Lease or mortgage is more profitable?

Lease or mortgage is more profitable?

Despite the fact that the mortgage is developing quite slowly, more and more of our compatriots choose the purchase of housing on credit. But the rapid increase in real estate prices leads to the fact that such a purchase becomes impossible for many people even for borrowed money, as a result, the purchase is often deposited for an indefinite time and prefer to rent an apartment and eat Tanuki in the restaurant.

First of all, such a turn of events can affect young families who cannot afford the purchase of real estate either due to low earnings, or simply not complying with the requirements of the state program “Affordable housing to young families”. For such families, renting an apartment remains the only option. Of course, to live in someone else’s rented apartment and have their own living space – these are two very big differences.

Having rented an apartment or room, people are forced to put up with the conditions that the owner of the housing sets, who can easily suddenly increase the rent or even evict you, having refused further accommodation. And then you will have to look for new offers and once again worry all the “charms” of the move – these sensations are familiar to many. In this perspective, the rented apartment significantly loses its own housing, even still in a bank pledge.

Well, what can be considered more profitable in terms of finance – a mortgage or rental? We decided to find out in a relaxed atmosphere, going to sit in Yakitoria. It is not very difficult to solve such a issue, especially in a good institution and in a good company. Suppose you received a mortgage loan for a period of 10 years with the aim of buying a one -room Moscow apartment for 150 thousand dollars, a monthly payment will be about $ 1,700, and renting a similar apartment would have risen no more than $ 1,000 per month.

Now suppose we preferred to rent an apartment at this price, and save $ 700 every month to buy our apartment. Taking into account the interest of the bank, in 10 years you will be able to accumulate about 100 thousand dollars at such a pace, which is clearly not enough to buy such housing. If you add all mortgage payments for this period, you get about 200 thousand dollars. And if you make a monthly rent, as well as accumulations, then about 200 thousand will be released, but taking into account the fact that the amount you need for the purchase will not work for this period, especially if you are going to eat in the Japanese restaurant every day, if you decide At all costs, purchase your own housing, it is still better to cook and eat at home, and put the saved money to the apartment. It can be concluded that a mortgage in such a situation would be much more profitable.

It goes without saying that this is a very approximate calculation. After all, we do not know how for the indicated period the rental rates will change, how this apartment will change in price, what will happen with interest on bank deposits and much more. But there is another important argument on the side of the mortgage solution: if the cost of housing is increasing (which has been happening recently in the real estate market), then loan payments can be compensated by raising prices, so a mortgage can even become profitable.