Bank loans. Your opinion | INFJ Forum

Bank loans. Your opinion

What is your opinion about house / flat bank loans ?

What is better?
a) bank laon
b) rent
c) other your option
It depends on your circumstances so there isn’t a one-size fits all answer. Which country are you living in, how much could you pay in capital up front, how much could you pay each month, what sort of property do you want, do you have any other large monthly financial commitments, how secure is your income, will anyone else be contributing to the monthly outlay, have you got a property already you would need to sell? Have you factored in maintenance costs if you buy, costs which are down to the landlord if you rent? Etc etc …..

One of the things about buying is that one day, maybe 20+ years later, you will own your home outright. There is a wonderful feeling of security from that, and only maintenance and local tax costs to find. If you move around a lot though, buying and selling property is one of the more stressful and expensive lifetime experiences.

There are things to consider about timing too. At the moment inflation is high. Although interest rates are high too they are lower, so inflation carries the debt away. A mortgage of 200,000 US dollars 12 months ago is only worth 180,000 dollars now. Pay does tend to catch up with inflation eventually and interest rates are less than inflation so this is like a gift of over 10,000 dollars to you eventually. If inflation stays high then you’ll get still more benefit from it. Of course there are serious problems with high inflation too, but this is one of its very few advantages.

Not sure if this is helping. I’m no financial advisor - just an experienced owner occupier.
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