Is it better it to live in a rental or in your own?

Should you buy an apartment in Prague at current prices, or rent it, even if the rents are skyrocketing? And which is more beneficial in the long run? These are questions that many people are asking themselves today. We tried to find the answer to them in the latest episode of the Live Prague series.
The decision whether to buy or rent an apartment in Prague can be viewed from two angles. The first is financial and it can be done wit relatively simple math. The second view is a bit more complicated - it concerns the consideration of all the pros and cons of renting or buying an apartment. And our emotions already affect it more significantly.
How can you actually calculate whether it is more advantageous to rent or buy an apartment? It is enough to calculate the annual rent you will pay for the apartment and compare it with the price for which the corresponding apartment can be bought. For example, to rent a small studio apartment in Prague you will pay around 10,000 CZK per month, i.e. 120,000 crowns per year. You can then buy it for about 4 million. When you divide the annual rent by the purchase price, you get a yield of 3 percent. What does this number tell you? The higher the yield, the more profitable it is to own an apartment. In general, it can be said that large apartments are more profitable to rent, while small ones to buy. However, the situation on the real estate market today is more than complicated - after all, we dedicated a separate part of our series to it: • Byty v Praze: Zlevní n...
But then, of course, comes the "non-mathematical" part of decision-making. While for some, living in a rental is synonymous with insecurity and they are afraid of possible restrictions on the part of the property owner, others do not mind living "in someone else's house" even for a long time, or they cannot buy an apartment because of an unaffordable mortgage. It simply depends on each of us.
And what about you? Do you live in a rental for a long time, or can you not imagine life without your own home? And what did you consider when making your decision? Let us know in the comments!
If, on the other hand, you are thinking about selling your apartment or house, watch our video dedicated to the question of when is the best time to sell real estate: • Kdy je nejlepší doba n...
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Daniel, Lukáš, Honza, Martina, Květa, Ruda