Buy or rent a house? This is a very valid doubt and is one of the most important steps to decide, at the time we are in the stage of wanting to take a step to independence.
However, investing in a home is a risk that can be overcome with ease. Therefore, we present information to take into account for both scenarios, since in NATIVU we believe in investing wisely.
A loan is renting money
Few are people with enough liquidity, to pay a cash house. Therefore, it is quite common for many families to borrow to fulfill their dream of a home of their own.
When acquiring a loan, the borrower must pay periodic interest until the debt is paid. These debts, being over a larger amount, have long terms, usually between 20 to 30 years. Not many want to rent their home but are willing to “rent money.”
Does buying a home have extra expenses?
Yes, buying a house has expenses beyond the price of it. To begin, at the time of the transfer, by means of the deed that records the agreement between the seller of the house and the buyer before the National Registry, it has a price.
There are also other types of taxes and extra payments, which must be made when buying a property. You can read more about these, through the Ministry of Finance.
Benefits of buying a house
The mortgage is over. The mortgage will not last forever, the time will come when the account is settled and the house goes to the investor.
It will have its own good. With this good, passive income can be generated, if the person moves to another site they can rent the house they left.
- It can be modified to taste. If there is something that does not work as desired, it can be remodeled or modified without having a problem with a third party.
- It has psychological impact. The house itself provides a feeling of greater stability.
Should I rent?
At this point, renting no longer seems such a crazy idea and begins to make sense. However, renting a house does not have full color of roses, it also has its points for and against.
First, it is important to analyze to what population it may be viable to rent a house. The following questions make it easy to make the decision:
Do you have a firm financial base?
- It is important to contemplate that in order to apply for the mortgage loan a “down payment” must be made. The down payment has a percentage value over the loan amount.
If the payment term exceeds 25 years, it is not recommended since the monthly payment does not decrease significantly and the interest rate will be higher.
- Have a reserve fund equal to or greater than 6 times the monthly expenses. This in case the source of income is compromised.
If the prerequisites were not met, a recommendation to make use of the available money is to opt for the rental of the future home.
Benefits of renting
Renting has its benefits, it is more than just an expense. It is a growth opportunity, since renting a house may be the best option for that young person who is in the process of stabilizing their lifestyle.
- Ability to mobilize. Why would anyone want to move from their dream home? Well, issues as neighbors with whom coexistence is difficult, insecurity in the area and the inability to have pets, are common reasons to move to another condominium or urbanization. It is a huge advantage when the job requires that the person travel constantly, legal detachment gives greater mobility.
- Disregard debts and mortgages
The biggest monetary concern that can be had, is the quota at the end of the period and a possible support hitch that is usually made. In case you can not continue paying or want to improve the quality, only the contract is terminated and another place to rent is sought.
Repairs run by the landlord Houses suffer damage over time.
A leak, electrical problems, etc. Factors that with the rent can be alleviated, since it is the landlord who takes care of these.
There is no perfect option, either rent or buy. Everything will depend on the scenario and what best fits the profile of the person interested in acquiring their own home. The important and advisable thing is to be well informed, so that the decision taken is the one that best suits your financial status and stage of life.
