2023-09-10 07:19:51
Sunday, September 10, 2023, 07:19
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Buying a house in Spain means – on average – allocating 7.7 years of full salary to paying for the home. This is revealed by the trends report for the first half of the year prepared by the Appraisal Society. In Extremadura, however, the situation is somewhat more favorable and it is enough to allocate 5.8 years of full salary to become an owner. All in all, the number of mortgages in the community has fallen in the last year by more than -28% according to INE data, figures that, for some experts, are closely related to the tightening of the conditions of access to financing. and the evolution of prices.
“The Spaniards are increasingly delaying their emancipation, especially in times like these, in which inflation reduces their purchasing power,” explains Ferran Font, director of Estudios depósitos.com. For the expert, economic uncertainty hinders the idea of buying a house not only in Extremadura, but in the entire national territory and points out: “with the price increases in the mortgage loans “It is not surprising that Spanish families are increasingly seeking to contain spending.” In this sense, the rising cost of living and the stagnation of salaries complicate the task of saving which, on the other hand, is a fundamental aspect of buying a house.
What is the situation of the Extremadura real estate market? Is it time to move from renting to buying? Before making a decision, it is important to be clear that there is no single answer. In addition, it is necessary to have a global vision of the scenario. In this sense, beyond talking about financing or savings, we must talk about the regulatory framework. The entry into force of the new Housing Law has incorporated interesting developments such as greater protection for tenants which, among other things, includes a cap on rent increases.
In Extremadura as a whole, rental prices have fallen an average of -4.55% in the last year. Cáceres (€5.38/m2) is the province that bears the brunt, with a depreciation of -7.78%, compared to the 2.67% drop in prices in Badajoz (€4.37/m2). However, according to data from the latest rental price report from apartments.com, renting a 90 square meter house in Badajoz (€7.47/m2) costs on average around 670 euros per month, that is, 14. 09% more than a year ago. In the case of Cáceres (€6.56/m2) the revaluation reaches 2.66%, placing the monthly rent for a similar home at around 590 euros per month.
Faced with the generalized falls in rental prices in the province as a whole, in the case of the purchase and sale market, only Cáceres (province) records a depreciation of second-hand housing that reaches -1.93%. In the community as a whole, the price increase reaches 1.71%, an even larger percentage if we talk about the capitals. In Badajoz (€1,577/m2), data from apartments.com places the increase at 9.58% in the last year, while in Cáceres (€1,314/m2) it reaches 5.39%.
In any case, the idea of invest to rent In Extremadura it can be very attractive and, in the month of July alone, the gross rental profitability reached 7.38% in the province as a whole.
Beyond prices and financing
Although the economic chapter plays a key role when it comes to resolving the question of whether or not the time has come to move from renting to buying in Extremadura, it is not the only thing that must be taken into account. Job and financial stability, for example, are another important factor when deciding whether to buy or rent, as well as one’s own aspirations and future plans. If you are looking for stability and have sufficient financial capacity, purchasing can be a good long-term option, although if you are still not very clear about what your plans are, staying as a tenant is not unreasonable either.
In any case, making the decision between buying or renting is a personal matter and before taking the step, we must carefully analyze both our circumstances and the situation of the sector and, of course, the short and medium term forecasts.
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