Which is better: renting an apartment or taking out a mortgage?

Which Is Better: Renting an Apartment Or Taking out a Mortgage

Video: what's better: renting an apartment or taking out a mortgage?

Different life situations can cause a large family to have to separate. The children are grown up and want to live separately or a young family has a child and the parents' apartment has become cramped. Few people have the option of buying a home outright or moving into a vacant relative's home. Most people have to decide which is better – renting an apartment or buying a mortgage. Both options have their advantages and disadvantages.

Rent an apartment

The advantage of this option is that you can find accommodation for almost any budget. If you are a young family with a child, you may not have the required amount to pay your monthly loan installment. And rent an apartment – please! The worse the condition of the apartment and the less favorable it is, the cheaper the rent will be. You just need to find an acceptable compromise between convenience and cost.

But maybe this is where the pluses of rental housing end and the minuses begin. First of all, the difficulty is to find a suitable option. It is now very difficult to communicate directly with the owner, the entire rental market has been taken over by brokers who have to pay up to 100% of the monthly rent for their services.

Let's assume you agree to this condition. Then the problem of finding a suitable owner begins. If you are a young family without children and animals, there will be no particular problems. But if you have either a child or a beloved cat, not every owner will let you live with him, no matter how educated and trustworthy you are.

But all these problems are solved and they finally moved into the apartment. You will probably have to put up with the master's furniture, which is usually old and shabby. The owner will most likely not allow her to replace it. If something doesn't fit when they repair it – do it yourself at the cost of a monthly fee.

And the most unpleasant thing about apartment rent is that the owner can raise the rent at any time, for example, under the pretext of a wave of inflation. Of course, the amount of the monthly payment is in the contract, but also the possibility of the owner to cancel it is announced there 2 weeks in advance, which he most likely will do if you refuse to pay. It does not matter to him who will live in his apartment, and they have to look for another apartment. And the main thing is that the money you pay for rent goes into the owner's pocket, and no more. This apartment will never be yours.

Buy an apartment with a mortgage

It is a completely different matter if you are buying a home with a mortgage. You have the free choice – new building or second home, city center or outskirts. No one is going to tell you if you can live with a dog or not, no one is going to suddenly raise the rent or kick you out just because they wanted to. They will live in their apartment, make repairs according to their wishes, furnish it.

But not everything is so rosy. The disadvantage here is that a loan may not be granted if you have too low an income, a poor credit rating or something else that the bank doesn't like.

For example, you gave a credit. You are obligated to make regular and complete repayments, otherwise the bank will levy various penalties. And if their financial situation suddenly deteriorates, then a rental apartment is cheaper to find, and they still have to repay the mortgage in full – until the loan is fully repaid, the apartment is the property of the bank. The bank is not interested in your problems, and if you can not pay the debt, they will simply throw you out on the street, sell the apartment and return the money paid to you.

Another indisputable plus of a mortgage compared to renting is that with each payment the apartment belongs more and more to you and one day it will.And the amount of the monthly installment for the loan is usually about the amount of rent.

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