Real estate loan: “the minimum contribution is 10%, 20% is ideal”

2023-09-20 12:41:08
Your questions, our answers

Hello, If we consider the very high current rates, plus notary fees.. Is it still profitable to buy? Isn’t it better to rent? THANKS

Ilan

It is true that in certain large metropolises, with rent caps, for the same property, the rent levels will, on the first day, be lower than what the credit repayments would be if we acquired it. But we have to look beyond that. Because the rent will increase each year while the credit maturity is fixed for 20 or 25 years. And with each loan due date that we repay, we build assets while after 25 years of renting we are still a tenant. And moreover, in the event of a drop in credit rates in a few years, it will be possible to renegotiate your loan.