Greetings, dear friends! The topic of today's article will be interesting and useful to almost everyone. Many young families, people who move to other cities and simply young people who are finally deciding to fly out of their parents’ nest, one way or another face a dilemma - to buy an apartment or rent? Whatever decision is made, both have the right to life. Moreover, often the choice has to be made based not only on life circumstances, but also on the time frame, and most importantly, on the amount of funds available to purchase real estate. However, there is a number of universal landmarks, with the help of which you can make the right and most profitable choice. I invite you to look at the pros and cons of each option with me.

Rented housing

To decide what is more profitable - buying an apartment or renting it, you need to weigh the pros and cons of these options. I think it’s worth starting with real estate registered for rent. If you have been thinking about renting an apartment for a long time, it is quite possible that my arguments will help you make your final decision.

Pros of rented housing

Life story

One of my friends rented a one-room apartment in Moscow for 23,000 rubles per month. After some time, the homeowner decided to sell his property. Since the girl really liked the apartment, she decided not to part with it and became its buyer. Considering that the sale was without intermediaries, exclusively face-to-face, the owner asked for 6.5 million. I’ll say right away that the price is quite reasonable for the capital. The tenant had only a million in her hands. That is, another 5.5 million remained to be found.

The down payment that the seller requested was 20% of the total value of the property. Despite the fact that most banks refuse to issue loans in such cases, my friend was lucky. She had an excellent job, a decent “white” salary, and therefore the bank met her halfway and issued a loan. The loan was issued for a long period - for whole 20 years. The interest rate was 13% per annum. Carrying out simple calculations, we get that monthly the girl needed to return the jar of order 65,000 rubles. We add to this amount annual insurance, rent - all those expenses that previously fell on the shoulders of the apartment owner. And given that the fabulous prospect of increasing property taxes appeared on the horizon, the buyer would also have to pay it.

Let's assume that the 23,000 rubles for which the girl rented the apartment is below the market price, and soon the amount would increase. However, no matter how you look at it, it would not have risen to the level of mortgage payments (not to mention additional markups). Of course, we can reduce our mortgage payments as much as possible if our down payment on the apartment is larger. Let’s assume that the heroine of this story had 6,000,000 rubles available on hand, and therefore only 500,000 rubles would need to be borrowed from the bank. Of course, the payments on such a mortgage would be very small. However, this is far from the most correct conclusion. After all, firstly, we need to have a huge amount of money on hand, and few people know how to save for an apartment without a mortgage. And secondly, if you’re going to do the calculations, do it as correctly as possible.

The average interest rate on deposits is 10-12% per annum. Just imagine, if you place your free 6,000,000 rubles in a deposit account, you will receive 50-60 thousand rubles a month. This amount will be enough for you not only to pay rent, but also to buy food, clothing and much more. In addition, if you know, you will find a more profitable option for increasing your free money and provide yourself with more passive income. If we look at renting apartments from this perspective, it becomes obvious that this option for interacting with real estate is much more profitable than a mortgage.

Disadvantages of rented housing

Mortgage housing

Well, now let’s find out whether it’s worth taking out an apartment on a mortgage, what strengths and weaknesses this option of interacting with real estate has.

Advantages of own mortgage housing

Cons of a mortgage

Mathematical digressions

To evaluate all the possibilities of a mortgage, it’s worth adding a few numbers to our discussion. Although we previously calculated the financial benefits of rented housing, we did not mention that inflation processes lead to an increase in rents, But no way do not apply to mortgage payments. This is due to the fact that their size is fixed in the contract. That is, when you decide to take out a mortgage loan with an annual interest rate of 10-13%, you thereby fix the price of the property.

Since you are now a homeowner, the money you previously paid for rent can be put aside to pay off your mortgage early. If we take as an example the average rental rate of 35,000 rubles monthly, then literally in 10 years a quite decent amount of funds in the amount of 4.2 million rubles will accrue. Reduce or increase this number depending on your region of residence. Just think, you didn’t use this money to make a down payment on an apartment, you didn’t spend it on buying any property, but just dropped into nowhere!

