Investing in housing continues to be the safest way to make sav

  • The economic recovery once again put in value real estate profitability. In fact, investing in housing is the preferred option to get a high and safe return on our money.

    Among the main consumer trends and the most frequent saving habits, housing continues to occupy a prominent place.

    The fifth edition of the ' Online comparison study on savings 2018 ', prepared by Rastreator, highlights the opinion of consumers in relation to how it is spent and invested in Spain.

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    A report that analyzes six specific sectors: insurance, telephony, finance, automotive, tourism and energy. And although the housing market is not directly analyzed, there are various references to the real estate sector.

    On the one hand, in a financial sense. Linked to savings and investment in the form of real estate assets. And on the other, due to the importance that housing has in our day to day. What insurance do we hire? Where do we stay when traveling? How do we move (car, ..)? What energy efficiency measures do we do serve?

    Factors that determine the importance of the home in Spanish consumption and savings.

    Investing in housing for 'safe' savings

    70.2% of Spanish savers continue to trust the purchase of a home as a safe investment. This statistic, prepared by Rastreator, positively values ​​the recovery of the economy and consumption.

    In fact, in addition to those who buy a house to live in, there are also many small investors. People who want to make the investment in housing profitable. Selling the property after a reform or making a profit every month.

    Specifically, 22.2% of Spaniards would buy a home to put it up for rent later.

    Be that as it may, Spain is still a country of owners . The data in this report reveal that 74.2% of those interviewed prefer to own their home. While 23.3% choose to live as a tenant.

    How much do Spaniards save today?

    Housing ranks fourth among the main motivations for Spaniards to decide to save.

    First, there is savings for unforeseen expenses (including household expenses). Main reason for 61% of savers. Ahead of money reserved for travel (50%), for retirement (39%) or to buy a house (28.2%).

    Still, the ability to save in the last year has decreased alarmingly.

    According to this study, saving falls to something similar to that of 2016. In fact, 42.7% of those surveyed save below 200 euros per month. While 23% are able to reserve between 200 and 500 euros. And only 7.6% manage to save more than 500 euros.

    Why can't they save more money?

    This drop in the number of people who save is due to the economic consolidation of the last year. A situation that leads to consume more and, therefore, to neglect the need to save.

    Among Spaniards who cannot save anything, the main justification is the lack of sufficient income (48.8% of the total).

    There are also many people who have to face unforeseen expenses (36%).

    Fewer people argue that they spend money on whims (20%), on debt payments (14%), on financial support to family or friends (14%) and / or have little financial knowledge (7%).

    A savings rate at historic lows

    Faced with this situation, the rating agency Moody's has just released a report in which it warns of the collapse of savings among Spanish families.

    The family savings rate fell 5.7%, reaching its historical minimum with levels lower than those of the pre-economic crisis. A fact that reveals the optimism of households, but also the lack of foresight for the future.

    According to Moody's, there has been a reduction in family debt to 60% of GDP. While in 2009 it was around 83%. But it is a fall linked to the reduction of mortgages.

    For this reason, a worrying fact is alerted: the deepening of the 'savings floor' between the last months of 2017 and the first of 2018. While consumer loans in the eurozone grow at an average rate of 8%, in Spain they skyrocket 15%.

    Far above the mortgage debt that is guaranteed, after all, by a good as safe as a property. Key to profitability for investing in housing!

    Resources:

     

    Interview with Ignacio Castillo from the Edn Business School

    4 ideal states to invest in real estate with the main industrial parks in Mexico

    CAN I CHOOSE THE FINISHES WHEN BUYING A NEW HOME?

    HOW TO KNOW WHICH IS YOUR IDEAL HOUSE TO BUY

    West Point Real Estate Development. LDC Land Development Company