Assurance vie Meilleurtaux Placement

Renting or buying an apartment: what is the best option for parents of a student?

With inflation, rents continue to rise. It’s time to find housing for their children, so more and more parents are wondering if buying is more interesting than renting. A startup specializing in rental investment in Nantes has tried to answer this question.

With their baccalaureate, many young people are preparing to start higher education, sometimes far from home. So they are looking for a home to come back. But with inflation, rents go up. So their parents wonder if the purchase would be more interesting. As mentioned Properties in Le Figaro On Monday, August 8, Circumo, an agency specializing in rental investment in Nantes (Loire-Atlantique), ran a simulation to see which purchase or lease was the most beneficial.

Student loan: these banks that still offer discount rates to finance your studies

The simulation was carried out for an old renovated studio of 20 m², ideally located in the center of Nantes, with a loan or monthly rent of 550 euros per month. In both cases, the monthly cost will be the same.

As part of the purchase, the price is 110,000 euros, including a contribution of 10,000 euros and a loan of 100,000 euros over 20 years. After five years (usually the master’s end), a potential capital gain of 25% can be achieved. So the studio can be resold for 137,500 euros. Deduction of the monthly installments of the loan (33,000 €), fees (8,750 €), capital gains tax (1,000 €), remaining capital owed (78,000 €) and contribution (10000 €), Net profit amounted to 6,750 euros over five years.

A profit of 6750 euros for a loss of 31,960 euros

As part of the lease, Circomo added an investment of €10,000 in life insurance, in order to match the contribution earmarked for the purchase. After five years, the rents will cost them 33,000 euros, and the life insurance contract will have paid off, based on an optimistic rate of 2%, 1,040 euros. The rent which is not profitable, they will not get any gain, rather they will have losses.

Nobanques: Cheapest Offers To control your budget

We can see from this example that Investing in the center of a very dynamic city like Nantes, is more interesting from a financial point of view From renting his son’s study time. And that, regardless of the timing of the resale, concluded the co-founder of Circomo.

Back to School 2022: Should we rush to buy school supplies?

Leave a Comment

Your email address will not be published. Required fields are marked *