Rent or finance a property?

This is a question asked by many who are concerned about their finances. Property is a high-cost asset and making the wrong financial decision can compromise your financial planning.

The big problem with any financing is the interest. After all, the amount paid in interest can exceed the property’s own value. Therefore, it is important to understand well the financing conditions, the use of the property and whether the property has a value and size proportional to the family’s financial capacity. In addition, banks hardly finance 100% of the property’s value.

Rent, on the other hand, if it is for an economic space and is well negotiated, can open up space to expand the family’s savings. Furthermore, it is important to know that there is no down payment to pay, that is, more money will be available to invest. If in the future there is an interest in buying a property, the income from these investments can help to pay.

It is important to note that these factors only serve as a basis for making a decision and other factors can be decisive. If we take into account that the property can appreciate in value, this variable must also be accounted for at the time of decision. Some other intangible benefits such as prioritizing a feeling of security and stability must also be analyzed.

The property is a property desired by many and due to its value must undergo a careful analysis. Searching for rents in different regions and financing in different banks can bring less onerous values. Remember that choosing a property and deciding whether to rent or finance it takes a lot of time and should be done with caution.

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