Re:Today I asked a bank for a conventional mortgage and they...
by sofixa on Tuesday April 12, 2022 @05:35AM
(#31000430)
> I know I will never be able to buy a house. That is why I rent.
It really depends on your local market, but for my specific case (France, Paris area), it's cheaper to buy if you stay there for ~5 years than to rent. I had some extra help from government programmes encouraging homeownership, town redevelopment and new constructions through lower taxes/cheaper loans, IIRC the generic advice for my area is ~6-7 years. Also it's technically not a mortgage because the place itself isn't collateral and it won't be immediately repossessed if I stop paying the bank, but that's just how things work here. Loan rates being what they are, there's very little incentive to save upfront for decades to be able to buy outright.
It really depends on your local market, but for my specific case (France, Paris area), it's cheaper to buy if you stay there for ~5 years than to rent. I had some extra help from government programmes encouraging homeownership, town redevelopment and new constructions through lower taxes/cheaper loans, IIRC the generic advice for my area is ~6-7 years. Also it's technically not a mortgage because the place itself isn't collateral and it won't be immediately repossessed if I stop paying the bank, but that's just how things work here. Loan rates being what they are, there's very little incentive to save upfront for decades to be able to buy outright.