2023-12-11 08:34:03
Moving to a new home is always a complex decision, whether renting or purchasing. When choosing a house, different factors come into play, such as its location, proximity to points of interest such as the center of the city in which we live or supermarkets, noise levels, parking areas… But above all, the economic component comes into play, the decisive factor to choose a house, to buy or rent it, the key element is the budget we have for it, which depends mainly on the salary.
According to experts, the debt percentage of a household should never exceed 30% of income, so if a person wants to buy a house, just him, and his salary is 1,300 euros net, the mortgage should not be greater than 390 euros.
However, this statement is not always true. According to the study by the real estate consultancy Colliers, Cádiz is the seventh Spanish provincial capital with the highest rate of effort to purchase a home, while in the case of rental homes the effort rate places the city as the eleventh provincial capital in Spain.
The mortgage effort is the percentage of disposable income, the salary, that a buyer has to use to pay his or her mortgage monthly. Usually, banks set the risk limit at an effort of 35%. To estimate the mortgage effort, the consultant has considered the following parameters: a 75 m² apartment, offer prices, the disposable income of an average household in each provincial capital and a loan with a ‘loan to value’ ratio (the percentage between the amount of the loan and the value of the property) of 80%, with current average interest rates and a term of 25 years.
In this way, it is resolved that the effort rate for purchasing in the city of Cádiz is 33.9%, therefore being below the recommended 35%.
Cádiz is the seventh Spanish capital with the highest effort rate, only surpassed by San Sebastián (49.5%), Palma de Mallorca (43.9%), Barcelona (42.5%), Madrid (38.8%). %), Málaga (35.6%) and Bilbao (35.3%).
On the other hand, the city of Cadiz is the eleventh in terms of the effort rate for renting a home, 29.9%. This rate indicates the percentage of disposable income after taxes that an average household must use to rent a 75 m² home in each provincial capital.
Barcelona is the Spanish provincial capital city with the highest rate, 43.2%, and is followed by Málaga (38.1%), Madrid (36.4%), Palma de Mallorca (36.2%) and San Sebastián (34.2%).
The price of second-hand housing rises
In relation to the price per square meter there are variations depending on whether it is a second-hand home or a newly built one. In the case of the unit price of the square meter, Cádiz is the sixth provincial capital of Spain with a higher value, specifically 2,410 euros and with an increase of 9.18% in relation to 2022.
Only in San Sebastián (4,220 euros), Madrid (3,710 euros), Barcelona (3,590 euros), Bilbao (2,720 euros) and Palma de Mallorca (2.1610 euros) is the price per square meter of second-hand homes higher. In Cádiz the cost per square meter is even higher than in other important provincial capitals such as Seville (1,960 euros) or Valencia (1,870 euros).
If we talk about the assessed price for new construction homes, Cádiz is the eighth Spanish provincial capital with the highest value, 2,570 euros, with a year-on-year decrease of 5.05%. The data for Cádiz is far from the three Spanish provincial capitals with the highest figures: San Sebastián (4,610 euros), Madrid (4,490 euros) and Barcelona (4,340 euros).
These data represent the problems that Cadiz residents have in accessing housing, whether rented or purchased, and without greater facilities between second-hand or rented housing, and which lead many residents of the capital to have to move or move to other neighboring towns, where housing is cheaper than in the capital.
A problem that also affects students at the University of Cádiz, who have many difficulties finding a rental apartment at an affordable price. In their case, they do not have the problem of the rest of the rentals that are only for the school season, since in the summer months they go to their town, but finding empty homes only between September and June is a real headache for the people of Cadiz. .
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