Buying a house in Spain as a single person: mistakes to avoid

Photo by Caleb Stokes on Unsplash

23 November 2020, 11:29

Spain attracts people from all over the world and for a range of reasons: studying, retiring in the sun or moving for work, to name a few. Others decide to take the leap and move to Spain as a single person to start a new life abroad, and the good news is that living alone is no longer a rare sight in Spain. In the past, it was more popular to share a flat, or for Spaniards to live with their parents for an extended period, and although sharing housing with a partner remains the favourite option, single-person households are gaining ground in Spain.

The latest data from the INE (Institute of National Statistics in Spain) Continuous Survey of Households, corresponding to 2019, show that the number of Spaniards living alone has increased by 9% since 2013, 7% in the specific case of those under 65. This trend, which has its origins in the continuous development of society, has led many of these people to take the step of even purchasing a property independently and is also an option for single expats moving to or already living in Spain.

And it is no wonder that singles are opting to buy property in Spain. If you have sufficient economic solvency, buying a home on your own has great advantages: exclusivity when deciding on any matter related to the property, greater autonomy and independence, continuous learning when it comes to managing the household economy, greater long-term financial security and many more benefits. However, buying a house in Spain also means facing the initial challenge of the responsibility and risk of making all the decisions to buy and sell without another person, as well as perhaps buying property in Spain for the first time.

Here at idealista we are here to help, and with the help of Solvia will analyse the six most common mistakes to avoid when choosing to buy a house in Spain by yourself:

Thinking that it is impossible to buy a home by yourself: This is the main mistake that many people make when they consider whether to buy a property or not: it is too expensive, it will not be possible to get a mortgage because I'm single and only have one income, there are no flats for sale at affordable prices... As long as you have the necessary savings, you have job stability and sufficient financial capacity to pay off a mortgage, and you research the available offer very well, there will be many possibilities for those who wish to buy property in Spain alone.
Not making a previous budget: If you are buying a property as a couple, you need to be extremely meticulous and prudent. If you are buying alone, this need becomes even more important. Therefore, it is necessary to prepare an approximate budget beforehand that takes into account the expenses that you can afford, based on the savings and income you have available. With this information, you will know which homes you will be able to buy. In general, to purchase a property in Spain, you should have saved 30-35% of the cost of the property to cover a deposit, taxes and other expenses, and be able to meet the monthly mortgage payments with 35% of your monthly salary (maximum). Of course, you must also assess the maintenance costs of the home in the long term: cost of utilities, property tax, residents' association, home insurance, furniture etc.
Thinking that buying alone means buying without help: Four eyes see more than two, especially when it comes to choosing a suitable home, signing a mortgage with a lot of small print or closing a sale and purchase agreement. Therefore, you should always try to seek support and advice from third parties, such as friends and family with experience buying and selling property in Spain. And, if you have very specific and concrete doubts, it is not a bad idea to ask for financial, legal or real estate advice.
Sticking to small or one-bedroom homes only: It is logical to think that a person who wants to live alone should choose homes with just one bedroom. However, it is necessary to think more in the long term, as you never know what the future will bring and you can always find someone to share the property with, either as a couple or to save costs. In addition, the residential market is now experiencing a price adjustment, which will allow access to great opportunities for buying and selling at prices that are affordable for a range of budgets.
Always opting for central areas: Normally, single buyers tend to prefer the city centre because it allows them to move around on foot or by public transport, because of the ease of access to the leisure and cultural offer and, in short, because it facilitates socialising. However, right now it is also worth exploring other alternatives such as growing and up-and-coming neighbourhoods or metropolitan areas on the outskirts of large cities in Spain. They are more affordable, well connected, have a very varied housing offer and are also becoming very fashionable in terms of leisure and outdoor activities.
Not thinking in terms of investment: Buying a property can be a long-term economic investment. Even in these cases there will be more possibilities of making a profit immediately, since you can rent a room. What's more, if personal circumstances change, there will always be the possibility of selling it when property market prices rise, without having to reach an agreement with anyone.