The inhabitants of the Balearic Islands need 14 years on average to save the entry for a mortgage, while a person who wants to buy a home in the Canary Islands will need a little more than 7 and a half years. In Extremadura, on the other hand, they can get the money in 5 years. These are some of the data that the report provides iAhorro about him time it takes for Spaniards from different Autonomous Communities to get the money for the entry of a mortgage.
The differences between the Autonomous Communities are based on the number of m2 of a home and its average price, in addition to the average salary in that territory. If a person has a salary above the average, but lives in an area where the price per m2 is higher and the houses are larger, it will take longer to save than a person in an area with low salaries, but with houses cheap.
The saving capacity of each person has been calculated based on the 50/20/30 rule, by which 50% of the monthly income is allocated to basic expenses, 20% to savings and 30% to other personal expenses .
In the Balearic Islands Several of these factors come together: the homes are very spacious and the price per m2 (2,232 euros, according to Tinsa) is higher than the national average (1,353 euros), therefore, we find homes with an average value of 248.845 euros. Likewise, the average salary of these islanders is 1,405 euros, ranking at the bottom of the average salaries in Spain, according to Adecco. Therefore, the fact of not having a high average salary, but an expensive m2 causes these Spaniards take much longer than the rest in saving the entrance of a house.
“Before requesting a mortgage, you must have at least 20% of the value of the property. The market offers almost no alternatives without savings And buying a home comes with expenses that are often undervalued. So it is also advisable save another 10% additional for the costs of formalization of the process”, says Simone Colombelli, director of Mortgages at iAhorro.
On the other hand, the time that a Spaniard needs on average at the national level to get a home is set at 7 years, for an average salary of 1,641 euros and for a home with an average value of 138,181 euros
Extremadura, those who take the least time to save
The inhabitants of this community take an average of 5 years to save the income for a mortgage, although we must bear in mind that the average price of housing in that community is 82.945 euros, which is 165,900 euros less than a home in the Balearic Islands. This is because in Extremadura the price of m2 is lower: 711 euros.
Madrileños earn more, but the price per m2 is higher
The salary of Madrilenians is above the national average: 1,964 gross euros per month. However, the price per m2 in the Spanish capital is higher than the average (1,353 euros), which causes the value of properties to rise to 221.458 euros. Therefore, despite earning more, they need more time to get the money from the entrance of the house. Specifically, 9 years.
Being young or living as a couple, the other side of the coin
Although it is true that there are many differences between the Autonomous Communities, there are more when we talk about young people: “They are quite far from this reality, since they usually take a while to find a job and economic stability that allows them to keep this money. However, this period is reduced in loans where there is more than one holder or as we move forward in the workplace due to the fact that income tends to increase ”, he points out iAhorro’s Mortgage Director.
Given these figures, the OCU recommends save as much as possible, since in this way we will be able to face unforeseen events that may arise: “The higher the percentage of savings allocated to housing, the better. Especially when we contract loans with a variable interest rate, in which we will have to have a margin of safety against possible rate increases. “For this organization, the optimal savings is 25% of the value of the home we want to buy.
In order to make these savings, he recommends “calculating monthly expenses” both periodically and sporadically. It will be the only way we can detect unnecessary expenses and evaluate our ability to save.
Eddie is an Australian news reporter with over 9 years in the industry and has published on Forbes and tech crunch.