Real estate, buy or rent: which is the best option?

Currently, both renting and buying a house or apartment has become easier. There are different real estate agencies, types of financing, contracts and different payment methods, including even property exchanges.

And of course, having financial planning is essential, not only to help with your decision, but also to reduce the possibility of regrets.

So, to help with this decision, here is a special guide with positive and negative points that each one presents. After all, both renting and buying have their benefits. The cool thing, however, is knowing which option is best for your profile and condition.

• Then, also check out: Why is having a regularized property good? Do you know what it means to have a regularized property? In addition to the various benefits that this action can bring you, not having it can generate fines and unforeseen events, especially for those who intend to sell or rent the property. Find out everything about how to regularize, as well as the advantages and disadvantages!

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Millions of Brazilians dream of having their own home. But is it worth it more than renting? Check out the advantages and disadvantages of buying a property below.

Benefits

It’s yours

Firstly, the property is yours and will be an important step in building an asset. Well, having a property in your name will bring you numerous benefits. In addition to showing stability in obtaining loans, new assets, among other possibilities, it could also open many doors in the banking sectors and also give greater confidence for investments.

Therefore, it is very worth making a sacrifice, with planning and savings, to take this important step in your life. Since, often, the value of the rent can be equated to the value of a home installment. In the case of installments, in the end the asset is yours, while the rent is not.

Freedom

Unlike a rented place, you can make any changes you want. Be it structure, furniture, home investments, etc. This way, your corner stays just the way you want it and depending on what changes you make, this can even add value to the property.

Stability

Having your own property is synonymous with stability. So, it’s a great way to start a family. And a great option for when you’re committed to a job in a city. In other words, with a steady job and an effective financial income, it becomes easier to cover the costs of a property, as well as financing if necessary.

But, if you have a more nomadic profile, the property can also bring possibilities such as renting, if you want to travel around the world, thus generating income and a certain financial security.

Disadvantages

Pricing

To buy a small house you will have to pay a large amount. And the higher the down payment, the lower the financing required. Some professionals in the sector say that purchasing is not the best option for those who have less than 50% of the property’s value as a down payment. This is mainly due to the fees that will be paid on financing. Check it out below.

Therefore, the big tip is to save and plan. Thus, you will make a sacrifice in the present, so that you can enjoy a great advantage in the future.

Financing

There are few people who will be able to avoid financing when buying a property. And of course, it makes it much easier for those who want to buy a little place to live and call their own. So you can ask for a loan and pay the bank little by little.

However, it is clear that banks do not lose out in this. They typically raise rates to accommodate customers who don’t have money saved or invested. This is because they understand that there is a greater risk of non-payment of installments. The tip is to always ask for financing from banks that you already know, have an account with or transfer some money to, so banks will have greater confidence in granting the loan.

But of course, depending on the amount financed, remember that you could end up paying two to three times the loan amount. And the property will only really be yours, after the term of financing.

Investment?

According to experts, despite it seeming like an investment, you must bear in mind that a property will have expenses, maintenance and may also depreciate in value. However, the real estate sector in Brazil is one of those that loses its value the least, so this should not be an impediment. However, if one day the owner is going to sell it and wants to do so quickly, the price may have to be much lower than intended.

To hire

This option has gained more and more value. Because, compared to financing, renting becomes a very good option, especially for those who have money saved.

Benefits

Price

In a rental you won’t have to pay a large amount at once, and the values ​​vary greatly. In other words, you can find rentals from R$500.00 to R$10,000 depending on location, size, whether there is furniture or not. So, just choose what you like best!

Best way not to lose money

This is because, for example, if the person has a good amount saved or invested, considering the profitability that exists above, they can only use the interest to rent a property, and continue with the value intact and invested. Becoming a great way to not lose money. Any maintenance and expenses of the property must be borne by the owner. So, it won’t come out of your pocket.

You can apply or invest your money

Instead of spending your money on a property, and perhaps even needing financing, by renting you can continue saving, investing and investing your money. Which can guarantee good profitability and interest earnings. In addition, you get other advantages such as exemption from property taxes, better bank score, easy loans, fees and overdraft for emergencies. And this will consequently give you better conditions to invest and buy some good.

Temporary change

Renting is a great way to have a little place without long commitments. In other words, for those who tend to change cities a lot or don’t yet have a steady job, renting until they settle down is a great option.

Disadvantages

It’s not yours

In the same way that this is an advantage for buying, renting becomes the first disadvantage. After all, you won’t own it. Therefore, after the contract expires, you can renew or you will have to look elsewhere. Another point is that as it is a contract, the value may be subject to annual adjustments.

Reforms?

As the property is not yours, any changes to the structure and furniture will have to be permitted by the owner. And an inspection must always be carried out when entering and leaving the property, so that everything is in compliance when handed back to the owner.

Thus, investments, such as custom-made furniture, can be “wasted money”. After all, you will not receive anything for this when returning the property. One way to return part of the amount invested is to sell the furniture, however the return will be much lower.

Rent or buy?

It depends on your situation and finances. Buying a property is a very large investment, but you will have a property in your name. On the other hand, renting does not require such a large initial investment, but it does not have such a significant return for the person. But, for those who are unable to obtain financing or are always moving to another city, renting can be a valid option. After all, it allows you to save more and perhaps get the full amount for a future purchase.

So, which one is best for you? Buy or Rent? Have you ever thought about living in a condominium of houses? Check out the advantages. Finally, leave your comment and if you want more tips like these, don’t forget to take a look at our Fashion Bubbles website. Here we present the best tips to help you make the best choice!