THE CHALLENGE OF BECOMING INDEPENDENT
Buy or rent? The millennial (and Gen Z) dilemma .
If you have decided to stop being a Tamagotchi and become independent, this is the moment when the big question arises: is it better to buy or to rent? We dissect the two options and tell you the advantages (and some disadvantages) of each:
Rent:
- It's easier to share with other people: Friends, couples, colleagues... and you'll also share the rent.
- If there's a leak, you suffer, but the owner bears the cost.
- Mobility. If you're not sure you're going to stay in your city or decide to change neighbourhoods, it will be easier for you to get around.
- You will pay fewer taxes. The IBI and other municipal taxes are paid by the owner.
- In Spain, rent is traditionally expensive and money you spend is money you never get back.
Purchase:
- It is seen as a savings formula. You will avoid that feeling of “throwing your money away”.
- Housing is often an asset that tends to appreciate in value, so if you sell it, you may get back more money than it cost you.
- Buying a home can be the first step towards purchasing another home in the future. You start with one that's appropriate for your current financial situation, but as you progress, you'll be able to sell and buy again. A 30-year mortgage doesn't mean you have to live in the same house for those 30 years.
- Mortgages typically finance only up to 80% of the home's appraisal value. What does it mean? You will need to have saved the remaining 20% for the down payment and also take into account the expenses, which will be approximately 10%. “”
So, are you going to take the plunge? Come on, we will lend you the armbands!
This is where mortgages come in, because if you're not flush with cash, it's the only realistic way for you to buy a house.
Mortgages for young people
We have five types of special mortgages for young people:
- 90% mortgage, fixed or variable, which finances up to 90% of your home.
- Youth mortgage, also fixed or variable, which allows you to repay your loan over up to 40 years.
- 90% Dual Mortgage, the only one which combines fixed and variable interest in the same instalment and which also finances up to 90% of your home.
Mortgage simulator
The best way to find out what house you can afford is to play around with our simulator:
- Simulate by entering different years.
- Simulate by entering different amounts.
- Simulate to calculate the monthly payment.
- Simulate to calculate expenses.
- Simulate to see the fees.
- Perform simulations as often as you wish - they are free of charge.
Are you getting stressed? Get a grip! Here's a dynamic guide with tips, all the steps to follow, procedures, etc., so you can get to your new home without getting lost.
Home acquisition subsidies:
State Housing Plan 2022-2025
Financial assistance for home purchases in municipalities with fewer than 5,000 inhabitants, allowing those under 35 to receive aid of up to 20% of the purchase price, up to a maximum of €10,800.
Housing rental assistance:
Young person's rental voucher
A monthly grant of €250 to pay housing rent. In this article, we'll tell you everything you need to know to apply for it.
State Housing Plan 2022-2025
Under this plan, you can obtain aid of up to 50% of your monthly rent or of up to 30% of your annual rent for the €601-900 range.
Grants from the different CC.AA.
These are grants whose requirements and amounts vary from one community to another. Learn more and select your community through this link.