Today, many are wondering – what is more profitable: to rent or a mortgage? Buy a home with a long-term mortgage and spend money on your apartment or pay rent.
- There is an opinion that real estate will become more expensive in the future, and it is better to take a mortgage now, while apartment prices are low.
- In fact, simple arithmetic shows that you overpay the bank more than you pay rent.
- As a rule, buying a house and monthly installments with a commercial mortgage are 1.5-2 times higher than the rent
Buying a property.
Why is it profitable to buy real estate? Prices in the real estate market are constantly growing, as statistics show, those who plan to solve the housing problem with the help of a mortgage should carefully weigh their options. Moreover, advertising of mortgage lending on favorable terms is everywhere and it seems that buying an apartment now is more profitable than ever. At the same time, if you have made savings for a down payment, it may seem to you that it is time to apply for a mortgage.
Of course, buying a home is
- The ability to have a roof over your head regardless of external circumstances
- And also the opportunity to take care of the children, leaving something for them. Renting an apartment means giving someone your money.
The desire to have their own “square meters” is so great that many overestimate their strength, and then the euphoria from acquiring their own housing is soon replaced by stress and depression from the constant lack of money.
Calculate what is best for you.
- When calculating what is more profitable – to rent an apartment or buy, keep in mind
- The cost of renting an apartment
- The amount of your savings that you plan to make as a down payment
- The cost of the apartment you are going to buy
- Interest rate on a mortgage in a particular bank
- Interest on the deposit in the bank where you are going to keep your savings
Your age and likely salary or income increase When calculating loan payments, do not forget to take into account inflation – it often plays into the hands of the borrower: the value of money falls and, if your loan is long-term, you pay a little less as a result.
Saving or mortgage?
This is better than taking responsibility for a 20 year loan, as in this case you should always have a stable income and no force majeure during this long period of time, so as not to lose your property.
When is the best time to rent an apartment?
Why is renting an apartment sometimes more profitable? The tenant does not bear large expenses for the repair and maintenance of housing, does not pay real estate tax, does not bear risks in case of force majeure (fires, floods).
Freedom of movement.
In addition, he remains mobile and free in terms of deciding to move to another area, city or country, while his own real estate acts as a kind of anchor that keeps the owner laid up. In addition, the tenant can afford to live in the area of the city where it is more convenient for him, closer to work or to the park, while a monthly loan payment equal to rent will not give such an opportunity to choose.
Rent or buy an apartment – it’s up to you!
Summarizing all of the above, it must be admitted that those who think about their future, if possible, prefer to acquire housing in the property, rather than rent it.
Moreover, the state supports such initiatives by introducing not only credit programs, but also long-term lease programs with subsequent purchase. However, don’t jump headlong into mortgage bondage. In order to sell an apartment without the participation of intermediaries, you need the talent of a marketer, and the mind of a financial analyst. This is what most hypothetical sellers think. In fact, selling an apartment on your own is much easier than buying it without the help of realtors and lawyers. We have deeply immersed ourselves in the problem, discovered all the pitfalls, and are ready to talk about how you can easily and naturally get rid of an unnecessary apartment.
How to get started?
So, you have decided that the old apartment is small for you, and it’s time to expand. Either they received a sudden inheritance, or they decided to sell the apartment for other reasons – there is no difference. The algorithm of action is the same.
- Spend a couple of evenings watching ads on virtual real estate sites. Stock up on a notebook, pen (or spreadsheet in Excel) and tea and cookies. Find similar options in your area. Similar apartments in similar buildings, with identical layouts and approximately the same renovation age – these are the main search criteria. Consider the number of floors people prefer not to buy apartments on the first and last floors.
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Immediately dismiss options that are criminally cheap and apartments whose owners do not measure their mansions with the real state of affairs. An apartment in a residential area at the price of a designer penthouse very clearly characterizes the seller of square meters, and you don’t need the same characteristic for a successful sale, even if you really need money.
- Select “hospital average temperature” to get the cost per square meter of housing in your area. The simplest thing is to multiply the area of the apartment by the amount receiving, and voila, the average price is found. However, you can contact a qualified appraiser. For a fee, he will conduct an analysis on his own and give you a reasonable cost of the apartment.
- Find advantages of your housing: a stunning view from the window, good neighbors, and so on.This will allow you to slightly add to the cost, and increase the chance of selling the apartment at a price slightly higher than the average market price.
- The reverse situation with the disadvantages of housing. If from your window, instead of Red Square, you can see the smoky chimney of some candle factory, be preparing to lower the price a little so as not to delay the sale.
- If you do not live in an apartment and want to present it in the most favorable light, evaluate the need for a small cosmetic repair. Therefore, you can, for example, re-paste the wallpaper on a budget, eliminate traces of the life of previous residents (wash the greasy, change the broken, paint the peeling).
Prepare documents for sale
No secret manipulations are needing to make a deal. The owner enters into a contract with the buyer. The owner needs to confirm that he is he and that the apartment really belongs to him. All you need for this is:
It was the basic package of documents. The following papers may be added to the basic one, depending on the life situation:
We also recommend that you stock up on a sales contract template. You can find a quality option online, and he will select the right contractor for you, based on your situation. All you have to do is enter the details of the buyer there, and you can conclude a deal.
All these actions performing by mutual written agreement either by the tenants, the owner of the apartment, or jointly.