{"id":9334,"date":"2019-08-29T14:06:19","date_gmt":"2019-08-29T12:06:19","guid":{"rendered":"http:\/\/www.shmadrid.com\/blog\/en\/?p=9334"},"modified":"2019-08-28T16:02:43","modified_gmt":"2019-08-28T14:02:43","slug":"buy-or-rent-madrid","status":"publish","type":"post","link":"https:\/\/www.shmadrid.com\/blog\/en\/buy-or-rent-madrid\/","title":{"rendered":"Should You Buy or Rent a Home in Madrid in 2020?"},"content":{"rendered":"<p style=\"text-align: justify;\">Madrid is a trendy city, and its real estate sector is flourishing again. Barcelona was a place where many people wanted to live, but thanks to the real estate bubble that is starting to burst, Madrid is stepping up and presenting itself as one of the most interesting options for renting or buying property.<\/p>\n<p style=\"text-align: justify;\">If you are considering <a href=\"https:\/\/www.shmadrid.com\/yearly-rental?order-by=availablelowestprice&amp;price-to=2400&amp;surface-to=110\" target=\"_blank\" rel=\"noopener noreferrer\"><strong>living in Madrid<\/strong><\/a> or have decided to <a href=\"https:\/\/www.shmadrid.com\/owners-sales\"><strong>invest in the Spanish capital<\/strong><\/a>, go on and read the information that is provided by <strong>ShMadrid <\/strong>in this blog article.<\/p>\n<p style=\"text-align: center;\"><em>Related article:\u00a0<a href=\"http:\/\/www.shmadrid.com\/blog\/en\/advantage-disadvantage-buy-rent\/\">Advantages and Disadvantages of Buying and Renting a Home<\/a><\/em><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_17 counter-hierarchy\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\">Index<\/p>\n<span class=\"ez-toc-title-toggle\"><\/span><\/div>\n<nav><ul class=\"ez-toc-list ez-toc-list-level-1\"><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.shmadrid.com\/blog\/en\/buy-or-rent-madrid\/#the-ongoing-dilemma-to-buy-or-to-rent\" title=\"The ongoing dilemma: to buy or to rent\">The ongoing dilemma: to buy or to rent<\/a><ul class=\"ez-toc-list-level-3\"><li class=\"ez-toc-heading-level-3\"><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.shmadrid.com\/blog\/en\/buy-or-rent-madrid\/#to-rent\" title=\"To rent\">To rent<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-3\"><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.shmadrid.com\/blog\/en\/buy-or-rent-madrid\/#to-buy\" title=\"To buy\">To buy<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"the-ongoing-dilemma-to-buy-or-to-rent\"><\/span>The ongoing dilemma: to buy or to rent<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<div id=\"attachment_9336\" style=\"width: 310px\" class=\"wp-caption alignright\"><a href=\"http:\/\/www.shmadrid.com\/blog\/en\/wp-content\/uploads\/2019\/08\/bath-753272_640.jpg\"><img aria-describedby=\"caption-attachment-9336\" loading=\"lazy\" class=\"wp-image-9336 size-medium\" src=\"http:\/\/www.shmadrid.com\/blog\/en\/wp-content\/uploads\/2019\/08\/bath-753272_640-300x169.jpg\" alt=\"bathroom with bath tub, tiled floor and mirror\" width=\"300\" height=\"169\" \/><\/a><p id=\"caption-attachment-9336\" class=\"wp-caption-text\"><em>Photo via Pixabay<\/em><\/p><\/div>\n<p style=\"text-align: justify;\">It all depends on your circumstances if buying or renting is more interesting to you. That is why checking out your possibilities and discovering what is on your wish list is essential.<\/p>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"to-rent\"><\/span>To rent<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\"><a href=\"http:\/\/www.shmadrid.com\/blog\/en\/rent-apartment-parking-madrid\/\"><strong>Renting<\/strong><\/a> an apartment is the most sensible option if you don\u2019t have a stable job yet. It is also a good decision for young people who haven\u2019t decided on where they want to live permanently, people who move frequently, people who travel regularly and people who are against lending money and getting <a href=\"http:\/\/www.shmadrid.com\/blog\/en\/what-to-consider-when-choosing-a-bank-in-madrid\/\"><strong>mortgage<\/strong><\/a>.