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Renting or Buying Real Estate on the Costa del Sol

Whether you’re a frequent visitor to the Costa del Sol or are thinking of moving to the area, you need to decide whether to rent or buy a property. Both options come with advantages and disadvantages. And of course, the ultimate decision will depend on your personal circumstances, finances and medium-term plans. In this blog post, we look at the pros and cons of renting or buying real estate on the Costa del Sol and then crunch the numbers.

Renting or buying

The advantages of buying property on the Costa del Sol

If you plan to visit several times a year or make the Costa del Sol your permanent home, buying property makes a good option for the following reasons:

Stable and convenient

Owning the property you live in adds stability to your situation. And if it’s a holiday home, you can leave your stuff in it from one visit to the next.

Financial profit

Buying a home should reap you rewards in the medium to long term because the underlying trend in property prices is always up. But to make a profit, you need to sell at the right time.

Thinking of buying property on the Costa del Sol? Read this article first

Personalisation

You can do what you like in your own home to adapt and furnish it to exactly what you want. If you’re buying off plan on the Costa del Sol, you can even customise the property at construction stage to suit you.

Leverage

When mortgage interest rates are low (as they are now) Check this article  you can get much more for your money when you buy.

Haven in the sun

And last but definitely not least, you own a home in a place with 320 days of sunshine a year!

Renting or buying

The disadvantages of buying real estate on the Costa del Sol

But it isn’t all about benefits – buying property does have its drawbacks too. They include:

High initial costs

Buying a home in Andalucia involves taxes and fees on top of the purchase price. And they’re expensive – budget for between 10% and 12% extra.

The counterbalance? Think of your purchase as a long-term investment so you have time to recoup buying costs.

Location inflexibility

You may discover you don’t like the location you’ve bought in.

The counterbalance? Research the area carefully before you buy and use an agent with specialised local knowledge.

Not sure where to buy on the Costa del Sol? Check out our area guides with all the information.

Costs are all yours

Owning a home inevitably involves maintenance and upkeep that can be costly. And those costs are all yours.

The counterbalance? Buy a new-build property on the Costa del Sol.

Renting or buying

The advantages of renting real estate on the Costa del Sol

If you’re not sure where to buy or confident that you’re going to stay on the Costa del Sol, renting a property offers a good temporary solution because:

Low initial costs

You only need one to two month’s rent plus the deposit and your initial costs are covered.

Flexibility

You have no tie to the rental property because you can leave with a month’s notice.

Did you know? The cheapest townhouse and villa rentals on the western Costa del Sol start at €900 a month.

Buy rent property Costa del Sol

The disadvantages of renting a property on the Costa del Sol

On the other hand, rentals have the following cons:

Uncertainty

Living in the property depends on a contract and the landlord might not renew it.

The counterbalance? Look at rent-to-buy options.

Zero wealth creation

Your monthly rent goes into the landlord’s bank account and adds nothing to your personal wealth.

The counterbalance? Make renting a temporary solution and plan to buy within 3 to 6 months.

Did you know? The most expensive villa rentals on the western Costa del Sol reach up to €16,000 a month.

How much does it cost to buy real estate on the Costa del Sol?

While renting offers a good temporary option, the balance ultimately tips in favour of buying. To give you an idea of what you can buy, we’ve sourced the cheapest and most expensive properties on the market right now.

Small Oasis

The cheapest property

This comes as a very pleasant surprise – 2 bedrooms and 2 bathrooms over a spacious 74 square metre apartment plus sweeping sea views and designated parking space. All within a 10-minute drive of Estepona and Sotogrande. Yours for just €97,500. Find out more

The most expensive property

At the other end of the spectrum, this golf-front villa takes premium living on the Costa del Sol to new heights. Six bedrooms and seven bathrooms spread spaciously over 1,351 square metres. And you’ll also enjoy breathtaking sea views, marble floors, Mediterranean gardens and a pool. Plus all the extras available to residents at Finca Cortesín. Yours for €11,000,0000. Find out more

And in between

Whatever sort of home you have in mind, The Property Agent has something for you. Check out our website for a choice of over 700 new-build homes on the western Costa del Sol. Choose yours now

 

What my clients say...

Since the first moment, Celeste was very professional!! The best ever Real Estate Agent I've met so far! The information provided was very personalized and extended to meet our requirements! The best! Joaquim Soares from Portugal

Celeste is a very professional Real Estate Agent. She knows the area extremely well and is therefore very capable of showing the right properties. She is very customer-focused, friendly and goes the extra mile to keep her clients happy. We are very happy with her help and would recommend her to all who are looking for real estate in the area! Saida & Hachim from the Netherlands

We had desires to invest in Spain, but the distance has slowed us down. For several months, we were in contact with several real estate agents. The one that gave us the most confidence is The Property Agent owned by Mrs Celeste Alonso. We met an exceptional person through the internet following our research, and I must tell you that we are delighted! This beautiful meeting was decisive; it is a person who proves the real qualities of professionalism. She took charge of us from beginning to end. Arrived in Spain in Malaga, she accompanied us for visits to different apartments, and we found a rare pearl thanks to Celeste.  Mr and Mrs Catteau from France

Celeste is the reason we bought our property. Her knowledge of the market and her ability to find gems in the residential real estate sector are second to none. Time and again, she has proven to be reliable and extremely trustworthy. She provided us with immeasurable support during the purchase of our property and, most importantly, while we were decorating and renovating our apartment. Celeste’s network of contacts has been invaluable to us and were key enablers in ensuring a smooth purchase and world-class after-sales care. If you are looking to rent or buy a property, we consider Celeste to be the best at what she does. Don’t settle for anyone else! Five stars! PS: Our dog loves her too! Marzia & Satya from Italy

We decided to work with Celeste from our first conversation by telephone. We liked her approach and very good care of customers. Celeste supported us not only before and during the purchase, but also after the purchase was successfully completed. Celeste really helped us a lot. We are happy that in Spain we have a great friend of ours! Be sure that we will recommend Celeste like the best Real Estate Agent in Spain. Dana & Andrew from Poland

Jo and I would like to thank Celeste for the very professional service that she gave us when we decided to move from France to La Alcaidesa. She was spot on in understanding our requirements and, when we found the right property,  she ensured that the whole conveyancing process went through very smoothly and quickly. But what impressed us was that, after we moved in, Celeste ensured that we discovered all the local services in the area. This was our 5th house move and we can honestly say that she helped to make this the easiest. Mike & Jo from the UK    

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