This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies.
X

One in three Spaniards would buy a home in 2018

Purchasing a home is one of the most important decisions that any person can make, hence it is always a long-considered wish. However, this does not prevent most citizens from believing that owning a house is a very good investment. Thus, it is not surprising that, according to a study by HelpMyCash, 35 per cent of Spaniards are considering investing in a house this year.

Specifically, the report shows that 17 per cent of the people who were surveyed want to buy a house during this year, while another 18 per cent would consider it if they find the right opportunity. The remaining 65 per cent do not have any interest whatsoever in making such investment. Interestingly, if we look at the percentage of Spaniards who do not want to invest in property (41 per cent), we will realise how it practically matches those who do not rule out buying in 2018. As regards to the age groups that were more interested in buying a house, Spaniards between 26 and 35 years of age were those who showed greater enthusiasm.

The recovery experienced by Spain's economy in recent years has contributed to the Spaniards' expectations accordingly. The housing market has been one of the great beneficiaries of this recovery, given that many Spaniards have taken advantage of a favourable financial situation to undertake investments that were postponed during the last crisis. The year 2017 was, in fact, the best in the last decade, when more than 470,000 property transactions completed in our country. This is an advance of 15 per cent compared to the previous year.

Spain - pexels-photo-101808.jpeg

In order for the Spaniards who are interested in buying a home to see their plans materialise in 2018, financing will be essential. The same study indicates that 64 per cent of those interested in buying a property would have less than 10,000 euros to pay towards the purchase price. Therefore, these first time buyers would have to try much harder to save their money before buying a home. However, a mere 30 per cent of those surveyed would have between 10,000 and 50,000 euros, so they can make the investment without further delay. According to the recommendations from the experts, it is advisable to have at least 20 per cent of the capital needed to purchase a home.

As an example, those who have not yet managed to raise the minimum capital required to carry out a purchase of this magnitude, can develop their own savings plan. Each month 200 or 300 euros could be set aside to undertake, in the not too distant future, the desired investment. The HelpMyCash study shows how those who save 300 euros a month or more to buy a home are those who are more 'determined' to make the investment in 2018. On the contrary, those who save less than 200 euros monthly would be more hesitant.

With regard to financing, the current context of low interest rates can even be described as a 'blessing' for those who take out a mortgage. The Euribor, which is a benchmark to fix interest on variable rate mortgages, has been negative for many months. By the end of the year it is expected that this situation will start changing, despite which it will still take a long time for us to see the Euribor reach the levels prior to 2008. The remarkable competition among financial institutions is another advantage for borrowers.

Spain - pexels-photo-271795.jpeg

Another option to consider would be the fixed-rate mortgages, which stand out as the most stable option in the long term. Last year, 36.8 per cent of mortgages were granted at a fixed rate, a figure that far exceeds the 10.2 per cent recorded in 2016. The considerable advance of this category of mortgages has also been based on the legislative impulse, which will culminate this year with the approval of
a new law for the mortgage business. The legislation, which will be enforced sometime in 2018, should encourage more people to apply for fixed rate mortgages.

The conclusions of the report are, therefore, very encouraging for the sector in 2018. Firstly, there is a growing demand and it will presumably increase as the financial situation of the most interested age groups improves. Secondly, the existence of optimal financing conditions contributes to many Spaniards seriously considering undertaking an investment of this type. Finally, fixed rate mortgages, which are the most stable, have gained popularity compared to other types of house loans so this is something that benefits the entire sector.

Contact us now

Engel & Völkers Spain
Email
Back
Contact
Enter your contact details here
Thank you for your request. We will contact you shortly.

Your Engel & Völkers Team
Salutation
  • Mr.
  • Mrs.

I agree to the storage and use of my data according to the privacy statement and agree to the processing of my data within the Engel & Völkers Group  to answer my contact request or request for information. 

I can revoke my consent at any time for the future.

Send now

We know the true value of your property

Do you know how much your property is currently worth? No matter if you just want to inform yourself about the current market-price, or if you wish to sell your property for the best price: our experienced marketing experts are happy to assist you with a free and non-binding valuation.
Send now
Back
Contact
Enter your contact details here
Thank you for your request. We will contact you shortly.

Your Engel & Völkers Team
Salutation
  • Mr.
  • Mrs.
Please enter the property information.

I agree to the storage and use of my data according to the privacy statement and agree to the processing of my data within the Engel & Völkers Group  to answer my contact request or request for information. 

I can revoke my consent at any time for the future.

Send now


Array
(
[EUNDV] => Array
(
[67d842e2b887a402186a2820b1713d693dd854a5_csrf_offer-form] => MTM5MjE5NzU3NkJ4d29xancwTDVhZWFIRzEycXAxcW9SdElHdVBqMTdV
[67d842e2b887a402186a2820b1713d693dd854a5_csrf_contact-form] => MTM5MjE5NzU3NnlHcUR0Y2VlTXVPUndLMHZkMW9zMnRmRlgxaUcwaFVG
)
)