Renting or buying a home on the Costa del Sol?
This is one of the most frequently asked questions by consumers in this market today, since in Spain more than 78% of the population prefers to buy a home rather than rent, even if the vast majority do not want to To say that it is always the best decision since becoming a homeowner in Marbella entails a series of additional expenses. Many of them affirm that they prefer to buy since in many cases the rental income is similar to the mortgage payment so they prefer to pay this so that in the long term (about 20 years) the property is theirs and they have paid for an equity .
When making this decision, a number of things should be taken into account:
What do I have to take into account?
- Annual net family income.
- If there is going to be a single payer or the money is going to be collected among some.
- Free housing price and CPI.
- Forecast of the possible rise in interest rates (in case you decide to buy).
- Fixed or variable interest rate.
- How much budget you have to give the possible entry of the house.
Advantages of buying a home:
When deciding to buy a home on the Costa del Sol, you are getting it to be your property, so when you pay your mortgage you are not only obtaining a home but also an investment, an equity.
- You are the owner of your home so you can decorate and make all the shapes you want without depending on anyone.
- You have a heritage so you can always use it and inherit it to whoever you decide.
Disadvantages of buying a home:
The owner of the home is committed to keeping the mortgage payment up to date, which in the event of non-payment has the risk of losing it.
- Tax, as is the case of the ITP (up to 10% of the purchase value), in addition to having to pay the IBI every year.
- Secondary interests and expenses, such as the community of owners, insurance, house maintenance, etc.
- Not knowing if the value of the home may decline over the years.
Advantages of renting a home:
One of the main advantages of renting a home is its flexibility since in case it is not going to be your permanent home, either due to work, medical or other characteristics, it will allow you to relocate.
In addition to the economic flexibility since normally the signed contract is of one year extendable and its termination can be negotiated.
- As we have mentioned before, its flexibility since it would only be enough to move.
- Liquidity, since not being mortgaged you can have your savings at any time you want.
- You will not have secondary expenses such as the community of owners, insurance, mortgage taxes etc.
Disadvantages of renting a home:
The main disadvantage of renting is that it is an expense that offers no greater benefit than covering the need for a roof to live. This is the main reason why the vast majority of people choose to buy a house before renting because as they say “you are paying for a home for years and when you want to stop paying for it you have no equity” so they decide to buy for him. day in which they finish at least they have paid to have a tangible good.
Its modification; In the vast majority, the owner will not allow you to change furniture or carry out works. In the event that if I leave you, it will go to a loss since it is your property, said expense, you will have enjoyed it only in the period of time that you have been living.