Advantages of renting an apartment versus ownership
In comparison with their own home is to live in a rent flat in Prague incredibly easy. Why do the work yourself when you can enjoy the following benefits:
Special property and maintenance staff to call if something goes wrong
No back-breaking snow shoveling, lawn maintenance or pool / sauna care
One single monthly rent check usually pays for everything (instead of several separate accounts and taxes when you own a house or apartment)
Create more for your money
Believe it or not, you can usually rent an apartment or house for much less than the cost of buying it - especially if you live in a larger city . And if you want to be right in the city center , apartment rental in Prague is almost always better than their own apartment ( and you get a lot more living space as well as Downtown Apartments are usually much larger than downtown apartments).
Similarly , the apartment tenants have come up with thousands of dollars in down payment, closing costs and fees for things such as building inspections , legal advice, land transfer taxes , and insurance.
And it does not even factor in the cost of credit - the first five years of ownership , most mortgage payments to cover only interest, not principal . This is money that you get back when you sell your home ( and youll still have all the hassles and extra costs of putting your house on the market) .
This tax break is not guaranteed
How big tax break has to be one of the biggest advantages of owning a home - but you can not always rely on getting this break. If your annual mortgage interest payment , plus any other deductions you are entitled to not more than your standard tax deductions , you will not receive any tax benefit from their own house.
If you rent an apartment, but you will always receive some form of tax relief, as a large portion of your rent is tax deductible every year.
Renting an apartment provides a huge amount of flexibility. You can pack up and go immediately to the end of your lease (which can be monthly or yearly , whatever best suits your lifestyle ) - there is no need to wait for a sale and no agonizing about the housing market before you move . For many people , the freedom to live where you want, when you want , is a huge advantage that simply can not be overlooked .
For homeowners , the stakes are enormously high should their finances crumble. When you can not pay the mortgage , the lender has a big impact - the house and all the equity invested in it could be in jeopardy. That does not mean there are not consequences if the tenant can not pay rent - but the financial devastation that comes with losing a home is much larger than evicted from your apartment.
In addition , there are several social service programs that are operated at all levels of government to help people in need pay their rent , so they will not be evicted . Are banks as lenient or supportive when it comes time to pay the mortgage ?
Ultimately, the decision to either rent an apartment or buy a house involves much more than simply comparing rental rates, mortgage payments , lease lengths and tax breaks. It is a combination of personal circumstances happening in your life - both now and several years down the road .