Buying a home is more convenient than renting. Here's why
Probably because of the crisis that hit America first and then Europe, the real estate market has also changed. In fact, a trend reversal was also recorded on the preferred way for investors to purchase a property in Italy.
If in the last few years potential buyers were oriented on leases, as less binding from the economic point of view and cheaper, since they did not provide for the immediate issuance of a total but monthly rate, nowadays the real estate market registered a significant increase in sales contracts.
Obviously, it would be wrong not to go into details, since there are different types of properties and possible alternatives about the sale of the asset.
Let's go into detail.
What are the factors that favor those who intend to sign a sales contract?
Currently the rents are increasing in all Italian reasons (with the necessary disparities). While the prices required for sale are stable or even lower than those of previous years.
Italy's openness to green buildings was favorable, allowing lower consumption and a long-term economic return (also at an ecological level).
In the big cities then, the search for rented accommodation is even more complex due to short leases, which many owners prefer because they do not foresee insolvency risks.
To these elements of not less importance are added the so-called "zero rates" and the minimum BTPs through which, 8 years after the purchase and assuming a twenty year fixed rate mortgage with stable prices, the balance sheet tends in favor of the buyer rather than the tenant.
Although there is this general tendency to choose sales rather than rent, there is still a small part of investors for whom it is still worthwhile to sign a rent.
If in large cities, as previously stated, it is the period of big sales, in small companies or rather in luxury homes of large size (which will be occupied for much more than the usual 10 years) investors are directed towards rents to avoid that the value of the building does not increase enough over time to amortize the costs incurred.
The statistical data also confirm that from 2010 to today, the price of bricks has undergone significant changes: -23.1% the value of existing homes, + 0.7% that of new ones.
If in the last few years potential buyers were oriented on leases, as less binding from the economic point of view and cheaper, since they did not provide for the immediate issuance of a total but monthly rate, nowadays the real estate market registered a significant increase in sales contracts.
Obviously, it would be wrong not to go into details, since there are different types of properties and possible alternatives about the sale of the asset.
Let's go into detail.
What are the factors that favor those who intend to sign a sales contract?
Currently the rents are increasing in all Italian reasons (with the necessary disparities). While the prices required for sale are stable or even lower than those of previous years.
Italy's openness to green buildings was favorable, allowing lower consumption and a long-term economic return (also at an ecological level).
In the big cities then, the search for rented accommodation is even more complex due to short leases, which many owners prefer because they do not foresee insolvency risks.
To these elements of not less importance are added the so-called "zero rates" and the minimum BTPs through which, 8 years after the purchase and assuming a twenty year fixed rate mortgage with stable prices, the balance sheet tends in favor of the buyer rather than the tenant.
Although there is this general tendency to choose sales rather than rent, there is still a small part of investors for whom it is still worthwhile to sign a rent.
If in large cities, as previously stated, it is the period of big sales, in small companies or rather in luxury homes of large size (which will be occupied for much more than the usual 10 years) investors are directed towards rents to avoid that the value of the building does not increase enough over time to amortize the costs incurred.
The statistical data also confirm that from 2010 to today, the price of bricks has undergone significant changes: -23.1% the value of existing homes, + 0.7% that of new ones.
