15 Jul I’m over 30 with a stable job. Should I rent or buy?
There is always (always) a moment in life when we have to look for a new house and we wonder, should we rent or should we buy? What is better for us?
The first thing when the time comes is to be realistic, and to make sure you really have both options before making a choice. Meaning that, if you’re going to buy you need to have all the necessary money available, either the totality of the price or at least enough for the downpayment (a 30% of the price is recommended) and you must also meet certain requirements to be granted a mortgage (those depend on the bank)
Here are some reasons to help you decide whether to buy or rent:
Some reasons to buy a house:
• Rentals are becoming increasingly more expensive and with a mortgage you would pay less every month.
• It’s your own investment, the money you pay monthly will be for you, for your property. As will all the improvements you make on the property.
• You can reform the house and / or change the style and decoration to suit your needs without having to ask the owner for permission.
• If you decide to change houses later on, you can rent or sell it, since you’re not tied up with a contract you can decide to move whenever you want to.
• You don’t have to renew contracts, nor renegotiate rentals nor live with the fear of being thrown out.
Some reasons to rent a house:
• If you can’t pay for a house cash-in-hand, or you don’t want to be tied with a mortgage with any bank.
• You don’t need to have a large amount of savings to be able to rent a house, usually only enough for one or two months deposit and the first monthly rent.
• Renting implies less paperwork and procedures. With the rent you have to carry out less paperwork and procedures. You don’t have the responsibility for paying taxes and other costs.
• You have a better control of your monthly and even annual expenses. If anything gets broken (not by misuse that is) the responsibility belongs to the owner. You will not have unforeseen expenses.
• You’ll have a great flexibility when choosing and changing homes to suit your changing needs and / or priorities.
As always, the first thing you should do is numbers and once you know what your possibilities are, then think about everything else. What do you want? What is good for you in the short, medium and long term?
If you are looking for a house to rent or buy in Madrid don’t hesitate to contact us without obligation.