Constant high prices of real estate, including flats, do not encourage you to buy your own housing, especially with money borrowed from the bank. Unfortunately, many people, families face a dilemma, whether to rent an apartment? The monthly cost of renting an apartment can be comparable to the amount of the monthly installment for a housing/mortgage loan.
Thus, many people wonder whether it would be better to take out a loan to buy their own apartment, and instead of paying the installment to the bank every month? At first glance, such an idea seems to be successful and for brave and resolute people easy to implement, but it is worth considering for a moment, not so much about our own future as the fate of our country, economy, and even demographics.
The low level of interest rates
This means that the home/mortgage loan is basically cheap. However, one should consider whether these rates will not rise tremendously and whether our monthly loan installment will rise significantly? The second thing is our today’s earnings, will they be high enough to cope with the situation, if the installment will increase?
However, if you decide to take out a bank loan for your own home, you may also benefit. If the situation in the country does not change significantly in the coming years (at least during the repayment period of our loan) then buying a flat today, we will be in 15-30 years happy owners of their own four corners. However, when renting an apartment during this period, we will remain in the place where we are today paying for rent indefinitely.
The housing market may change dramatically in subsequent years
The government intends to build flats and affordable them rent. What’s more, because of the dramatic demographics in many cities in Poland, rental rates will fall, e.g. due to the gigantic decline in the number of students.
This means that our cost of renting an apartment today can be significantly reduced, which unfortunately will not happen in the case of a monthly installment of a housing loan.
A good idea today maybe buying a rent-free flat on credit. In addition to the monthly installment of the loan taken out for its purchase, only costs such as utilities, water, electricity, or any fee to the housing community will remain payable – without having to pay the rent. It can be an alternative to living in a flat, in which the tenant pays not only that the installment of the loan (or rent for the tenant) is also rent.