When renting profitable mortgage

When renting profitable mortgage – People often face a choice in housing ,which is better and cheaper : rent housing or to get into a mortgage for the next few tens of years? It seems that the answer is obvious – when renting housing have to pay monthly considerable sum in his pocket another’s uncle , and the second is almost the same money you are in the bank and live already in his apartment.

If you make some economic calculations , it turns out that rent more profitable than to get into a mortgage, but only at a certain level, increasing the cost of housing – with a decrease in the price per 1 square meter , or increase it for the year is less than 6% . Otherwise, it appears that much more profitable to take the apartment in the mortgage , and your capital investment in housing did not affect the result in the end .

Mortgage pensioners

Under the above conditions the tenant will be able to defer really quite amount to purchase their own homes , to buy it for about 10 years . At the same time , in contrast to mortgage borrowers , it will not have to pay for 20 years of their homes . But if prices fall or freeze , then take out a mortgage will become unprofitable, as the borrower get a very large amount of over payment credit. But if the rate on the loan will fall to 78 % ( eg, using another currency loan ) , or housing prices begin to rise more rapidly , it is preferable to become just the mortgage than the rent the landlord .

However, apart from economic calculations must take into account the psychological factor , which is also equally important. For some people, renting property is quite normal and they feel comfortable in someone else’s apartment , and the other vice versa – do not like other people’s walls around ourselves begin immediately feel ” at ease .” Likewise, with the registration of the loan – most people just psychologically afraid to take credit for a period of several decades , more important for them to know that they can always break up and go live in the city or even in another country .

Therefore, if a person has no desire for so long to repay the loan on the mortgage , being tied to one location , it is definitely better to rent an apartment and feel okay with . Although , among other things , the availability of mortgage does not oblige to be tied to a specific location . Always have the opportunity to change accommodation to another , as in the case of tenant lease. Here are just a while there will be additional costs and the possibility of losing the tax deduction for the further payment of interest on the loan.

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