How to Buy a House in Sitges If You Are Under 35 and Have Few Savings

Buying a home in Sitges, especially if you’re under 35 and have limited savings, can seem like a daunting challenge. The housing crisis in Spain and the constant rise in prices mean that many young people face difficulties in becoming homeowners. However, there are some solutions that can make it easier to purchase a house in this situation.

The Current Situation for Young People

According to a report by the Bank of Spain, the percentage of homeowners under the age of 35 has dropped from 69% in 2011 to 31% in 2022. This decline reflects the increasing difficulty for younger generations to access housing due to rising real estate prices and the lack of affordable options. This is compounded by job insecurity and insufficient savings to cover the initial payment for a mortgage.

However, despite the challenging landscape, there are alternatives and financial aids that can help make buying a house more feasible, even in high-demand areas like Sitges.

Alternative Solutions: Rent-to-Own

One of the most interesting options that has gained traction in recent years is the rent-to-own model. This allows you to rent a property with the option to buy it later. In many cases, part of your monthly rent is allocated toward the future purchase of the property, helping you save while you live there. Companies like Wannaprop offer solutions that allow you to allocate between 30% and 60% of the rent toward the home’s purchase price, making it easier to accumulate the capital needed to buy within five years.

Grants and Aid for Young People

The Spanish government has implemented several initiatives to encourage home buying among young people. Some of the most notable include:

1. 20% Guarantee for Home Purchase: The Ministry of Housing, in collaboration with the Official Credit Institute (ICO), offers a 20% guarantee on the home’s price, enabling young people to secure a 100% mortgage. To apply, you need to meet certain requirements, such as being under 35, having an annual income of up to €37,800 (for a single buyer), and buying your first home.
2. Aid for Purchasing in Demographic Challenge Areas: If you’re open to living in towns with fewer than 10,000 inhabitants, you may qualify for a grant of up to €10,800, with a 20% price limit on properties valued up to €120,000.

Recommendations for Young Buyers in Sitges

• Review Available Mortgages: There are different types of mortgages, and it’s important to choose the one that best fits your financial situation. Some banks offer more favorable conditions for young people or first-time homebuyers.
• Consider Local Aid: Look into whether Sitges or nearby towns offer additional grants for young buyers, particularly if you’re considering rural properties.
• Explore Public-Private Partnerships: In other European countries, collaboration between the government and private sector has successfully developed affordable housing. Keep an eye out for potential initiatives like these in Catalonia.

Buying a home in Sitges may be challenging, but it’s not impossible, even for those under 35 with limited savings. Solutions like rent-to-own, along with the grants and aids available, provide opportunities to make homeownership more accessible. By staying informed about your options and taking advantage of these financial supports, you can take the first step toward owning your new home in Sitges.