Sell or rent in 2023? What is better?
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Owners: What is better to rent or sell in 2023?
Responding to the doubt of the owners of whether it is better to sell or rent in this 2023 for Madrid and Spain in general, this depends on your personal situation.
She will define what is the best situation that best suits you, whether to sell or rent your home.
The objective is to consider which one can give you the best short, long and medium profitability in this 2023.
We will analyze the economic scenario and the trends in the real estate sector, detailing the advantages and disadvantages and drawbacks that may arise during the operation and help you sell or rent your apartment in 2023 with high profitability.
Spain: Economic scenario for selling or renting a home in 2023
- Inflation.
- Interest rate hikes.
- Rise of the Euribor.
- Increase in the price of mortgages in the euro zone.
- The CPI .
- Limits to 2% in the increase in the rental price.
These are just some of the variables to take into account and that are influencing the real estate sector in 2023.
Some homeowners wonder if they should wait or if it is time to sell or rent their property.
Inflation has made investors look for assets that serve as a safe haven to protect their assets.
The demand for a home has been growing considerably, as has the supply of homes for sale in Madrid.
The rise in interest rates and the rise in mortgage prices have made many (buyers and sellers) prefer to wait until financing improves.
Others rush to buy because they fear that another rate hike will come from the ECB, making mortgages even more expensive.
The Owners
Those owners who are about to sell a property to buy another home are especially concerned.
The owners are looking for the option that can generate more income.
Renting a home stands out as a good option for those who prefer to wait and bet in the medium and long term.
Certainly the fear of non-payment due to the economic situation makes some owners doubt whether they should rent or not, but everything has a solution if you hire a management service with guaranteed rent and non-payment insurance.
The important thing is to know and understand what your situation is, where the house is located, what state it is in, what you are looking for and what you need.
The best strategy is to advise you with an expert.
Rent my home in 2023
It is expected that the demand and supply of housing will stabilize in 2023, as a consequence of the economic and social situation.
Therefore, if the owners choose to wait to sell their home to obtain profitability, renting the home may be a wise option.
Although for that you have to take into account variables such as:
- The demand of the area.
- Where is the house.
- The type of property.
- Personal needs.
- Choose a good tenant .
- Laws and taxes.
- The Rental and Management process
- Take out non-payment and management insurance.
We continue with the advantages and variables to consider when renting your home in 2023.
Will the price of housing rental and its profitability increase in this 2023?
Due to the increase in mortgages due to the rise in interest rates by the European Central Bank (ECB), many people do not have the financial resources to buy a home.
For this reason, some experts point out that the demand for rentals will increase in 2023 , since the offer is not expected to grow at the level of demand.
In short, there are all the ingredients for the current rental price to be maintained or even increased.
Another positive point to take into account is that the state seeks to increase the number of homes available to live in, for which the state provides a tax deduction for the owner who rents his home.
Something to take into account is the 2% limit to the rent increase approved in March 2022 and which will be in force until December 2023.
With this scenario, real estate leases continue to be profitable and with good advice, you will not only be able to enjoy the benefits but also increase the profitability of renting your home:
- stable source of income
- Avoid leaving your apartment empty
- could you pay your mortgage
- Increase your saving capacity
Before renting you must:
Although renting a home can be extremely profitable, it is also a business that, if you do not know how to do it, can lead to very high costs for reasons such as:
- Non-payment risks.
- Home damage.
- Occupation and evictions.
- Inform you and advise you on all economic and legal mechanisms.
For this reason, advice is key and hiring the services of a real estate agency to make your rental something safe and profitable.
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Sell my home in 2023
With the rise in interest rates and the increase in the cost of financing, the market remains active already closing the first quarter of this 2023.
Housing prices experienced a significant rise in 2022, for this 2023 prices begin to fall a little or hit a ceiling in a large part of the Neighborhoods and neighboring towns in the Community of Madrid.
However, most experts and real estate agents do not see that the price has considerable drops, on the contrary, it is most likely that it will remain the same or even rise in some neighborhoods.
You can see the analyzes that we have done, both to rent or sell your home in this 2023, in different areas of Madrid such as:
New interest rate hike
The European Central Bank plans to further raise interest rates, so the demand advances the purchase of real estate to escape an increase in the mortgage.
Therefore, there is a factor in the market that drives and maintains demand, keeping prices up, for the moment.
Planning the sale of a flat as soon as possible can be an excellent strategy, but you must take into account the current context
Today’s investors are at a key moment where they continue to search for a safe haven.
However, the sale time today is slower as a result of the climate of economic instability.
Remember to take into account:
- demand in the area.
- The Valuation.
- The starting price.
- The number of homes on offer.
- Economic and political factors.
Seek the support and advice of a real estate professional.
What is better to rent or sell housing in 2023?
Both selling or renting in 2023 have their advantages and disadvantages.
The decision will depend on your personal circumstances, your preferences and your property.
So the first thing you should do is define your situation and seek professional advice.
If you don’t have an urgent need to sell and you want to get a high return on your home, renting your home is an excellent long-term option.
If you urgently need to sell a second home to buy another, it is probably best to put the home up for sale as soon as possible to ensure a better price.
