in what cases to rent is better than to buy ?
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I am interesting , In what cases it is better to rent hostel's property than to buy hostel's property ?
thank you for the answers.
- Comments
13 years
property rights for nonresidents, future value, liquidity of the investment, but usually it is that the person doesn't have the available cash to buy
13 years
There can be a few reasons , why to rent can better than to buy :
1 ) let me suppose that in 10 years the price for real estate can be twice less (for example : now its 2000 US dollars 1m2 in 10 years it will be 1000-1300 US dollars 1m2 )
the prices for real estate in some east block countries is very expensive, the decline of population and new housing programs will make the price much lower
2 ) you buy the property but legislation will change and your property will not fit for the hostels property according to a new legislation .
For example - in some countries ; all neighbors in the apartment block has to sign that they have nothing against your activity , or only big hostels can function and small would have to be closed , or only membership with certain clanish monopolistic association will determine the legality of the hostel , like it is happens in some primitive societies.
3 ) you change your romantical and adventurous - mind and like a real nomad will decide to '' move on '' , to further countries , continents and lands....
the third reason is not really worhty of much attention , the second , can be an issue , but the first reason is indeed for me a big question.
Its ridiculous that in some post-communist countries , the apartments which would not even be called apartments on the west are so expensive.
what makes them so expensive if not the bubble , which sooner or later will fall down , because its impossible that in a third world or second world countries where the laws and societies are primitive and provincial , to charge the same price for real estate like it is in a very touristic west european cities.
that what makes me think twice before invest , is it not better to invest in more secure and better-grounded areas ...?
13 years
I live in China and the real estate market here is definitely in a bubble. At the moment, I could buy a small house in my hometown in the US for the same price I could buy a small flat in many Chinese cities. The bubble's bound to pop eventually and prices will plummet. This is one reason I prefer to rent.
The second reason is, yes, we don't have the CASH to buy. I don't know the ins and outs of mortgaging property here, but I am of the understanding that you have to pay a pretty substantial down payment (percentage wise).
13 years
I have just rented a new place in Spain and a few more in Morocco. Why rent over buy?
At the present time the property market is still overvalued and anything valued in Euros is in serious risk if the Euro goes south.
Also in certain locations there is much more property on the market than buyers therefore renters get great deals
I always try to get a lease to purchase option built in with kickbacks of rent paid if the purchase goes through.
The above does not apply to all locations but does to many European destinations at present
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