In addition, for some reason everyone forgets to say that over the 10-20 years during which you will pay off your mortgage, the cost of your apartment will increase several times, and money will become cheaper. For clarity, I’ll tell you one story: in 2000, a three-room apartment in the Arbat area with a total area of ​​80 sq. m. m. could be purchased for $100,000. At the old rate, this would have amounted to a little more than 3 million rubles. Today the same apartment costs about 22 million rubles. If we take a city with a population of 35,000, then apartments cost 100-150 thousand rubles, and now they cost 1-1.5 million. Now think about what is better.

A few calculations

Let's look at a few examples that will help us make a final decision and understand how to take out a mortgage for an apartment.

Example No. 1

Let's assume that you have found a wonderful one-room apartment in the Moscow region. The cost of housing is 5 million rubles. An initial fee - 2.5 million rubles. You need to borrow another 2.5 million from the bank. 12% per annum.
Every month you have to pay the bank 25,000 rubles.

Over 18 years you will pay the bank 5.4 million rubles. Even if we assume that inflation will be minimal and will not exceed 5% for real estate, and your housing is liquid, then over these 18 years the cost of the apartment will increase to 9.5 million rubles.

a loan is quite a profitable event. And if we add here another 13% of the principal amount of 2 million rubles (the maximum amount with which you can get a deduction under the current law) in the form of a tax deduction in the amount 260 thousand rubles And 13% of 2.9 million interest paid on the mortgage (maximum amount for the interest part is 3 million rubles) in the amount 377 thousand rubles, in the end we will succeed save 2.237 million rubles based on:

9,5-2,5-2,5-2,9+0,260+0,377=2.237 million rubles

Example No. 2

As a rule, fans of rentals say that a one-room apartment on the outskirts of Moscow costs approximately 6 million rubles. If 80% of the required amount for its purchase is borrowed for 15 years, then, taking into account the current mortgage rate of 12%. Every month you will have to pay 48,000 rubles to the bank. Considering that the rent for such an apartment is 25,000 rubles per month, the benefits of renting are obvious. In general, if you believe this calculator, and make the financial costs of rent constant, then you can rent this apartment for 32 years without knowing grief. But there is one very cunning trick in these calculations - “ if the rental price does not change».

Let's now do a little recalculation, assuming that annual inflation rate is 5%. In this case, the price of our real estate will increase to 10.5 million rubles. Let’s add here the fact that during this time the rental price will rise to 43,750 thousand rubles per month and we get that Every year more than half a million rubles go into waste!

Undoubtedly, in this case, the average price of rented housing will increase in 15 years only to 36,000 rubles. But, according to statistics, people pay off mortgage loans in 7-8 years. So the actual payment to the bank will actually be much less.
Let's summarize all the examples with one comprehensive mathematical comparison of rent and mortgage. For calculations, let’s take an abstract apartment, the cost of which is 3 million rubles, and the rent is 20,000 rubles monthly.

An initial fee

Mortgage

Most people are trying to find options on how to buy an apartment without a mortgage, only because they do not have substantial savings to pay the starting fee. Considering that this amount is approximately 15-20% of the total cost of the loan, in our case it will be approximately 450-600 thousand rubles.

However, today there is an option don't pay the entry fee at all. Some banks offer the possibility of obtaining a loan without a down payment. However, in this case, the mortgage interest rate will be slightly higher - about 15%/year.

Rent

May cost differently depending on your specific situation:

• If you independently found an apartment to rent, then you will need to pay the owner money for the first and last month of your stay. That is 40,000 rubles
• If you have a good relationship with the landlord, it is possible that the security deposit for the last month could be reduced. For example, it will be 10,000 rubles. Thus, you will have to pay 30,000 rubles
• If a realtor was looking for an apartment for you, then you will have to pay 50-60 thousand for rent

Monthly payment

Mortgages scare many people with their hefty monthly payments. I offer you several payment options based on the characteristics of 3 categories of borrowers:

• people with little income and no savings
• those who have savings and want to get rid of the loan as quickly as possible
• intermediate

Let me remind you that banks fix payment amounts until the end of the mortgage payment.

