The unchecked rise in the cost of housing is a blow to the stability of the young population: more than 80% have serious difficulties in becoming independent or acquiring a decent property. The National Statistics Institute (INE) reveals that buying a new home in Spain today is more expensive than 15 years ago: the annual rate for this type of property has risen to 11.2%, the highest figure recorded since 2007.
The variation of second-hand homes, although to a lesser extent, has also grown. It is at 7.3%, a point and a half above that of last year. This means that people intending to apply for a mortgage have to save more than estimated a few months ago, especially those living in Madrid, where the Housing Price Index (IPV) rate has reached 7.2%.
Mortgaging in Madrid city
According to the financial comparator HelpMyCash, to buy a house of 90 square meters in the capital you must have saved 30% of the total value of the mortgage: 20% for the down payment and 10% (12% in case of being a brand new home) for notary fees and taxes. As Fotocasa ensures, a property of this size costs on average 318,312€, so the ideal amount of savings is 95,494€(and only if it is second-hand).
The problem is that the average Spaniard must give that advance of almost one hundred thousand euros collecting less than 24,000 euros a year. Despite the aid offered by both the Community of Madrid and the Government of Spain, the hyperinflation and job insecurity suffered by many Madrileños hinder their ability to save.
As an alternative to the apartments in the capital (especially if you have a car) are the houses found in surrounding villages. Guadalajara has localities with chalets of one hundred square meters that do not exceed 90,000€ in total. In fact, Mondéjar has won the third place in the ranking of places with the cheapest mortgages in Spain.
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