Owning a home is one of the primary goals of almost everyone. An owned house offers belonging and comfort. Moreover, it is one of the investments we can make to secure our family and ourselves.
When you decide to buy a house for living, many criteria come into play, but perhaps the most important thing is whether the house you idealize is suitable for your budget. Financial planning is required before you find the house that fits your lifestyle and specific needs, even before you even start looking.
Since most people are afraid to spend all their savings in one go, they look for an answer to the question “Is it advantageous to buy a house with a housing loan” because going into long-term and large amounts of debt is an option that should be considered.
Although high inflation raises loan rates, long-term housing loan rates can be determined below the inflation rate. Despite the increase in house prices, there are still many advantages o owning a house using loans with interest rates below the inflation rate:
You don’t have to wait any longer
First of all, you don’t have to wait long to own a home. Instead of spending more time to make the necessary savings, you can experience the confidence and prestige of owning a house as soon as possible.
Borrowing from the bank instead of any individual
If you do not have enough savings, it is common to ask for a loan from spouse, friends and / or relatives to gather the money you need, but it is debatable how reasonable it is. Moreover, even if you find someone who agrees to help you, it is not usually possible to extend your debt over the long term as you would with the bank. You can use a term loan of 120 months, 180 months or even 240 months from banks.
Instead of paying rent, you pay the loan installment of the house you live in
If you are already a tenant in someone else’s home, it may be much more attractive to take out a mortgage because you can live in your own home by paying a little more. Moreover, while your rent will increase at the determined rates each year, your credit will remain constant.
No installment increase
Your installments will remain stable over time. In other words, even if the market interest rates increase, your loan interest rate and installment amounts do not change throughout the term. Someone who uses a loan with a term of 120 months and 10 years pays the same installment during this period. However, if you pay rent, you will definitely experience a certain increase every year. And if your salary is increased at the rate of inflation, your income will increase while your loan installments will remain constant, and loan payments will become much easier, especially after the first 4-5 years.
You will have a trouble-free residence
When you decide to use a housing loan, the house you want to buy is evaluated by an expert, as the bank will ask for an appraisal report. Thus, you know that you have a problem-free residence in legal and technical matters.
You can restructure your debt
Another advantage of taking a housing loan is that even if you pay a 2% penalty on your remaining debt amount, you have the chance to restructure the loan when interest rates fall or you get a lump sum.
You are safe from risks
You are secure against potential risks. Since you will be the owner of a house with a loan, the bank insures your savings for both your loan debt and the house against deterioration in your health or financial situation.
You can organize your personal living space as you wish
You will not have to spend on someone else’s house, and you will have the chance to decorate your own house as you wish. You can make decorations, necessary repairs and renovations according to your taste, and experience the comfort of purchasing furniture that you can use for a long time without thinking about what to do while moving.
As GRAND EMLAK, we offer complete consultancy services for real estate investments in Turkey. If you want to rent, sell or buy a real estate, we are here to answer every question in your mind and direct you to the most profitable investments.
