Compared to the installment of a home loan, rent was considerably more expensive, but the difficulty of accessing a mortgage and obtaining the necessary provision for expenses made it difficult to afford home ownership.<\/p>\n\n
House purchase was seen as the investment of a lifetime<\/strong>, a safe roof for the family<\/strong>, very much unrelated to the \"economic\" conception of investing in bricks and mortar.<\/p>\n\nBolstered by this legacy, the younger generations who are now house-hunting have this belief embedded in their minds, but let's look at some socio-economic aspects<\/strong>:<\/p>\n\nIt used to be:<\/strong><\/em> people started working at a young age, in the same workplace, and retired with the same company, which employed purely physical labor, requiring proximity to the workplace<\/p>\n\nToday:<\/strong><\/em> companies open, close, or are acquired of within a few years, work can often be done online, without the need to live near the workplace, people are more likely to change jobs and move cities<\/p>\n\nOnce upon a time:<\/strong><\/em> people had many children, traveled little, tried to provide stability for the family by choosing a place to reside and where to raise future generations<\/p>\n\nToday:<\/strong><\/em> people travel a lot, they change their ideas and lifestyles, far fewer children are being had, and stability is a less \"static\" concept than it used to be.<\/p>\n\nIn recent years, the low cost of money has brought the false illusion<\/span><\/strong> that a mortgage payment lower than the rent is always a source of savings<\/strong>.<\/p>\n\nWhat people do not consider is the time factor<\/strong>, which is crucial to a cost-benefit analysis<\/strong>.<\/p>\n\nWhen compared with the frugal lifestyle of our parents and the timeframes between changing homes, (once multiple generations grew up under one roof) the rent-purchase ratio, also strong with a very wide gap, was to the undisputed advantage of the mortgage payment.<\/p>\n\n
Is it worth living in a rental?<\/h2>\n\n If we try to compare ourselves with the modern needs of a potential home buyer, we cannot exclude that in a time frame of 10 years<\/strong> (in some cases less), the need to relocate for heart or work-related needs may arise. If we spread all the upfront costs of a purchase (taxes, charges, commissions, extraordinary maintenance expenses, furnishings, improvements etc.) over 120 monthly payments<\/strong> we will find that the total is not less than any rent. Moreover, with low inflation and market fluctuations, it is not uncommon to find people who bought at 100<\/strong> and then resold after 6\/7 years<\/strong> with losses<\/strong> in value of<\/strong> 20\/30 %<\/strong> (sometimes even more). <\/p>\n\nToday I can say, almost with certainty, that if you bought a house between 2006 and 2011\/12 <\/strong>today you end up with a property that has quietly lost more than 10 percent<\/strong> in value compared to the price you paid to buy it. Assuming you did not make a very good deal at the time by buying well below market values at the time. <\/p><\/blockquote>\n\nFlexibility, a <\/strong> term we often find in the modern narrative, is also a quality that a rented house can offer you, while an owned one cannot. A rented house you can change it as needed and with ease, without great expense, while an owned property may suffer many unknowns related to the price that will be realized and it may be less easy to find a buyer based on the characteristics of the house. <\/p>\n\nClassic example: pain-in-the-ass neighbors<\/strong>. If you are renting you just pick up and leave, but if you own the house what do you do?<\/p>\n\nMany times I have found myself selling properties purchased superficially by people who thought they had made a bargain, which proved at the end of the day to be a net financial loss<\/strong>.<\/p>\n\nBasically, there is no adequate answer to the question \" better to rent or buy?<\/strong>\" because each subject's assumptions are varied and multiple. If you might move within 10 years, perhaps buying is not the ideal solution for you. If, on the other hand, your affections are well located, your place of employment is permanent (in the broad sense of the term), and you already have a family with you, then buying is a correct solution for your long-term thinking. <\/p>\n\n<\/h3>\n\n <\/p>\n","protected":false},"excerpt":{"rendered":"
If I had a euro for every time a prospective buyer of an appointment property tells me: \" I want to buy a house because money spent on rent is money wasted!\" Today I would not be here blogging but would be lying on a white beach with a cocktail in my hand, like the […]<\/p>\n","protected":false},"author":2,"featured_media":8020,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[262],"tags":[],"class_list":["post-11388","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-buying"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.alessandropasqual.it\/en\/wp-json\/wp\/v2\/posts\/11388","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.alessandropasqual.it\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.alessandropasqual.it\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.alessandropasqual.it\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.alessandropasqual.it\/en\/wp-json\/wp\/v2\/comments?post=11388"}],"version-history":[{"count":1,"href":"https:\/\/www.alessandropasqual.it\/en\/wp-json\/wp\/v2\/posts\/11388\/revisions"}],"predecessor-version":[{"id":11390,"href":"https:\/\/www.alessandropasqual.it\/en\/wp-json\/wp\/v2\/posts\/11388\/revisions\/11390"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.alessandropasqual.it\/en\/wp-json\/wp\/v2\/media\/8020"}],"wp:attachment":[{"href":"https:\/\/www.alessandropasqual.it\/en\/wp-json\/wp\/v2\/media?parent=11388"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.alessandropasqual.it\/en\/wp-json\/wp\/v2\/categories?post=11388"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.alessandropasqual.it\/en\/wp-json\/wp\/v2\/tags?post=11388"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}