Apartment to rent or take credit?

It seems that the question of what is most beneficial – renting an apartment or taking a loan – is one of the most pressing issues nowadays.

If we talk about short-term rentals, of course, it is more profitable to pay rent, but if the apartment is rented in the long run, one should not consider the idea of ​​buying an apartment by borrowing a loan.

Your only obligation is a rental agreement

Your only obligation is a rental agreement

When renting an apartment, your only obligation is a rental agreement with the owner of the apartment, but otherwise you have no other obligation – no credit or leasing. If in such a situation you decide that you want to change your place of residence for one reason or another, you simply agree with the apartment owner to terminate the contract, perform the contract and fulfill the contract.

Conversely, if you have purchased an apartment on credit, you have a credit obligation with the particular creditor and, if necessary, are not easily interrupted and settled as a lease contract. First of all, since you have bought an apartment on credit, the owner of the apartment is not you, but the creditor, and it will be until you repay the full amount of the loan. Of course, when the loan is repaid, you become the owner of the apartment and the apartment becomes your property – this is the most positive aspect of this type of credit commitment.

Considering that you have a credit obligation and only a natural potential to become the owner

Considering that you have a credit obligation and only a natural potential to become the owner

Of a particular apartment, you are more likely to choose your home more than it is in the case of rentals, and most likely you will not want to leave the apartment and look for another home. If you are willing to change your home, however, there are two options to proceed with: your credit commitments are made to a new apartment buyer, and it continues to pay the remaining amount of the loan with interest, or you sell the apartment for the remaining loan amount, pay the loan before the repayment deadline, relieving yourself of the debt.

In both cases, you have invested money in the absence of property and your property, both in the event of a lease and a credit interruption. On the basis of the above, there is no doubt that credit obligations place a greater burden on the person than a rental contract, but having an apartment on credit is a major benefit – after paying off the loan it becomes your property and you are the Governor Because of the huge amount of loans and their long-term repayment terms, many borrowers are unable to meet such credit obligations, so they often choose to rent an apartment, leaving them with the choice and financial independence in the future.

When it comes to financial profitability

When it comes to financial profitability

It is often more advantageous to take an apartment on credit than to pay rent for years, because often the monthly amount of credit equals the monthly amount of rent and utility payments, but the loan payment results in property. Of course, it is often more profitable to rent an apartment than to take a loan – it depends on the value of the apartment, the borrower’s solvency, repayment term and other conditions, so before making a choice for rent or credit, consult with a creditor what and how profitable you are.

individual terms of credit. it is often more advantageous to take an apartment on credit than to pay rent for years, because often the monthly amount of credit equals the monthly amount of rent and utility payments, but the loan payment results in property. Of course, it is often more profitable to rent an apartment than to take a loan – it depends on the value of the apartment, the borrower’s solvency, repayment term and other conditions, so before making a choice for rent or credit, consult with a creditor what and how profitable you are. individual terms of credit.

Leave a Reply

Your email address will not be published. Required fields are marked *