Families spend over a third of available income on buying home

28th January 2008, Comments 0 comments

Spanish families who bought a home last year spent over a third of their gross available income on their purchase.

28 January 2008

MADRID - Spanish families who bought a home last year spent over a third of their gross available income on their purchase - and that's after subtracting tax deductions for homeowners. The figure is a significant rise from the 29.9 percent of gross income spent by families who bought their homes in 2006.

In the last few years, families have had to make greater efforts to purchase their homes, going from 24.6 percent of their gross income in 2004 to 37 percent last year, according to figures from the Bank of Spain.

In fact, the price of non-subsidised housing, both new and second-hand, last year returned to 1998 levels, according to the Housing Ministry.

The latest rise puts the average cost of a square metre at EUR 2,085.5, which means that a family who bought a home with a surface area of 93.75 square metres spent above EUR 195,500 on their purchase.

[Copyright EL PAÍS / SUSANA URRA 2008]

Subject: Spanish news

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