Real estate and property news, just for you!Draw Plan
The real estate market is huge. First, because everyone wants to own their house or apartment. Because rents in big cities are becoming more expensive. And because you can not decorate your home as you wish. For example, some homeowners prohibit tenants from planting nails in walls. And if the tenant does it, the landlord asks for compensation money.
These are not the only reasons. Borrowing rates are historically very low because inflation is low and the economy is good. Bringing money is interesting because you do not pay much interest.
Then you have to make a profitability calculation. Estimate the total amount of rent for 20 years, and compare it with a loan to buy his property. The calculation is quite complex because it is necessary to estimate:
- The evolution of the interest rates,
- The family stability (a divorce, and the calculations are to remake completely …),
- The evolution of the place in which you live ( construction of a railway line nearby,a road,a shopping center, a school),
- The passage of planes above,
- The presence of termites.
There is no hard and fast rule about whether to buy or rent a property. We can just give some indications. For example, buying in a big city is often better than renting. But it is sometimes very expensive and even impossible, like:
- New York
- San Francisco
And if the rent is much lower than the repayment amount of a loan, it may be better to pay rent and keep the rest of the money to enjoy life.
Just a piece of information that can help you: if you want to buy a house or an apartment, you know that the price will depend on the surface of the property. And a difference of a few square feet or square meters can vary the price. One solution is to buy a laser range finder, which is not too expensive, and put these measurements in a house plan software as an archiplain. If the real estate agent does not want it, negotiate to take at least the measurements of one or two rooms and say that it is to be able to arrange the furniture.