Now that the summer season comes to an end, the offer of properties for long-term rental will significantly rise. Therefore this is a good time to decide whether it is better to buy or rent a property in Marbella.
Obviously there is no definite answer to this question, that is, yes or no to either option. It will largely depend on several factors which must be thoroughly considered before making a decision.
First of all, how the property is going to be used. If you are not going to live in Marbella most part of the year, the option of renting does not seem to be the most logical one as you would be paying for not using a property. The alternative of buying allows you to enjoy the property whenever you want and also rent it when you are not living there, which helps you to partly finance the purchase.
Another important issue is knowing Marbella and its surroundings. If you do not know the area very well, you should obviously get advice from experts who can tell you what the best for you is but … there is nothing like living it by yourself. In this case, it is advisable to rent in an area you find attractive fist and then get to know Marbella well to make sure where you want to buy.
From the financial point of view, the decision is also important. Mortgage interest rate in Spain is now very low, and the Euribor has even dropped below zero, so you can get 1% mortgage interest rate. Banks are financing between 60%-65% of the property valuation in the case of foreign buyers. If you are sure of the area and property type you want to buy in Marbella, your monthly mortgage payment may be lower than a rent … However you need to have at least 40% of the property value to start with.
Renting a property offers you more freedom to change of places, properties and also moving out to other resorts. It is not a rationally good investment (it is an expense) but it can be a good one from the emotional point of view, as you are not tied to a place or a property but you can move out of a property after a while, and it does imply less legal complications than buying.
For some years now the demand of properties for rent in Marbella has notably increased, and therefore the market offers fewer quite expensive options. There are many more properties to sale than for rent. This is an issue for consideration as you could end up renting something you do not like in an area which is not your favorite one.
Finally although Spanish law highly protects tenants, they could be subject to a rental agreement no renovation on the part of the landlord and they may have to leave a property where they were happy.
In short, the decision of buying or renting may not be an easy one and you have to take these and other factors into account.