9/02/2014 – Expansion
As the price is close to hit the bottom (although Fitch has been recently assuring of the adjustment by 2015), many Spaniards ask themselves which is the best alternative nowadays: buying or renting a house.
First, one must decide upon the city and the area for living. According to Tecnitasa´s (Técnicos en Tasación S.A.) research, generally, it is more profitable to rent rather than buy in the most expensive zones of a city (up to €1.500 of savings), whereas in the places with minimum prices it is better to buy a home.
Tecnitasa analyzed data from the principal Spanish areas in and out the cities, basing on an example of a 96 m2 flat type.
In these terms, the report reveals that the difference rate between purchase and rent is found in Madrid, Santander and Barcelona (between €1000 and €1700 more in case of buying, per month), while the smallest difference is estimated in Castellón, Huesca, Zamora and Ceuta, where the prices practically are the same (view the graph).
Better to Rent
For instance: “a property rent on the Serrano Street in the capital would cost €3.302 monthly, while pruchase €4.992, so it is more profitable to rent (€1.690 difference)”, says the study.
Other cities where it is better to rent rather than buy are: Barcelona (the Paseo de Gracia Street) and San Sebastian (Avda. Libertad, Boulevard, Plaza Guipúzcoa and the Hernani Street), with monthly savings of €1.094 and €1.018 respectively. Also, rent is more profitable in Bilbao, Barakaldo, Valladolid, Santander, Murcia and Seville. (…). In Badajoz, Lérida, Tarragona or Teruel the prices´difference is lower than €150.
Better to Buy
Seville´s the Dos Hermanas Street is a real exception, where buying a house is cheaper than renting it (-€19). Other areas, less extreme though, are Castellón (behind Estadio), Ceuta (outside Barriadas) or Huesca (Perpetuo Socorro area).
Original article: Expansión (B.Amigot)
Translation: AURA REE