The number of owners who have been forced to put their homes for rent in order not to lose the investment for mortgage default has risen significantly during the past 2016 and the figures shown in the first quarter of 2017 are still rising.
The rents have not stopped rising, and if not they say it to the inhabitants of Ibiza, Madrid or Barcelona, and although experts say that this has very little to do with tourist apartments, the reality is that one thing has gone accompanied by the other. Valencia is the capital where the rental price has grown the most, by 20.3%, which has caused the price to be 7.5 euros / m 2 per month. If we talk about a floor of about 100 m 2 the rent would be 750 euros in this city, so some have left more profitable to rent their home to pay the mortgage to stay to live in it.
This is the case of the Rodriguez family in Madrid, who has rented their home for 650 euros a month and have gone to live at the house of the head of the family’s mother. Mortgages paid around 550 euros so they can still save 100 euros per month for the duration of this situation.
“We bought the house five years ago, and three years later I lost my job. From there I found temporary jobs but nothing that brought a fixed income home ” the parent tells us and continues ” My wife charges 1000 euros a month, so with that income we could not pay the 650 euros of mortgage and keep our family of four members “.
They went to live at his mother’s house a week ago and, according to them, it is an opportunity to unite the family even more. “We have bought furniture for the children’s room in this furniture store in Madrid and we manage with the double bed of my in-laws” María tells us, the only one who still has a job in the family, “my mother-in-law sleeps in the small room and my children in the other” .
His idea is to be in this situation as long as it is necessary to get out of the hole in which they are, that is, until the father finds another job and enter two payrolls in the house. According to María’s own words, when that happens, they will probably rent the current home of her mother-in-law and they will all move to the apartment that is currently mortgaged because the mother of the head of the family will need more help with the passage of time.
In the end, to this middle class family, it is more economical to rent your home than to stay in it since the money they get for renting it covers the expenses of the surplus mortgage. This makes me wonder if we will not live a kind of real estate bubble the other way around since it does not seem normal to me that buying a house is cheaper than renting it, at least as far as monthly expenses are concerned. Obviously, the only drawback in all this, is the obligation to pay that mortgage for the number of years that has been agreed with the bank but, if we lived rent for life, those years we would still have to pay the price of that rent . Seen the seen, I do not know what is better, if rent or buy.
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