rented flat?
Can you afford to buy?
First of all, answer the question whether you are sure that you are a person who can afford to buy a flat. Current government regulations assume an increase in the required own contribution with each subsequent year. What about the fact that friends keep asking you when you’re finally moving in? After all, if you lose your job, nobody will be worried about you, where to get the funds needed to cover your current mortgage payments .
When is a private property a good option?
However, it can not be said categorically that an apartment is always a bad decision. Naturally, this is a much more profitable option than renting if you are able to cover most of the apartment’s value without the help of a loan. Then you save both on liabilities to the bank, and you do not have to bear the costs of the transfer.
Buying a flat is worth considering especially when we can boast a relatively stable job situation. You have an employment contract for an indefinite period, you earn a good job, and the boss can not imagine the functioning of the company without your contribution, so you do not have to worry about losing your employment. Buying your own apartment is also justified when you are already at the stage of starting a family. Renting an apartment while raising small children is a risky solution, because in such a situation the most important is stabilization.
Who better rental for whom?
Renting apartments is usually a much better option for singles and those who are just getting their first experience in the labor market. If you belong to a group of these people, try to put money away from the payment, and think about your own home when you collect your own contribution. Rental has undoubted advantages, to which one should first include unlimited flexibility. If you do not like your current job, you always have the option to terminate the rental contract and look for a job in another location. Similarly, you can behave in the case of troublesome neighbors. Selling an apartment and finding a new one is not so easy.
At the end
As you can see, there is no unambiguous answer to the question whether it is better to rent a flat or buy into property. It all depends on your current life situation, priorities and propensity to risk. Remember, however, that you must not be under pressure from the environment that tells you certain solutions as the only right one.