English Speaking Estate Agents Alicante
Can I afford to buy a property in Spain?
One of the most common doubts that come up when we look at a house for sale is whether we can afford it.
Many times we have blown to the ear that it is better to buy than to rent, that renting a house we are throwing the money. However, during the economic crisis a lot of defaults came to the surface because many homebuyers bought above their means.
However, at the present time, everything has changed. Now there is a real estate market with much more reasonable prices, and with some banks that now lend money to much more advantageous conditions. If your dilemma is to buy or not to buy, in this article we help you to calculate if you can pay your home. Because that's the main thing. Then whatever you decide is up to you.
Calculate your annual gross income and multiply it by four.
Investment in a home should not exceed the annual gross income of a person (or a family) corresponding to four years. That is, if you multiply your gross annual income by four, you will get the maximum price that you should pay for your home.
Do not borrow from the bank more than 33% of your income.
Another formulas commonly used in the financial system is the so-called "30% Rule". Under this unwritten rule, the total indebtedness of a person (or a family) should not exceed 33% of their income. That is, the mortgage fee must be at most 30-33% of your salary / income.
However, in this case, the concept of indebtedness does not refer exclusively to the mortgage rate, but also to the other monthly receipts that we may have for other loans and credits. That is, all of our loans must account for at most 30-33% of our income.
Try to save at least the 20% of the price of the property.
Experts advise saving at least 20% of the price of the home as a guarantee to know if we can afford it. If you have savings and can pay cash up to 20% of the price of the house, experts calculate that you can cope with the investment, as long as you also comply with the first two requirements of this article.
Complete Spanish Property are your English speaking estate agents in Alicante.
At Complete Spanish Property we try to make your approach to the Spanish real estate market as smooth as possible. Our advice is to listen to the needs and requirements you may have. If you are considering buying a property on Orihuela Costa, Costa Blanca or Costa Calida, check out our portfolio of properties. We are sure we will have the property you are looking for.
Contact Complete Spanish Property and soon you will be enjoying your dream home in a wonderful place to enjoy life and feel energized and rejuvenated.