Dear,
I am 37 years old and since 27 I perceived real estate as a money-sucking liability. I live in a country that used to had very high interest rates, so any basic math would lead to put all inn investments and keeping paying rent rather than buying a home. However, in the last few years the interest rate was drastically reduced (and consequently my gains - right now I marginally can make 4% yearly over the inflation).
With this COVID crisis, an opportunity come up to buy a home for a value 35% below the market at the same community where I am currently renting (10 minutes biking to work). Buying this home would consume 70% of my savings. Below are some pros and cons that I am considering:
Pros:
- 35% discount;
- The returns of my investments are low;
- If I had to find another place to rent, it would be very difficult (basically no other houses available for rent at a biking distance to work);
- The current moment in the company where I work is good, I have just been promoted and my area is doing well;
Cons:
- My rent is very cheap (I pay 0,3%);
- My European citizenship has been recognized and I do not rule out the possibility of living abroad, if I get a good opportunity;
- I would have a hard time to sell this property (there are several houses in this community listed for years);
What would you do?