The housing question in Ukraine remains one of the most relevant for young families, singles, and even pensioners. Buying an apartment sounds like a dream, which generations consider a sign of stability. At the same time, renting means mobility and flexibility. The current economic situation, inflation, and market fluctuations force us to rethink traditional views on housing. In this article, Baltimore Chronicle will examine the financial, psychological, and social aspects of choosing between renting and buying housing, dispel popular myths, and provide up-to-date calculations for 2025.
Key Differences Between Renting and Buying Housing
Before comparing expenses, it is necessary to clearly understand how renting housing differs from buying it. These two approaches have not only financial but also emotional, social, and legal aspects.
What Renting Housing Means
Renting housing implies temporary use of a property in exchange for monetary compensation. A person does not have ownership rights but uses the housing as their own.
Advantages of renting:
- Minimal initial costs
- The possibility to change housing as needed
- No expenses on major repairs
Disadvantages:
- Dependence on the owner
- Possibility of rent increase
- No capital accumulation
What Buying Housing Means
Buying housing is a long-term investment that requires large initial expenses or a mortgage loan. However, it guarantees ownership rights.
Advantages of buying:
- Full control over the property
- Possibility to resell
- Own property as capital
Disadvantages:
- High initial expenses
- Mortgage and bank obligations
- Expenses for maintenance and repairs
Financial Calculation: What is Cheaper in the Long Term
Let’s calculate what is more profitable: renting or buying housing in an average Ukrainian city, for example, Lviv.
Assumptions for Comparison:
- Rent cost for a 1-room apartment – 10,000 UAH/month
- Purchase price – 1,500,000 UAH
- Initial down payment – 30% (450,000 UAH)
- Mortgage – 20 years at 12% annual interest
- Maintenance expenses for owned housing – 1,000 UAH/month
| Parameter | Renting (for 20 years) | Buying (mortgage for 20 years) |
|---|---|---|
| Monthly expenses | 10,000 UAH | ~13,000 UAH (loan + maintenance) |
| Total expenses over 20 years | 2,400,000 UAH | ~3,600,000 UAH |
| Ownership | No | Yes |
| Flexibility | High | Low |
| Repairs/Maintenance | Optional | Mandatory |
Conclusion
In the short term, renting is more profitable. But after 20 years, the buyer will own the property, while the renter will have only spent money. However, this calculation does not take inflation, interest rate changes, or housing price fluctuations into account.
Myths About Buying and Renting: What You Should Know
Myth 1: “Better to Pay for Your Own Than Someone Else’s”
This argument often comes from older generations. However, they forget about high initial costs, repairs, and taxes. Sometimes renting can be a more reasonable financial decision, especially for young people or those without stable income.
Myth 2: “Mortgage is a Profitable Investment”
A mortgage can be profitable only with a stable income, inflation that benefits the borrower, and rising housing prices. In many cases, the overpayment on a mortgage exceeds the actual value of the apartment.
Myth 3: “Buying Means Forever”
In today’s world, people change cities, countries, and professions. Buying housing in one city can become a burden if life circumstances change.
When Renting Is Better Than Buying
There are several situations in which renting is a more justified decision.
- You frequently change your place of residence or work in several cities
- You don’t have a stable income
- You are not ready to invest a large sum for a down payment
- You expect housing prices to decrease
Renting is also advantageous for young people just starting their careers or who do not want to be tied to one place.
When Buying Housing Makes Sense
Buying housing is a smart investment when:
- You have a stable income and long-term plans
- You have a down payment without critical financial burden
- You want to create a family space
- You plan to live in a specific city for a long time
Also, owning your own home guarantees that you will not be evicted and you can arrange the space as you wish.
Additional Factors to Consider
Besides finances, other aspects should be taken into account:
- Legal risks: when buying, you must carefully check documents; when renting, sign a contract.
- Taxes and utilities: owners have mandatory taxes, while renters often partially pay utilities.
- Price fluctuations: the real estate market is unstable; sometimes it’s better to “wait it out” by renting.
Can Renting Become a Permanent Lifestyle in Ukraine?
In many countries (Germany, Switzerland), renting is the norm. In Ukraine, it is still considered temporary. However, the younger generation is changing attitudes, focusing on mobility and freedom. Government policies and financial instruments may also influence the development of the rental market as a full-fledged alternative to buying.
Renting and buying housing is not just a choice between monthly payments and a mortgage. It is a deeper issue that includes lifestyle, financial opportunities, and long-term plans. In 2025, there is no universal answer to what is better – renting or buying. Everyone should choose based on their personal situation, weighing all pros and cons.
Earlier we wrote about in Zaporizhia, online access to preferential mortgages was opened for displaced persons.