If the question is why we buy a home in Spain, mortgages have the answer: to invest
In the middle of the debate on the weight of speculation in the Spanish real estate market and with the Catalan Government immersed in the debate Regarding whether or not it should put limits on the purchase of housing for investment purposes, the sector has come across data that adds even more fuel to the fire. According to a study carried out by the Financial Users Association (Asufin), the 47.7% of the mortgages signed are aimed at acquiring homes for investment purposes. That is to say, the idea of those who take mortgages is not to convert houses into homes, but to put their savings in a safe security in search of good returns. What does the study say? The report by Asufin is just that, a report with its biases and limitations prepared based on a survey with 1,301 interviewees and data from different official sources, but it still offers an interesting ‘photo’. And a resounding conclusion: among those who go to the bank in search of financing to buy a home, there are many more people with an investment mentality than there are families looking for a home in which to settle. What figures do you use? The study concludes that only 15.9% of the new mortgage holders will convert the home into their first residence. Another 18.5% are looking for credit to get a second home that they will dedicate to personal use and 17.9% intend to change their usual residence. The photo is completed with the 47.7% that we mentioned before: buyers who knock on the doors of banks in search of credit to purchase a second home as an investment. The size of this last percentage is not surprising if we take into account that the price per residential square meter has been climbing for years (both in the purchase and rental markets) and there are those who estimate that buying an apartment for rent offers returns of more than 6% (either even older), significantly above what more traditional investments guarantee. Why do we buy houses? Asufin’s study has given rise to another interpretation that shows us more clearly what percentage of buyers go to the real estate market with an investment mentality, not in search of a home. If what we are talking about is the reasons that lead buyers to consider requesting a loan, investment is the main motivation 65%. The data shows that brick is still seen as a refuge value. And so, recognizes the associationleads to “the cycle of buying to rent or saving value to sell more expensively continuing to significantly stress the market.” It’s actually nothing new. Previous studies Asufin itself already reflected that more mortgages are requested to invest than to buy homes. Does the report say anything else? Yes. It confirms the low flow of new housing entering the market, that today the cheapest option is fixed mortgages and that foreign buyers they account for a total of 14%although the data varies depending on the region and the market segment we are talking about. For example, in the Canary Islands and the Balearic Islands they account for almost 30%, while there are half a dozen autonomous communities in which foreigners do not even reach 4%. Another interesting reading is that credits take up a considerable part of the finances of Spanish households. To be more precise, the average mortgage payments are already They represent 35% of salaries, a percentage that rises to 40% if we talk about the segment of young buyers, between 25 and 35 years old. However, the Asufin data show a slight change in trend, with a clear decline in the percentage of buyers who go into debt to buy second homes for investment purposes. Although they continue to represent an important part of the pie (47.7%), at the beginning of the year they represented 56.2%. Image | Ján Jakub Naništa (Unsplash) In Xataka | Buying a house is already an impossible mission for many young Spaniards. So his parents donate it to him
