What's more profitable to buy an apartment on credit and pay for it or rent space? - News about real estate, Kiev, Kyiv region. Real Estate In Ukraine
Today, the housing problem into a "double edged sword" and the majority thinks - and not cheaper to pay the loan for your own apartment than to give money to a stranger in a new place for a month's rent? The answer to this question in each case is individual, but there are standard calculations that...How to find the best option is to rent an apartment or to pay her creditToday, the housing problem into a "double edged sword" and the majority thinks - and not cheaper to pay the loan for your own apartment than to give money to a stranger in a new place for a month's rent? The answer to this question in each case is individual, but there is a standard calculation that can be used by anyone to solve my own dilemma.What is more profitableCheaper monthly to count money, than to pay rent someone else's apartment. Always whether this statement is true? Not always. The cost of renting an apartment is always cheaper than buying real estate on the primary and even secondary markets. But buying real estate brings moral satisfaction rather than material gain. Buying an apartment is more than the acquisition of square meters of housing or investment, it is some kind of independence. So says the expert on real estate Agency "real Estate Plus" Olga Bubnova.The presence of its territory gives confidence and is a source of pride and a sign of the status of the owner. Unfortunately, today's real estate market dictates its own conditions, and not everyone can afford a cherished dream square meters of property. And come banks that offer money to buy an apartment right now, and need to give them sometime later. Buying property on credit is a very critical step, because for many it will be the choice for life, to pay for which they will be in the next 20 - 30 years. As a rule, such a long period of time needed for the payment of the loan and interest. So before you take this step, you need to weigh all the "pros" and "cons", to calculate the resources to enforce the payment, you choose the Bank - in fact the choice of a Bank will depend much on the past 20-30 years that will be needed for the payment of the loan.Many people are afraid to buy a home using a mortgage loan due to high interest rates, and various banking fees, and continue to live in rented apartments. However, they completely forget that the fear of having to pay the Bank, turns to them monthly by throwing money "down the drain" for rent.Those who hope to save money to buy an apartment, renting with someone else's housing, and not daring to take a mortgage loan, you forget a key ingredient, as a time. Given the rising inflation and economic instability, we can confidently predict growth in real estate prices. "Those who claim that living in a rented apartment is cheaper and more profitable, forget about some very important things. Buying a house on mortgage, you become its owner, and how much you had to pay for the rent, the rights to it you get," says Olga Bubnova. Required monthly payment for a loan payment fixed in the contract and does not increase while rents may increase, even a few times a year depending on the wishes of the landlords. If you selected the contract of lending, in which there is a paragraph about early repayment of the loan, and this coincides with your capabilities, then very soon you will have your own housing, he said.Today Kiev perceive rental housing as non-permanent. However, in most countries this housing tends to increase the area. In the UK rental housing is 60% of the entire real estate market, and in the USA the share of this property accounts for about 25%. And In Switzerland 43%. The ratio of foreign nationals for such housing is completely normal. Most people in these countries live in rented apartments, not because can't buy my own, but because they do not want to do that. Besides rented accommodation increases the mobility of the person, is another of its advantages, says the Manager of real estate Agency "Cassiopeia" Maxim Fedorov.A simple calculationThe financial picture is as follows. The average one-bedroom apartment that costs 100 thousand.e. when buying on the mortgage will cost on a monthly basis in 1 thousand.e. assuming an initial payment of at least 20%. Don't forget about the annual insurance, both the housing and the life of the owner. Rent a similar apartment will cost an average of 600.e. a month. By purchasing an apartment, people are overcharged at just over 400.e. a month. "I think not so much, when you consider that in the end, the apartment will be yours, and the money will not go "nowhere", says Maxim Fedorov.There's another alternative rent and mortgage, but assuming the existence of a significant earnings from the family. You can buy an apartment on someone else's money, says Olga Bubnova. "It is possible to buy an apartment on credit, lease, and with the Bank to pay the money you are paying for rent! Then to get an apartment paid for other people's money: the money of tenants," she says. She considers two different situations. First, when the owner already has some real estate. The second apartment, which is acquired by the borrower after the rental to generate income only.In the first case, the rental income can be considered by the Bank issuing the mortgage loan in the second case not. In the first case with credit funds purchased flat, laid to the Bank, the borrower it moved, and the old apartment leases. Received from rent of money spent on the debt to the Bank and after a few years acquires the second apartment from the tenant, says Marina Bubnov.In the second Varina the borrower to move into a new apartment is not going to. He has money for the first installment, he takes out a Bank loan for a new apartment. "At the same time it informs the Bank that this apartment is going to pass. Takes a certificate in the Bank, the Bank informed that acquired by the borrower, the apartment will be rented out and has no objection to this. This is important so that the Bank is not prevented then the apartment," - says Marina Bubnov. In this case, giving you the loan, the Bank will consider your income, not counting planned from the rent. You, acquiring an apartment and passing it in the lease, to pay to the Bank the money that they receive from renting an apartment to rent.Usually the rent is less than we have to give a month to the Bank for the loan. But, with minimal investments, mainly due to the rents received, you get another apartment.But I need to consider the fact that over time the cost of apartments is growing, but your price is recorded in the mortgage agreement. But the cost of renting an apartment is growing, and no one will forbid you to increase following the market.