||What is more profitable - to buy or rent an apartment? Why do so many people rent an apartment, but don’t give the same money to the bank as a mortgage payment in order to get their own housing in 15-20 years? Some declare that they can easily change their place of work due to renting, others are afraid to take a loan. We propose to evaluate objectively what is more profitable - to rent an apartment or buy it with a mortgage?
1. Calculate whether you pull credit
For most Russians, mortgage is the only way to buy an apartment. An obvious argument in favor of a loan is that you already give money for your own home and as a result you are exempt from payments forever. You can settle in immediately, as soon as you enter, and never again ask for permission to drive an extra nail into the wall. But how profitable is it? Rent is cheaper than loan payments — it doesn’t matter whether you count monthly payments or a total of 15 or 20 years. You will give the bank twenty percent more than the owner of a rented apartment. This difference can be reduced if you save for a significant down payment. It will be cheaper to buy an apartment in a house under construction, but until the house is rented, you will have to pay money at the same time for the loan and for the rent. An important argument in favor of the mortgage: this is an excellent protection against rising prices. If the owners increase the rent at least once a year, then the loan payments are fixed by the contract for all 20 years.
2. Get ready to take taxes, the cost of repairs and utilities for yourself
What is the difference between an apartment owner and a tenant? The owner must pay the tax on housing, utilities and the management company, to make repairs at his own expense. The tenant, as a rule, covers only part of the cost of a “communal”: electricity and water at the counters, as well as the telephone connection - and is free from the need to make repairs. He uses the already installed appliances, can shift the household problems on the shoulders of the landlord. In the end, if he does not like the yellowed bath or the eternal turn off of water, he can find a new home. Therefore, calculating the cost of buying an apartment, include in the budget the cost of repairs and utilities.
What is the most profitable and reliable way to save money for an apartment?
How is the rental of apartments with subsequent redemption?
3. Assess yourself as a borrower.
Alas, banks are not ready to give mortgages to anyone. If you have a bad credit history, problems with the law, unstable income or a “gray” salary that cannot be proved by documents, you will either have to rent an apartment or save up the full amount. If you work for a percentage of the transactions, and the salary is small, the bank will consider you not a sufficiently reliable client. It happens that the bank does not draw up a mortgage on a particular apartment or house under construction. Do not despair - try your luck in other banks, change jobs, finally. Do you think that all these efforts are not worth the loan? Then just enjoy life in a rented apartment and rejoice that you are deprived of many of the concerns lying on the shoulders of the army of mortgage holders.