real estate property which is better buy sell rent Spain house flat

If you hesitate between selling or renting your property in Spain to earn money on it, the answer is not easy. Each case is unique!

Benefits of renting a house

The main advantages of renting a house are:

  • Safety: renting a house gives you peace of mind if you need it. Also, if renting is not profitable, you will always have time to sell it in the future.
  • Legacy: Another big advantage is that if you don’t sell the house, you can leave it to your children.
  • Bank guarantee: you can always use this property as security in the event of a loan or mortgage.
  • Long-term profit: renting an apartment allows you to receive additional benefits from each monthly payment. It will be very useful to cover other recurring expenses, such as a mortgage loan for another apartment for example.
  • Revaluation of the house: you are also interested in renting your apartment if it has lost value in the real estate market or below average. While you rent it, you receive a monthly amount of money that you can invest in the necessary changes to revalue it.
  • A simpler process: renting instead of selling will save you from tedious bureaucracy. The lease is processed faster and easier than the contract of sale.

Disadvantages of renting a house

On the other hand, the disadvantages of renting a house are:

  • Bad tenants: you may be bad and not profitable from some tenants who do not pay on time or do not support the house in proper conditions.
  • Responsibility as a homeowner: even with good tenants, in the daily life of the house suffer losses. As the owner, you must place yourself at your tenant disposal to manage or resolve these incidents.
  • Long-term expenses: in spite of receiving each monthly payment, you will still have expenses. Payment of property tax (IBI) and possible other expenses will continue to be at your expense.
  • Seasonal rentals: you should also remember that there will be periods of time when you will not rent out your apartment, which will mean costs, but not profit.
  • Capital gains: finally, if you decide to rent an apartment for rent, you must notify the tax office and pay taxes on the benefits.

The advantages of selling a house instead of renting it

When is it better to sell a house and not to rent it out? When it is clear to you that you do not want this house now or in the future. The main advantages of selling a home are:

  • Restlessness: owning a home means keeping it and paying attention to it, especially if you decide to rent a home. When you sell it, you forget about it forever.
  • Avoiding long-term costs: when selling, you also forget to pay monthly payments at the place of residence and all costs associated with owning a home.
  • Urgent financial need: selling your home is also the best option when you urgently need money to buy another home, invest in a business, pay off debt ...). You may also be more interested in selling your house instead of renting it out if you know that over time it has been overvalued and you will sell it at a higher price than the one you bought it for.
  • Tax breaks and mortgages: if you want to sell your house to reinvest money in a new house, you can get interesting tax breaks, for example, in an income statement or when applying for a mortgage loan.
  • Avoiding inheritance problems: if you inherit a house and, moreover, it belongs to several people, the simplest thing is to sell it and distribute profits. Renting a house in these conditions is a real stress.

Disadvantages of selling a house instead of renting it

Despite the advantages, selling a house instead of renting it also has drawbacks that you should consider:

  • Loss of space for housing. What if in the future you need this house to live or earn extra income? Do not allow yourself to be carried away only by your current situation, analyze what your long-term needs may be.
  • Search for buyers. Probably the most difficult thing when selling a house is to find buyers. In addition, for this you need to set a fair sale price, write a good ad and make the house presentable.
  • Cancel mortgage: if you sell a house or apartment that is still mortgaged, you will have to bear the costs of cancellation and repayment of the mortgage.
  • Capital Gains Tax: You must indicate in the income statement that your property has changed, and if you do not qualify for tax benefits, you must pay the Treasury a percentage of the profits received.
  • Costs: selling a home is not cheap, even if you get tax benefits, you have to pay all the costs of the sale process.
  • The sale process: another disadvantage of selling your home instead of renting it, is investing your time, nerves and money to negotiate and visit potential buyers.

Selling a house with exclusiva.es has far fewer drawbacks.

For example, with exclusiva.es you will avoid five big problems with selling a house:

  • We value your home to deliver a competitive price.
  • We will help you with all the documents and save your time.
  • We are looking for buyers for your property.
  • We negotiate the sale price so that you get a fair price from the sale.
  • You save a lot of money on the costs of selling a house, since you do not have to pay thousands of euros to a regular agency.

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exclusiva.es is a real estate portal marketplace kind where owners of real estates in Spain as individuals, professionals, companies with exclusive sales rights and banks can publish ads for sale, rental and services related to real estate market so that other users can search and find ads with real estates for purchase and rental or ads with services to directly hire real estate professionals for other operations such as management of purchase-sale and rental, cleaning, transport, renovation, construction and other services.