The housing dilemma. Rent or buy?

With spring knocking ever louder at our door, I would finally like to raise the subject of changes in our lives, including the more serious ones concerning the place where we live. This usually applies to young people who decide to look for a place of their own, so they can plan the future together.

This gives rise to a dilemma, mainly a financial one. Which pays off more? Renting or buying a flat? In today's post I will present the pros and cons of both solutions.

Every city has its own rules. Every city dictates different prices on the property market. Every city favours a different lifestyle, which is why the dilemma in the title is – contrary to appearances – a hard nut to crack.

Your own place – why is it worth it?

The very title of this subheading suggests one argument. Because it will be our flat (though shared with the bank, if we take out a mortgage for X years). Because we will be able to change the layout of the rooms as we please (without needing a landlord's consent). Because there is no risk of suddenly being left in the lurch (provided that we keep paying the mortgage instalments).

And what other arguments speak in favour of this solution?

• We will get a sense of stability and adulthood.
• We will have proof that we have achieved something in life, that we finally have something to be proud of.
• The price of buying 1 m² is only slightly higher than the price of renting.
• Owning a flat gives more options. We do not have to live in it for the 20-30 years of repaying the mortgage. We can let it out or use it for our own business.
• A flat bought with a mortgage forces us – in the best sense of the word – to save sensibly and to adopt certain habits of putting money aside for the future, in case of problems with repaying an instalment (e.g. loss of a job).
• In this way we give our children a sense of security, and we can pass the flat on to them in future.

Arguments for renting a flat

• Renting a flat is less binding; in case of problems, a new job or a change of plans, we can move to another city or district at any moment. We are more mobile.
• We only have to think about the rent and utility bills. Other repairs – not caused by us – are dealt with by the landlord. The same goes for paying property tax or insurance premiums.
• We can put aside more savings for goals other than those linked to a mortgage. Travel, our own business, our children's education.
• An ideal option for travellers who do not know where fate will send them in a few years. They do not need stability in life. They feel free and are happy with that. They have no financial obligations. They always have a clean slate.
• We can move to a different flat at any moment. A bigger one, a smaller one, a quieter one, a more comfortable one. More possibilities. A student hall of residence is being built next to our block of flats? We move, and the problem is solved.

And which option do you favour? What other advantages of both solutions could be mentioned?

Best regards, Marta Kulawik