Rent or buy? It’s a question that many young and not-so-young people ask themselves over and over when it’s time to leave home or when they’re wondering what to do with their money after years of saving. Slovenia is one of the European countries with the greatest tendency to buy owner-occupied apartments. It is a cultural aspect that is more prevalent in the countries of the South and that usually thinks in terms of those who rent throwing money away or that buying is an investment while renting is an expense.
Apartment rental prices in Slovenia, as elsewhere in the world, vary greatly depending on the region, size, and quality of the apartment. Rents in larger cities such as Ljubljana are among the highest in the country. The average rent for an apartment with an area of around 70 square meters in Ljubljana can vary between 800 and 1,500 euros per month, depending on the location and condition of the property.
High rental prices are often the reason why people prefer to buy their own property. Among other things, the worry that the landlord would want to evict us due to the sale of the apartment or that he will increase the agreed monthly rent in the future disappears.
The advantage of owning real estate is financial stability and a long-term investment.
Instead of spending money on rent each month, property owners gradually pay off the loan, allowing them to build their own equity. After completing the loan repayment, they can enjoy free accommodation or rent out their property and generate additional income.
Property owners have complete freedom in renovating and decorating the home.
Property owners also have more freedom to adapt and remodel the home to their liking. They can customize the interior, exterior, and other aspects of the property to their own taste without the need for the owner’s permission or the restrictions of the tenancy agreement. The feeling of home and belonging is completely different for an owner. They can consider having a pet without concern, which is usually not desirable in a rented apartment.
A sense of stability and belonging.
Owners of freehold properties usually find it more important and in their interest to connect with the local community and create strong ties to the environment in which they live.
An important advantage of ownership is also the inheritance for descendants.
As an owner, you can transfer your property to your descendants and provide them with long-term wealth. This can increase the sense of security and provide assets that can be passed on to the next generation.
Generating passive income.
In case you have several properties, you can use some of them to rent out and generate additional income. This gives you more financial stability and the opportunity to invest in other projects.
It is important to note that the benefits of owning a property depend on individual needs, financial situation, and personal preferences.