Owning a home was once everyone’s dream. In the collective imagination, one of the obligatory steps to consider oneself a quite accomplished person was the purchase of the first house.
Diploma, possible degree, permanent employment, home owned and family: here, roughly, what until a few years ago was seen as the culmination of a life, so to speak, satisfying.
Many things have changed today. First of all, more and more often the study paths turn out to be long, because by now there are many professions that require a degree (while until a while ago only a high school diploma was enough). Furthermore, the world of work has completely changed. If until a few years ago finding a permanent job was not so difficult, even for non-graduates, now it is absolutely not the case anymore.
It is not easy even to be able to find fixed-term jobs, let alone indefinite ones. Also for this reason, very often we find ourselves having to move to other cities, or even to other countries, to pursue the dream of being fulfilled by speaking.
Do you necessarily have to buy a house?
Consequently, even what was once seen as a primary objective, namely the purchase of the first home, is not necessarily considered as such today. It depends a lot on the situation, and that is why you must certainly clarify your ideas before taking such an important step and, above all, let yourself be guided in choosing the most suitable solution by some expert, serious and reliable expert in the sector.
To read: what you need to know about the preliminary sales contract
When it comes to choosing a new home, whether it is to start a family or simply because you “grow up” and want to go and live alone, basically you are faced with a crossroads: buy or rent? It is not just a question of availability, since there are solutions to buy even if you do not have aside who knows what capital there is. It is precisely a question of understanding what one’s priorities are, the objectives that one has in mind, in short, the lifestyle that is outlined on the horizon of one’s existence.
Therefore, there is no right choice by definition. What may be more suitable for one person may not be for another person, and vice versa. Both opportunities have strengths and weaknesses that need to be carefully evaluated and weighed before reaching a decision which, in any case, represents an important step.
Rent or buy?
Opting for rent has the obvious disadvantage that it consists in having to pay monthly money in order to then, one day, not find yourself owning anything. On the other hand, however, it is a solution that offers greater flexibility: you can decide at any time to change, in case of moving elsewhere or simply because we like another apartment, you can face a change more lightly as it can be. , for example, that of a new job offer in another city, and so on. It is not that a house of your own prevents all this, God forbid, but it certainly involves greater constraints and greater difficulties in the very moment in which you find yourself having to sell, perhaps with very little time available.
In short, choosing to rent rather than buy is a possibility that has its pros and cons: in general, it may be the preferable solution if you already have a rather temporary accommodation in mind, destined not to last too long. Paying rent for 20 or 30 years does not seem to be, however, the best choice since, as already mentioned, it is true that the monthly rent could also be reasonable and not burden too much on the shoulders, but in the end, you would find yourself with a punch. of flies: not a house where you can spend a quiet old age, without the worry of being evicted for some reason, nothing you can bequeath to your children or grandchildren … nothing at all.
Buying a house, on the other hand, can be a real investment, but even in this case, there are many factors that must be evaluated. Meanwhile, whether you take out a mortgage or you can pay in cash because you have some liquidity, buying a property obviously reduces the investment capacity. We must therefore ask ourselves: is this what matters most to me? Or is my dream to invest, let’s suppose, in some work activity, and therefore I prefer not to block a large part of my capital in a house? If you have plans for the future that provides for the investment of large amounts, taking out a mortgage or spending a large part of your capital, you will inevitably preclude other opportunities. By taking out the mortgage, it is unlikely that banks will be able to help support other investment initiatives. And, by paying in cash, it goes without saying that the capital will be reduced accordingly.
Also from this point of view, opting for a rented home could be a solution capable of guaranteeing greater freedom, that is to say the possibility of being able to dispose of one’s savings in another way.
To learn more: our tips for renting a house
Moreover, another variable to take into account when deciding to take a house, whether it is to rent or to buy, is certainly the position, the state of conservation, etc. These are all aspects that can obviously affect the purchase or rental price, but which can also be decisive when and if you will find yourself in the situation of wanting or having to leave that property. This is why, even more so, it is always important to turn to valid consultants who know how to give the best advice, thinking from a perspective that takes everything into consideration, from a 360 ° perspective: real estate market, financial opportunities, etc.
Real estate leasing and mortgage, what to choose?
Precisely with regard to the various financial possibilities, when you opt for the purchase, there is not only the classic mortgage as an alternative to liquidity.
In recent years, we hear more and more frequently about real estate leasing: in practice, it is a form of financing that allows you to dispose of a certain asset (in this case, a property) against the payment of a periodic fee to a bank or to an intermediary, having the possibility of acquiring ownership at the expiration of the contract, adding a previously agreed redemption sum.
Leasing was born above all as a form of purchase of other types of goods, such as vehicles, machinery or industrial tools. Lately, however, it is gaining ground as a valid opportunity also in the real estate sector, especially to facilitate the purchase by those who do not have large financial resources.
This formula also provides for the possibility of deciding, in the end, not to redeem the property and therefore to return it, or you can also choose to renew the contract, perhaps reconfirming or modifying the conditions contained therein.
But what are the differences compared to a traditional mortgage? What advantages or disadvantages can there be?
Let’s say that the convenience of real estate leasing lies first of all in the fact that the financed amounts are usually higher, to the point of even reaching 100%. It is also true, however, that the durations are generally shorter than those of the mortgages and the installments to be paid, in principle, are instead more sustained.
Therefore, when you find yourself having to identify the best solution to buy a property, you need to compare the convenience of a lease with that of a hypothetical mortgage, carefully evaluating every aspect. For example, mortgage rates could be in a good period, that is, be quite low, and this could be an important element to consider before making such an important choice.
All the considerations made so far are especially valid when evaluating the opportunities that the market offers regarding the so-called first home. The speech can be very different, however, if it is a question of buying a property as a second home or as a real form of investment, for example by renting it. In these cases, there is a whole series of other assessments that must be carried out wisely to be sure not to make any false steps and that it is really convenient to have owned properties.