Mortgages, in Milan it is a drain: how the fee for the purchase of a house of 80 or 100 meters changes

of Gino Pagliuca

Since January, the cost of borrowing has risen two points. For a 100-meter flat, it ranges from 672 euros per month in Gratosoglio to 1,343 euros in Porta Volta. For a solution of 80 meters the oscillation between 385 and 856 euros. Difficult loan for young people, but less than a rent

Since January the cost of fixed mortgages increases almost two points
. What does it mean for those who have to buy a house in Milan that is easy to show? According to the report on the residential market of the Tax Agency and the ABI in 2021, those who bought a house in our city with a mortgage requested a loan of 234 thousand euros on average. The national figure of 137 thousand euros. Wanting to stay in the world of tights in the Trilussa, we can say that that loan of 234 thousand euros assumed for the purchase of a house of 300 thousand euros at the beginning of 2022 would have paid 796 euros, while today it requires a disbursement of 1,012 euros , with an increase of 27.1 percent. Apart from the fee inflation.

In the graph (in the photo) we try to delve a little deeper into the cost of mortgages at Milan indicating how much for two typical houses the monthly cost of the installment in 43 city districts. For this, the latest available edition of the Fimaa-Chamber of Commerce real estate market was used. We hypothesize the purchase of a 100 square meter house in excellent condition and in a good position with a cost that ranges between 250 and 500 thousand euros and financing through 20 year fixed mortgage equal to 50 percent of the expense.

Very often a purchase of this type is made by already consolidated households that have a substantial part of the necessary liquidity because they have sold the home in which they resided. In the second case, however, we have considered an 80 square meter house in need of restoration work, with a price between 120 and 250 thousand euros. The mortgage in this case is for 30 years and covers 80 percent of the cost.

The types

Newly created families who either lived in their own houses or together but rented, who do not have much money and among the few who have to allocate a part to the reform of the flat are often the ones who buy properties of this type. We have assumed fixed-rate mortgages, although today the variables have (it is not known until when) lower costs because in bank valuations, the sustainability of installments is usually calculated on the fixed rate.

The price list of Fimaa-Camera The Trade Commission divides the city into 70 zones: we have discarded 27, either because they are too expensive to fit within the limits of our example (basically all of zone 1) or because they are too cheap. Without listing in detail the results of our analysis, which can be seen with the naked eye in the graph, we limit ourselves to saying that for the 100-meter house in our example they range from 672 euros per month for Gratosoglio to 1,343 euros for Porta Volta; for the house of 80 meters the fluctuation between 385 and 856 euros per month for the same neighborhoods.

The comparison

The data on the 80-meter house gives us a very important clue: although mortgages may have increased their cost below, and sometimes by much, than that of rents. At 856 euros a month, the maximum amount of financing, a three-bedroom apartment of 80 meters is difficult to find in the extreme suburbs, but certainly not in Piazza Baiamonti. And less on Viale Cassala, in an area convenient to Bocconi and even more convenient to the IULM, are there owners willing to rent three rooms for 385 euros, which is less than what they would charge for each bed in the three-bedroom apartment. . Even the mortgage loan of 80 meters is absolutely prohibitive for a young person who does not have a few tens of thousands of euros to advance.

The solution for them would be there and represented by the first housing fund for the under 36which allows you to get mortgages up to one hundred percent of the value of the home at reduced rates, thanks to the fact that the risk of insolvency is largely assumed by the State. These loans can be granted as long as the purchase is a first home from a fiscal point of view and as long as the applicant has an Isee of less than 40 thousand euros per year.

The risks

The problem is that these mortgages must be disbursed at a maximum rate that is currently not feasible for fixed-rate loans; today they are offered by some banks at variable and capped variable rates, with the risk that a further rise in the cost of money will make them too expensive for borrowers who don’t have high incomes anyway.

August 10, 2022 (change August 11, 2022 | 09:21)

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