- Advertisement -spot_img
Saturday, March 25, 2023

Families need 8 years’ paychecks to run their household, a record since 2011

Data from the Bank of Spain confirms that Spanish households will need in the third quarter of 2022 Approx 8 years gross salary to acquire a househighest figure since 2011, and they have to allocate the first year for more than 33% of your gross annual disposable incomeThe biggest effort since 2014 was recorded.

With this new increase, since the third quarter of 2011 has been 8 years, there has never been such a long period of time to pay off a home. And that is that the number of years required to acquire a home has not stopped increasing since the beginning of 2020, rose as price per square meter In Spain and from the middle of that year, more than 7 years are already required.

2007, the record in full ‘boom’ of the region

In the third quarter of 2007, before the bubble burst, The historical record was set at 9.45 years To buy a house of gross pay. In contrast, the minimum -2.96 years – occurred in the first three months of 1987, the year since which the Bank of Spain has a record of this indicator.

If the percentage of attempts analyzed occurs in a family, it is above 30% for more than a year and It has not exceeded 33% since 2014. Since the Bank of Spain has quarterly records, the biggest effort appeared in 1990 with gains over 72% in the first year. It should also be noted that in mid-2008, in the midst of the real estate crisis, it reached 54.6%, while the minimum was recorded in mid-1999 at 25.3%.

To calculate the financial effort required to buy a house, the Bank of Spain uses the amount of installments that an average family has to pay in the first year after buying a typical house. Standard loan for 80% of the value of the apartmentAs a percentage of the household’s annual disposable income.

Experts believe funding has become costlier as interest rates have been hiked to tackle rising inflation The efforts of the family members will be even more. And all this despite the fact that the Bank of Spain advises that annual income be allocated to the purchase of a house. Should not exceed 35% of income,

the price is moderate

Free housing prices in the third quarter of 2022, analyzed by the Bank of Spain in the previous period costlier by 4.7% Compared to the same period last year, up to 1,740 euros/m2, according to data from the Ministry of Transport, Mobility and Urban Agenda, which uses data from the notary that it refines for its figures.

Thus from July to September Housing prices are at the second highest recorded since 2011only slightly surpassing the one registered in the previous quarter with 1,740.7 Euro/m2.

According to the ministry, in the third quarter Buying and selling of homes capped its growth at 3.8% and added 167,539 operations, the lowest figure so far this year but the third quarter with the most operations since 2007.

World Nation News Desk
World Nation News Deskhttps://worldnationnews.com/
World Nation News is a digital news portal website. Which provides important and latest breaking news updates to our audience in an effective and efficient ways, like world’s top stories, entertainment, sports, technology and much more news.
Latest news
Related news
- Advertisement -


Please enter your comment!
Please enter your name here