Paradoxically, the generation of young Poles, raised to a large extent on PRL blocks of flats, which is well-versed in economic issues on a daily basis, has not yet grown up to ask himself whether the flat is better to buy or better to rent.
The Americans, who suddenly believed that they could buy their homes, caused a gigantic crash in 2008. Granted, the banks that told people that they could afford a loan were really guilty, but this is the best proof that the bank that provides financing is the last institution worth asking whether to take a loan. Let’s make it clear!
Better to rent an apartment or buy on credit?
The answer is obvious – it is best to buy a flat for cash, but we do not expect such a variant for a reason. Certainly, buying a flat “for credit” is a dream come true – you can invest in your own home, you can do with the apartment almost everything, without asking anyone for permission – repairs, reconstructions, arrangements.
For 20 or 30 years, you really only work on yourself potentially, because until the mortgage loan is paid off, you can not feel safe. Good earnings today do not necessarily mean good earnings tomorrow. Buying a flat on a loan is therefore risky. Of course, we do not wish a negative option to anyone, but this is always possible. The market is not predictable, which evidence was too recent in recent years.
Thus, an equation with two unknowns arises – the value of an apartment may increase, but it may also fall, as well as the cost of credit (although these, if they change, rather grow, rarely decrease).renting is safer
Renting is safer. Find out why.
So if you look only at financial issues, renting is safer – smaller obligations, usually no need to look for funds outside. However, money is not everything – striving to have its own 4 angles is strong and understandable.
Nobody wants to pay for a few dozen years to rent an apartment that they must maintain and which they will never own. Depending on the construction of the apartment rental contract, there is never any guarantee that you will be able to live longer – the option to terminate the contract is always possible and although it is rarely used, it’s a bit like a housing loan: you can not be sure of anything.
Finally, mortgage loans and renting do not differ so much, although renting a flat is more predictable. It’s just that paying an interim for 20 years, as opposed to repaying the loan, no one will make you yours.
The dilemma is deeper
Both solutions have sense in some circumstances and everything depends on the probability of determining the chances for timely repayment of a housing loan. The more reliable is that each month we will have the money to repay the installment, the more it pays to get a mortgage, but the fewer chances are for a smooth repayment of the loan, the more it would be closer to the idea of renting a flat.