In order to know what is most convenient for us, either buying or renting a house, we must bear in mind the advantages and the disadvantages that each option offers. What is the best thing to do, to buy or to rent a house? Let´s ask ourselves the eternal question. However, to be able to answer it we must take into account our current work and personal situation, as well as our prospects for the future. Last week we wrote an article showing that housing sales are undergoing a good time in Spain. We also highlighted that great differences existed depending on the region. Some months ago, we also wrote about the re-emergence of renting. All in all, the real estate sector has better days than after the real estate bubble burst. Regarding our doubts whether to buy or to sell a house, what facts must we consider? We are going to try to weigh the pros and cons of each option.

IF WE BUY A HOUSE…

If we have no fears about job security and we have an emotional safety net, both of which can guarantee that we will live in the same place for a long time, then we suggest buying a house. Some time ago, in this blog, we gave 5 good reasons to buy a house. We believe that if the house is well located in an important city, then the investment will be very profitable as it will eventually rise in value. As we already mentioned in that blog, the fact of buying a house will put our mind at rest, unlike renting which may have a high degree of uncertainty on account of our being at the expense of the owner. If we own a house, we can make use of the spaces and decorate it to our liking. Regarding the disadvantages, we must realize that owning a house entails monthly additional expenses such as service charges, real estate taxes, household waste charges and so on. We must also add unforeseen expenses which may arise regarding the mortgage if Euribor recovers. Nevertheless, this does not seem to be the case in the short term as we previously said.

IF WE RENT A HOUSE…

The most obvious advantage of renting instead of buying a house is that we do not have to spend so much money. If we rent, we do not have to spend our savings because we only have to pay a deposit and the monthly rent. Another advantage versus buying is that the tenant can easily move to a different house. If this happens, the tenant must do it after the first six months and then tell the owner one month in advance. Another advantage is that the tenant can opt for tax relief which will be different depending on each Autonomous Community. However, renting has some drawbacks which we must bear in mind. The most important one is the case when a person has rented a house throughout many years. This fact means that when retirement takes place, this same person will be left only with a retirement pension but the rent will still have to be paid and probably lead to a financial burden. Nevertheless, this is not the case regarding property owners. Tenants sustain another drawback as they will never have their own space nor will they be able to fully decorate the house to their liking. Lastly, the tenant must get in touch with the owner in order to have an understanding whenever the house or an electrical household appliance needs repairing, as well as if damage that affects a neighbour takes place.