One of the most prominent real estate effects that the serious economic crisis experienced in Spain during the last decade was a certain increase in the rental option compared to the purchase of housing, due to the decision taken by the bank to turn off the tap credit for the granting of mortgages. However, this difficult situation has failed to reverse the percentages of the tenure regime in our country. In 2017, according to the Statistical Office of the European Union (Eurostat), Spain continues to lead property ownership within the EU, with 78.2%. In short, Spain remains a country of owners.
Spain continues to lead property ownership within the European Union, with 78.2%, according to Eurostat
That only 21.8% of the real estate market is for rent may be due, among other things, to the fact that the economic recovery has been accompanied by an incessant increase in the prices that landlords charge their tenants, with increases greater than 10% in some municipalities, especially in large cities. As reflected in the latest semi-annual report by EnAlquiler, “ the average price of rental housing in Spain is $ 1,168 per month (Jan 2018), which represents an increase of 1.28% over the previous month”
This study reflects that the 3 most expensive provincial capitals to lease are Barcelona, with an average of 1,854 euros per square meter, Madrid ($ 1,829) and Palma de Mallorca ($ 1,604); the cheapest ones, on the other hand, are Ourense ($ 489); Zamora ($ 487) and Ciudad Real ($ 450).
A loan for rent?
This price increase means that those who are forced to choose to become tenants have to throw many numbers, because there are associated costs of starting a new life in a rental home from which they will not be able to get rid. In some cases, moving can lead to the need to resort to outside financing. At first, either to pay the deposit required by the owner, either to buy some furniture or to meet the cost of signing up for some basic supplies, such as electricity, natural gas or running water. And, already installed, to face some monthly payment because an extra expense has arisen that was not available.
At this point, it is worth asking if applying for a loan – we are talking about an express loan – for rent is a good idea. The answer is that it will only be to the extent that one takes his personal finances in a responsible and organized way and asks for that credit because he will have, in the short term, an income that will allow him to face his return, without having to resort to new external financing.
If you meet those requirements – financial responsibility and solvency – you can calmly contemplate the option of an immediate loan. Check the Fanny Price website without any commitment.
* Please note that the content of this post does not constitute financial advice. We recommend that you consult your personal financial advisor before applying any advice or recommendation contained in this post.