Renting vs buying a house: what's better

Should I rent or buy? Here are the real numbers without tricks.

The eternal question: should I rent or buy? There's no single answer. It depends on your situation.

Renting: flexibility but no assets

You pay rent every month. It's not yours. When you stop paying, you leave. But you have flexibility: you can move cities easily.

Buying: money trapped but it's yours

You pay a mortgage every month (it's tough). But after 30 years, the house is yours. You have an asset.

The numbers

Rent 800 euros x 30 years = 288,000 euros paid. After 30 years, you have nothing.

Mortgage 800 euros x 30 years = 288,000 euros paid. After 30 years, you own a house worth probably 400,000+ euros.

The problem with renting

The bill never goes down. Sometimes it goes up. You don't build assets. Your money disappears every month.

The problem with buying

You need a 40,000 euro down payment minimum. Interest rates are brutal the first years. If you lose your job, you lose everything.

Non-financial factors

Do you want stability or flexibility? Will you stay in the same place 10+ years? Do you have savings for emergencies?

The practical answer

If you have money and plan to stay 10+ years, buy.

If you're young and flexible, rent.

If you have no choice, do what you can.

Important note

The real estate market is local. Madrid is different from a small town. Look at the numbers for YOUR market.