Sometimes we want to own things and simultaneously take responsibility for them. Other times, we prefer to rent, like with a car or an apartment, and shift the responsibility to the renter. Loans have helped developed nations reach great heights. This is discussed by the authors Daron Acemoglu and James Robinson in their book Why Nations Fail.

Sometimes - it could be better to take a loan with the certain percentage instead of buying the whole apartment in cash (if You have enough cash). However, perhaps for this same reason, many countries sank during the 2008 financial crisis, while Germany wasn’t as heavily affected because it didn’t have as much leverage in the market.

Benefits of Owning Property

• It simply feels good. It’s pleasant to own something or at least know that in 10-50 years it will be yours or passed on to your children. When it comes to a car, it’s much more realistic to purchase one over a much shorter period.
• Real estate appreciates in value. It might be not as much as You might think if inflation is counted in but still, it does.
• The opportunity to pass on your estate to your descendants, helping them start life with more than empty hands.

Advantages of Renting

• Pay the money and don’t worry. For housing, you don’t need to worry about repairs; for a car, it is maintained automatically with the costs included in the rent.
• You’re not tied to one place. If you need to move, it’s much easier to leave a rented apartment than one you’ve bought.
• Fixed payment.
• You don’t need a down payment of 10% - 20% of the property’s cost, which can be a difficult task.

Of course, different life stages have their own priorities. At least, if you think carefully each time - you can find a more suitable option. It all depends on a life stage. If you are an established family, buying a house or apartment seems logical, doesn’t it? If You are planning to live somewhere just temporarily - renting an apartment could be better option.