What Is More Convenient To Rent Or Buy A House As Usual Housing?

Is it the right time?

Buying your usual home may be the most important investment of your life.For many years, this operation will have a very important impact on your domestic economy and will represent the majority of your net worth. The type of housing, its location and environment will also influence your lifestyle. It is a purchase that cannot be made without due analysis.

And the first decision you should make is if you are at the right time to buy your home.

Buy or rent?

It is true that buying a home has many advantages. The first, which is a good long-term investment. The monthly payments of the mortgage force you to save every month and, after 20 or 30 years, you will have a good that is worth a lot of money. From then on, you will not pay any fees or rents and, if necessary, you can use the home to finance your retirement or other important expenses.

Of course, a home on property ties its owners a lot. You won’t feel the same freedom if you have to change residence for family or work reasons.real estate agents in Gurgaon

As for what to rent is to throw money, remember that rent also has advantages. Owning, in addition to the mortgage payments, implies a series of expenses that neither recover nor provide any tax advantage. Home insurance, taxes, maintenance and community expenses represent significant disbursements to which the owner is obliged. When living on rent, these expenses are usually covered by landlords.

To the sale price of the house must be added a series of expenses associated with the sale and formalization of the mortgage loan, which are normally borne by the buyer.

How long do you plan to live in housing? – The determining factor

The costs of buying and selling the mortgage loan amount to about 10% of the amount financed, and the buyer has to pay it regardless of whether he stays in the house for a year or thirty.

Keep in mind that these mortgage expenses are paid at the time of formalizing the loan, regardless of whether you are staying in the house for a year or thirty. In addition, during the first years of the mortgage you will be paying mainly interest (they are also expenses), with hardly any amortization of the capital.

Can you afford it now?

Although it seems obvious, first of all you should know if you have enough savings to buy a home. Many limit themselves to calculating the mortgage fee and forget that a good amount of liquid money is necessary.

The entrance: Count on the entrance representing around 20% of the total price of the house. Financial institutions usually lend 80% of the appraised value of the house (legal maximum). Note that we have said the appraised value and not the price of the house. That is, if you buy at a good price, it may be that 80% of the appraised value is more than 80% of the price. If you buy at a price greater than the appraisal value, you may have to contribute more than 20% of the sale price.

For many people, the entrance fee, and not the monthly fee, is the biggest obstacle to buying a home.

If it is not the first time you buy a regular home, but you already have another house to sell, the income from this sale probably covers the necessary initial capital, provided you manage to sell it before buying the new one.