Solo in your own four walls - mortgages for singles
The number of singles living alone in Spain has been rising for years. Low mortgage interest rates and an increasing supply of real estate for single-person households are encouraging this development.
The days when many Spaniards lived alone with mom and dad, even at the age of 30, are coming to an end. Or so it seems. According to the National Statistics Institute in Madrid, the number of singles among real estate buyers has risen by around ten percent in the past seven years. The „boom“ in single households is due to both an increase in the supply of corresponding properties (studios, one-bedroom apartments) and the persistently low mortgage interest rates. In addition, the number of foreign investors who have bought a small apartment as vacation accommodation without attaching importance to its size has also increased in recent decades.
Be that as it may. Walking alone always means keeping your eyes open twice to avoid stumbling over a stone. Here are a few tips and suggestions to help you avoid stumbling when buying real estate as a single person.
Financing with a mortgage
Unfortunately, there are still persistent myths about construction financing. One myth is that singles are less likely to get a home loan from the bank, but this is false. In principle, a bank does not care whether couples or single people apply for a home loan. The criteria for assessing creditworthiness are identical. The following applies to singles: if the requirements are met, there are usually no problems with the financing bank. However, singles should consider their property purchase carefully, especially with regard to the associated costs and installments. For couples or families, 10 to 15 percent equity is often enough to pay the ancillary costs of buying a home out of your own pocket. As a single person, you have to cover these costs yourself. Financial experts generally advise solo property buyers to have around 30 to 40 percent equity for solid financing of the condominium.
Good location – better sales opportunities
You should also consider the location when making your purchase decision. In urban areas, renting or selling small condominiumen usually easier than in rural regions. In tourist areas such as Mallorca or the other Balearic Islands, an attractive location of the property (sea view, beach proximity) significantly increases the later rental and sales opportunities. Other, ücommon location criteria are, for example:
- A good transport connection
- shopping facilities, pharmacies, doctors' surgeries in the immediate vicinity
- Various leisure activities such as restaurants or cinemas
- Parks and green spaces that can be reached frequently
Last but not least: Neither singles nor couples should not alone to the attractive pictures and descriptions on the Internet leave, but even in situ onexploration tourto get a to get an overview of the actual conditions on siteto create.
