BUY vs RENT
To own or to use:
which to choose?
which to choose?
Uruguay has a wide range of properties for rent and sale. At the moment there are about 200,000 options. And of course, it is necessary to decide what you really need?
Mónica Tesouro
Expert at Uruguay Smart Estate
Cost of renting vs purchasing through a mortgage
Rents in Montevideo can vary depending on the neighborhood, the size of the apartment and the condition of the property. On average, renting in central and upscale neighborhoods will be more expensive than in the outskirts. It is also worth keeping in mind the realtor's commission and a deposit to guarantee timely payment.
Prices for real estate in Montevideo also depend on the location and type of housing. When buying an apartment or house with a mortgage, you need to consider down payment, mortgage, taxes, insurance and other costs. A second deterrent may be the need to confirm a regular high income. Finally, the overpayment will be quite substantial.
Rents in Montevideo can vary depending on the neighborhood, the size of the apartment and the condition of the property. On average, renting in central and upscale neighborhoods will be more expensive than in the outskirts. It is also worth keeping in mind the realtor's commission and a deposit to guarantee timely payment.
Prices for real estate in Montevideo also depend on the location and type of housing. When buying an apartment or house with a mortgage, you need to consider down payment, mortgage, taxes, insurance and other costs. A second deterrent may be the need to confirm a regular high income. Finally, the overpayment will be quite substantial.
When choosing between renting and buying, you should also consider your long-term plans:
If you plan to live in Montevideo for a long time (5-10 years or more), buying real estate may be more profitable. Over time, the property may increase in value and you may be able to sell it at a profit. Currently, the average growth rate for the market is 3.5% per year.
If you are unsure about your plans or don't plan on staying in Montevideo for the long term, renting may be a better option. It allows you to remain mobile and doesn't tie you down to one place.
Risks of error
Of course, they are lower with a rental. A standard tenancy agreement is for 1 year, with the possibility of prolongation. And if you dislike the area, or the neighbors were too noisy, you can easily move to a new place. The second significant risk associated with buying a home is to buy an overvalued asset. Then its price over time will not grow, but adjust. And this is another good reason in favor of turning to market experts.
Personal preferences and lifestyle
Owning your own home gives you a sense of stability and independence. You can make any changes to your property and not be dependent on a landlord.
Rental housing allows you to avoid the responsibility of repairing and maintaining the property. It also frees you from having to pay property taxes.
Taxes and maintenance costs
Property owners must account for property taxes, repair and maintenance costs, utilities, and insurance.
Tenants usually pay only rent and utilities, making this option less costly in the short term.
Thus, if you plan to live in Uruguay long-term and are willing to invest in real estate, buying an apartment can be beneficial. However, if flexibility is important to you or you don't plan to stay in Montevideo for a long time and move to Punta del Este, for example, renting may be a smarter choice.
If you plan to live in Montevideo for a long time (5-10 years or more), buying real estate may be more profitable. Over time, the property may increase in value and you may be able to sell it at a profit. Currently, the average growth rate for the market is 3.5% per year.
If you are unsure about your plans or don't plan on staying in Montevideo for the long term, renting may be a better option. It allows you to remain mobile and doesn't tie you down to one place.
Risks of error
Of course, they are lower with a rental. A standard tenancy agreement is for 1 year, with the possibility of prolongation. And if you dislike the area, or the neighbors were too noisy, you can easily move to a new place. The second significant risk associated with buying a home is to buy an overvalued asset. Then its price over time will not grow, but adjust. And this is another good reason in favor of turning to market experts.
Personal preferences and lifestyle
Owning your own home gives you a sense of stability and independence. You can make any changes to your property and not be dependent on a landlord.
Rental housing allows you to avoid the responsibility of repairing and maintaining the property. It also frees you from having to pay property taxes.
Taxes and maintenance costs
Property owners must account for property taxes, repair and maintenance costs, utilities, and insurance.
Tenants usually pay only rent and utilities, making this option less costly in the short term.
Thus, if you plan to live in Uruguay long-term and are willing to invest in real estate, buying an apartment can be beneficial. However, if flexibility is important to you or you don't plan to stay in Montevideo for a long time and move to Punta del Este, for example, renting may be a smarter choice.
It is also important to consider the current state of the market and your personal financial situation before making a final decision. Our experts will be able to advise you on the best strategy and calculate all tax costs.