Which is better: buying or renting real estate

Rental housing is not the most common type of real estate in our country, but its attractiveness is growing rapidly. As world experience shows, rental apartments can become the basis for providing general population with affordable housing. In Germany, for example, 40% of housing belongs to the hired. Its peculiarity is that a person does not receive ownership, but at the same time rents it for several decades, and retains the right to transfer rental housing to offspring.

If you compare rental housing and mortgage here are the following rules: it was previously believed that if a person has money for the first fee for a mortgage and income allow it to receive and pay it, it is better to take a mortgage – rental prices grow by 20-30% per year. After 5 years, a mortgage payment will be lower than renting a similar apartment. Moreover, at first, rental is about 2.5 times cheaper. However, now this trend has changed in the opposite direction: with an increase in the interest rate, the mortgage further promises only large expenses, while rental housing retains its advantages at the initial stage.

At the same time, I would warn against loans in currency – a salary expressed in dollars can fall and very significantly. Recall 1998. But at the same time, there was never a period in the entire recent history when a salary in rubles fell. Its purchasing power fell, yes, and strongly. But not its nominal expression. And the mortgage payment is fixed in the nominal terms. Mortgage in the national currency will not stop paying any crisis.

Of the features of rental housing, it should be highlighted that renting is recommended for those who do not want to pay the first fee for a mortgage and who often change their place of residence.

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