Apartment for loan or rent? – student dilemma.

We encourage you to read the material in which we will show the pros and cons of living in your own four corners and paying for rent, but without any debts.

The numbers don’t lie

The numbers don

Renting a small apartment in most Polish cities is about PLN 1,500. In the capital, it is difficult for us to rent a functional studio or two rooms on the outskirts for the price. For example, in Upper Silesia or Western Pomerania at this price we can easily find a comfortable three-room apartment.

When renting an apartment, the first and almost the most serious problem is the question of where to find a flat that we like and will not plunder home finances. If you rent your dream apartment yourself or through the help of a real estate agency, then you can agree with the owner about the specific conditions, i.e. the rental period and the rent. You always need to know that the owner of a rented flat may want to say goodbye to tenants and live there alone or transfer the property to someone else – a good contract will allow us to have a better night’s sleep.

If not rent what?

If not rent what?

The situation is slightly different when we consider financing the purchase of real estate with a bank mortgage. For the bank, the conversation partner will only be a person with stable income and also own contribution – at a level not less than 5%. If we assume that we are interested in a small area for a place where a minimum of two people can comfortably live, then we have to reckon with the fact that the cost of such property will amount to at least PLN 200,000. A bank loan with a 30-year repayment period will give you a monthly installment of at least PLN 1,000. What about rent, utilities, insurance etc.? Let’s get to the calculations…Many ideas for your own home

If we assume that the study period will close in a 5-year cycle, then we will pay the sum of nearly PLN 150,000 for renting the flat! In the same period, if we could persuade our loved ones for a joint housing loan, after the first five years, several dozen thousand zlotys would have been repaid. You can rent, sell, profit, or simply enjoy it and live happily. The option of renting does not provide such opportunities – of course, it is important in it freedom of choice, lack of attachment to one place, the ability to flexibly react in the event of a change of job or enlargement of the family. In the credit option it is also possible, but difficult, because we need to talk about our plans and intentions also with the bank, which is a mortgage co-owner of the apartment purchased on credit

Better modest, but on your own

Better modest, but on your own

Higher costs associated with the purchase of real estate, even in credit, and the need to pay administrative fees or insurance policies at first sight could be discouraging. However, the fact that we will be under our own roof should convince even the most conservative and cautious. You can also apply for a tens of thousands of extra payment from you in the event that a new apartment meets the condition of the Flat for Young program. It also seems to be a start in adulthood from the perspective of a person with their own apartment, and another person who rents the property and can expect at almost any moment moving requests… The choice in this situation is not obvious, each of the proposals seems to have a number of advantages. There are also minuses that you must not forget.

It’s best to send a lottery ticket voucher from time to time, and count on the fact that fate will smile at us… Then we will buy the most convenient place without external support and it would be the best option that can be realized. – Apart from the obvious as well as solid working through the study period, which will allow us to find better engagement in the future, which we all wish all the students!

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