News & Tips

RENT OR BUY? Which options makes sense for you?

When is renting a viable option?

• If you have uncertain employment: If you are unsure about your living paycheck and job situation, it is best to save money for future living expenses. This will help you to build an emergency fund for you as well.
• Limited funds: Renting is the better alternative when you do not have enough money for making the down payment or for managing the additional costs of owning the apartment.
• Short time frame: If you have an assignment that lasts two years or you plan to move abroad in a couple of years, then renting a flat is a better option.

When is Buying an Apartment a feasible option?

Buying an apartment only makes sense when you have the ability to cover the additional costs of owning a house. It is vital that you pay the closing costs and the down payment before you buy a house. It is seen that many banks receive a 20 percent down payment. But if you have much debt, you should not put your savings for the down payment at all. It will be better to pay off the entire debt first until you get a better financial position for yourself. If there is no debt, then you need to work out the buying or renting options in detail.