Buy or rent? Discover the best option for you

”Is it better to buy or rent?” Those people who are thinking about changing their home or buying a home for the first time often ask themselves this question.

It is more complex than it seems and a very important decision. In today’s article, we detail everything you need to know to make the decision that best suits you.

Buy or rent?

There is no right answer. Both options have their advantages and disadvantages.

In the latest data collected by the European statistics office (Eurostat), in January 2022, Spain is considered a country of owners, where the number of people who decide to rent has increased significantly.

But, what are the characteristics of each option? We detail them for you.

Renting; the easiest and fastest alternative.

As we mentioned before, no answer is correct. Deciding to rent is neither worse nor better, but it is the most appropriate option for certain types of situations.

These are the advantages of renting a property:

• Greater flexibility: You will be able to move when and where you want more easily.
• Less expenses and worries: You will only have to worry about paying the amount corresponding to the rent. Mortgage, taxes, insurance or community expenses will be paid by the owner.
• No savings: To rent a house it is not necessary to have a large amount of savings. To start living you will have to pay, approximately, two or three months of deposit, plus agency fees.
• Less risk and dependence: Generally speaking, when renting, you will not run too many risks if you change your mind and, according to the contract, you will be able to leave the property.

However, you will have to take into account:

• You are not going to be an owner: The place where you live will never end up being your own home, which will not allow you to invest in real estate.
• Less customization: Although it is true that you will be able to decorate the room, paint it and arrange it as you want, if you decide to make a reform it will be a more complicated process.
• Room subject to conditions: As long as it is within the current regulations, the owner will be the one to make the decisions that he/she believes convenient regarding the housing.

Buying: the most profitable and stable option

If you think it is the perfect time to take this step, these are the advantages you will find:

● Greater stability: owning an asset is synonymous with stability and you will be sure to have a home forever.
● Complete customization: As long as you have the necessary permits, you will have total freedom to do whatever you want in your home, renovations, new installations…
● Possibility of leaving the house as an inheritance: You will have the option of leaving your home as an inheritance or donation, since it will be part of your patrimony.
Option to rent: As you are the owner, you will be able to decide what to do with your home, for example, to rent it to obtain extra income.

However, bear in mind the following aspects:

• Need for large savings: At the moment you decide to become an owner, you will have to make a large investment, contributing 30% of the total price of the property as an initial cost.
• The expenses are your responsibility: You will have to pay absolutely all the expenses, such as the IBI, the community of owners, etc.
• Less flexibility: It becomes more difficult to change housing.

Now that you know all the advantages of both options, it is time to choose the one that best suits you.

Do you want us to help you make the best decision based on your needs? Do not hesitate to contact our real estate consultants. We will help you evaluate your situation so that you can make the best decision at the present time.

In KM2 Servicios Inmobiliarios, real estate agency in Barcelona and Madrid, we offer you assets in new construction and in very good condition – for sale and rent – so you can choose the one that best suits your preferences. You can see them all here.