Buying a home on your own is becoming increasingly difficult. House prices continue to fall and the savings required to access finance make buying and selling difficult. “Being independent is just a luxury Something that very few people can afford nowadays, especially in big cities. The rise in both rent and homeownership prices has skyrocketed, and if we add to this the rise in mortgage loan interest rates, the challenge becomes even greater and the situation becomes even more complicated if you want to buy everything on one salary. ” says Mortgage Director at mortgage comparer and advisor iAhorro Simone Colombelli.
The profile of a single person applying for a mortgage in Spain is a person with an average age of 38 years, working indefinitely (73% of the total) and seven years of work tenure, with a monthly net salary of approximately 2,915. The average price of a house is purchased with Euros around 217,000 Euros. average savings of 80,000 Euros. Additionally, 12.4% of iAhorro users who have mortgaged themselves buy new construction homes, while 86.6% prefer second-hand homes and only 1% buy officially subsidized homes.
If we compare this data with the data collected by the mortgage comparator from people taking out mortgages as a couple, we see that in this case the average age has fallen to 37 and the average monthly net salary contributed by the two has also increased (4,600 euros) and therefore savings (about 100,000 euros) and average house price (Average 290,000 euros).
Thanks to this profile, banks do not cause problems. Because? “One of the biggest problems a person will face if they apply for a mortgage loan on their own is that the debt risk passes through the filters of the banking institution. They usually do not allow the user to allocate more than one. 35% of your monthly net salary to the mortgage. But if wages do not increase while interest rates and prices increase, debt risk increases rapidly,” Colombelli explains.
For example, in order for a person to pay a loan 174,000 euros (most banks will provide financing to purchase a house with an average price of 217,000 euros), 3% TIN, This is what is currently signed in the market, the monthly fee will exceed 730 eurosTherefore, the debt risk of someone earning a net 2,915 euros per month is 25%, below the 35% limit recommended by the Bank of Spain.
Singles could buy a home in only seven communities…
According to the College of Registrars, the average cost per square meter in our country in the second quarter of 2023 was as follows: 1.979 euros 1.12% more than in the same period last year, meaning that a 100 square meter house (roughly the size of the average house in Spain) costs approx. 198,000 euros. Of course, prices vary significantly depending on the autonomous community we want to buy from.
According to the same report, the lowest price per square meter of housing in Spain Estremaduraat 783 euros per square meter (down 1.63% compared to a year ago), followed by Castile and Leon (864 euros per square meter, up 4%). This is the only region where the price per square meter of housing does not exceed 1,000 euros. But at the same time Castile la Mancha (1.132 euros per square meter), Murcia (1.133 Euro), rioja (1.187 euros), asturias (1,380 Euros) and Galicia A young person with an average salary of (1,418 Euros) can get a mortgage without any major problems.
On the contrary, in such communities MadridIt has the highest average housing price per square meter in Spain with 3 thousand 299 euros. Balearic IslandsAt 3,214 euros per square metre, the price of an average house will even jump to over 300,000 euros. They are also very high in e.l Basque Country (2,943 euros per square meter) and Catalonia (2,344 euros).
…and they will have to save an average of 9 years to pay the entrance fee
At iAhorro we also try to answer the following question: How many years do I need to save? A young person, between the ages of 20 and 34, with an average salary that will cover the down payment and mortgage costs on a home? If we take into account that this represents 30 percent of the purchase and sale value, if you can allocate 35 percent of your salary to savings, and take the average prices per square meter, we see that the future mortgage holder can spend an average of 8.7 years. Saving for the down payment on your home.
“If you live at your parents’ house, calculations may yield better results. The problem arises when you pay rent or have other additional expenses that prevent you from saving a certain percentage of your salary every month,” explains Simone Colombelli, director of iAhorro Mortgages, adding that another disadvantage is that “the money saved is the bank for entry and expenses, the loan is the only one Due to the increased risk of default in case of repayment by the company, it may also require collateral or double guarantee for the transaction to be considered valid.