One of the biggest questions that people ask when moving abroad is if it is better to buy or rent a house in Italy? In 2021, all signs lead us to say that a mortgage beats rent. This is thanks to the low level of interest rates combined with new State mortgage aid for young people under 36 years of age, something which will boost the mortgage financing market. This is according to an analysis by Telemutuo. Let's have a closer look at the difference between paying a mortgage and paying rent in Italy.
According to the findings, the monthly instalment of a mortgage taken out to cover 80% to 95% of the financing for the purchase of a home in Milan, Rome or Naples is now lower than the average cost of renting the same property. The simulation carried out by Telemutuo's research department looked at loans taken out for 25 to 30 years, which account for almost 70% of mortgages requested by young people under 36. In this bracket, in the cities of Milan, Rome and Naples, the cost of a monthly mortgage instalment is up to 35% lower than the rent for the same property.
Angelo Spiezia, CEO of Telemutuo, explained: "It has never been so convenient for a young person to buy a house in Italy rather than renting. Not only are interest rates close to historic lows, but the new state aid makes it possible to take out a mortgage, under certain conditions, even for people with less stable employment contracts. This combination of factors is making it increasingly unattractive to rent a home in Italy on a long-term basis. Buying, as opposed to renting, makes it possible to capitalise on the instalments".
- Find out more about taking out a mortgage in Italy and get expert advice with idealista/mutui.