<\/p>\n<p style=\"text-align: justify;\">Advantages of renting are:<\/p>\n<ul style=\"text-align: justify;\">\n<li>It is easier to find a home.<\/li>\n<li>You have more freedom and possibilities to <a href=\"http:\/\/www.shmadrid.com\/blog\/en\/moving-out-of-your-rental-apartment\/\"><strong>move again<\/strong><\/a>, with less paperwork.<\/li>\n<li>You have instant comfort, when <a href=\"http:\/\/www.shmadrid.com\/blog\/en\/expensive-districts-madrid\/\"><strong>renting<\/strong><\/a> a furnished property.<\/li>\n<li>While living in and enjoying the whole apartment, you are not responsible for breakdowns, taxes and community related fees that are specifically for owners.<\/li>\n<\/ul>\n<p style=\"text-align: justify;\">Disadvantages of renting are:<\/p>\n<ul style=\"text-align: justify;\">\n<li>At the moment, rent can be excessively high, as properties were bought with higher mortgage payments.<\/li>\n<li>Having to renew your rental contract every so often makes renting more unstable than buying.<\/li>\n<li>Renting is less profitable compared to buying.<\/li>\n<li>Your apartment can feel less personal and can feel less like your real home.<\/li>\n<\/ul>\n<p style=\"text-align: center;\"><em>Related article:\u00a0<a href=\"http:\/\/www.shmadrid.com\/blog\/en\/moving-to-madrid\/\">Moving to Madrid<\/a><\/em><\/p>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"to-buy\"><\/span>To buy<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div id=\"attachment_9337\" style=\"width: 310px\" class=\"wp-caption alignleft\"><a href=\"http:\/\/www.shmadrid.com\/blog\/en\/wp-content\/uploads\/2019\/08\/kitchen-3689917_640.jpg\"><img aria-describedby=\"caption-attachment-9337\" loading=\"lazy\" class=\"wp-image-9337 size-medium\" src=\"http:\/\/www.shmadrid.com\/blog\/en\/wp-content\/uploads\/2019\/08\/kitchen-3689917_640-300x200.jpg\" alt=\"white kitchen with brass lamps and leather chairs\" width=\"300\" height=\"200\" \/><\/a><p id=\"caption-attachment-9337\" class=\"wp-caption-text\"><em>Photo via Pixabay<\/em><\/p><\/div>\n<p style=\"text-align: justify;\">Purchasing a property involves a lot more conditions, and it can be so much more complicated than you might think right now. If you already have the full amount to purchase the property on your savings account, you will still have to deal with some paperwork, but it does take care of the biggest hurdle.<\/p>\n<p style=\"text-align: justify;\">If you don\u2019t have (all of) the money and need to apply for a mortgage to be able to purchase a property, this changes the whole situation. All of a sudden it is much more complicated.<\/p>\n<p style=\"text-align: justify;\"><strong>Banks ask for a stable job and regular income<\/strong>, and at the same time, they request you to have set aside approximately 30% of the value of the property, depending on the ITP (transfer tax) and notary costs. Banks will only finance a maximum percentage of 80% of the value of the property, which greatly complicates your mortgage being granted.<\/p>\n<p style=\"text-align: justify;\">People who fit the profile for buying properties are people with good income and permanent employment contracts, couples who want to settle down more permanently, families who need a bigger home with more rooms (or other specific characteristics), or people who prefer a certain area because of the services and facilities.<\/p>\n<p style=\"text-align: justify;\">Advantages of buying a property are:<\/p>\n<ul style=\"text-align: justify;\">\n<li>Greater profitability compared to rental income.<\/li>\n<li>Lower or similar rates compared to rental income.<\/li>\n<li>Owning real estate creates a form of wealth.<\/li>\n<li>Adjustments to make your apartment feel like your own home.<\/li>\n<\/ul>\n<p style=\"text-align: justify;\">Disadvantages of buying a property are:<\/p>\n<ul style=\"text-align: justify;\">\n<li>More and more complicated formalities when moving or changing properties.