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renting vs buying

A must read: Renting vs Buying 3 easy factors Estonian edition

Renting or buying… It’s like standing at a crossroads, the unknown either way, often underestimated. In Estonia, a country experiencing a dynamic real estate market, the choice between the two is particularly significant. Let’s delve into the pros and cons of each, considering factors like property investment, market trends, and financial planning to help you make an informed decision when buying or renting real estate.

Pros of Renting

  1. Flexibility: Renting a house or apartment gives you the freedom to move easily in Estonia’s changing real estate scene. Perfect for those exploring new career paths or unsure about long-term plans. Enjoy the flexibility to change locations without the commitment of homeownership.
  1. Lower Upfront Costs: Renting stands out as a financially accessible option in Estonia. It asks for a modest initial investment unlike the big upfront costs associated with buying a home. Monthly rent payments, along with utilities, are more manageable, making it an affordable choice for those with limited savings entering the dynamic real estate market.
  1. Maintenance Savings: Choosing to rent in Estonia isn’t just about saving money at the start; it’s a smart move that shields you from major maintenance costs. Forget the stress of unexpected fixes – imagine the relief when a leaky faucet or a roof in need of repair becomes the landlord’s worry(or rental property manager‘s), not yours. 

Downsides to renting

  1. Lack of Equity Accumulation: Simply put, equity is how much of your home that you own. Unlike homeowners, renters miss out on building equity on their property over time, missing out on potential financial growth. Consider this when exploring real estate options for the future.
  1. Potential Rent Changes: Renting in Estonia? As good as it is if rent goes down, there’s also the chance of your rent going up. In a small but busy Estonian rental market, rent hikes might become an unwelcome guest, potentially affecting long-term budgeting. In a market with rising demand, rent hikes could be a recurring concern.
  1. Limited Home Personalization: Imagine wanting to add your own touch, but there’s a catch. Renters are usually limited when it comes to home renovation or home improvements. It’s a small hassle, making you wonder about the freedom that comes with owning a property.

Pros of Buying

  1. Building Equity: Buying a home in Estonia is like planting a financial
    Estonian house price index
    Estonian house price index
    seed. As you pay your mortgage, your ownership in the property grows, becoming a valuable asset.(read about “Estonia’s house price growth“) Picture a future where your home is not just a place to live but also a smart investment in Estonia’s real estate. (Read a global Property Guide article on the topic )


  1. Stability & Long-Term Financial Gains: Owning a home brings a sense of permanence and a potential for lasting financial benefits. It’s not just a place to live but an investment in your future. Real estate values may appreciate over time. Imagine the satisfaction…your home’s value grows over time, providing a sense of security and the promise of financial gains in the long run.
  1. Personalization & Control: Buying a home gives you the freedom to personalize and tweak your living space just the way you love. The joy of choosing paint colors, arranging furniture, and creating a home that feels uniquely yours. This sense of control over your environment sparks a cozy feeling, making homeownership a journey where your desires shape every corner of your space.

Downsides to Buying

  1. Higher Upfront Costs: When it comes to buying a home, there’s a hefty entry fee– the down payment, closing costs, and various other fees. This financial commitment might feel like a barrier, especially if savings are limited. Consider it as a key aspect when venturing into the exciting journey of real estate.
  1. Responsibility for Maintenance: Buying a home means taking charge, but not always in a good way. You’re not just the owner; you’re also the caretaker. From little tweaks to major overhauls, the responsibility for property maintenance falls on your shoulders. It’s not just time and effort; it’s also financial commitment.
  1. Less Flexibility: Homeownership can limit the flexibility to move quickly (unless you decide to rent out your home and live elsewhere), especially for those who may need to relocate for work or personal reasons.

To conclude….It all really depends on your individual priorities and goals. Consider both short-term and long-term factors, weigh the pros and cons, and make an informed decision that aligns with your unique circumstances.

Explore properties to rent or buy in Estonia with Brokerly.

Get expert advice from experienced real estate agents tailored to your situation. Contact us for practical insights that make your real estate choice clear and simple. 

If you found this article useful you might also like “Choosing the right Real Estate Agent in Estonia: A guide to what matters

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