What is more profitable – to buy an apartment or house in Spain or still rent a house in those periods when it is planned to spend some time in this beautiful country? It would seem that the answer is unambiguous, because renting is almost always a waste of money, throwing it away. Yes, it is. However, it is worth taking into account some nuances of permanent housing maintenance abroad and temporary rent. Consider the main pros and cons of buying and renting property in sunny Spain.
Buy or rent – that’s the question
Of course, renting is not practical. Rental money is only converted into a pleasant experience at best. Although this moment is also extremely important, it is intangible. Any financially literate person understands that money should work and earn, not go anywhere. From this point of view, renting is absolutely unattractive for those who value their financial resources and prefer to multiply them rather than throw them away. It justifies itself only when in a place you only travel and do not intend to return.
On the other hand, if you come to a place occasionally but not very often, say once a year and only for a couple or three weeks – does it make sense to invest in a place? Maintaining a property involves paying taxes and other fees that the owner of the house or apartment can’t get away with. That’s why sometimes renting a property is more profitable. Although, even in this situation, proper housing management can help to organize everything in your favor.
Thus, the refusal of rent and the choice to purchase overseas property is relevant in the following situations:
- The chosen country you visit regularly – annually and more often;
- When you visit the country you are in it for a long time – more than two weeks;
- A competent financial plan has been drawn up – how to get income from renting out in the absence of owners of the house or apartment in the country;
- You have a large family and rest in your chosen place in your absence can your relatives and friends;
- You see your chosen destination as a place where you might be moving to a coin place;
- your financial situation is such that you can afford to buy and maintain housing abroad without having to worry about your means.
Maintenance of real estate in Spain: major expense items
Only in cases when the investor understands that the acquired housing will bring income, not losses – it makes sense to acquire foreign real estate. You can do it here https://yes-mallorca-property.com/.
Maintenance of housing in Spain requires significant financial resources According to experts’ calculations, the annual cost of maintaining an apartment in Spain may be on average from one and a half thousand euros or more, and the house – a minimum of five thousand euros. These amounts are made up of payment for the following services:
- Housing maintenance – comunidad: owners of apartments in residential complexes and apartment buildings must pay for the services of the housing cooperative, which is provided by the management company. These services include cleaning of the surrounding area and entrances, repair of elevators, landscaping, security, lighting, garbage disposal. Homeowners usually hire individual employees (cleaners, gardeners, etc.) or use specialized agencies that offer a comprehensive approach to home care.
- Utility payments. There is an annual subscription fee for connecting to a water supply point in Spain and a separate fee is paid for the water meters actually consumed. The same applies to electricity and gas.
- Taxation. Includes annual property tax and personal income tax. When renting out the latter makes up 24% of the total amount of income received for the year from renting out.
- Two other items that are not compulsory are insurance and communication services.