Buying a house in Spain in the vast majority of cases involves obtaining a mortgage loan. In addition, it is necessary to set aside a significant part of the cost of the house, which will need to be spent as a down payment. It is also necessary to take into account the costs associated with the real estate purchase process itself.
Most banks in Spain, following international standards, offer mortgage financing in the amount of 80% of the value of the purchased property. In view of this, borrowers must have on hand from 20% to 30% of the value of the property to pay the down payment. It is also strongly recommended to take out a loan only in the amount and on such conditions that monthly payments will not exceed 30% of monthly income.
If we talk about the accumulation of own funds to buy a house without a mortgage, then some experts on the real estate market in Spain indicate that it will be necessary to postpone wages for 6 years. We are talking about the full average salary in the country. Consequently, the real term increases, since at least half of the full salary will be spent on the expenses necessary for the functioning of the household. From utility bills to food purchases.
At the same time, the term may vary depending on the region of the country. It is necessary to take into account inflation and falling incomes of the population. The dynamics of these indicators differ not only from one autonomous community in Spain to another, but also from province to province. Do not forget about the continued growth of the Euribor key rate.
The publication Antena 3 Noticias has compiled a rating of autonomous communities of the country for the longest period of accumulation of full wages for the purchase of housing. The Balearic Islands have become the leader, whose residents will need to save money for 10 years. In other words, they will need to raise funds commensurate with 120 full monthly salaries.
In Madrid, the capital of Spain, to buy a house and get a mortgage loan, you need to save your full salary for 7 years, and in the Canary Islands, you need to save for 6 years to buy a new home. One of the most affordable regions is Andalusia and Baskonia, where it is required to save wages for about 5 years.
Currently, the real estate market is going through a period of uncertainty, marked by many problems, some of which have already been identified: inflation, the rising Euribor rate, falling incomes of the population. At the end of February 2023, Euribor was above 3.5%. According to experts, in the coming months the key rate with floating interest will exceed the mark of 4%.
Given all this, creating savings to buy a home in Spain will mean a lot of effort for many citizens. Therefore, it is necessary to plan a permanent savings plan that will allow you to effectively save a sufficient part of your salary to buy a house in Spain. Experts recommend always setting specific goals for savings.