And once again it is more profitable to pay a bank loan for an apartment rather than rent it
Specialists notice “coming-back” of the pre-crisis situation when monthly payments for a bank loan of a flat during 25 years with a 3% interest rate was lower than rental prices.
As elmundo.es reports, right now a monthly average rent of an apartment of 90 sq.m costs 774 euros in one of the most popular for purchase and rent a real estate objects areas of Alicante – Playa San Juan. At the same time, such an apartment has a price of 156,000 euros. If somebody wants to buy it upon taking a bank loan, the monthly payment to the bank will be 734 euros or 610 euros with non-constant euribor.
These days in the centre of Alicante the prices for renting an apartment are higher than in 2008 (648 euros compared to the current 657 euros per month while renting an apartment of 90 square meters).
Still, for a moment not everyone who wants to become a homeowner in Alicante and Spain can afford to take a bank loan to buy an apartment or a house. One of the main reasons is the lack of a constant job/ trabajo fijo with a decent salary. Psychologically, upon numerous stories of evictions from apartments of those who during the crisis failed to continue paying bank loans for their apartment, a lot of Spaniards are taking precautions, they are not “bold enough” to ask a bank for a loan to buy a flat or a house. Not only that these people have lost their flats, they are to pay dozens, hundreds of thousands of euros to banks.