The biggest dream of people staying in rented apartments is to have their own homes. But their low incomes make it difficult to make these dreams come true. Because they do not have enough budgets to buy an apartment in cash. As for buying an apartment on credit…. this is difficult for many. Or rather, it is not complicated, it is difficult to make a decision.
"I wonder if I will be able to pay every month if I buy a house on credit?", "Isn't it too much to lend for 15-20 years?!" etc. Such questions are asked by thousands of people who want to buy an apartment on credit. Thus, staying in a rented house, or being more courageous and owning a private home on credit, is one of the most important issues for people to think about. I wonder which is more profitable?
Of course, depending on people's budget and daily expenses, which side is closer. But buying a home on credit is the best decision. Why is this the right decision?!
Let's look at the difference with a brief calculation. Rent or own a home on credit? Which is more profitable.
If we buy an apartment on credit…
Let's start to estimate with the credit terms of Melissa Park, which offers apartments with the most favorable and convenient credit terms.
First of all, to own a home on credit, you need to have some cash on hand. Let's make a 20% down payment to own a 1-room apartment - about 7.000 manats.
If we take into account that we took a 25-year loan on the condition of repaying a loan of 199 manat per month, at the end of 25 years it will be 59.700 manat (199 x 12 x 25 = 59.700). In addition, the initial payment is about 7,000 manats (59.700 + 7.000 = 66.700). That is, you will own an apartment by paying a total of 66.700 manat. Let's not forget that at the end of 25 years, the price of your home will increase. If 10 years ago it was possible to own a one-room apartment for about 35,000 manat, today the price is around 70.000 manat. That is two examples. 10 years later, there is no doubt that the price of a one-room house will rise to 140-150 thousand manat. This means that in 25 years you will have both a private apartment and the price of your property will be twice as much as you bought.
If we stay in a rented apartment…
Let's start by thinking that you are renting a 1-room apartment.
As we know, the rent of one-room apartments in Baku is around 250 manat. If we pay 250 manats per month, we pay 75.000 manats to the landlord at the end of 25 years (250 x 12 x 25 = 75.000).
As we calculated, if we rent, we pay 75,000 manats at the end of 25 years, and if we buy an apartment on credit, we pay 66,700 manats at the end of 25 years. So, renting (75.000-66.700 = 8.300) cost us 8.000 manats. We lost both the ownership of the house and the value of the house we bought 25 years later. Let's take into account the whims of "host" in this period…
Now decide for yourself - to rent or buy a house on credit?!