Should You Rent or Buy Property in Alicante? – Let’s Find Out
Whether to buy or rent? This question is often raised by those who, either want to become an independent homeowner or have migrated to many cities. Although numerous factors can influence this decision, such as saving available or prospects of staying in the same place. Each month your mortgage comes as a burden and will become a major expense.
With the increase in rental rates in recent years, it is affordable to buy homes in most towns in Alicante. On the other hand, renting is a good option if you are not sure about the area and when you like the neighbourhood, then you can buy it later.
Upsides of Living in Alicante
Alicante is a Mediterranean city that provides an excellent quality of life due to its warm and sunny climate, affordable housing options, and gastronomy. It is an appealing place for foreigners and investors looking for good property options.
In regard to the increase in real estate prices, Alicante is the 4th largest profitable city in Spain. Homes are usually a preferred choice among European investors with an annual interest of 6.4%. Renting to tourists can be a great option while still allowing owners to enjoy their property as desired.
Property Prices in Alicante
The real estate market in Alicante is relatively economical. Prices may vary depending on areas, vicinities, and amenities. Properties near large avenues or in buildings from the 1970s can cost around €1,800 per square meter whereas property in the old town or seafront costs around €2,500 per square meter.
Attractive one-bedroom per 80 sq. meter central apartments can be found for less than €150,000 while sea-front apartments with scenic views can be found for around €200,000. Similar prices can be found in luxury apartments in residential complexes with communal gardens, large swimming pools, and other facilities.
Buy Rent or a Home
Before you decide whether to buy or rent a home, consider these factors:
How long will you stay?
If you’re moving to Spain, you’re certainly hoping it’s going to be a long-term plan. But what to do if things don’t work out? You can only return if you’re renting a property. Long-term rental contracts in Spain are usually between 6-11 months.
Do you have savings?
Mortgages in Spain for residents start at 70-80%, thereby, you need some savings to pay for the deposit. You also need to pay 10-15% of property prices for taxes and administration charges, so make sure to calculate your savings.
Do you want to see the area first?
Unless you know the area or neighbourhood very well, it’s a good idea to rent at least for a year to pick the right location. If you’re renting, it is much easier to move to a different town than if you have bought a home.
Which is economical – Renting or Buying?
This largely depends on where you are moving to and the type of property you are seeking. In a busy city, you can expect to pay anywhere from €800 – €1000 per month for a 2-bedroom apartment. In a quiet location, you can get 3 bedroom apartment with a communal pool for around €550 per month.
If you’ve sold your current home to buy your dream home, it could work cheaper than renting. You can find a wide selection of apartments and villas for sale in Alicante.
Get Your Paperwork in Order
Whether you choose to rent or buy a property in Spain, make sure you gather all the necessary documents to streamline your process. Either way, you will require a Spanish bank account, NIE number, and employment contract. It is always a good idea to contact local real estate agents to find an ideal home in a hassle-free manner.
Century 21 Advisors are here to help!
Are you looking for properties for sale in Alicante, Javea, Calpe, or any other region? Century 21 Advisors can be your best aid. Let us connect you with genuine client owners, buyers, and investors around the globe to help find your dream home.
We carry an extensive property listing, so you can filter out options depending on your needs and budget. You can search for properties in real-time in your desired location and contact our real estate advisors for further assistance.