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Is it better to rent or purchase a property in Medellin?

Posted by Joseph Sexton on April 17, 2022

The big difference between apartments for rent and their own is that the first ones are an expense and the second ones are an investment. However, when deciding whether it is better to rent or buy a home, do not base it only on economics, take into account your lifestyle, future plans and priorities.

Discover the advantages of having your own property or renting and 2 tips that you should take into account to know if it is better to rent or buy a home.

So, what is it better?

To define whether it is better to rent or buy a home, you must calculate how much money you spend per year on rent and how much on mortgage loan installments. If the amount of money you deposit in rent is greater, it is best to buy. Otherwise, you can continue leasing or consider the advantages and disadvantages of buying a house or renting.

Some investors consider that buying a house is not a good idea, since it only generates obligations such as tax payments and mortgage loans. However, there are those who believe that real estate is the best investment because it has a large annual appreciation and can be rented or resold at a higher price. These are just some of the reasons for you to decide what is most convenient for you, if it is better to rent or buy a home.

You do not have to pay income taxes, so you will save a lot of money.

These are the advantages of renting:

You have the flexibility to move whenever you want, as long as you don’t break the lease. Your lifestyle can change in the future. If you get a new job or have to move out of town, it is much easier to just cancel the contract and move, than having to sell your house to buy a new one.

Less responsibility for the property and its maintenance, since this is the obligation of the real estate agency or the owner.
You do not have to pay income taxes, so you will save a lot of money.
Depending on the circumstances, renting may be cheaper. Therefore, if you have a few dollars left over from your budget, you can invest them in a business that gives you enough profit to buy the house of your dreams in the future.

5 advantages of purchasing a property:

Improve your financial profile to improve your credits score. If you have an asset such as a property, banks are more likely to lend you money for property loans or free investment.

You save monthly rental fees.

Freedom. The apartments for rent are owned by someone else. Therefore, to make adjustments to your liking, such as painting, installing furniture or remodeling, you should consult with the owner; on the other hand, if the property is yours, you can do everything you want without waiting for authorization

With your own home you increase your assets. This gives you the possibility of having financial support for future investments, in addition to obtaining profits from the appreciation of the property over time.

Stability. Having your own place provides well-being to the family and unique joys.

Tips for you to decide if it is better to rent or purchase a property

Deciding whether it is better to rent or purchase a property can be really hard. We want to make buying your property easy and fast, that’s why we’re giving you these tips that will help you decide if it’s better to rent or purchase a property.

Check your finances

The payment of your lease could become the installment of a mortgage loan, you just have to do the math and choose a financial product that suits your needs. The first thing you should do is know how much money you have; To find out, we tell you one of the most important financial tips that exist: 30% of your income should be allocated to your home.

If that 30% is not enough to finance the house of your dreams, do not despair, there are a lot of options that you surely did not know about, for example, you can add the income of several people in your family group to get credit approved.

When you decide to stop paying rent and buy a property, our legal team will advise you financially, helping you create a plan to maintain control of your finances, and will even help you choose the bank that offers you the best conditions.

Define what your future plans are

To choose whether it is better to rent or buy a home, you must take into account your future plans. If you do not project yourself living in the same place for more than 2 years, it is best to rent. If, on the other hand, you are looking for stability and putting down roots, it is ideal that you purchase a property.

Hi, I'm Joey, and I'm here to help you find the perfect place for you.

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