Buy or rent?

Buy or rent?

Buy or rent?

In many cases, it is the rental prices themselves that reduce families' savings and prevent them from buying a home. Currently 40% of tenants dedicate more than 40% of their income to rent.

According to the CaixaBank Research real estate report, it is estimated that around 49% of tenants have a sufficient income level to buy a home and only 13% have the necessary savings to face the initial outlay.

The tightening of some conditions to access a mortgage has made saving essential. As a general rule, no bank offers more than 80% of the home's appraised value. In addition, there are a series of initial expenses, such as notary, appraisal or taxes, etc. That you have to pay at the time of purchase, which represents between 10 and 15% of the total. This initial outlay is what prevents many tenants from having a home that they own, despite the sharp rise in rents.

“The sharp rise in rental prices in recent years has led many renters to consider the option of buying a home. The decision to rent is less attractive when a mortgage payment for an equivalent home can be paid for an amount similar to the monthly rent ”. Eurostat data show that the monthly effort to pay for a home is much less than the rent. "But in addition to the income required to meet the monthly mortgage payment, buying a home requires considerable savings," they explain from CaixaBank Research.

The difficulties faced by Spanish households in paying for their own home means that many end up for rent without remedy. However, this decision also has advantages.

The difficulties faced by Spanish households in paying for their own home means that many end up for rent without remedy. However, this decision also has advantages.

The difficulties faced by Spanish households in paying for their own home means that many end up for rent without remedy. However, this decision also has advantages.