The big dilemma of the real state: to but or to rent

The big dilemma of the real state: to but or to rent

The housing market in Spain is in increasing, but sometimes it can be difficult to decide if it is better to buy or to rent a house. Some experts believe that for this question there is not always a correct answer, but it will depend on each potential buyer or tenant according to their preferences and their economic situation.

A recent analysis published on the site ABC.es, warns, however, that considering the average value of rents and the price of a house, the option of the mortgage today means a lesser expense.
They make an estimate according to a study of the site Pisos.com which underlines that with a mortgage granted on a house of 90 square meters, which covers 80% of its amount, the monthly expenditure currently amounts to 571.11 euros per month , depending on the interest rate and the average repayment period. This way, the annual disbursement would be 6,853.32 euros, an average of 24.3% of the family budget.

On the other hand, they indicate that for some types of properties, the family's expenses for the renting regime are higher. The article quotes BBVA Research as saying that "the current low interest rate situation and the correction of prices have made that the option to buy wins the option to rent".

The decision is from the bank;
Fernando Encinar, director of studies and one of the founding partners of the Idealista real estate portal, said that, in the end, the decision to rent or to buy a home is made by the bank.
The statements were published in february this year during his participation in the forum "Keys for the revitalization of rent", organized by the portal "ElConfidencial" with the sponsorship of Caser, he said that unfortunately, for the majority of young people this is not an option to acquire a house because the banking entities do not grant them financing.

He added that there is currently a "crush" on the part of this population with rents, but estimated that after 8 years of living rented, a young person will want to have his own house and modify it at their taste.
According to numbers from "ElConfidencial", the 20% of citizens chose the rent against 80% who chose to buy a house. They explain that in the case of young people, many people prefer not to bond with a mortgage or credit and choose the rent, especially not to have a significant weight in the case of a new economic crisis.

They add that a change of mentality is evident in these new generations, so they decide to only start thinking about buying a house when they start to form a family.

Agustín Matey, director of Insurer Caser's clients, is among those who believe that this trend in youth renting has also transformed the savings model. "When you bought a house, you created a savings bag, now you have to think about alternative systems," he said.
In the mentioned forum, all participants agreed that there is still a way to go on the rental market, but at least the myth that renting throws money is already broken.

On the amount that the rent should represent, they pointed out that in a healthy economy, the property should be at 50%. "We are still below the European average, which is above 30%, and very far from countries like Germany, with rates close to 60%," said Antonio Carroza, CEO of "Alquiler Seguro".

He added that a few years ago, the rent was "a social outcast", but that the situation has changed and that it is not so bad that the rent is preferred, "since our pension plan must not to be a home ". He concluded by saying: "you do not have to be extremists," not everyone has to live on rent, or buy a house, there has to be a balance.

Specialists in this market have indicated that rent changes will depend on the policies that are implemented in this area. They have ruled out a price bubble is rising on rents despite strong rises in areas such as Madrid or Barcelona.

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