Is it worth buying an apartment on credit?

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Many young people dream of their own apartment. However, not everyone has enough savings to be able to afford them. Then the first thing that comes to our mind is to take a mortgage. However, is taking a loan worth buying? Advise.


Loan installment cheaper than rent – are you sure?

Loan installment cheaper than rent - are you sure?

Taking a mortgage is a serious decision that involves a commitment to the bank for at least 20 and sometimes even 30 years. It is a very long time and the decisions we make when they seem favorable to us, in a few years can cause us a lot of trouble. Many people argue that taking a loan in such a way that its installment is similar or even smaller than paying someone for rent. However is that true? After all, if that were the case, everyone would own the apartment and there would be virtually no such thing as renting an apartment.

Whether the loan installment will actually be lower than the rental price depends mainly on the interest rates of the National Polly Bank. It should be taken into account that even when we take out loans they are low, this is not a permanent situation and may change in a few years. The increase in interest rates will translate into higher loan installments, and hence the rental price may be lower than paying monthly mortgage installments. It is not true that credit is always a cheaper and more profitable solution than renting. The situation on the financial market can change dramatically and in a few or several years the mortgage interest rate may increase by a few percent.

This is used by people who rent flats and offer real estate for rent at a lower rent price than if we were to pay the loan installment.


Advantages and disadvantages of buying an apartment on credit

Advantages and disadvantages of buying an apartment on credit

Now you know how to get a loan for an apartment step by step , but still in your head numerous doubts arise? You must know that the undoubted advantage of taking a mortgage to buy an apartment is that we have our own corner and do not finance someone else’s investment, only our own. After repayment of the loan for an apartment you will have your own four walls, from which no one will chase you, and you will be able to do with them what you want, for example, to rent and earn.

Buying an apartment on credit, unfortunately, are not just advantages, they are also disadvantages that you need to know about. First of all, taking a loan for an apartment for such a long period, you are less mobile and you can not afford to travel abroad or moving out as easily as you would when renting an apartment.

A mortgage is a long-term commitment, and the decision that we think is good at a given moment in a few years may be a hiccup, because, for example, we will not earn enough to cover the monthly installments. However, if you are sure that you finally want to go your own way and know how to get a loan for a apartment step by step, then nothing prevents you from taking it.