According to data from the Federal Mortgage Association (SHF), of the 32 million homes that make up the Mexican housing stock, 16% are for rent while the market is 37% in the United States and 50% in Europe.
The above coincides with INEGI figures that 80% of families in Mexico own their homes and it is likely that 29 million of them will be sold because they are wholly owned by their owners.
The question that arises in this context is what is better to buy or? property rental? To answer this eternal dilemma, we interviewed Fernando Soto Hai, CEO of Tu Hipoteca Fácil. Note the pros and cons of each option and choose the best alternative for you.
“The way the real estate market is constantly being talked about, it seems like it’s just a market for numbers and proportions and big sums of money, but the key element in all of this is not taken into account: the people who buy and rent these homes,” stresses Soto Hai while debunking some of the most arguments There are common arguments for and against each position since there are strong arguments for taking one position or another and not making mistakes.
Arguments in favor of renting a property
- I don’t have money for it obstacle s Acting expenses
- You just moved to another city for business or personal reasons
- You just broke up or divorce
- I cannot submit to credit because I owe
- I have a very poor payment history for my credits at the credit bureau
- Renting is more comfortable for me than paying a monthly mortgage
- If I rent, I can live in a better neighborhood
- I don’t want to allocate capital to a house that doesn’t produce anything, I’d rather invest
- If I buy a house, I lose the ability to move to change jobs
- I prefer to have a more comfortable quality of life.
Arguments in favor of buying a property
- It is a committed form of Saving Money month after month
- By saving month after month, I am more aware of unnecessary expenses
- The value of homes in Mexico remained above the inflation
- It allows me to build a valuable legacy over time
- My family is allowed to get a financial guarantee
- If there is a need, I can sell the house and solve it
- It gives me financial and emotional stability
- It is a legacy that I will leave to my family and will help them financially
- Over time, I improve my lifestyle
- I am not only solving the need of life, I am creating wealth little by little.
Decide to buy or rent based on your profile
- Not connected
Now, all 20 arguments are perfectly valid for the person on each side of the argument. No argument is wrong, as long as you are honest with the situation that applies to both. If your priority is renting for a more attractive quality of life in a central area, without worrying about spending a portion Large of your income to enjoy – even if you’re not building equity – go ahead! You’re aware and your life situation allows it. You’re probably single and not planning on having kids soon,” explains Soto Hai.
If your profile is more heavily invested and you are skilled at it, your best option is to invest capital which, otherwise, you would allocate for the down payment and contract expenses. The returns on your investment may be greater than the returns on your home. In this case, rent is a good option because in this way you will double your capital without allocating it to paying for a house.
If you are one of those highly organized people who save and invest successfully but aren’t interested in the obligation to buy and maintain a home, you will be in better rental conditions. Your assets will be safe in your investments and you will solve your life without financial problems by fulfilling your rental housing needs.
If you don’t match any of these profiles, you might be better off committing to buying a house, saving little by little with a suitable mortgage, far from the ‘miracle’ or ‘cheaper’ loans, and in that way, you will form a family inheritance that will give you, over time Time, security and peace of mind with a better quality of life.”
This analysis concludes that there will be a debate between buying or renting a home whenever it is intended to impose an idea on another person that does not correspond to the specific moment in which they live. Renting does not mean wasting money when specific circumstances suggest it is the best option at the time.
To buy your first home, you will almost certainly have to save, and perhaps renting a house is a car that allows you to achieve this by having lower monthly expenses and gradually saving the surplus that this difference gives you.
In Fernando Soto Hai’s opinion, it is appropriate to buy a home when you are looking for long-term stability and wealth creation, not just when you want to satisfy the need to have a roof over your head. But be warned, the purchase should be consistent with your income and quality of life expectations. Buying a huge home that you won’t be able to maintain will not do you any good, or worse, it will prevent you from enjoying a good quality of life for the cost of maintaining it. A financial match when buying or renting is what will allow you to have a full life financially.