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Renting or Buying a House: Advantages, Disadvantages and What to Consider When Choosing

Renting or Buying a House Advantages Disadvantages and What to Consider When Choosing - Renting or Buying a House: Advantages, Disadvantages and What to Consider When Choosing

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.

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2 thoughts on “Renting or Buying a House: Advantages, Disadvantages and What to Consider When Choosing

  1. James Taylor

    We are in our 70s now and feel it is to late to buy a property in Spain, my Question

    is ,how long are we allowed to stay in Spain whilst renting a property.
    Look forward to hearing your answer.
    Thanks for now,
    Jim Taylor

    Reply
    1. SpainHouses.net

      Hi James,

      We have read the following info in: https://www.gov.uk/foreign-travel-advice/spain/entry-requirements

      You can travel to countries in the Schengen area for up to 90 days in any 180-day period without a visa. This applies if you travel as a tourist, to visit family or friends, to attend business meetings, cultural or sports events, or for short-term studies or training.
      If you are travelling to Spain and other Schengen countries without a visa, make sure your whole visit is within the 90-day limit. Visits to Schengen countries within the previous 180 days before you travel count towards your 90 days.
      To stay longer, to work or study, for business travel or for other reasons, you will need to meet the Spanish government’s entry requirements. You should check with the Spanish consulate in the UK prior to travel regarding what type of visa and/or work permit you may need.
      If you are travelling to Spain for work, read the guidance on visas and permits.
      If you are unable to return to the UK before the expiry of your visa/permit or visa-free limit, you should contact your local authority for immigration advice. You can also call 060 from a Spanish phone line.
      If you are visiting Spain and need to extend your visa-free stay for exceptional reasons, such as a medical emergency, you must apply to the immigration authorities (Extranjería) to do so.
      If you stay in Spain with a residence permit or long-stay visa, this does not count towards your 90-day visa-free limit.

      On the other hand, there is the non-lucrative visa:

      A Spanish non-lucrative allows you to live in Spain as long as you can financially support yourself. If you are financially independent, the NLV is the easiest way to become a resident of Spain since you don’t need to invest.
      However, you can’t work on a non-lucrative visa, either in a company or as self-employed.
      The Spanish non-lucrative visa is also known as a retirement visa because it is most common among retirees.
      Spain Non-Lucrative Visa Requirements
      You can apply for a non-lucrative visa for Spain if:
      You are a non-EU citizen.
      You want to live in Spain long-term.
      You have the necessary financial means to live without working.
      You don’t want to work in Spain.
      You have health insurance.
      You don’t have a criminal record.
      You regularly stay in Spain.
      Source: https://www.schengenvisainfo.com/spain/visa/non-lucrative-visa/

      We hope this is helpful.

      Regards!

      Reply

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