<\/li>\n<li>When you lose your job and receive less income, you run the risk of not being able to pay your mortgage.<\/li>\n<li>Having a mortgage automatically means you will pay interest.<\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><strong>Did you buy or rent your home and what were your reasons to do so?<\/strong><\/p>\n<div style=\"display: none;\"\n    class=\"kk-star-ratings kksr-valign-bottom kksr-align-center kksr-disabled\"\n    data-id=\"9334\"\n    data-slug=\"\">\n    <div class=\"kksr-stars\">\n    <div class=\"kksr-stars-inactive\">\n            <div class=\"kksr-star\" data-star=\"1\">\n            <div class=\"kksr-icon\" style=\"width: 20px; height: 20px;\"><\/div>\n        <\/div>\n            <div class=\"kksr-star\" data-star=\"2\">\n            <div class=\"kksr-icon\" style=\"width: 20px; height: 20px;\"><\/div>\n        <\/div>\n            <div class=\"kksr-star\" data-star=\"3\">\n            <div class=\"kksr-icon\" style=\"width: 20px; height: 20px;\"><\/div>\n        <\/div>\n            <div class=\"kksr-star\" data-star=\"4\">\n            <div class=\"kksr-icon\" style=\"width: 20px; height: 20px;\"><\/div>\n        <\/div>\n            <div class=\"kksr-star\" data-star=\"5\">\n            <div class=\"kksr-icon\" style=\"width: 20px; height: 20px;\"><\/div>\n        <\/div>\n    <\/div>\n    <div class=\"kksr-stars-active\" style=\"width: 0px;\">\n            <div class=\"kksr-star\">\n            <div class=\"kksr-icon\" style=\"width: 20px; height: 20px;\"><\/div>\n        <\/div>\n            <div class=\"kksr-star\">\n            <div class=\"kksr-icon\" style=\"width: 20px; height: 20px;\"><\/div>\n        <\/div>\n            <div class=\"kksr-star\">\n            <div class=\"kksr-icon\" style=\"width: 20px; height: 20px;\"><\/div>\n        <\/div>\n            <div class=\"kksr-star\">\n            <div class=\"kksr-icon\" style=\"width: 20px; height: 20px;\"><\/div>\n        <\/div>\n            <div class=\"kksr-star\">\n            <div class=\"kksr-icon\" style=\"width: 20px; height: 20px;\"><\/div>\n        <\/div>\n    <\/div>\n<\/div>\n    <div class=\"kksr-legend\">\n            <span class=\"kksr-muted\"><\/span>\n    <\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Madrid is a trendy city, and its real estate sector is flourishing again. Barcelona was a place where many people wanted to live, but thanks to the real estate bubble that is starting to burst, Madrid is stepping up and presenting itself as one of the most interesting options for renting or buying property. If [&hellip;]<\/p>\n","protected":false},"author":318,"featured_media":9335,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1565],"tags":[1934,2069,1933],"_links":{"self":[{"href":"https:\/\/www.shmadrid.com\/blog\/en\/wp-json\/wp\/v2\/posts\/9334"}],"collection":[{"href":"https:\/\/www.shmadrid.com\/blog\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.shmadrid.com\/blog\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.shmadrid.com\/blog\/en\/wp-json\/wp\/v2\/users\/318"}],"replies":[{"embeddable":true,"href":"https:\/\/www.shmadrid.com\/blog\/en\/wp-json\/wp\/v2\/comments?post=9334"}],"version-history":[{"count":11,"href":"https:\/\/www.shmadrid.com\/blog\/en\/wp-json\/wp\/v2\/posts\/9334\/revisions"}],"predecessor-version":[{"id":9370,"href":"https:\/\/www.shmadrid.com\/blog\/en\/wp-json\/wp\/v2\/posts\/9334\/revisions\/9370"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.shmadrid.com\/blog\/en\/wp-json\/wp\/v2\/media\/9335"}],"wp:attachment":[{"href":"https:\/\/www.shmadrid.com\/blog\/en\/wp-json\/wp\/v2\/media?parent=9334"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.shmadrid.com\/blog\/en\/wp-json\/wp\/v2\/categories?post=9334"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.shmadrid.com\/blog\/en\/wp-json\/wp\/v2\/tags?post=9334"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}