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Young people and first homes

Buy a flat? It's possible

Leaving the nest, giving up sharing a flat with friends or colleagues or thinking about investing for yourself – these are some of the major challenges we have to face at some point in life.

Buying a house, an apartment or any home at first glance is not simple, especially when you are young. In any case, taking into account certain factors can always make it “a little less complicated”; the trick is to set yourself a savings plan for buying a home, assess whether it is the right time for you to get a mortgage or to continue paying rent, how old you are, job security, and more...

The current environment

We currently find ourselves faced with a somewhat complex job market; little supply, low salaries and, in general, conditions that are not conducive to saving. Added to excessively high property prices and a lack of information on grants and programmes for helping young people get a home.

How to save to buy a house?

Starting off with a mattress is essential; don't forget that our mortgage will only cover 80% of the price of the house and we will also have various expenses associated with buying it. Here are some tricks to help you save little by little:
  • First of all, we can start by renting a modest apartment that lets us save to meet the initial outlay and down payment for our own home.

  • Remember that the first home we buy will quite possibly not be the house of our dreams or our final house... but it will be one we can afford

  • A bridging loan might be an option to help in obtaining financing for the purchase in certain cases.

  • If we have debts, we will need to reduce them.

  • It will be good to avoid any day-to-day expenses that we can do without.

  • Lastly, we can arrange some financial savings products to help us: savings accounts, bank deposits...

Recommendations for getting a house at a good price

The neighbourhood is your home too

Choosing the area where you are going to live is essential. Living in the centre of the city is not the same as living in the suburbs or on the outskirts. As we move away from the centre, prices will drop and the size of the property will probably be larger.

The condition of the property.

Buying a house and renovating it little by little is a good option. But beware: certain things cannot be fixed with building work... Just because a house is cheap does not mean that it is a bargain: we will have to look at the size, the light, the location and the services it can access.

Not too far away or wasting much time

Properly assess and work out how long you are going to spend on getting from A to B. From work to home. From home to the gym. From school to home... It is essential to have access to the metro or buses, be aware of the usual traffic in the area, bike lanes, etc.

House in Madrid or house in Alicante

We could consider the price differences between autonomous communities if we don't mind moving. the Balearic Islands, Madrid and the Basque Country are the most expensive; Castilla-La Mancha, Extremadura and Murcia are the cheapest.

An expert's opinion to clear up any doubts

It will be advisable to visit the house with an expert: an architect, interior designer, etc. to find out the real state of the house. Avoiding surprises in time is always good, especially if the house you want to buy needs renovations.

Think about today, tomorrow and the day after...

Buying a house: forever? Are you always going to live in it? Do you think the area will grow in value in the future? Take a good look at the surroundings and the development plans and put it in the balance if you think it is necessary. Today it could be your primary residence, but tomorrow it might be your children's or somewhere that earns you a second income.

What grants and youth housing programmes are there?

  • We will have to consult the State Housing Plan 2018–2021 (extended until 2022) for under-35s and for homes in municipalities with less than 5,000 inhabitants. It also finances grants for home maintenance grants and for the purchase of second-hand homes.
  • We can benefit from deductions on the tax on property transfers (ITP), which must be paid when you buy a second-hand property.
  • Some autonomous communities contemplate deductions on personal income tax (Castilla y León, the Basque Country, Extremadura, La Rioja and Murcia) and some municipalities even have their own home rental and purchase programme for young people.

What about the mortgage?

There is a type of mortgage for every home. Everything will depend on your savings profile and your plans and expectations in the medium and long term.

Fixed-rate mortgage

If what you are looking for is peace of mind. The same interest rate and payments throughout the life of the loan.

Mixed mortgage

A combination of the previous two. For the first few years interest is fixed and it is variable thereafter.

Variable-rate mortgage

Remember that the Euribor rises and falls depending on the market.

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Your questions, and those asked by almost everyone else