Should I buy or rent my apartment?
In France, 58% of French households have a principal residence. This percentage has been stable since 2010 after strong growth in the 1990s and 2000s.
When looking for an apartment, you often hesitate between buying and renting. The purchase of real estate is an important investment that should not be underestimated. To know whether to buy or rent a house, you have to take into account some parameters:
- Target geographical areas are the first criteria (such as the Ile de France and large cities), as some regions have smaller markets than others. Due to the health crisis, medium-sized cities are also very attractive, especially less than two hours from Paris. Prices per square meter are rising almost everywhere.
- The applicable interest rates must also be taken into account. Economic conditions, especially property prices, are also important. They are still historically low, but began to rise slightly in early 2022 and have planned to continue to rise, prompting people to buy real estate without delay.
- The household budget is an important parameter. Buying a property is always interesting if you have sufficient personal contributions and regular financing.
- In leasing, on the other hand, you can invest this contribution and in some cases offer higher returns. The way of life of the inhabitants is ultimately the decisive factor. Indeed, real estate professionals estimate that it takes an average of six years to pay for a real estate purchase. If your job and habits require you to move every three or four years, renting is definitely more advantageous.
The benefits of being a homeowner
Our 4 advantages to buying your home:
1. Build a heritage that will be passed on to the family and give them a sense of security. The final purchase of a house or apartment is often made at the beginning of retirement after the mortgage is paid. So later on, there is no problem with the rent.
2. An acquisition gives you more freedom vis-à-vis your property. You do not need a permit to carry out your activity or change accommodation (apart from the mandatory administrative procedures).
3. Taking out a loan also allows you to take out borrower insurance that covers your monthly loan payments in case of health or professional risks. When you rent, you don't have that security.
4. Owning a house also allows you to consider capital gains on resale if you resell the property after a few years. On the other hand, the rents paid are lost.
The advantages of being a tenant
Depending on your personal choices and lifestyle, it may also be interesting to live in your rental property all or part of your life. Even if rent at first glance gives the impression of "throwing rent out the window", it also offers a decisive advantage.
Our 4 advantages of renting your accommodation:
1. More flexibility where you live, especially if your work requires professional mobility
2. The main works are the responsibility of the owner, so you only have to pay the ongoing maintenance costs during the occupation of the property.
3. Without a loan to repay, you can maintain your personal contribution and grow in other ways (such as investing).
4. You can get rental housing that you can't buy.
Conclusion: there is no standard answer, it really depends on the situation of each.
In a set and in the long term it is still preferable to become an owner, because this is an investment. Renting is quite expensive and does not always give advantages in the long term.
- In France, 58% of French households have a principal residence.
To know whether to buy or rent a house, you have to take into account some parameters:
- Target geographical areas
- Applicable interest rates
- Household budgets
- The way of life of the inhabitants is ultimately the decisive factor
You want to
to sell in Paris or its surroundings ?
Posted on 06/08/2022 by
Andy LECUYER
