Rent or purchase a home. That is the big question that everyone who is considering leaving the family home asks themselves, especially young people, and it is an idea that is gaining traction.
The high cost of purchasing a home, combined with the terms of a mortgage loan, means that the sale of real estate is not keeping up with demand, making the rental system an excellent option for avoiding a large expense.
However, there is no magic formula: it is determined by each individual’s priorities, economic solvency, personal capabilities, and aspirations.
José Elías, a well-known businessman, believes that renting a home instead of buying is a wise investment, despite the perceived expense. Elías views renting as a valuable investment that provides mobility and opportunities for certain lifestyles. In fact, he emphasizes the “flexibility” that this option provides in terms of living, avoiding being “tied to bricks”.
Buy a house or live in a rental?
Not everything is always black or white. José Elías recognizes that life is not always black and white. Despite defending the position of renting, buying can be an excellent option for wage earners with consistent incomes and long-term goals.
In this way, the businessman says that “if you buy when you are 30 and retire at 60, the house will be paid for. That is insurance for a peaceful old age.” However, there is another significant issue with this complex reality: not everyone can afford to buy a home, particularly at current prices. Elías emphasizes the importance of planning and saving when buying a home.
Along these lines, the well-known Spanish businessman discussed the concept of investments, emphasizing that they can generate “more profit” than purchasing a home.
Elías believes that small flats are more profitable than larger ones, stating that a 200,000 euro flat can yield a 4.8% annual return. On the other hand, one worth 500,000 only reaches 2.8%”. José Elías believes that “the numbers don’t lie”.
Despite criticism on social media and digital platforms, Elías’ vision emphasizes the importance of making financial decisions based on individual priorities and circumstances, while always using a calculator.
In other words, he defends the free market and individual family decision-making, but he does advocate for the use of numbers to make objective and unbiased decisions, particularly in a volatile sector like real estate, where current events always take precedence.