Renting implies an annual increase in the monthly rent. Considering that on average inflation is growing by 4% per year, and it is impossible to predict the landlord’s appetite in advance, I propose to use the same time frame for calculations that we used when calculating the mortgage. To do this we use the formula:

S2018= S2017 * (P2017 + 100) / 100

In this case:
S– this is the cost of one month’s rent;
P– inflation rate of a particular year.

Let's assume that inflation growth in the next 25 years will be stable and will not change. From here we get:

Thus it turns out that in the short term, rent wins, and here in the future – mortgage. Since the loan payments are fixed, it will be easier for you to pay off your mortgage each year due to inflation and potential wage increases. Such simple and natural economic processes independently solve the problem of how to save for an apartment.

Final result

Perhaps the main argument of mortgage opponents is the large amount of overpayments. I suggest you compare final amounts on loans and leases, taking into account the official inflation forecast. I would like to note right away that we will not change the interest rates and start-up fees for different mortgage terms: they will all correspond to the data in the first table.

Total amount calculate using the formula:

S2017*10+S20.18*12+S2019*12+…+Sn-1*12+Sn*10

Where n This is the last year of the lease.

Since it is now February, we use this year and the year of the lease expiration for calculations. 10 months.

It turns out that the difference between a mortgage and renting a home for 10 and 25 years will be 0.5-1.9 million rubles. Moreover over 20 years, the mortgage will be even more profitable according to the figures. But you must admit that the results of these payments are not equivalent: in one case you will get your own real estate at your disposal, and in the other you will continue to replenish someone’s wallet every month without receiving the final result.

How to save for a down payment on a mortgage?

I'm just sure many of you are wondering this question. I want to say right away that I will not cover this topic in this article, since all the information you are interested in will be posted in my review “How to save for a mortgage.” The only thing I want to tell you is about reasonable savings. Try to balance your debit with credit and learn to save money. I already wrote once. I strongly advise you to use it and reconsider your budget.

Results

In my opinion, the only significant disadvantage of owning your own home is its cost. In most cases, you can only purchase an apartment or house with a mortgage. And who wants to get involved in a credit relationship with a bank for several decades? That is why we have to admit the undoubted advantage of rented housing. In addition, renting an apartment is an opportunity to change your life and move at any time.

However, considering that we do not live in the USA, not everyone needs to move away from their home. Those who have a good permanent job or their own business are in no hurry to go or run somewhere. Such people are already entrenched in one place and are not interested in changing the situation. It is they who are concerned about the issue of acquiring their own permanent housing. Besides, Constantly paying rent is tiring. After 20 years of regular payments, we still have nothing left. Then what's the point of this? Isn’t it better then to get a mortgage and work towards a specific result in the form of your own real estate? Share your point of view in the comments under this post and don’t forget to subscribe to blog updates. See you soon!

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Each of these options has its pros and cons. Let's try to figure this out.

Dormitory

Many parents and even future students themselves are sometimes scared by one word - dormitory. Parents may remember their student years in the dormitory and what liberties they allowed themselves. Now they are worried about their own child, who is being released from under their “wing”.

A new student is probably more worried about the amenities that he will lose if he lives in a dormitory. After all, there is only one toilet and shower for many people, and in the morning there will definitely be a queue.

Yes, the hostel has many disadvantages:

These are shared amenities (toilet and shower), and it will be difficult to get there freely.

There is a shared kitchen where everyone prepares their own food, but this can be attributed to both disadvantages and advantages. After all, here you can learn, for example, new recipes or learn how to cook if you don’t know how to do it.

In the hostel you will have to follow the internal regulations and rules. Namely: after a certain hour, the doors of the hostel are closed for the night and if you stay late, you will hardly be able to get there. You can also invite guests only at certain hours. The commandant of the hostel and the so-called educators exercise some supervision over you, and there is also a watchman in the hostel who also keeps order.

