Buy or rent housing. The debate or, at least, the accounts are relevant given the magnitude of the housing crisis in Spain, whose price increase is unstoppable. In the first quarter of the year, new and used floors for sale have increased 7.5% year -on -year, according to Tinsa. The rent has grown by 10.3% during the last 12 months, according to idealist. Modalities cut their breath. The percentage of salary that is destined for rent or years of full salary to buy a home grow every year. Fotocasa and Infojobs advance the data of 2024: the Spaniards have had to allocate seven years of full salary to buy a home, the highest data of the historical series, and for the payment of the rent they have dedicated 47% of their monthly salary, also the highest figure. Funding a room takes 23% of the monthly salary. In neither market the offer is buoyant, but in the case of rent it is spinally, suffocating. Applicants see how their hopes fader as the days go by. There is hardly any offer of floors in the big Spanish cities and the house of houses at reasonable prices was extinguished for a long time. There are more and more citizens who, given this scenario and although they were not in their plans, they consider if it is cheaper to buy than to rent, especially at a time when the mortgages are cheap and the guarantees of the ICO – for young people of up to 35 years and families with minors in charge – cover the 20% that is needed as entrance. to lease it if previous savings are available. Santiago Carbó, Professor of Economics of the University of Valencia and director of Financial Studies of Funcas, takes as reference a home in Valencia, with a purchase price of 200,000 euros and a rent of 1,100 euros per month, a typology that can be found in neighborhoods such as Patraix or Benimaclet. The mortgage of 160,000 euros to 30 years to 3% fixed represents a monthly fee of 675 euros, taking into account that savings of about 64,000 euros are needed (20% of entry plus 10% in taxes and expenses). The annual purchase costs (including 600 euros of IBI, 2,000 euros of maintenance and 840 euros of community), result in 11,540 euros (962 euros per month). In the case of the rent, we must pay 13,200 euros per year (not including increases). At 10 years, taking into account a revaluation of the housing purchased of 2%, the remaining debt with the bank and the net assets (the part of the house already paid), is a negative final balance of 70,400 euros in the purchase. In the case of rent, the negative balance amounts to 132,000 euros (all monthly payments over that decade). «Buy is 61,600 euros more favorable in this scenario. Savings is about 500 euros per month when buying versus rent, but requires having 64,000 euros initials,» explains Carbó. Therefore, it clarifies: «There are key factors to consider how the temporal horizon, since buying is profitable if you live between five and seven years in the house (to amortize initial costs).» That is, «in the short term (five years) renting can be better, while in the long term (more than seven years) buying is more profitable, especially with low types and high rentals,» he finishes. Enrique Martín, associate director and expert in AFI housing, also opts for the balance in favor of the purchase. «Since 2014, with the beginning of the recovery of housing prices, it is observed how, on average, access to housing through rent involves a greater effort than the cost that the payment of a mortgage would have.» Although he is very aware of the great effort that an entry involves. «The transactional costs of accessing a property in property are high and the previous savings necessary to be able to make the purchase and reduce the cost of use is very significant, being able to require several years of savings, difficult while being paid for rent,» he maintains. A relevant factor is that the payment of a mortgage for several years generates a positive credit history that can facilitate the obtaining of future financing. Something that does not happen with rent. «It could be very interesting to define some public or private mechanism, probably linked to the insurance schemes that the Ministry of Housing and Urban Agenda is implemented, which allowed the tenants to have a positive credit record if they regularly pay their rentals,» Martín argues. Do not forget, he says, the recovery of the amounts paid in the mortgage, since part of the payment is directly net savings by reducing the debt load. This savings could only materialize in case of sale of the house and is subject to the variation of prices. Economist Gonzalo Bernardos also believes that the difference in favor of the purchase is substantial and points two reasons. A very high rental (in the 52 provincial capitals reached its historical maximum in 2024) and reduced interest rates in historical terms. «At a normal situation, not being the current one, which indicates which of the two options is the best is the interest rate. If the main type of the ECB is above 4% it is better to rent (only if the supply and demand for leases is similar) and if it is below 4% it is better to buy,» he analyzes.
Comparison rule
For Bernardos, the comparison rule between rent and purchase of housing should not be a versus rental share of rent, but interests of the Versus Income Mortgage fee, «because normally the amount of the price of the house you recover when you sell it.» And he adds: «Since the 60s, all those who have bought a house to live have obtained more for it than they paid, if they have kept it for 30 or more years. In the coming years, for most of the homes acquired in 2007, the price will be higher will be higher than the amount they paid.» With this calculation, savings in favor of the purchase is even greater. However, the AFI expert believes that to compare effort rates – paid for the house against income – the relevant thing is to have the entire amount of the mortgage quota. RICARD GARRIGA, founder of the TRIECA MORTGAGE DIGITAL PLATFORM, makes special emphasis on the advantage of current mortgage offers to opt for one or another option. «We have the Euribor in 2.39% and the good thing is that fixed mortgages, even mixed, are going down a lot. We are giving 90% mortgages with a fixed type to 2.35% only with home insurance and 1.80% if you link you more.» On these data, Garriga has made a calculation, this time on the offer in Madrid capital that is available on the idealist portal. Take a rental of 700 euros as a reference and that same amount for the mortgage fee (for a house of 200,000 euros). «The percentage of rental floors that you can access with 700 euros is 0.3% of the offer, while in the sale it is 11%.» With 1,000 euros of rent or letter, «the offer for rent is 8.4% and for sale (for houses of 300,000 euros) you access 25% of all the floors of Madrid.»
