Anyone who wants to live on their own faces a big dilemma: deciding whether to buy or rent. It is a decision that should not be taken lightly, and if you are in this situation, consider your options and the consequences. If you can’t figure it all out by yourself, there are professionals, like advisors, your bank and real estate agents, to help you with this big decision. Today, this article by ShMadrid will inform you about some of the advantages and disadvantages of renting and buying, in order to help you with one of the most important decisions in your life.
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Discover what is best for you: buying or renting
We will first discuss the advantages and disadvantages of renting a home. Renting an apartment is a good solution for many young people who want to live independently in their first apartment. Most of the time young people do not have a permanent job yet, and sometimes they are still studying and getting help from their parents with paying the monthly rent. Due to these circumstances, banks will not offer a mortgage. The only option in this situation is to rent. On the positive side, renting an apartment gives you more freedom. So it is ideal for anyone looking for a temporary roof over their head, for frequent travellers or anyone who moves regularly. When you are having a hard time finding the perfect location or apartment, it is also better to rent first. It gives you the extra time to be 100% sure on what you are looking for. Besides these advantages, a rental apartment can also serve as a perfect in-between solution, for instance when you have just moved out of your old house and waiting for the keys to your new home. Financially speaking, rental prices in large cities are currently skyrocketing, so sometimes it is wiser to buy than to rent. But in case you do not have any savings or a permanent job, like freelancers or self-employed workers, renting might be your only option, as banks are reluctant to offer loans.
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Let’s continue with the advantages and disadvantages of buying a home. The most important advantage is, that buying a home can be more lucrative than renting one. Especially since you will become the owner of your property after having paid back your mortgage. And this may sound strange, but in Spain, they are more focussed on buying than renting, and as a result many banks have special offers for people who decide to buy their home. But please be aware that buying an apartment only makes sense if you intend to live in that apartment for a long time. Buying and moving into your new home takes an investment and a lot of paperwork, more so than if you would rent an apartment. While it is true that banks have become more flexible with their mortgage conditions recently, they are still in an apprehensive mode since the economic crisis. There are still more restrictions than ten years ago, which unfortunately means not everyone can apply for a mortgage. And as we mentioned before, home owners are more keen on renting out their property, as this is more profitable. So the real estate market is not really a buyer’s market at the moment. If you need any professional help, do not hesitate to contact our real estate agents. They will assess your personal situation and help you with clear advice.
What would you do right now, if you had the choice of buying or renting an apartment?