Boomers believe that if the millennial generation can give up the avocado toast, they will be able to afford a living.
The time has changed as well as the generations, the struggle is very real for a millennial in the 21st century. However, it seems like this is not an obstacle to becoming a homeowner in Spain because Millennials are supercharging the housing market in recent years.
Diversity of Generations Affects the Timeline
There were days when a 25-year-old could buy a house with a minimum wage. 65% of the working population owned their homes nearly 20 years ago. These days were the splendid times of boomers, today the case is relatively different in terms of the socio-economic status of the world and the way of living.
The most significant difference between baby boomers and millennials, aka Generation Y, is the approach to the way of living. At the age of baby boomers, the main purpose of life centered around finding a job, starting a family with your spouse, buying a home, and collecting lovely memories while getting old with your loved ones.
However, Millennials were born into the age of technology. This new generation witnessed the golden age of innovation and was able to benefit from it. This familiarity with high technology created a breakage in the conventional attitude towards the purpose of life. This may be the major cause of the difference in timelines between boomers and millennials.
It is a commonly known fact that millennials start as homeowners later than previous generations. There are a few factors for this delay.
The statistics show that a great number of Spanish millennials earn nearly 30% less compared to previous generations. Most of the working class’ salary provides a high-quality and comfortable living but not together with savings for a downpayment or a mortgage.
Today, business centers are generally focused on megacities and most millennials are drawn into the metropolitan settlements to get a job. 51% of the millennial population in Spain lives in rented properties. The rent prices are getting higher each year and that makes it more difficult to put money aside for a downpayment.
There were times when it was believed that to earn more money, you would need a college education. There still is, actually and it’s not a wrong idea at some point. This is why in history since the Lost Generation, Millennials are also known as the most educated generation.
Nearly 70% of the working population in Spain has a college degree. However, this education comes with the long-run costs of student loans. Millennials who have studied abroad or in private colleges are weighed down because of student loans. These heavy payments of long-term installments are increasing the monthly expenses of a millennial.
Other than financial difficulties, there is also a sociological side to these factors. Getting married or having kids are the traditional elements that trigger the enthusiasm of buying your dream home and growing old there.
This conventional dream of baby boomers, which was passed to them by their parents, seems not to influence the Millennials. Getting a high-quality education and growing up in the age of innovation causes diversity in the understanding of lifestyle quality.
Gen Y likes to cherish themselves and finds happiness in small things such as avocado toasts, or oatmeal lattes. Millennials in Spain are fond of a quality modus vivendi but what says more comfort and quality than having your own living space?
Millennial Home Buying Trends: What Do They Buy?
Despite all of these reasons mentioned above, nearly 44% of the young working Spaniards are a homeowner in Spain. Their diversity also reflects their preferences between generations.
Location is a temptation. The first feature of a home that the Millennials look for is the property’s location. Most millennials consider buying a centrally-located property in metropolitan regions for a permanent living or investing in a commercial property. As for summer houses, they mostly prefer suburban areas by the beach.
Millennials buy smaller houses. As a result of an embracement of independence and the idea of a small family, they prefer relatively smaller but cozy houses.
They care about decoration. The visuality, harmony, and ambiance of the living space are pretty important factors for Generation Y. Especially the first-time home-buyer Millennials in the Spanish real estate market are mostly looking for modernly designed newly built properties to live in.
They embrace the fixer-upper attitude. Coming from the enthusiasm for decorating your own home, a great number of the Millennial population likes to buy a resale property to reconstruct. In 2019, 68% of the millennials stated that they can buy a fixer-upper property and overhaul it.
Technology is essential. As a generation that witnessed the growth and evolution of technology, Millennials know how to use it to provide comfort in their daily life. Most millennials are looking for innovative features in their homes such as automatic blinds, smart home systems which they can monitor from their smartphones, or energy-efficient lighting systems with remote control.
They work with a real estate company for profitable deals. Before the technological developments, real estate companies were the main source to get information about a home. Now, the houses and information about the purchasing process and properties are accessible through a few clicks.
Today, real estate companies play an important role as a negotiator and service providers. They offer advantageous campaigns in the scope of unique agreements made with construction companies to their customers. Nearly 62% of the millennials choose to work with an established company for a carefree purchasing experience and these advantageous campaigns.
How Can Millennials Buy a House in Spain?
Buying a home as a Millennial may seem difficult but not impossible. There are a great number of affordable housing for millennials in Spain. With small sacrifices and a carefully-thought budget plan, it is possible to buy your first home. Let’s explore some tips for purchasing a property in Spain:
• The first step is being debt-free. Make sure that you are paid all of your debts before making a long-term mortgage commitment. This way monthly mortgage payments at reasonable prices won’t decrease your life’s quality.
• Know your finance options. Governments may provide financial support or incentives to first-time buyers from time to time. Make deep research on tax exemptions, government schemes, or first-time buyer programs to finance a part of your budget. You can also make your payment with cryptocurrency at Spain Homes ®.
• Accumulate the downpayment. The downpayment amount may differ according to the seller but it is way better to save up to 20% of the sales price as a downpayment amount before making an offer. This way the mortgage will redeem sooner and the interest rates will be lower.
• Calculate the additional costs to prevent any surprises. You may want to think about tax payments, stamp duty, and lawyer fees. Check out our Purchase Expenses page for detailed information.
• Think wider and further. Explore the newly developing residential areas while buying a house as an investment. The new promising settlements will be beneficial in the long run in terms of property value.
• Discover the off-plan and under-construction properties if you’re not in a rush. An off-plan property will be at its lowest price and gain value as the construction continues.
• Work with an expert and reliable real estate company. Nearly 34% of millennials buying investment property in Spain prefer working with a real estate agent to benefit from advantageous campaigns and a fast purchasing process.
However, finding the right advisors to work with is a significant point to consider to avoid fraudulence. With nearly 20 years of experience in the real estate market and a Zero Failure policy, the expert team of Spain Homes ® is happy to guide you through the whole journey.
Thousands of millennials buying homes in Spain get the opportunity to enjoy the beautiful climate and astonishing natural beauties of the Mediterranean. Contact our expert team to buy your dream home under the sun!