You will have to live in a room with one or two roommates who will not always take your needs into account. There will still be drinking and partying, such is student life.

If you are used to studying in silence at home, then you are unlikely to have such an opportunity here. And if your roommate snores every night, you'll still be going to class without enough sleep.

And the hostel itself may turn out to be old and long overdue for renovation, and this also leaves its mark on the amenities.

If you still decide to live in a dormitory, you must submit an application to the dean’s office in advance. After all, you may not have enough space, because there is a crisis outside and many simply do not have the means to rent an apartment.

The hostel has many advantages:

The main thing today is the price - you will also need to pay for a hostel, but this is several times less than for rented housing.

The hostel is a kind of school of life. Here you will learn to get along in a team, maybe adapt to someone else's character. Respect other people's interests, communicate, talk - these skills are especially useful for people who are shy by nature.

Here you can find true friends with whom, as they say, you will eat more than a pound of salt. Or maybe your love lives in the next room, and this often happens.

The hostel often hosts discos, and joint leisure also brings us closer together.

People from the same course or faculty are staying in the rooms, which means you can borrow notes from your neighbor and prepare for exams together. You can also ask senior students for advice or take some materials for preparation.

And it’s just fun in the hostel. Here you will definitely not be left without congratulations on your birthday, however, you will still have to treat your roommates.

Rental apartment

It would seem that there should be only one plus, there would be money. But it is not so.

You need to look for an apartment in advance, about a month before the start of classes. You need to consider several options and be sure to see everything in person. In addition, it is better if you choose an apartment together with your parents, because they should know in what conditions their child will live. And parents will also pay for rented housing, this happens in most cases. Another advantage of choosing an apartment together with your parents is the fact that the owners of the apartment will try to overcharge the price for an unremarkable apartment.

Advice: be sure to enter into a lease agreement in which you agree: the rental period, the amount of prepayment, the timing of payment for housing, etc.

If you are not ready to bear the cost of housing alone, then you can rent a house for two. Moreover, it will be cheaper to rent a 2-room apartment for two than a 1-room apartment for one.

Pros of rented housing

1. In a rented apartment, you are the full owner for the rental period.
2. You can come and go any time you need.
3. You can invite guests if permitted by the contract.
4. All amenities are at your disposal at any time of the day.
5. No one will bother you to study, sleep and relax.
6. The kitchen is also at your disposal, including a refrigerator, as well as a washing machine, which is also important.
7. You can also be calm about the safety of your belongings.

Possible disadvantages of rented housing:

• If you rent an apartment for two, then, of course, you will have to pay less, but you will not live alone. This, of course, is not a hostel, but you still have to take into account your neighbor and his habits.

• If you only have enough money for housing in the private sector, then the amenities will be minimal and, most likely, on the street.
• The apartment may be located at a considerable distance from the place of study and it will take you a long time to get there. This means you have to get up earlier, not always getting enough sleep, and you’ll also have to spend money on travel.
• You need to be extremely careful when using other people's household items, and especially household appliances. Because in the event of a breakdown, you will be billed for that too.

Where you live while studying is up to you. But remember that your student years come only once and you will remember them for a long time.

In the last decade, daily rental housing has gained great momentum. Today, in many cities, rental housing competes with hotels in popularity among tourists, and in some cities hotels are inferior in this fight. And it is quite easy to understand the choice of visitors; the cost of living in an apartment is lower than the cost of a hotel room with a comparable level of comfort. For the money you pay for a luxury room, you can rent a luxury apartment in a good area with a jacuzzi and other luxury attributes. In addition, people feel more comfortable in rented apartments; it feels like home, comfortable and familiar. Whatever price segment a person chooses an apartment in, he will get more for the same money than in a hotel.

