The never-ending question for those who want to be independent or need a home because they have changed residence for work:Which is better, buy or rent? Although there are thousands of reasons that can tip the balance to one side or the other, in most cases one of the heaviest effort required to pay rent or installment Each month your mortgage is a burden that will become one of the main expenses of the house from then on.
With the increase in rents and the negative official rates, In recent years, the comparison has always clearly benefited the option to buy, Of course, for those who have the necessary money to enter the house, which remains a big obstacle for those who want to reach a property. However The dizzying rise of Euriborincreased from -0.502% to 3.018% in just one year, significantly reduced the distances between both options however, for now, it’s more affordable to buy in most towns in the state, according to calculations this paper makes based on data from portals like Idealista and comparison tools like Help My Cash.
In this way, since the average square meter price in the province is already 1,921 Euro, the cost of an 80 square meter apartment is 153,680 Euro, 80% of which can be financed. So 122,944 Euros. Considering the average spread currently applied by variable mortgages is 0.75% and Euribor’s current level, the interest rate for new operations is around 3.8%, which is 638 euro monthly fee monthly.
This figure represents more than a remarkable effort, and above all, Much higher than 410 euros the fee that buyers would start paying for the same house if they bought it one year agosquare meters is 13.2% lower and while Euribor is still negative.
However, despite this increase, the figure is still lower than expected. The average rental price of a house of the same size is 712 Euros. According to Idealista it became 18.8% more expensive in the province and during that time as well. In other words, the mortgage about 10% cheaper -about 74 euro- to pay the rent. Of course, the difference was 27% according to the same parameters a year ago, and we’ll have to see what happens if the ECB continues with the increases announced to reduce inflation.
Less financing or cash
However, as the president of the College of Real Estate Agents (API) points out, Marife Estesothe circumstances of each buyer are very diverse and there have been many cases of people in recent years, for example. Less than 80% funded amountsa large number of buyers, which greatly reduces the fee and also pays advance. Thus, looking at the INE data, it is seen that only 16,379 houses were registered compared to the 41,692 houses sold in the province until October. So only 40% of operations were financed.
Among those who want to borrow, login continues to be the biggest obstacle with accreditation. regular income, in other words, to have a fixed contract. According to Marifé Esteso, The biggest problem of the rental market is the availability of suitable housing, because the offer has been significantly reduced. Esteso attributes this development to the lack of legal certainty that property owners have against non-payment, and to the measures taken by the Government to stem the rise in prices, which, in his view, discouraged many owners.
when it comes to municipalitiesIn most of the towns in the province, the housing loan payment is below the rental price. So, in the city Alicante Average mortgage for an 80-foot home 542 euros compared to 760 euros What is the rental cost of a similar apartment? Meanwhile Elche going out for loan 381 euros (square meter is cheaper) and rental 512.
Generally differences tend to be larger In these populations, house prices are more affordable which means less impact than the rise in Euribor. This situation in handwhere an average mortgage barely includes a payment of 201 euros and the rent is also very affordable but rises to 391 euros, almost doubling.
On the contrary, in these areas highest square meterThe impact of the increase in the rates on the required mortgages is also greater – at much higher amounts – and the reasons In some towns rent is already cheaper than a loan. This situation calfthe mortgage costs 888 euros and the rent 792 euros; denialLessor for 736 euros with 777 euro loan installments; XabiaWith 970 euro mortgage and 784 rent; Y orihuelawhere the increase in average prices places the average mortgage cost at 732 euros, while the rent remains at 672 euros.