In Spain, a high income does not necessarily mean that buying a home is easier. Studies indicate that there are significant differences among various regions of Spain: while incomes vary around €10,000 per year, the price of a 90-square-meter home can differ by up to €383,000.
Financial Challenges for Buyers
One of the biggest barriers is the money that buyers must save before applying for a mortgage. To purchase a 90-square-meter home, a buyer must pay about 30% of the price as a down payment and other costs. For example, in the Balearic Islands, this amount reaches about €144,000, while in Extremadura it drops to €29,000 and in Castilla-La Mancha to €30,000.
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Price Differences and Their Impact on Buyers
Housing market prices constitute a large part of this discrepancy. For instance, a 90-square-meter property in the Balearic Islands costs around €480,000 and €431,000 in Madrid. In contrast, in Extremadura, this amount is approximately €97,000 and about €100,000 in Castilla-La Mancha. Therefore, an increase in income cannot always compensate for housing costs.
Savings also play a role in this context. If a family sets aside 35% of their income for a down payment, they can accumulate the necessary funds to buy a home in less than five years in nine regions of Spain. These regions include Galicia, Navarra, Aragon, La Rioja, Murcia, Asturias, Castilla and León, Extremadura, and Castilla-La Mancha.
On the other hand, the Balearic Islands, Madrid, and the Canary Islands are located. In these areas, five years of savings will not be sufficient to reach the price of a 90-square-meter home. For single buyers, this effort becomes even greater: they must save for 14.2 years in the Balearic Islands, 10.7 years in Madrid, and 10.1 years in the Canary Islands.
According to Laura Martínez, communications director at iAhorro, the main problem is not in paying the mortgage but in gathering the money to start. She stated, "The hardest part is saving up." According to this analysis, young people and single buyers are the ones who face this initial barrier the most.
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