One of the most relevant questions that you are going to ask yourself at the precise moment of becoming independent is whether it is better for you To buy a floor or on the contrary, the best solution will be based on renting. It is not an easy decision to make, but must be supported by deep reflection. In which you take into account what is the real state of your economy personal or family. To the point that you must assess such important aspects as if you have a permanent job, what is your salary and if the apartment you are going to share with other people.
Within this general scenario, you should bear in mind that about four out of ten Spaniards living in rent leave more than 40% of family income, one of the highest rates in the entire European Union (EU), according to the latest data provided by Eurostat. To the point that paying above 40% of income in housing is considered by the EU as an excessive charge for the economy of a household. This is one of the first factors that you should analyze from now on.
On the other hand, the real estate portal Casaktua has carried out a study on “The demand for housing in Spain. Ten years after the outbreak of the crisis ”. In which it is revealed that 37% of Spaniards who intend to change their home in 2018, 24% choose to acquire a home they own, while only 13% are looking for a rental. This result shows the new trend that Spain is going through in the real estate market since, in 2017, of the 31% who wanted to change their home, 17% wanted to acquire property compared to the 14% who planned to rent it, which means that the intention to buy Home has increased 7%, while the option to rent has decreased 1%.
Buy to rent a home
In any case, there is a third way that can help you make your savings more profitable than in conventional financial markets. It is about buying a home to rent it a little later and in this way have a fixed and guaranteed income every month. In this sense, this new form of investment has reached a historical maximum of 7,8%, three points more than in the third quarter of 2013, when it stood at 4,9%. One of its main advantages lies in the fact that you will be able to exceed the margins of what the stock offers you at the moment.
In addition, one of the most relevant benefits of this alternative in investment is that you will always have this property, no matter what happens with the financial markets. While on the other hand, owning a home you will be able to carry out the sale at the time that the revaluation you consider appropriate. Where you can achieve a performance above 20%. A percentage that is very difficult to achieve in other financial products (investment funds, purchase and sale of shares on the stock market or exchange-traded funds, among some of the most relevant).
Advantages of buying a home
The acquisition of a real estate property brings you a series of very important benefits that you should know at this time. First of all, what will it do to you expand your personal or family wealth and that it may even be part of your inheritance. Through a material good that normally appreciates year after year. As few financial products offer you at the moment. And that in the long term it can approach very interesting levels to meet your expectations as a small and medium investor.
Another aspect to be valued at this time is that derived from its high sentimental component. Not in vain, it is another property that you have and that will make you increase your personal assets under a very important amount and that cannot be formalized through other material assets. On the other hand, it is the place where you can lead your personal or family life. To the point that you will be in a position to carry out the works that you consider necessary to be at ease.
Some drawbacks of this option
On the contrary, buying a flat or apartment brings you a series of advantages that this coexistence system can bring you. The main of all are the fiscal charges that real estate will entail. Not only with respect to the income tax return, but also those at the local level. For example, the popularly known as IBI and that is paid every year and that involves a greater financial effort on your part. Something that you would avoid if you lived on a rental basis. You must assess whether it is worth assuming these tax charges.
Of course, you should also bear in mind that buying a flat will prevent you from having more liquidity in your checking account. With which your standard of living will be lower, just as you will not be able to have more money to monetize savings on the stock market or other financial products. This is one of the factors that some of the people who opt for the rental scheme as a coexistence option value. To the point that you can do many more things than if you own your home.
Apartment rental: advantages
This system to occupy an apartment is one of the solutions for the many people who cannot get a mortgage or simply do not have enough savings to face this real estate operation. In this sense, the report previously reviewed shows that the profile that chooses the rental is a 25 to 34 year old woman. To the detriment of the buyer who is chosen by a man between 35 and 54 years old, with a partner and children. In this way, this alternative in housing is formed as a last resort to become independent. In particular, by the youngest segment of society who are the most likely to develop this real estate operation.
But if there is any aspect that characterizes the rental system, that is none other than that which will give you a feeling of greater freedom and possibilities of geographical mobility in case of changing province or country due to work or personal circumstances. Not surprisingly, the material ties will be much lower than through the other alternative that we are talking about in this article. Nor can you forget that this occupancy system helps you invest to prevail over a strategy based on promoting a more or less powerful savings bag.
Other rental benefits
Despite the more or less belief that renting always creates problems for you, there are a number of considerations that can help you change your mind from these precise moments. One of the most established conforms to the idea that it is an option that above all allows you to live in the area of the city that you want. To the point of being able to perform a address change as long as you decide or change your own circumstances. Something that is much more complicated than if you had a purchased apartment. Not in vain, they are circumstances that you should not ignore when choosing your way of life for the next few years.
On the other hand, you will have a powerful Real estate so that you can choose the best alternative for your coexistence from now on. With the advantage that if you make a mistake you will always have the opportunity to correct this decision you have made. Because you can start the new transfer at the time you want. No terms of permanence, beyond those expressed in the contract that you have signed with the owner of the property.
Shadows of living for rent
On the contrary, there are a number of disadvantages that are headed by the fact that living in your own home will provide you with the sense of security. This is somewhat true, even if you have not yet paid the mortgage you have requested at the bank with which you operate. Also, living in rent will not allow you to improve your assets. To the point that you will have less assets to leave to your heirs. Something very important to value, especially in owners who have an older age.
Planning your life will always be much more complicated if you choose to live in rent. Among other reasons because you will feel more defenseless to what may happen to you in the coming years. With serious problems that you even think that you will not be able to assume the rental fee for this occupancy system. They are, in short, some of the aspects that you should assess each time this important dilemma arises in the housing model you want for the coming years. Therefore, you will need a very reflective meditation that you cannot solve in a couple of hours. No terms of permanence, beyond those expressed in the contract that you have signed with the owner of the property.