A new law allowing people to buy their first homes easier approved. According to law, people under 35 can benefit from mortgages up to %95 of the property price. The law is expected to enter into force after the summer of 2023.
The new program is called ‘My First Home’. The program is announced on 20 July 2023. Department of the Environment, Housing and
Agriculture will manage the program. The regional Madrid government approved the law that will present an 18 million euro investment.
The program’s details are also announced. The applicants may get mortgage loans from 80 percent and up to 95 percent of the property value. In addition, the total property value can not exceed 390,000 euros.
According to the details, people under 35 can apply for this program to purchase their first home in Spain. They also must be living in Madrid for 2 years before applying for the program.
The program is approved but not entered into force yet. It is expected to the program will be available for application after the summer. This program is only available in Madrid. But, other regions of Spain also have similar programs.
This program is also eligible for foreigners who want to buy property in Spain. Foreigners only have to have a valid NIE (Número de Identificación de Extranjero) or DNE (Documento Nacional Indentidad).
Spain Becomes Best Place to Buy First Home Before 35
In some parts of Spain, there are first time homebuyer programs. These programs help people to buy their first home through a mortgage in Spain. Let’s look at them region by region.
Valencia
The Ministry of Housing and Bioclimatic Architecture introduced a new program. This program aims to help young people to buy property in towns and villages with depopulation risks.
People under the age of 35 can receive a %20 percent property value grant, a maximum of 10,800 € per person. The property’s maximum value must be 120,000 €.
Murcia
Murcia also has a program similar to one in Valencia. Property buyers under the age of 35 in Murcia can %20 grants up to 10,850 €.
Andalucia
The region of Andalucia offers its own First Home Program. Young property buyers in rural areas can get a maximum of 10,800 € grant.
Castile and León
In Castile and Leon, all property buyers can get a maximum of 5,000 € grant, if they purchase a property in the province of Soria. The age limit is 36 for this program.
Galicia
Galicia has a different program for supporting those who are buying house in Spain. The region of Galicia supports young buyers who want to buy property in the historic centers. Buyers younger than 35 can get grant up to 12,800 €.
Why is Spain Supporting Young People to Buy Property?
Spain is supporting young people to buy property because of the rising statistics of first time home ownership age. This average age is higher than in nearly every country in Europe. According to research by Money.co.uk, Spain is one of the oldest countries in terms of first-time property buyers' ages.
The research includes 25 countries worldwide. Belgium and Iceland share the first place with an average age of 27, and they are followed by Finland with 28,8. The oldest average ages are in Japan and Spain at 41, Czechia at 41,5 and Switzerland at 48.
Currently, Spain got the third-oldest population in terms of first-time property ownership in Europe. Spain’s first-time property owners’ aspects are described as financially free and looking for a home to pass the entire pensionary.
The average first time home ownership age in entire Europe is 34. So, Spain will be working more to lower this age gap. It can be easily done with the support provided by the government.
Why Purchasing House in Spain is More Advantageous?
Today, owning a home is more advantageous than renting one. In our daily life’s economic structure, property prices are always increasing. It is also an indicator to buy a property in most countries.
Spain is one of the perfect countries to buy property in Europe. Rich amenities, developed infrastructure, beautiful natural areas, quality beaches, and more are available in Spain. That’s why many foreigners are choosing to buy home in Spain.
Also, the process to buy property in Spain is not hard for foreigners. Spain has always been a welcoming country for foreigners. It is also same in the social life. Foreigners can easily adapt to daily life in Spain.
House prices in Spain are expected to rise also in the following years. So, it is the best time to buy property in Spain. In addition to many benefits, it can be also considered an investment.
The big investment potential of the country drew the attention of many foreign investors. Obviously, the easy process of purchasing a property and renting it is another reason.
Real estate is a trending investment option. Especially if the investment is done in an area with huge potential. Thankfully, Spain offers more than that. As a famous country, Spain is still developing in many fields.
The real estate market in Spain is available for investment in all property types. You may invest in commercial properties, residential, or even lands. For investment purposes, short-term rental property investment in Spain is getting more famous.
In many aspects, Spain is an ideal country to buy property. There are vast options for location, budget, and desired features. It is beneficial to invest in properties in Spain as soon as possible to take advantage of increasing prices.
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