My first home: how much savings do I need?
26/06/2023

Buying your first home on the beautiful Costa del Sol is an exciting step for young people, but it also involves careful financial planning and understanding of the processes involved. In this article, GR Estates will provide you with a comprehensive guide to the minimum savings required and the different processes you need to consider in order to realise the dream of owning your own home in this enchanting region, so get ready to take charge of your property future on the Costa del Sol!

Budget and goals

Determine your budget and set savings goals: If you are a young couple, for example, it is essential to evaluate your finances and set realistic savings goals. Analyse your combined income and monthly expenses to determine how much you can save each month. From there, set a long-term savings goal that will allow you to accumulate the minimum amount needed to purchase a home.

Minimum savings needed for my first home

The minimum savings needed for the above example of a young couple can vary depending on the price of homes on the Costa del Sol and your specific goals. As a starting point, it is advisable to have at least 10% to 20% of the purchase price as a down payment. For example, if you are considering a property of 200,000 euros, your minimum savings should be 20,000 to 40,000 euros.

To reach your minimum savings target, consider implementing strategies to increase your savings. This may include reducing unnecessary expenses, setting a strict budget, finding additional sources of income, or allocating a portion of your bonuses or salary increases directly to saving for housing.

Research and property search

While you are saving, take the time to research and familiarise yourself with the property market. Explore different areas, housing types and prices to get a clear idea of your preferences and options. Work with a real estate agency that specialises in housing for young people to get expert guidance and access properties that fit your budget.

Legal process and paperwork

Once you have reached your minimum savings target and found your desired property, it is essential to have the support of a lawyer specialised in real estate law. The lawyer will review the contracts, verify the legality of the property and ensure that all the paperwork is in order. Make sure you fully understand the documents before signing them and make the required payments as agreed.

Financing and mortgage loans

While minimum savings are essential, you may also need additional financing through mortgage loans. Check with different financial institutions for information on available options and loan conditions. Keep in mind that the more you save upfront, the better the terms and interest rates you will be able to obtain.

Purchasing your first home on the Costa del Sol requires careful financial planning and a minimum savings target. Set realistic goals, implement savings strategies and seek the right advice to ensure you are prepared to face the buying process successfully. Don't be discouraged and work towards your goal of owning your own home in this beautiful region!

GR Estates Team