In addition, in the last few years, a positive trend has emerged - real estate agencies that specialize in daily rental housing have begun to strive to provide their clients with hotel-level service. Enterprising and decent private owners have begun to show the same desire, because competition in this business is quite strong. By paying for accommodation in an apartment, the client receives a set of linen and towels, which are changed regularly, as well as all the necessary equipment that is offered in their hotel rooms and even more. After all, rented apartments have a kitchen with everything you need, which makes it possible to save a lot on food.

The next point that is quite important for our citizens is the freedom of action that an apartment provides. The client has no dependence on the hotel's operating schedule. There are no problems with what time a person will come to spend the night and who he will bring to visit. It is for these reasons that daily rental apartments are confidently squeezing out the hotel business on the market.
However, in order to fully enjoy all the benefits of such rental apartments, you must follow some rules when searching for them.

1. First of all, it must be said that if you want to get the maximum result for your money, then you need to look for an apartment in advance. Today there is the Internet, and booking accommodation on your own for a specific date is not difficult. Today there are specialized resources on the Internet where you can familiarize yourself with all the options, choose the most optimal ones for yourself, and decide on the spot.

2. If you have such an opportunity, then you should not be too frugal, especially if you are going to live in the city for quite a long time. You need to understand that economy class offers in most cases are intended for overnight stays.

3. Study the city at least superficially to choose the most optimal area of ​​residence for your purposes. Otherwise, you will have to move around the city.

“Anya is only 28 years old, she already has a husband, children and a two-room apartment in Novokosino. And you’re still renting an apartment!” It’s easy to understand mothers: they want their child to be settled. Even if the baby has turned 32. However, times are changing, a rented apartment is slowly but surely turning from the nightmare of all parents into a simple and convenient option. Of course, it doesn’t have as many advantages as the loft left as an inheritance by a second cousin, but it’s also enough. For example.

Favorite area under the windows

Let's be honest - few people move to Moscow or any other big city with the thought: “Oh, how wonderful it is that I have the opportunity to live in Bibirevo with a view of the Million Little Things store.” Most people dream of the Tretyakov Gallery around the corner, a coffee shop a five-minute walk from the Park of Culture, or sunsets over the river. Thanks to the crisis, prices for rental housing have dropped slightly, and now you can afford to live in the center. Or with a view of the embankment. Or five minutes from a beautiful park - in a word, exactly where you really like it. Yes, it’s more expensive than living in your own apartment, but you don’t have to spend two hours on the road, getting from the Moscow region by train.

Moving? Easily!

A stadium was built next to your house and now football fans are screaming chants about “Moscow shish kebab” so much that pictures are falling off the walls? Have you been offered a new job in another area (which, if you live in Moscow, equals “you have been offered a job in another city”)? Do you want to be closer to the beach in Serebryany Bor? Your own home is unlikely to allow you to quickly change your location. It’s like a persistent and demanding relative, with whom you sometimes want to sever all ties, but it’s difficult to decide. A rented apartment gives you freedom. You change the area, the interior, and at the same time you change yourself.

Down with the trash

An old Soviet wall that most likely still remembers dinosaurs and the October Revolution. Grandma's favorite teapot. A carpet on which numerous children, animals and aliens left traces. You look at all this and give up. If you rent an apartment, then a) you don’t have to accumulate trash, b) you can throw it away (the main thing is to agree with the owner). And sometimes, when excavating other people’s old mezzanines, you come across funny things: for example, a samovar, a gas mask, or Christmas tree decorations from the GDR era.

It's cheaper than a mortgage

If you don't have a couple of extra millions lying around, you've probably already calculated that a mortgage is quite expensive. Of course, if you take out a loan for square meters together with your husband, it won’t hurt so much, but what if you don’t have a husband? A rented apartment can be rented both with a loved one and with friends or complete strangers. It will be noisy, inexpensive, sometimes too fun, but definitely not boring.

Goodbye, sad life

Checking meters, fixing a washing machine or repairing batteries - all utility issues are decided by the apartment owner. He goes to the MFC or tax office, communicates with gas workers, and you just transfer money to his card once a month. And even if your neighbors flood you, again, it’s not you who will worry about it.