In conditions of economic instability and high cost of borrowing, the choice between renting and buying real estate becomes one of the most pressing issues for Ukrainians. Taras Kozak, founder and president of the investment group "UNIVER", in an interview with RBK-Ukraine, outlined clear criteria under which renting housing can be a financially more rational solution than buying one's own square meter.
Mobility Factor and Life Stages
The expert emphasizes that for mobile families or people who do not plan to live in one place for a long time, buying housing often entails hidden costs. Kozak gives the example of a young family: there is no point in immediately buying a spacious apartment with extra rooms if, in the future, with the arrival of children, moves will be required. Each such step — selling the old housing, buying a new one, renovation, and moving furniture — entails significant financial costs and time losses.
Renting in such a situation allows maintaining flexibility. If a family works in one city and plans to move to another tomorrow, the lack of attachment to a specific real estate object frees them from the need to conduct complex sales and purchase transactions every time. In this context, renting acts as a tool for capital preservation, allowing not to "freeze" funds in a liquid but difficult-to-move asset.
Capital Mathematics: Yield vs. Rent Cost
The second key argument in favor of renting is the investment yield of capital. Taras Kozak points to a situation where a person's free funds can generate a return exceeding the cost of rent. If a person has capital that they can place at a high interest rate, and this rate is higher than the monthly payments for renting an apartment, it is more logical to rent housing and invest the money.
However, as the expert notes, buying becomes profitable in two cases: when the family is finally formed and does not plan to move, or when it comes to a crisis drop in real estate prices. If the market shows a price drop and a person has free funds, buying "at the bottom" can become a way to save significantly and preserve asset value in the long term.
Hidden Costs and "Pitfalls" of Ownership
When comparing renting and buying, many forget to take into account associated costs that fall on the shoulders of the owner. Kozak lists: renovation, taxes, insurance, and maintenance. Utilities are paid in any case, but the apartment owner bears responsibility for replacing furniture, plumbing repairs, and paying property taxes, which may vary depending on the area and city.
The presence of a financial cushion is critically important. The expert strongly recommends not spending all funds on buying "bare walls". A minimum reserve of money should allow comfortably furnishing the housing without the need to immediately take expensive consumer loans for furniture and renovation. If funds are enough only for the apartment itself, but not for living in it, renting may turn out to be a more comfortable and safe option.
Mortgage: Annuity Payments and the Safety Threshold
The issue of mortgages remains controversial. Kozak explains the mechanism of annuity payments, where part of the money goes to paying off interest, and part — to the principal of the loan. If the mortgage payment is less than the cost of rent, buying can be profitable, but only under the condition of stability. In conditions of high cost of commercial mortgages in Ukraine, overpayment on interest can make an apartment significantly more expensive.
The expert calls 30% of monthly income a safe threshold for housing expenses. Exceeding this figure creates risks of financial vulnerability. At the same time, preferential mortgages for certain categories of citizens (military, police) remain one of the few tools that make buying accessible even without a large financial cushion, provided there is a stable income.
