In the lives of each one of us comes the moment when we want to become independent, when we want to try to live “on our own”. Usually it comes when we go to college or when we are after college or after high school and we do not want to plague our parents with our presence.
But before we move all things out, we wonder if we move into an apartment or whether we buy our own apartment or house. Usually we first choose an apartment where we pay rent, because only a few people can afford a mortgage after high school or college. Over the years we pay rent, we think about our own living. The question, however, is what is better today – rented housing or mortgage?
Mortgages are quite tricky today. They are associated with unpleasant conditions that need to be met and which, unfortunately, have tightened quite recently. You should always apply for a mortgage with your bank, because if you are interested in non-bank loans with non-banking institutions, they will not lend you the millions you need to buy a house. Non-bank loans are in the order of several tens of thousands of crowns, you can not borrow a hundred thousand.
However, let us return to the subject – is it better to buy your own house or apartment or is it better to live in a rental? It should be noted that the mortgage is disadvantageous due to mortgage rates, which this year to affect up to three percent, the rent is disadvantageous in that it is constantly increasing. Rising mortgage rates and rising rents are mainly due to the constant rise in property prices in general.
What is the advantage of rent?
Many people think that they will take a mortgage as soon as possible, no matter how early it is paid. But it is important to realize that if you have a mortgage, you will be bound to some extent. You will have a certain duty that you have to fulfill every month. You always have to put your money aside if you happen to lose your job for a month. You are bound and restricted to some extent. This is the main disadvantage of mortgages and the main advantage of renting housing.
You need to have the money to get started
Moreover, everyone has to think that you have to save money to start. Your mortgage will not be approved unless you save at least 20 percent of the value of the property. Unfortunately, just the need to save 20 percent of the value of the property is the main problem and the reason why many people do not reach the mortgage.