Is it better to take out a mortgage or pay the rents ? This is a real dilemma for Italians who have to decide whether to buy a property or sign a rental contract. House prices are at historic lows, financial investment yields have plummeted, investing in BTP is no longer a viable alternative: here are the real reasons for buying a house and turning on a mortgage, or preferring the mortgage rather than the rent.
Mortgage or rent: what to choose?
According to a recent survey, the owners of a real estate believe that: ” turning on a mortgage is not worthwhile, the taxes to be paid are exorbitant and, in the end, we find ourselves paying large sums for money”. Tenants complain that ” the money paid to pay rents in a certain sense is given to the wind, because it is an expense that does not produce any advantage . Rents are becoming increasingly expensive and a mortgage is worthwhile “. For this reason, the money spent to buy real estate is well invested.
What are the benefits of taking out a mortgage? For 2018 you can enjoy many tax benefits : the interest payable on the loan and all the ancillary charges can be deducted in the tax return of 19%.
The Inland Revenue emphasizes that to benefit from the facilities it is necessary to comply with these conditions:
- the loan contract must be signed twelve months ex ante or ex post the purchase of the property,
- must be stipulated by a person resident in the national territory,
- must be secured by a mortgage on real estate.
Furthermore, the property must be used as a principal residence for the entire duration of the loan.
Why choose the mortgage?
Signing a loan contract is the best solution if you want to fulfill your dream: to become the owner of a property (independent house or apartment). To turn on a mortgage it is necessary for the borrower to demonstrate his ability to produce income over time and hold at least 30% of the value of the property to be purchased.
What are the disadvantages of signing a lease? Renting a property involves the need to establish a constant relationship with the owner, to whom permission must be requested to renovate the property.
Don’t give up your dream of becoming a property owner! Contact consultants today to find out the best terms for your mortgage.