Owning property remains a symbol of success for the average Croatian, and this mentality drives many to take out loans and make purchasing decisions. However, with the onset of the financial crisis, it has become evident that circumstances can change overnight.
Job loss and the inability to pay loans in a situation where the market is flooded with vacant properties have led many to consider alternative solutions to housing issues. Nevertheless, readers of liderpress.hr are divided. Namely, 50 percent believe that renting is more favorable, while the rest argue that owning property is the better choice. Participants in last week’s Fight Club, Boro Vujović, director of Opereta real estate, and Ivan Šušak, expert advisor at Grawe Croatia, presented their arguments.
Vujović believes that there are many good opportunities in the market to buy at favorable prices, and when calculations are made, it turns out that the loan installment is slightly higher than the rent. The advantage of buying an apartment is the possibility of long-term planning, which a tenant does not have as an option. Šušak, on the other hand, argues that renting an apartment, besides flexibility, also provides the possibility of financial stability since the contract usually defines a fixed price.
– The greatest advantage of renting an apartment compared to buying one through a loan lies primarily in the flexibility of each individual to change their living space according to their needs without significant financial consequences – said Šušak.
Join the new Fight Club – GDP Growth in 2013.
