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Buying or renting an apartment, which is better? – idealist / news

Buying or renting an apartment, which is better? – idealist / news

With rents on the rise, buying a home doesn’t seem to be that long. However, it is not always possible. Many people wonder what is better, buy or rent. There is no single answer, since it depends on the personal and economic situation of each of them. In this article, we address the issue.

What suits me best, renting or buying an apartment?

It’s more complicated than it seems. While that is true buying gives you home ownership that you can sell in the future to earn money and face economic problems, you need an initial budget to be able to do it. Few banks or banks offer 100% mortgages today, so unless you are about 20% safe, the purchase is complicated.

On the other hand, the rent It may be a waste of money in the long run, since you are paying an amount for something that will not be yours. However, in his favor it must be said that it does not require as much money and also allows you to move more often.

“It simply came to our notice then. If you have the money you need to make a mortgage, about 20% of the value of the house, I always recommend it to my clients ”, he said Agustin Staircase, director Marbella Sunny Homes.

“There is a price Monthly mortgage payments will almost always be less than the rent. In addition, in areas such as the Costa del Sol, where long – term rents have lost ground relative to holiday rentals, prices are rising through the roof, which also extends to other areas of Spain ”, says he. Agustin.

Select factors

Select factors
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Spain is traditionally a country of owners. The percentage of renters living in the country is below the European averagealthough this figure has increased in recent years due to changes in the mortgage sector.

To find out what is better, whether to buy or rent, you have to include a set of factors, including the economic and employment situation.

savings available

To buy a home, you usually need to apply for a mortgage. If you can pay cash for a house, it’s obviously better to buy it. If this is not the case then you must apply for a mortgage loan save about 30% of the value of the house (20% not funded by the bank plus 10% for taxes and expenses), as mortgages are granted a maximum of 80% of the total value.

NOTE: The Bank of Spain recommends not devoting more than 35-40% of income to the payment of financial debts, including the mortgage payment.

Plans for the future, to buy or rent an assessment

Another key point when choosing to rent or buy is your personal and professional situation. Are you planning to move? Does your job involve changing cities? If the answer is yes, the rent is better for you. Rather, buy a house it is a long – term commitment. The mortgage will connect you to the house for the duration.

On the other hand, you have to pay close attention to the employment and economic situation in order to get a mortgage. If we can’t pay the debts contracted to the bank, they can repossess the house. While buying the house is good news, You just have to be more discriminating with the help you render toward other people. Therefore, it is important to arrange a mortgage that is easy to accept in dangerous situations.

Pot in favor of buying a house that is, if your personal and economic situation changes, Can you Sale. The ideal is to wait for a moment where you have earned money with the operation, but if you are in trouble, you can always recover some of the outlay.

Know the market

To find out what is best, whether to buy or rent, it is advisable to know market situation. If the rent is through the roof and the banking conditions are favorable, it may be more convenient for you to buy, and vice versa.

It should be noted that in the sector of rent you live under the ‘fastest human law’. The offer is limited and the best apartments are booked very quickly. An affordable and high quality house lasts for a few days. Rather, the trading market is more reflective.

For example, Carolina is one of those people who was in this dilemma. “I have been looking for a house to rent for months. I work from home and have pets, so I wanted something that would allow me to live comfortably and with a garden. After months of searching, what I found to suit my needs was no less than 900 euros. At the end, I decided to buy a house. The mortgage I pay is 480 eurosalmost half the cost of the rent would cost me ”, he tells idealista / news.

When is it better to buy than to rent?

Once these questions have been raised, it is possible to find out when buying is better than renting. Here are some points to consider:

  • Some homeowners grant security. You pay something that will be yours and that you can sell in time of need. In addition, you can rent rooms in case you need extra income.
  • If so savingsgood employment situation and good profile to get into a mortgage, it is advisable to buy a house.
  • if you get one housing in a demanding area at a suitable price and you can afford it.

Why rent a house?

Renting can be better than buying house has:

  • you cannot get a mortgage. Rental costs are lower than entering a house.
  • Frequent geographical mobility. For example, if you travel a lot or work long distances, renting allows you more comfort when traveling and moving.
  • If you want to buy, but do not have the money and can not find the house you want, renting is a good option.

Rent to buy option, between two lives

Buying or renting a house
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Renting is an option to consider the purchase option if you have any hesitation. On the one hand, you it lets you rent the house you like for future sale while raising the necessary money to make it effective.

Also, at the time the contract allows it, you can go back out and move to another house. On the other hand, you can buy the house if you have managed to raise the money before and the owner shall be obliged to sell it. In addition, some of the monthly payments will be deducted from the final price.

If you are interested in this type of access to housing, you know all about it Article.

What’s more profitable, selling or renting?

“The price of rent is usually higher than the amount of monthly mortgage payments. buy rent offers high profitability. The monthly payments of the lease can pay off the loan payments, as well as generate additional income. Of course, you have to find another house to live in. In fact, I was about to sell my house to buy another and now I’m thinking of renting it out and getting into a new mortgage with the savings ”, ladder is exposed.

Of course, renting your home carries risks. “The problem that could happen here is that the house stays empty or not rented, the ‘squatter’ or you run into defaulting tenant. However, it is an option to be considered ”, emphasizes Agustín.

What do I need to do to buy an apartment?

Before buying an apartment, you need to look for the one that best suits your needs, assess its condition, the improvements it may require and their cost. To apply for a mortgage, you will need to save 20% of the value of the house, approx. In addition, you must have another 10% to cover costs and taxes.

When is a floor considered old?

If the average lifespan of a building is taken as a reference, from 50 to 70 years, an apartment over 30 years old can be considered old, but if improvement and refurbishment works have been carried out, this time can be extended. .

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