The Big Decision. That could be the name of the latest Hollywood blockbuster or the title of the next bestseller. best seller that will be flying through the bookstores. However, fiction aside, it's a decision that many people have to face at a certain point in their lives: To rent or to buy a house? Which is better? Which is going to be more profitable? These are the classic questions that you may be asking yourself and that many others have already asked themselves before buying or renting a flat. Below, we try to help you answer them.
Is it better to rent or buy a home?
It depends on your profile. There really is no single answer to the question of whether it is better to rent or buy a house, as each person is different and has their own socioeconomic circumstances. Therefore, if you are thinking about renting or buying your next home, we recommend that you first evaluate these three aspects:
- Your solvency profile in the eyes of banks or financial credit institutions and your savings and/or assets.
- The time you wish to live in the property or commit to it. That is, the term you are willing to pay, whether it be monthly rent or mortgage payments.
- The evolution of the price of housing, which is constantly fluctuating.
Based on these three indicators you will get the answer to whether, in your case, it is better for you to buy or rent a house.
When is it more profitable to buy or rent a house?
Sit down with a calculator, paper and pen in hand and get ready to answer the three key questions that will tell you if it is more convenient to rent or buy a house. Anyway, from Trion Finance & Consulting, we already tell you that it will be more profitable to buy a home if you meet the following requirements:
- You want to own a property of a property, either to live in it or to make it profitable through a lease.
- You have a solvent economic profilethat is to say, with savings and with a certain job stability.
- Of course, if you have found an affordable property in an interesting area in an interesting area.
If you meet these three conditions, it is normal that you choose to buy a home instead of renting it. Even so, everything will depend on the socioeconomic situation of each one. Therefore, conversely, it will usually be more profitable to rent than to buy a house:
- You do not have sufficient savings and capital to apply for a mortgage and purchase the property.
- You don't need or don't want to buy a property.
- You want a property in which you don't know how long you are going to be living in and you don't want to commit yourself to.
In both situations and whatever profile you have, what we recommend is that you also contemplate both the current prices and the regulations and legislation in force. You will avoid problems and scares in a decision that you cannot take lightly.
The other option: home with right to buy
If, after analysing the situation, you are not sure whether it is better to rent or buy a house, don't worry. whether it is better to rent or buy a house, don't worry. Consult your trusted mortgage advisors, get information and let them advise you. Of course, you should also know that there is an alternative way: the rental of flats with the right to buy.
Through this contract, which is unilateral and for which you will have to pay more at the beginning of the lease agreement, you will be renting the property for which, after an agreed period of time, you will have an option to buy. The price for which you execute this option will have been agreed in the contract beforehand and, in addition, the lease payments that you have been paying will be deducted.
If you are not sure if you want a house at this specific moment or in the future, maybe the option of renting a house with option to buy is your solution. Therefore, it is a possibility that usually choose the most unstable job profiles by geographical mobility.
And currently in Spain, is it better to rent or buy a flat?
It depends. Just as buying or renting a house depends a lot on the situation of each one, the fact that you buy it in Spain or not is an important factor but not a determining one. It is obvious that the national socio-economic context influences the cost of renting or buying flats in Spain. Therefore, the price will not be the same depending on the moment the country, the city or the neighborhood in particular lives.
Let's put you in the picture. Let's talk about the difference that buying or renting a house in Barcelona can make (the most expensive in Spain, along with Madrid, in 2020, according to a study by Statista, compared to another city. At the end of 2020, the square meter in the Condal City was at 16.2 while that of Malaga stood at 10.1 €. A remarkable difference of more than €6, as you can see, which can also help you decide whether to rent or buy and whether to do it in one place or another.
At the same time, the price of half renting or buying a house in Spain, whatever city it is, you will also have to take it with relativity. Continuing with the example of the Catalan capital, the cost per square meter to buy or rent will vary by other factors: if the flat is in one of the trendiest neighborhoods in Barcelona, if it is one of the safest, if you are looking for flats in the best neighborhoods in Barcelona or in an adjacent municipality...
In short, it can be said that there is no single, absolute answer to the difficult question of whether it is better to rent or to buy. For each person there will be a solution that best suits them. And to help you decide, what better than to let yourself be advised by experts like Trion Finance & Consulting. Mortgage advisors with enough experience and trajectory to analyze each situation and profile in depth and advise you on that big decision for your present and your future: What is more convenient for you? Is it more profitable to buy or rent?