BUY OR RENT: PROS AND CONS

Buy or rent? Irina Alazova, director of the international real estate agency Mercury Group, advices what is more profitable.

"If there is a financial opportunity, I always advise buying property in the property. At the same time, both buying and renting real estate have their advantages and disadvantages, which are worth paying attention to":

Pros

• Long term investment
• Increasing your capital - both when reselling, and when receiving passive income from renting out real estate
• Ability to inherit property
• The ability to renovate and re-plan your own property at any time and as you wish
• Stability and independence from the landlord
• Buying and paying off a loan is always cheaper than paying a monthly rent

But real estate is always a reliable and long-term investment, and it is only a matter of time before it justifies itself and increases capital.

Cons

• Large financial costs: such as a down payment on a mortgage and tax on re-registration of property rights. Also, your own apartment for your own residence will require repair and investment in furniture and appliances. But if the property was bought for rent, then the object can be rented without furniture.
• Financial risks. In the case of buying real estate on credit: long-term financial obligations to the bank. But this minus can be converted into a plus, namely, renting out real estate in “hard times”, thereby covering the loan and receiving additional passive income.

Pros

• Flexibility in the choice of real estate and lack of binding to the city/district
• No additional costs and expenses in the form of a mortgage interest rate
• No need to worry about falling property prices
• It will not be a problem to rent a house cheaper or more expensive if the financial situation has changed

Cons

• Rent money is non-refundable, they don't accumulate capital
• Lack of stability and the need to move if/when the contract ends or when the owner sells the premises
• Repair or alteration of the property is possible only with the permission of the landlord. Repair costs in the rented premises are not compensated.
• The need for a security deposit in the form of a 1-2-month payment
• If you have a pet, the difficulty in finding good housing increases, because. many owners are against pets (and those that do may require an additional deposit)

Mercury Group has been operating in the Latvian real estate market for over 20 years. Only with us - access to all luxury real estate in the Latvian market, including a closed database of objects for rent and sale.

We will personally accompany you to inspections, help you choose the ideal home for you, conduct a sale and purchase transaction or draw up a lease agreement.