Tue. Sep 17th, 2019

move from rental to property


ABC

MadridUpdated:

Young people are the engine of the economy. And those with ages between 25 and 35 years, who entered the world of work with and after the 2008 crisis, have encountered many more obstacles to save money and, consequently, are more limited when making real estate investments.

In Spain, more than 5 million people are in this age group, according to the census of the INE (National Institute of Statistics). They are digital natives, because they have grown along with technological development; they are nonconformists without fear of change; They prefer to invest in experiences than in material goods and tend to have very low savings rates because, among other things, they follow the "YOLO" ("You only live once" philosophy, that is, "you only live once").

To the outskirts of the cities

The big cities attract the youngest, because they are centers of high economic development and with possibilities of employment and professional growth. But the high prices of real estate in these cities have made this group of people, who seek a first property to emancipate themselves or to start a family, lean towards the more affordable options offered by the suburbs, larger homes and new works in good condition.

In the case of Madrid capital, for example, the price of land in the first quarter of 2019 stood at 3,239.6 euros per square meter, registering an interannual variation of 10.8%, according to the Ministry of Development.

On the other hand, the smart homes equipped with home automation They could attract more attention because they meet the need for speed, immediacy and agility of young people.

The internet usage trends of the youngest - spend more than 50 hours a week connected, according to Emarketer - together with the rise of the "proptech" are revolutionizing the real estate sector. As digital natives, young people use their electronic devices to search for houses, both for rent and for purchase, being the mobile device that today generates more traffic in the search for homes, thanks to the various applications available for this work. Online real estate platforms allow you to explore all your options from the comfort of your home and simply contact those owners or sellers whose offers really interest them.

In addition, with the new virtual reality technologies, such as that offered by Vitrio, in many cases they can see exactly what the property looks like through a virtual tour without having to travel to make a face-to-face visit of the house, which facilitates the search process and allows them to devote their time to other leisure activities.

Pay the lowest price for the best option

With the "boom" in rental prices, along with the mortgage facilities currently offered by banks (especially for young people under 35), some young people choose to buy homes. Specifically, there are 26.5% between 16 and 29 years of age in housing ownership, according to INE 2017 data. However, with a salary of between 16,000 and 20,000 euros a year, according to the same source, young people have increasingly difficult to save in order to pay the initial of a property and its subsequent mortgage.

Between 25 and 34, only 37% own a home (according to 2015 data from the Urban Institute), while, from previous generations, such as baby boomers or generation X, the percentage of home ownership in that age period amounted to 8 points. The preferences of the youngest to live in the center of the big cities, which are more expensive areas, is one of the factors that influences the delay of this group of people in taking the step towards the purchase, according to the report.

Young people under 30 they allocate between 30% and 33% of their salaries to the housing payment and associated expenses, as indicated by a study of Habits Big Data. Faced with this panorama, and in the face of a market of high prices, they look for options to live in the center of the city and in flats in good conditions at an affordable price, in view of what arises floor sharing solution.

The most affected by the rent increases are young people from Catalonia, Madrid (9.3 euros per month per square meter), Basque Country and the Balearic Islands (6.8 euros per month per square meter), areas with higher rental income, show figures from the Ministry of Development. On the other hand, the autonomous communities such as Extremadura, Castilla La Mancha, Castilla y León and Galicia are among the lowest rental income in Spain, with average figures equal to or less than 5 euros per month per square meter.

. (tagsToTranslate) young (t) rent (t) property



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