What Is More Profitable To Rent Or To Buy A House?
Every day thousands of people all around the Globe are looking for their dream house
to rent or to buy. Is it really worth to buy your own property or to rent? Let’s talk Profit.
Renting? Let’s put some numbers. The desire to buy your own property is associated
not only with the dream to have your own corner, but also with the aim to earn or save
money. If you rent an apartment for $ 1,500 per month, then you pay $ 18,000 for
housing per year. You give them to a stranger who makes money on you, but you get
If you take an apartment or any other housing on credit and pay the same money to the
bank for a loan, then in 25 years the housing will become completely yours. If you sell it,
then all the proceeds from the sale will be yours.
But this is ideal when you pay the same money for the loan as you would pay for the
rent and if you own the property for the entire term. If you change housing within 25
years, then with each sale you will have to pay agents, and each time you move into a
new house, you will have to spend money on repairs, at least cosmetic. There is no
such thing that when you enter a new home, everything immediately suits you.
If we compare rent and ownership, then the rise in property prices is not in favor of rent.
It usually rises in price annually, but in the case of ownership, the loan payment price
can be fixed for five years and will not change, which is a big plus.
When buying, people are most often afraid that they will not be able to pay the loan. But
you also have to pay for rent. Plan your budget wisely, talk to real estate professional,
don’t wait until the prices will climb even higher.