Advantages and disadvantages of house rentals

Currently in Spain, 23% of the population lives on a rental basis. And the number continues to rise. More and more people opt for rent compared to buying a house, although we are still far from the figures of the most advanced countries in Europe. In Germany, for example, the percentage of people living on rent is 47%, in France it is 36% and in Switzerland it is 56%.

The decision to rent or buy a house has a huge impact on your financial freedom and the management of your personal finances. In this article we tell you the advantages and disadvantages of each of the options, so that you choose well informed.

Advantages and disadvantages of rent

Living rented has many positive aspects, not only financial but also in terms of your lifestyle and growth possibilities.

These are the advantages of living rented:

You live where you want You are not tied by the mortgage to a specific house, you can change whenever you want. This means that you can live wherever you want, in any area of ​​the city and even in any country in the world and that you can move as many times as you wish. When you buy a house you are tied to a locality and a type of housing and change will not be easy, besides costing money in the payment of taxes.

You adapt better to the different moments of life. Since you can change your home whenever you want, you can adapt your house to your needs and to the different moments of life. If you need a room because you are going to be a parent or an office because you are going to start working from home, it will be as easy as changing floors. The same can be applied if you want a house with a pool for the children or if the children have become independent and want to return to the center of the city.

Do not let professional opportunities escape. As you are not financially tied through your home, do not miss offers and opportunities for professional improvement involving transfers. If you get a proposal to work abroad, the floor will not be a problem to make a decision, just like if you get a job on the other side of the city, you can change your floor and be close to work again. Do not waste time on trips.

You control the costs of housing better. There are many expenses attached to a house that are only paid when you are an owner, such as the community. In addition to saving you this concept, living rent will avoid spills for improvements in the building and also any other costly repair that has to be done in the house and that can unbalance your budget. As the owner you can not escape these unexpected expenses.

You avoid paying certain taxes. Having a house means paying taxes. All the owners must face the Tax on Property and Real Estate or IBI. In some locations, the garbage fee is also added, which some landlords turn to the tenant. The amount in both cases depends on the area in which you live, but between the two taxes can add up to 1,000 euros a year.

You can reduce your monthly expenses very fast. In case of having any financial problem it is very easy to reduce your expenses when you live rent. Simply renegotiate with the landlord the rent or move to another floor with a lower rent. The same can be applied if you simply want to reduce your rental expense or save more. The rent is a fixed but customizable expense, something that does not happen with the mortgage. Getting to lower the price of your mortgage can be a titanic company and you will almost always end up paying more long-term interest, as indicate luxury apartments barcelona spain

You can test if an area you like before buying. Rent flexibility will allow you to live where you want and see what a neighborhood is like before making the decision to buy.

You live more calm because you do not have debts. A mortgage can be a huge mental slab. It is easy for you to discover yourself thinking what will happen if you are fired, if your company is going bad or if any unforeseen event occurs and you can not pay the mortgage. This is a problem that you will not even have to think about in a rental.

On the contrary, living for rent also has its drawbacks, both financial and emotional.

The rental price may increase. The law establishes that the price of your rent will increase as the IPC does during the first five years of contract and from there you can agree with your landlord other formulas to review the rental price. It can happen that an area is revalued so much that the owner decides to raise your rent suddenly.

Rent money does not help you acquire an asset. The rent is a fixed expense in your budget such as electricity or telephony. What you pay is not helping you to acquire something that will be your property, an asset, which is precisely what happens when you buy floor. There are improvements that you will not make because it is not your home. When living for rent it is logical (barcelona apartments for rent)