If you’ve found this post, you probably own a property in Torrevieja and you aren’t sure what to do with it. What is more profitable, renting or selling your apartment? And what option will be better in the long term? In today’s post we talk about advantages and disadvantages of everything so you can decide for yourself.
Selling your house
The most obvious advantage of selling a house is obtaining cash immediately. This can be a great advantage if you need capital to invest in something else, such as a new business or the purchase of a new property.
In addition, selling the house can offer tax advantages in case the house that is sold is the habitual residence. In the case of inherited houses especially, selling it is the best option, since splitting the rent benefits among several siblings is very complicated.
Of course, selling a house is a long process and one that has many procedures, but all the headaches that may arise are solved, to a large extent, with the help of a professional.
Selling a house in Torrevieja can be a huge benefit, especially if it is done through a real estate agent. Working without a professional is dangerous, and can result in underselling the house or incurring many expenses that could otherwise be avoided.
Rent your house
Renting a home, on the other hand, offers very long term profitability. If you don’t mind waiting to obtain profits, putting your home for rent is the answer. However, there are many things to keep in mind if you want to know how much are you going to earn; the community expenses, the IBI and other taxes will remain your responsibility, as well as major repairs such as the purchase of a new domestic appliance or the renovations in the house.
Rented homes can be maintained more easily, since the money obtained from the rent can be used to renovate them, and having tenants implies that there is someone, in theory, taking care of the property. On the other hand, there is the danger of having bad tenants, from those who do not pay on time to those who do not keep the house in good condition, not to mention the dreaded squatters.
Renting your apartment in Torrevieja entails a lot less paperwork than selling it, but it requires notifying the Tax Agency (Agencia Tributaria) and paying the necessary taxes, which means keeping track of what is earned and what isn’t.
Finally, it’s worth mentioning that it’s not always possible to rent the apartment. An empty house is a constant expense, and there are always periods during which the apartment in question can’t be rented.
A third option
We can’t finish this post without talking about a third option, which is renting with purchase option.
Renting with purchase option is a type of mixed contract that establishes conditions regarding the rental of the house, and conditions regarding the purchase, and allows the tenants to inhabit the property during some time as tenants, with the right to acquire the house once that time is over.
The price of the home is agreed at the time of writing the contract, as well as the establishment of a premium, that is, a guarantee in case the tenant decides against buying.
With the lease agreement with purchase option, the owner keeps the house occupied and obtains profitability, in addition to having certain security, since a tenant who enters this sort of contract will be much more committed than one in a regular rental situation.
The decision to sell or rent a house depends largely on the circumstances of each person, the circumstances of the market, and the involvement that the owner wants to be in the process.
Of course, there are external circumstances that are also influential, such as the state of the market and the housing situation. As always, it’s best to consult a professional, to make an informed decision about what is best for you.