With prices on the rise and an economic situation that generates uncertainty, deciding whether it is better to rent or buy a house does not seem easy. In either case, there is no single answer. Both alternatives have advantages and disadvantages, without forgetting the individual circumstances of each one.
Advantages of renting or buying a house
Starting with the rental, we find these advantages:
• The initial outlay is much lower than that of buying a home. It usually is the rent for two months.
• It makes it easy to change residency when work or life pushes us to.
• Moving out of a rented house is often quicker than selling a property, especially in Spain, where most of the rentals are furnished houses.
• We save on home expenses that are in charge of the property owner.
Regarding the purchase, it is also convenient to assess its advantages:
• Once the mortgage gets paid, we'll finish with the monthly payments.
• The monthly mortgage payments are usually smaller than the monthly rent.
• A home is always a good investment. In the future, it can be rented or sold at a profit.
• You can decorate or reform your home without asking anyone's permission.
Disadvantages of renting and buying a home
We must evaluate the disadvantages of renting and selling before making a decision. Among the main drawbacks of renting, let's not forget the following:
• The money contributed per month is not used to pay for a property that will be yours in the future.
• There is no control over the reforms. You'll need the owner's approval.
• The lessor, under certain circumstances, can terminate the rental contract prematurely.
• Rental prices are not set in stone. The property owner can update them within the margins provided by law.
Regarding the acquisition of housing, these would be some of the main disadvantages:
• The initial disbursement is significant since financial institutions do not finance 100% of the property's value.
• In some cases, getting a mortgage can be complicated since a whole series of requirements are needed. We must also take into account the rise in interest rates.
• All maintenance costs, community, etc., are the owner's responsibility.
• The price of housing is subject to constant fluctuations. It means that, in case you want to sell, the benefit may not be as expected.
Criteria to choose between renting or buying a house
The above aspects should help you decide whether to rent or buy a house. Even so, we recommend considering other essential issues:
• Financial situation: to acquire a home, it is necessary to have some savings. The initial payment will be around 30% of the house value (20% to cover the part not financed by the bank and 10% for expenses associated with the purchase).
• Lifestyle and plans: think carefully about your working plans and mobility. Whether or not one has a stable job or plans to increase the family, among others.
• Evolution of real estate prices: rental prices, and those of brand new homes and resales, change at different rates.
• Interest rates: when they are high or expected to rise, it may be more convenient to go for a rental.
At Spainhouses.net, you will find the broadest real estate offer to rent or buy a house. On our property portal, you'll also be able to compare prices over time, selling and rental prices.
Compare and find the house of your dreams in less than you imagine.