13/07/2020
There are some questions everyone face when he wants to buy or sell any type of the property.
Who should buy and who should rent? What factors one has to take into consideration before she makes his/her decision? What should one buy and what should one rent? These are the questions that we are going to discuss. Buying is not for everyone, not because we don’t all want to buy, but the ongoing circumstances of each individual do not allow us to do so.
Renting in this case is more appropriate. Whether one decides to buy or rent, there are advantages and disadvantages to take into consideration.
So, to rent or not to rent?
- It is more expensive to buy property with a mortgage than actually leasing one. The reason is that you are really paying double the money, if you include all the accumulated interest rates. The cost is even higher, when you cannot pay your installment on time and the banks start charging higher interest rates and penalties fees and so on. Furthermore, you have to take into consideration all the annual taxes and rates you have to pay as the owner of the property such as sewerage, immovable property tax, property tax and refusal rate. So while
you may be able to pay the rent for a luxurious house, you may not be able to buy the same luxurious house.
- Those who do not have enough savings or good source of income are the best prospects to rent. Even those who do have savings, why spent it on down payments and not have a backup plan on a rainy day or use it for a good investment when the right time arises?
- Rent can be as long or as short commitment as you like. If you do not like the neighbors or the area you have chosen to live, you have the flexibility to pack up your things and move. If you are not sure which area you wish to purchase, then you can rent to test the area and then decide whether you like it or not. It is as simple as that.
