The arguments in favor of buying have a hard life. Security of housing, forced savings, the buyer builds a long-term wealth, while the tenant has the impression of squandering his money by paying rent each month. Yet, the answer to the buy or rent issue is very complex and depends on a number of criteria. A hasty purchase can lead to a poor heritage decision.However, this type of accommodation appears much more interesting than renting on many points.
Rent and monthly payments
From a purely financial point of view, the differential for a first-time buyer with no contribution between monthly rent and repayment of the monthly loan varies greatly from one city to another. The differences between prices and rents are very contrasting in the capital. Prices may vary from single to double, while renting in Marbella differentials are at most only 50%.
In the first case, the couple will have to pay a monthly rent for lost funds for a home that does not belong to them and will have to build up a savings, with the key, the possibility of concretizing a future investment. In the second case, the couple will have to repay a monthly payment each month but will gradually build up a capital by repaying their property, which will gradually increase in value for resale.
Rent, build: how to compare the two solutions?
You do not have long-term visibility on your projects, and you still hesitate on the best strategy to adopt? On the purchase side, the value of your house must be added to the amount of interest paid on the loan, the various costs related to the acquisition (notary fees, application fees, etc.), but also other expenses that are more often neglected such as property tax, development tax and housing maintenance costs.
Rental side, the dry loss is mainly limited to the rent paid each month, but you do not build any assets except to benefit from a moderate rent which allows you to save enough each month. To make no mistake and have clear ideas, it is strongly recommended to use a simulator “buy / rent” online. These tools enable you to weigh up your purchase plan, its rented equivalent and then consider the strengths and weaknesses of one and the other according to several assumptions related to the future evolution of the real estate market and your personal situation.
Conclusion: Housing security
Other qualitative criteria weigh in the balance, also in favor of the purchase – housing security in particular. The tenant may be exposed to forced mobility at the end of the lease. But also, in case of job loss, the buyer can make use of his insurance loss of employment, not the tenant. Beyond this aspect, remember that the purchase also brings more intangible benefits such as serenity related to the ownership of his home, a more qualitative living environment and greater freedom to decide on renovations or improvements.
If you have any professional advisor, you can take necessary feedback.