The choice between buying or renting a house will depend on several factors, not just the financial one. So, if you are undecided about which option is best for you, here are some advantages and disadvantages of each option to consider.
The Advantages Of Buying A House
It is building heritage. If you buy a house, you are investing in something that will be yours, thus increasing your equity;
You are free to carry out works that you consider necessary or want to improve the home (whether painting the walls, building outbuildings, changing the interior spaces, etc.).
It can be a good investment (if the real estate market offers attractive rates of return, you can resell the house and still make some profit).
The Disadvantages Of Buying A House
You have to bear the costs in addition to providing the house. That is, when you decide to buy a house, you have to be prepared for the fact that you have to ensure various additional charges, in addition to the monthly fee to be paid to the bank (if you use a loan); namely, taxes such as the Municipal Property Tax (IMI), paid annually, or the Municipal Tax on the Onerous Transfer of Property (IMT), paid upon purchase;
In addition, you will have to bear condominium costs (if applicable), insurance associated with housing, or maintenance costs, for example.
If the property can appreciate, also – on the other hand – there can also be a devaluation of the property. For example, if you buy a house during a real estate bubble or if the area surrounding the house shows signs of crime, it can cause the house’s value to decrease. This means that if one day you want to sell the property, you may be given a lower value;
Buying a house implies (mandatory) an excellent financial “cushion” to cover the initial down payment of the purchase and legal expenses with contracts, registrations, mortgage, bank fees, taxes and insurance, etc.;
It is limited to one dwelling. Especially if the purchase is made using a mortgage loan. This means that while you are paying the financed amount, you will have to take on these charges and, therefore, you will not be able to move house just because you feel like or would like to “change the air.” Search for Quadwalls for more information on buying a house in any area of your choice.
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