Real estate: those cities where it is better to buy rather than rent
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What is the most “profitable” situation: buying or renting accommodation in a big city? The MeilleurTaux credit broker gives us some answers.
Is it more economically more attractive to buy or rent? To help you decide, the Meilleurtaux broker carried out a comparative study * between the “cost” of a purchase and a rental in the 36 largest cities in France.To estimate the cost of a purchase, the broker has taking into account the prices per square meter, its valuation, borrower interest rates, condominium fees and local property taxes.For the rental, the broker took into consideration the rents as well as the estimated returns of the personal contribution which, instead of being invested in the purchase transaction, was placed on a support earning 0.8% per year.
The results are eloquent: on average, buying an apartment becomes more advantageous than renting after three years and five months.For example, in Reims, from a 1 year and 5 months, the operation will become more interesting for a purchase than for a rental.In Marseille, the purchase becomes “profitable” after 3 years.It is in Lyon where the tenant will have the least interest in becoming an owner.It will take 18 years., according to Meilleurtaux, to get back on his feet financially.“The more expensive the prices in the city are, the less the buyer quickly recovers his costs”, explains Maël Bernier, spokesperson for MeilleurTaux.It is logical: if the mortgage is large, the monthly payments to be repaid may be much higher than the rents to pay.
Posted Date: 2020-09-15