What pays better: To pay your or your landlord’s rent

It didn't take long for the housing loan installments to "soar" up by 100 euros, while at the same time, the prices of apartments for sale constantly grow, affecting rents to increase by up to 50 percent. This situation puts citizens who have not resolved their housing issue into a dilemma of whether to buy their apartment on credit and pay it off for several years or to pay rent on a rented one.
The real estate market has been completely disrupted by many events in the last two years, leaving not many choices for a citizen with an average income and without a roof over his head. As experts say, the time of favorable loans is over, and there are no indications that real estate prices will return to their old levels, nor that interest rates will stop.
The fact is that for a person with an average income, neither of the two options offered is the happiest from the current point of view. However, when everything is put on paper and looked at in the long term, the calculation can help many people in their decision.

Loan installments continue to rise

The European Central Bank has raised interest rates by 200 basis points since July last year to deal with record-high inflation. The last increase happened in December, which automatically raised loan installments from the beginning of this year. According to announcements from the ECB, interest rates will rise in 2023 as well.
The banking market in Serbia currently offers only Euro Loans housing with variable interest rates. The fixed interest rate is currently around 6 percent.
The reference interest rate is calculated by adding the Euribor value to the fixed interest margin (3M, and 6M). According to data available on the Internet, the value of the 3M Euribor is currently 2.170...