Since the beginning of the Financial Crisis of 2008 has gained weight the idea that the rent is more appropriate than the purchase, mainly based on two factors that have worsened since then: first , the disproportionate increase in housing prices compared to the purchasing power of the English and other, the drastic reduction of credit for the purchase of a property . These two facts, coupled with the substantial increase in foreclosures and cases mortgage defaults have put the rent allowed as an option apparently more advantageous to the buyer (who does not have to worry about taking risks in a mortgage economic crisis), and the seller (to the extent that it can recoup their investments without having to rely on a claim that still flow).
Spain's current government actively promoted the lease as the best option to break property, and there were many developers who changed the rules of sale promotions rent stopped by the credit crunch, (in any case, on the occasions that change economically and financially viable). But if you look at the data the average rate mortgage in Spain (600 Euros / month) compared with the average rent data, (740 Euros / month), and although rents have fallen more than 20% average from the highs of 2007, we that the rent is significantly more expensive than buying, with the aggravating circumstance that the same monthly fee is not an investment property as in the case of the sale . Keep in mind that the supply of rental housing is quite low, (and it offered many of the houses are of poor quality and worse), and the legal security of an operating lease is not as secure as it desirable.
also see from the 70's as the housing rent declines progressively, along the housing scheme for the sale can only increase. The main reason that the English still prefer buying to renting is the investment in the medium and long term involving the acquisition, the acquisition of immovable property lifetime. And if we consider that the average rental price has risen considerably in recent years to rise above the monthly mortgage, it seems reasonable that people prefer to pay monthly an amount representing the progressive acquisition of property by taking note also that our social model is far more conservative than other countries with more tradition of rent and greater mobility of people.
This does not mean that at present, alternatives such as leasing purchase are highly recommended, especially for buyers, and that as long as the restriction credit will increase rents to meet the housing demand of those who can not afford for that restriction or not in a position sufficiently well as to assume a mortgage. But in any case, to the extent that the credit crisis will diminish its effects, the sale will remain the option recommended and used by the English.
MBQ Group
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