Is it better to rent or buy your home, do you? When the French are interviewed on the subject, they are 72% think it is more favorable to buy than rent. Are you the same way? I’m not necessarily, I know a lot of good reasons to rent, with a very good might get you thinking.
Many good reasons to rent. There are a lot of good reasons to rent your house instead of buying. You can find dozens, and maybe a week, your debt ratio is already at the top, you move to another region in three years, you can not find housing in your rates, you are colocation and housing costs are lowest, you have a home office, you wait until prices fall, your income varies greatly from month to month, you must be a saving for you capital, you enjoy having the freedom to change regularly housing …
Buy can make you lose money. Okay, buy requires you to repay your bank and then forces you to build wealth: you will have a good value of your home at the time of sale. What your banker does not tell you is that the property market may drop and well worth less than when buying. The capital outstanding at your bank may even exceed the amount of the sale, if you need to relocate due to work five years after purchase, for example, when you have taken out a loan over 30 years. Because the longer the loan is long and the less you pay off the capital due soon. In this case, you paid each month more than if you were renting and you still have money in your bank! Improper operation.
The best reason to rent: get rich. Imagine you buy the property you rent, your monthly payments will be higher than your rent. The idea is to put the money you save by not buying to make it fruitful. For example, if the property increases by 5% per year for 15 years, and you put that amount to 10% per year, you will win financially. If over the next 15 years, real estate is stagnant or declining, you win even by placing a background in euros. You also gain diversification and liquidity of your assets because you never overnight money from your home on your behalf if you need it.
There are many reasons to rent rather than buy, and a valid reason, contrary to what is often received, is to get more wealth than buying. In the current environment where real estate prices are considered high, renting might be a good idea to get rich. Perhaps you know of other good reasons to rent rather than buy your home?