Real estate abroad: purchase or lease
If you are interested in purchase of the real estate abroad, but you are not sure yet of what is that it is necessary for you, perhaps, you should think of lease of housing.
Making the decision on, whether you should rent or purchase the house, it is necessary to consider two categories of factors. The first and most important category reflects financial aspects of your decision. The second category is a list of personal and emotional factors which are non-material, but play an important role in making decision on that, you will buy or rent. We decided to consider financial factors, including initial and further expenditure and also long-term benefits and shortcomings of the fact that you will become the owner of own house.
Calculation of own finance
The first step in decision making process is to define whether you can afford purchase of the house. Questions which you should consider include your capability to make the first contribution for a mortgage and to pay mortgage costs. These costs can significantly exceed initial contribution and the security deposit which will be necessary when you rent housing. Of course, the fact that you have enough money to cover initial expenditure for purchase of the house, is only a half of fight.
Before moving to the new house, you need to think of in what amount accommodation will cost you there after you lodge. Many financial experts recommend that your payments for a mortgage did not exceed 28% of your gross monthly income and that your general payments for debts in a month did not exceed 36% of your total monthly income. If you go beyond this framework, at you problems because in addition to monthly payments on a mortgage, you also have factor of payment of monthly maintenance of housing can begin. From carpets to curtains, new devices and a new roof – everything costs money, and nothing remains in start state eternally. Lease can easier affect a condition of your wallet as it provides the fixed monthly payments including on the contents which you just make together with lease payment. Except that the cost of lease increases from year to year, it is quite stable. And if there are problems in the maintenance of property, then the owner pays repair. And instead of spending the money for repair of a roof, you can invest them as it is pleasant to you.
If you made all calculations and came to a conclusion that you are able to afford payment of initial expenses and further to cope with all debts, the following step consists in solving whether this purchase will have for you a pecuniary benefit. Lease of apartments in New York or in the next suburb will cost cheaper in a month, than payments for a mortgage for purchase of apartments within the city. It is over, even while the monthly cost of lease is less, than purchase cost, there are certain long-term pecuniary benefits which also should be taken into consideration.
Long-term expenses / analysis of benefit
Supporters of purchase often speak about an opportunity to construct equity, about tax benefits and about the investment cost of the house, as about good reasons to prefer purchase to lease.
Though these arguments deserve attention, they also have the negative sides. For example, some part from that amount which you give for a mortgage goes straight on payment of construction of your real estate. You will nevermore see that money which you give for lease, and the house can become pledge for receiving the credit that allows you to transform property to money. However time is required to construct property, and the payments made during the first few years go, first of all, on a covering of percent on the credit. If you sell the house in a couple of years, then, in a washed-up result, can lose money.
Make calculations
Surely count all financial aspects of lease and purchase. On the Internet there is a set online of calculators which will help you to make it quickly and easily. Also you can address for consultation the professional. Estimate investment profit which you will be able to receive from the real estate, taking into account the annual growth of a rate of cost of the house.
After all calculations were made, time to pay attention to non-financial aspects of purchase and lease came. They are based on your character, preferences, opportunities and values. They also demand thorough examination, since the question "What Features of the Place in Which You Live Are Most Important for You?".
Wednesday: city or suburb
Wednesday in which you will prefer to live plays an important role as your life. Think of the character. Whether vanity of the city, with his night life, cozy cafes and cultural diversity is pleasant to you, or you prefer security, comfort, abundance of green zones and the free parking? Do you prefer to go to work on foot or to go? How important for you a privacy how far from neighbors you want to live? If you are able to afford only those objects which are in the place which does not answer your preferences, perhaps, you should think of whether you want to close eyes to it for possession of own house.
Features
As for availability of pleasant bonuses in the house, lease offers more opportunities, than purchase. In some houses there are huge pools, tennis courts or gym. And if you want that all this was in your residence, be ready to spend a lot of money for purchase. Or you can rent apartments in the modern building where residents can use similar and other services, at the same time the cost of lease will be rather small in comparison with mortgage payments. On the other hand, in the market there are suburban houses with the reasonable price which go with a quite good ground that will give you the chance to lay out an own garden or even to support horses.
Flexibility or stability?
Lease gives you the chance to gather and go to other place. Financial consequences of agreement breach of lease are minimum and easily are solved payment of the check. Owners who want to leave own house face with where Bol difficult sales process. And while you wait for the buyer, you everything need also to pay a mortgage and to pay municipal bills. Thus, moving to other place can last for months. On the other hand, with flexibility there is an instability. The owner can always lift the rent or ask you to leave before you are ready to it. And if the house is owned by you, you can remain in it as long as want.
The personal esthetics or is less than cares?
Purchase of the house gives you the chance to choose unique and certain architectural style and to personalize it. But such freedom goes with maintenance responsibility and repair. Owners cannot avoid need, for example, to cut a grass or to repair the proceeding cranes. If you prefer to spend the days off, having a rest in the park instead of wandering on passes in local household shop, then it is twice one better for you to think before buying the house if only you have no enough money for employing the assistant.
Though lease does not give you the chance to control a house exterior esthetics, you will not need to worry about wear of objects in it or about the problems which arose in connection with a bad design. At the same time you still have an opportunity to independently choose furniture and to decorate an interior according to the taste. And, as the tenant, all, what are you doing, when something goes not so, it you call the owner.
Non-material aspects, unlike financial, cannot be counted on the calculator on some mathematical formula. But purchase of the house is the decision which is necessary properly, without hurrying, to consider and define how its arrangement, features and need under repair will affect your way of life and the general emotional satisfaction.
Specialists of the AWAY REALTY company offer also real estate lease abroad. Our specialists will answer all your questions by phone number +7 (495) 258-88-66.
