Deciding between buying a house with a mortgage or renting a property may seem complex, but currently, a mortgage offers significant advantages.
With the recent cut in interest rates by the ECB, mortgage payments have become more affordable, sometimes even lower than rental fees.
This trend, combined with tax benefits for first-time homebuyers, makes a mortgage a more advantageous choice.
However, a mortgage is not always the ideal solution for everyone, as there are many factors to consider, including economic stability, the availability of initial capital, and long-term prospects.
Let’s explore in detail why a mortgage is the best option for many people today, analyzing data from major Italian cities and considering the various elements that influence this crucial decision.
In recent months, the mortgage market in Italy has seen a significant reduction in interest rates.
Banks anticipated the ECB’s rate cut in June, leading to a decrease in mortgage payments.
This phenomenon has made a mortgage a more competitive option compared to renting in many areas of major Italian cities.
For example, in Milan, in areas like Genova-Ticinese and Porta Venezia-Indipendenza, mortgage payments are lower than rental fees.
In these areas, monthly savings can be significant, making buying a house through a mortgage a financially advantageous option.
Analyzing data from Milan, it emerges that in some central areas, such as Centro and Garibaldi-Porta Nuova, mortgage payments are still higher than rental fees.
However, in many other areas, like Famagosta-Barona, Forlanini, and Bicocca-Niguarda, mortgage payments are significantly lower than rental fees, with differences that can exceed €600 per month.
| Zone | Price € | Rental Fee € | Mortgage Payment € |
|---|---|---|---|
| Genova, Ticinese | 785,000 | 2,623 | 2,529 |
| Porta Venezia, Indipendenza | 765,000 | 2,613 | 2,465 |
This scenario is also reflected in Rome, where in areas like Centro Storico and Aventino-Caracalla, mortgage payments are lower than rental fees.
| Zone | Price € | Rental Fee € | Mortgage Payment € |
|---|---|---|---|
| Centro storico | 792,000 | 2,805 | 2,552 |
| Aventino, Caracalla | 670,000 | 2,497 | 2,159 |
In addition to the economic convenience, buying a house with a mortgage offers numerous cultural and psychological advantages.
In Italy, owning a home is often seen as a sign of stability and security.
Real estate ownership is viewed as a tangible investment, which can be passed down to future generations.
Furthermore, owning a home allows for total control over living spaces, enabling modifications and customizations that would be impossible in a rented property.
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