Buy or rent your house:the answer seems to be obvious. Buying real estate is an investment in the future that allows you to secure accommodation for your old age and for your descendants.
However, opting for rental also has a number of significant advantages that you should be aware of.
The life goal of a large majority of people in this world (if not all) is to acquire a house. Safe haven par excellence, real estate is a very popular investment and it is not always a question of money. Indeed, there is nothing like having your own home and carrying out all the development work you want, without having to report to anyone. Another argument:once you reach retirement with the loan fully repaid, you are released from all monthly expenses related to housing, which is advantageous insofar as income generally decreases at this stage of life.
With interest rates constantly falling, buying has also become very interesting. You can thus take out a mortgage, without this having too significant an impact on your purchasing power. The ideal is to opt for a loan over a short period because in addition to being cheaper to repay, you can get out of this charge much more quickly.
In addition, in the event of resale of the property in question, you can benefit from an attractive capital gain. We must not forget that the prices in real estate do not stop climbing, or at least do not fall. A house you buy today will not devalue in a few years.
But be careful, be aware that buying does not only offer advantages. First, the house regularly requires renovation or repair work that will involve additional expenses that you may not have thought of. In addition, in the event of unemployment or a drop in income, you must continue to repay your loan, which may pose financial problems. Before embarking on this adventure, you must therefore guarantee the stability of your situation.
Despite popular belief about renting accommodation, this option does not only reveal disadvantages. On the contrary, it even offers advantages that are rarely highlighted.
First of all, as a tenant, you have the possibility of leaving your accommodation almost overnight, as you see fit (with due notice, of course). If work is necessary in your house, you are not responsible since it is the owner who takes care of it. You are thus relieved of the heavy tasks related to the search for service providers, requests for quotes, competitive bidding and other binding procedures. We have to face the facts:the status of tenant is lighter than that of owner.
However, the other side of the coin:by paying monthly rent, you lose money that you could have invested elsewhere:precisely in the purchase of a house for example. You also do not have the freedom to undertake the development and decoration work as you wish and must systematically ask the owner's authorization.
