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To buy or to rent? Find out which one is the best option

Sooner or later, you may consider the options of buying or renting a home. This is a decision thst must be thought out carefully since renting and buying both have their pros and cons. This is why we want to explain all the factors that you should take into account when buying or renting a property by giving you a series of tips.

Tips for buying a home

There are many advantages for non-resident foreigners, Spanish citizens, and foreigners with residency to buy a property. The following tips that we will give you below will be very useful for buying a home:

1. Consider your savings. It is practically impossible to afford buying a home outright. You must, therefore, have 30% of the property's value in your saving account. Specifically, this percentage is divided between the deposit, which is 20%, taxes and initial expenses, which add up to another 10%. For example, if you are planning on buying a 

€200,000 home, make sure you have at least €60,000 savings.

2. Pay attention to the usual expenses. Another important tip to consider when buying a house is the property's expenses. The communal fee, the garbage tax, the IBI, the insurance and repairs are aspects that must be taken into account.

3. Beware of variable interest mortgages. Euribor is at historical lows, but that does not mean it will stay that way forever. In fact, in 2008 it reached 5%.

Foto: © Engel & Völkers Madrid 

In any case, the purchase of a home by a non-resident foreigner or as a Spanish citizen will give an excellent guarantee for the future, especially when it comes to retirement. Property prices are on the increase and you can enjoy the freedom of making any changes you want to your property without being answerable to anyone. 

Tips for renting a flat

Now that we've talked about factors to take into account when buying a house, it's time to focus on renting. We also want to give you some tips about renting a flat that you should keep in mind:

1. Maintain a good relationship with the landlord. The best way is to state in the contract all the clauses that define the relationship between tenant and landlord to avoid problems in the future relating to breakdowns and damages.

2. Consider a preferential purchase option or a rental option with the right to buy.

3. Greater flexibility and better fiscal conditions. In addition, you will only need a little bit of savings that allow you to pay the deposit, the first monthly payment and the agent's commission.

Based on the pros and cons of buying a home or renting one, it is now time to make your decision.

Engel & Völkers

Génova, 27 - 5th floor
28004 Madrid
+34 91 277 45 00

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