Which is more profitable – buying an apartment for a payday loan or renting

Many young people do not own their “M” from their own savings, which is why some of them rent apartments and others prefer to take out a payday loan and buy property on their own. Which solution is more profitable? Buy or rent?

Arguments for “buying” a home for a payday loan

Buying your own flat in a bank payday loan or with the participation of such a payday loan will make your dreams come true. After some time (the payday loan period), the flat will be owned by the borrower. You can freely arrange them, invest in the comfort of living with the knowledge that it is our property.

Given the fact that real estate prices are rising in the long run, you can treat your home payday loan as the price we have to pay for the entire investment. After repaying the payday loan, and even when it is repaid, you can always sell the property – often at a profit. Even if we buy a flat for a mortgage, its installment sometimes corresponds to the cost of renting. It does not matter whether we transfer this money to the bank or to the owner of the rented flat.

Interestingly, the benefit of taking out a payday loan for an apartment is forcing us to save habit. You have to pay monthly installments and bring us closer to getting a flat, while renting, it would be difficult to save money. More likely, they would be spent on current consumption.

Defects of the payday loan for an apartment

Defects of the payday loan for an apartment

A mortgage is a heavy burden that will accompany your home budget for 20-30 years, depending on the payday loan period. We must be sure that we will pay its repayment, and yet we do not know what will happen in a year, two or 10 years. Not everyone will receive a payday loan for a flat from a bank. Appropriate conditions must be met for it to be taken. A housing payday loan is drawn up, for example, for 200,000 PLN, and often repays even twice as much, only that spread over several hundred monthly installments.

Or maybe a rental?

Renting an apartment also has its supporters – there would not be as many renters if such a solution would not have any advantages. Deciding to buy a flat, usually we can not afford to buy real estate in a desirable district of a large city or a specific area. Due to the price, the apartment may be smaller than we need, and in addition at the other end of the city. Renting a flat allows mobility – we do not have a fixed place, which is important especially for young people who are willing to change their address quickly if they find a better job. When renting the landlord pays the rent and utilities, and the remaining costs, also related to major repairs in the apartment, rest on the owner. For those who decide to rent, the most important thing is that they have no obligation in the form of a housing payday loan, with the prospect of paying it back to the late years of old age.

What is more profitable – buying or renting?

Deciding whether to take out a mortgage and buy an apartment or rent it better is not easy. It is worth checking out what is more advantageous in economic terms. Buying an apartment in a housing payday loan makes sense if we plan to live in it for a long time, and for shorter periods the rental is more cost-effective. In the event that we have a substantial own contribution to the purchase of a flat and take out a small mortgage, it is better to have your own flat in a payday loan compared to renting a flat. Finally, when paying the payday loan, we remain with the act of ownership of the property, and when renting a flat, we pay someone to rent and we can only live in the premises for the time set.

 

What to keep in mind when asking for a private payday loan

 

Payday loans can be granted through verbal agreements, or through private contracts. It is advisable, for both parties, to establish a contract with clear clauses , since this type of loans can be of a small amount of money up to higher amounts.

There are private mortgages or loans to carry out a business, the return of this money may require a longer time to deal with the debt and it is not possible to know what will happen in the lives of people or what situations they can cause a default or a delay in payment.

When should you ask for a payday loan?

When should you ask for a payday loan?

 

It is advisable to go to payday loans when there is no other solution and when the bank denies the request. payday loans can be granted easily and quickly, however, it is necessary to use them in a responsible manner. The interests of payday loans are higher and linking loan is not a good solution to get out of a punctual hurry.

Payday loans are usually requested when it is necessary to pay a debt urgently, when there is no payroll, but with a monthly income that allows to pay the debt, when you want to start a business and you do not have enough money to do it and you can even apply for a private mortgage when the bank does not grant it.

Banks can also refuse a loan if the applicant is included in a list of defaulters , some private lenders and private equity companies do not take this condition into account.

It is important to bear in mind that private equity companies that offer loans even if they are on a list of defaulters , do take into account that the debt is not contracted by a financial product of any kind and that it is not greater than 1,000 euros, in some cases. cases.

Requirements to request a payday loan

 

In the case of private lenders, each of them will impose their conditions to grant a loan to a person, in the case of private equity companies, formed by lenders who offer their money through the company and in exchange for collecting a amount for it, the general requirements are usually:

  • Being of legal age , some private equity companies require that the applicant be between 21 years of age up to an age limit, which can be between 65 and 70 years old
  • Submit the DNI or NIE . Through some private equity platforms, it is possible to request the loan without having to present the DNI / NIE, since they authenticate the data of the applicant through access to their online banking. In the case of foreigners, they must reside in Spain permanently and provide the documentation requested. All persons applying for a loan must reside in Spain
  • Have a bank account in a Spanish bank that the client owns
  • Have a periodic income that allows you to deal with the debt within the agreed period of time. Some companies that grant payday loans do not take into account whether that income comes from a payroll or from another source, but that they are enough to cover the payment of the debt once the monthly income of the client has been calculated, the fixed expenses that it has each month and the indebtedness capacity it has

The capacity of indebtedness is calculated based on the money that the client can have after having faced all his fixed expenses, he must not exceed 35 or 40% of that amount.

  • Access loans responsibly . These types of loans are granted to deal with specific situations in which there is no other way but to borrow money. However, they are not created to be chained to one another as a form of financing. Some companies that grant payday loans may stop granting them to a particular client if they consider that they do not request them responsibly
  • It must be borne in mind that it is a money that is bought and that the interest can be high, since the payment of the debt must be made in the established period of time.