Spain 
Italy 
Greece 
To Buy or Rent? The Geography of a Difficult Decision
30 June 2018
During the current real estate boom, the burden of housing has become a major financial concern for families, especially in large cities, creating a dilemma that is difficult to resolve – to buy or to rent.
“Renting and buying are solutions that each have different advantages and disadvantages, and the decision to opt for one over the other cannot be taken lightly, weighing the pros and cons,” says Sérgio Pereira, the general-director of Comparajá.pt.
A study by the online comparison platform, to which the Jornal Econômico had access, reveals that in the 31 parishes of Lisbon and Porto, it is more expensive to rent than to buy a 100-m2 property. The analysis, based on data from Casa Sapo’s National Real Estate Barometer in May, indicates that in these cases, purchasing is the most advantageous option, but there are several factors to take into account. “While regarding short-term expenses, considering the initial deposit, renting can be seen as being more economical, buying, despite its long-term commitment, allows the consumer to take possession of the asset and its potential for appreciation,” Mr Pereira explained. While the possibility of regular increases in rent is a factor that must be considered when renting, the cost of credit must be considered when buying.
“As housing loans are one of the most important costs to factor into the decision, it is worth researching and comparing existing products on the market so that consumers can benefit from the most competitive solution possible.”
Original Story: Jornal Econômico – Mário Malhão / Shrikesh Laxmidas
Translation: Richard Turner