It is now a good moment to buy a home in Spain!
Indeed, during the past years, interest rates and housing prices have fallen especially with the decline in Euribor. The real estate consultant of Spanish and foreign financial institutions and founder of Network Experts Real Estate ( REI ), Eduardo Molet , declares that buying a home in Spain is now more attractive than renting, even if it is done with a fixed rate mortgage “.
According to his calculations, an average flat with a mortgage of 100,000 euros and fixed interests would represent for the buyer a monthly fee between 350 and 400 euros per month. This would represent a 30-years mortgage of 80% of the purchase price, all inclusive, while renting an apartment with the same characteristics would represent a monthly cost of about 500 euros.
This advantageous situation for investors will impact the real estate sector in the short-term and a growth in housing prices is forecasted, according Molet. “It will not reach the levels of the bubble period, but it is possible that in large cities and coastal areas prices rise faster than in other parts of Spain. Now we’re seeing this effect in Barcelona and Madrid “adds the real estate consultant.
According to the expert, the prices of flats will increase when the level of demand for housing starts to rise significantly attracted by the prices of flats and mortgages that are now lower than ever.