- 1 July, 2019
- Posted by: Fincas La Clau
- Category: Buy and sell, Rentals
This is the dilemma that we have all faced and that has reminded us many times the well-known phrase of Hamlet “To be or not to be, that is the question”. In La Clau group we want to help you make the best decision and it will begin with some reflections and data.
In this country, when it comes to buying a home, most people prefer to buy instead of renting, specifically almost 84%. It is therefore a cultural reality or customs, however, before completely ruling out the option of rent, let’s review some of its main advantages.
WHEN ITS ABOUT A RENTAL HOUSING
In a rental property, as a general rule and unless other conditions have been agreed, it is the owner who assumes the maintenance costs, the IBI, the community expenses, the annual insurance and other extras. In other words, if a breakdown occurs as a result of the natural wear and tear of the facilities, it is the owner and his insurance who is responsible for all the expenses. We only have to pay the agreed monthly price and the expenses derived from our own consumption of equipment, in this case water, gas, electricity or connectivity.
If the rental price is well below the purchase price of other properties of similar characteristics in the same area and if we add the interests of the mortgage, perhaps our calculations make us evaluate the rental option as more interesting.
On the other hand we must remember that all the improvements (parquet, aluminum carpentry, air conditioning, doors, built-ins …, etc.) that with the owner’s permission we make in the rental housing to make our stay more pleasant, will be improvements that will remain in the house when we leave since we are only the tenants.
Other important valuations are how far is the home from our workplace, if you are in an area with sufficient resources and establishments to make purchases and basic management, if you have a parking space or storage, elevator, if the neighborhood It is quiet or conflictive, how far is the children’s school…, etc. All these issues are also important since they can represent a considerable economic expense.
ADVANTAGES OF PURCHASING A HOUSE
First of all, we must tell you that in La CLAU group we are able to find the home you are looking for or to sell your offer in record time. For more than thirty years we have not dedicated ourselves to anything other than making our clients happy with their real estate transactions and we are happy with the results and with all the confidence that so many people have placed in us.
Acquiring or buying a home also has its advantages. The current trend is a slight increase in the rental price, in which, according to the Official State Gazette, the government wants to intervene to establish a moderation criterion. On the other hand, the health of the real estate market is currently on the rise, with figures that reflect a remarkable recovery compared to previous editions. This means that the price of property housing is being revalued, which is a very interesting option. Although there are certain preliminary expenses of purchase and sale of services, usually acquire a property can eventually result in a revalorizable investment and also as a business if we want to reallocate it or convert it into housing for tourist use.
Once the mortgage is finished, the home becomes our property, but in the meantime, we still have to decide what type of mortgage commitment is most interesting to us.
MORTGAGE: OF FIXED OR VARIABLE INTEREST?
Unfortunately, this moment always comes, that of costs and money. In La Clau group want you to know that we are very interested in helping you find the home you’re looking for, and although many times when we think finally we found and in our hearts we already feel emotionally involved in this new project for the future, The truth is that we must also listen to our mind. It is necessary to think well what our commitment will be from that moment and how our domestic economy will be affected.
The mortgages of fixed interest are like a flat rate that transmits the security to us that there will be no surprises of last hour. However, as the price of the Euribor fluctuates constantly, in the case that it is below the fixed price that we have agreed, we would be losing money.
At present, the tendency of banks in terms of loans is to offer mortgages at a fixed interest rate.
The price of the Euribor from January to April 2019 has been: [January: -0,116. February: -0.108. March: -0.109 April: -0,112]. If we had agreed to a fixed mortgage at a time when the figures were like those of January or higher, we would not have benefited from the subsequent “discounts”.
The Euribor has collapsed many months and days reaching historic lows, and this makes it one of the best times to acquire your home.
In the case of the variable interest mortgage, we would be paying at the market price, that is to say the Euribor value for that month closing.
It is also true that in our real estate agency La CLAU group we have the contacts, resources and tools to advise you and share with you everything we know about mortgages, loans and real estate transactions. In any case, whether we buy, rent, if our mortgage is fixed or variable, we want to transmit a lot of peace of mind. Everything is possible if it is planned with care.