Few places have such a desire to own a home as in the Czech Republic. It should be noted that this is not a standard issue, not even in Europe. For example, in Germany like this, people live quite normally in rented accommodation and do not feel that they are missing anything. On the contrary, they do not want to needlessly own properties that they have to take care of, but consider their provision as a service for which they pay. Just as it is common to take a vehicle on operational leasing.
It doesn’t belong to you
In the Czech Republic, on the other hand, mortgages are the standard. But when you realize it, it’s not a win at all. Sure, in an era of low interest rates, we’ve heard the constant mantra that it’s not worth paying rent when you’re paying the same amount in mortgage payments and in the end it’s going to be your home.
But few people realize the dimensions of it all and that for 30 years you are tied in an incredible way, to a property that doesn’t even belong to you. Yes, you are registered as the owner in the cadastre, but right below that you can see that the bank has a lien on the apartment, which is always the stronger card. All you have to do is not pay for a while, and you’re already without an apartment and probably without the money you put into it until then.
The whole thing is going out of business right now when interest rates are very high and the 15k a month payment is suddenly 30k. And you still have maybe 25 years of repayment ahead of you. Moreover, in a time that will no longer be like the previous ten years and when you will not know what will happen. Won’t the interest be like 10% over time? This would really no longer be possible for many and they would not be able to repay even if they stood on their own.
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It will be different
On the contrary, in the case of renting, you are very flexible and can build wealth in a different way. For example, investments. In addition, you don’t have everything bet on one card that you are tied to and that they can very easily take away from you in case of any problems.
Read also: The state will arrive in Bohemia. People with a mortgage have to pay tens of thousands of extra crowns
It is therefore quite possible that the order will soon change in the Czech Republic as well, and housing will begin to be perceived completely differently. Leases will be provided by large companies under precisely given conditions that will give security, and mortgages, on the other hand, may become a marginal product.
Foto: Shutterstock
2023-11-05 13:00:00
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