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Automatically translated version. May contain inaccuracies compared to the original.
Renting housing can be financially more advantageous than buying an apartment in a number of situations. In particular, this applies to young families, mobile workers, and people who can earn a higher return on their own capital than the cost of rent.
Key point: Renting can be more advantageous for people who move often. It is not always sensible for a young family to immediately buy a large apartment “just in case.” Buying can become more rational if a person plans to live in one place for a long time. When comparing, you need to take into account repairs, furniture, taxes, and other expenses. Renting housing can be the more rational decision for people who are not sure they will stay in one place for long. According to Taras Kozak, one example is a young couple just starting their life together. "If there are two of them, why buy a four-room apartment with extra space? Then children will come, and depending on how many, a larger apartment may be needed. Then you will have to sell one, buy another, and that always means losses, repairs, moves, furniture," the expert explained. Read also: Ukrainians are moving en masse: where large apartments are being snapped up now and what the prices are Another case he mentioned is a family’s mobility. If a person works in one city today and may move to another tomorrow, buying housing can create additional costs. Renting can also make financial sense if one’s own capital yields a return higher than the cost of rent. In that situation, it may be more profitable for a person to leave their funds in investments and rent housing. At the same time, buying an apartment may be more rational if the family is already formed, does not plan to move, and has found housing in a place where they want to live for a long time. According to the expert, the decision to buy may have nonfinancial aspects as well. "If you know you will live here for a very long time, then you can choose a good apartment that you like in a nice location. That is no longer a financial indicator," he said. Another factor for buying may be the market situation. If during a crisis housing prices fall significantly and a person has free funds, purchasing an apartment may allow them to save money. At the same time, before buying you need to take into account not only the price of the apartment itself. According to Kozak, the buyer should have enough funds for repairs, furniture, and arranging the home. "If you only have enough for the apartment itself, and you don’t want to live in it because of the state of repair, it’s better to rent," the expert noted. He also advises factoring in taxes and other expenses that arise after purchasing real estate. Utility payments exist for both owners and renters, but when buying, expenses for repairs, furniture, taxes, and outfitting are added.
Read also: Social housing in Ukraine: in which 5 cities the first houses will be built with EIB funds
Document: PDF proof of the original version of the news item "Не поспішайте купувати: експерт назвав ситуації, коли оренда житла вигідніша". It records the publication content at the moment of the first scan, the preservation date and the source: RBC-Ukraine.
