Is it worth buying a flat instead of renting one? - A constant question arises in the minds of the financially savvy in the real estate market. It is even more difficult to decide if it is about our grown up kid’s housing in his or her university or college town. Here are some of the main pros and cons of buying a flat for our college student.
Renting a room to tenants can help pay for the mortgage
Earlier several people used to decide to buy an apartment for college student kids. To turn the home purchase into an investment they used to rent rooms to tenants – in most cases to other students, kid’s pals - to help pay for the mortgage so the burden doesn’t completely fall on their shoulders. After the financial crisis of 2008 with tighter lending regulations and growing mortgages on the horizon, fewer people bought a condo for their kids. A downward trend in average selling prices also discouraged many.
In 2014, after the housing market turnaround, prices started to grow again, it became easier to obtain a home mortgage loan, moreover, rental prices significantly increased. As the economy continues to improve, young people (and their parents) are realizing that they’re spending the same on rent as they would on an actual monthly mortgage. No wonder that many are considering purchasing an apartment. Last year prices started to boom, which means it is worth precisely calculating the housing rates and the opportunity to buy an own home – points out the latest analysis of FHB Bank.
Pros and Cons of buying a property
Instead of renting a flat, an additional argument in favour of buying an apartment for our college student child is that access to credit is easier now, interest rates are lower thus, exploiting these possibilities one can purchase an investment property. If we buy an apartment for our child, legal charges can be reduced: under the age of 35 the charge is only 2% instead of 4%.
It is important to choose a good location for the apartment so we can rent it to strangers too if our kid decides to give up his studies, or wants to go on with his or her Master degree in another town or country.
Rentals are not only expensive but there is a shortage of them, especially in Budapest. Buying a condo can be a good way of solving our kid’s housing problem during his or her studies as well as we can choose a flat we like, which are all the more reasons for buying an apartment.
(Source: http://www.portfolio.hu)
Popular posts like this
