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Is it better to buy a house or rent? A Hamlet-like doubt, worthy of the best Shakespearean tragedies, as well as one of the questions that everyone asks themselves at least once in their life.
Taking out a mortgage to buy a property means taking on rather large expenses for a certain period of time – variable, but often very long – such as interest on the loan, the notary's fee and the costs of any renovation work. But it also means securing the possibility of obtaining profits from the hypothetical sale of the property, perhaps at a higher price than the purchase price.
As for rent, it also has its costs – such as the rent fee to be paid every month – and several limitations, but it is certainly a discharge of responsibility if you think it is not the right time for a more burdensome commitment.
The discussion is smooth as silk but does not take into account the fluctuations in market prices which, in some cases, could really mix up the cards on the table.
So, is buying a house better or not than renting? Try to unravel the tangle thanks to the information that we at Casavo provide you in this guide.
What we talk about in this article:
- Pros and cons of renting a house
- Pros and cons of buying your first home
- So, is it better to buy a house or rent?
Pros and cons of renting
As with all important things in life, even when you find yourself having to decide between buying a house or paying rent, carefully weighing the pros and cons can tip the scales one way or the other. So let's start with rental agreements.
Living in a rental is the right choice for you and your family if you haven't yet put down roots or if you think your needs may change in the future based on work or the growth of your family. Let's take a look at the advantages and disadvantages of this solution.
Pros and cons of renting
As with all important things in life, even when you find yourself having to decide between buying a house and paying a mortgage or rent, carefully weighing the pros and cons can tip the scales one way or the other. So let's start with rental agreements.
Living in a rental is the right choice for you and your family if you haven't yet put down roots or if you think your needs may change in the future based on work or the growth of your family. Let's take a look at the advantages and disadvantages of this solution.
Pro 1: No extraordinary expenses
Tenants of rental properties are not required to pay extraordinary expenses related to living in the house or condominium. Since they are not the owners of the home, they are not subject to expenses for the renovation or maintenance of the property.
Pro 2: Reduced financial investment
A great advantage of buying or renting a house instead of purchasing it is the fact that you don't have to make a large initial investment for the mortgage. You can manage your money according to your needs and save some for the future.
Plus, you don't have to monitor the real estate market trends in the region, which could impact the value of the property over time.
Pro 3: Freedom of movement
Want a change of scenery or do you have an important job waiting for you hundreds of kilometers away? Buying a house or renting is probably not a good idea for you. By not buying the house, you can move quickly, without the worry of leaving your property in good hands.
Con 1: Lack of stability
While buying a rental property offers numerous benefits in terms of flexibility, on the other hand, you may also have to leave the house at the end of the contract even if you don't intend to.
Since you don't manage the property, you are dependent on the decisions of third parties that may not be favorable to you. If you don't want this to happen, then it's better to buy a house.
Con 2: Aesthetic limitations
Not living in a house that is 100% yours also entails numerous limitations on customizing your home. And living in a property that doesn't reflect your personality could become annoying in the long run.
This is a problem you can put aside when you buy your first home. Compared to what we've seen so far, what changes if you decide to take the big step?
Pros and cons of buying your first home
Buying your first home is a bit like settling down, deciding to stop and lay the foundations for a secure and stable future. Buying a home is convenient for several reasons, but it also brings with it some disadvantages. Let's find out together.
Pro 1: Your home, your style
Unlike what happens with rental properties, in your own home you can do whatever you want. You can paint the walls the colors you like, buy the furniture you've always dreamed of, divide the spaces in a functional way according to your daily needs. No one will judge the results or tell you what to do: you make the decisions and, perhaps, the architect you hope to entrust with the renovation work (do-it-yourself is always a risk)!
Pro 2: tax breaks
For those who decide to buy their first home, there are numerous tax breaks that can make the investment more sustainable
From the 110% Superbonus to the Ecobonus, up to tax deductions on furniture, appliances, recovery of the cost of green areas and renovations: with these advantages, buying a house is even more convenient. If you want to learn more about the topic, read the Casavo's guide to first-home incentives
Pro 3: from refuge to inheritance
When you're young, you tend to want to move often, to discover the world and perhaps realize your secret dream of changing your life, habits, and city. As time passes and you get older, however, things change.
Buying a home is like creating your refuge, the safe haven where you can find balance and stability. And, even more importantly, it allows you to have an asset to pass on to your children one day.
Pro 4: Money well spent
It's better to buy a house than rent one, also because the money paid for the mortgage payment is well spent. Think about it: what does paying rent every hundred euros a month leave you with? Absolutely nothing.
A loan for the purchase of an apartment or a property, on the other hand, guarantees you ownership of the property. And in the future, you might even decide to resell it at a higher price and make a profit.
Con 1: Renovation work
Homes for sale aren't always in good condition, and making them livable could require a significant increase in investment for renovating the spaces.
Con 2: The mortgage down payment
To buy a house, simply taking out a mortgage isn't enough. In most cases, you need a high initial down payment to ensure the success of your financing application. This can prove to be a significant difficulty, especially in terms of possible additional expenses to make the property habitable.
Ultimately, to understand whether it is better to buy a house or rent it requires a careful evaluation of some factors that cannot be ignored if you want to avoid making mistakes:
- the financial availability;
- the mortgage payment, which must be proportional to your or your family's monthly income in general;
- the hypothetical need to move to a new city or having finally found the right place for your future.
Identifying the best choice is not easy and is up to you alone. But a little recap might help clarify things even better.
So, is it better to buy a house or rent?
As you've noticed, buying a house and renting have pros and cons that shouldn't be underestimated. To summarize:
Whatever your final decision, the choice impacts your financial situation as much as your private life. In addition to all the variables we've outlined, there are fees to consider that are parameters that cannot be put into words
Buying a house is an investment but, above all, a lifestyle choice, in line with who you are and who you feel you are when you decide that this is the right path to take. Renting frees you from the constraints of belonging and residence, but in the long run, in most cases, it turns out to be more expensive. The choice, in short, is entirely up to you.
If you think buying a house is worth it for you, we at Casavo can give you that final push you're still missing to make your choice definitive. Explore our classifieds platform to find the perfect housing solution for you. We'll take care of everything else.
Whatever the final decision, the choice impacts your financial situation as much as your personal life. In addition to all the variables we've listed, there are some parameters that cannot be valued to consider.
Buying a home is an investment but above all a lifestyle choice, in line with who you are and who you feel you are at the moment you decide that this is the right path to take. Renting frees you from constraints of belonging and residence but in the long run, in most cases, it turns out to be more expensive. In short, the choice is yours alone.
If you think buying a home is worth it for you, we at Casavo can give you that final push you're still missing to make your choice definitive. Explore our listings platform to find the perfect housing solution for you. We'll take care of everything else.
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