'Tu Primer Hogar' is Born, the Marbella Developer That Lets You Buy a Home Without Savings

It's called Tu Primer Hogar and is presented as "the first private initiative that facilitates access to housing." The project is led by ... the Alfil Group, a family business founded in Marbella in 1952, which participates "in a minority way" alongside investors not associated with the company, and has adopted the SOCIMI (Listed Real Estate Investment Company) regime to, in turn, "democratize real estate investment" once it starts trading on the Madrid Stock Exchange, which will happen "shortly."

In practical terms, Tu Primer Hogar acts as a developer, but with a significant peculiarity: when the houses are ready, they will not be put directly on sale, but will be marketed under the lease with option to buy formula. They will do so at a price lower than what could be obtained in the market and fixed in advance, and the buyer will not have to provide a down payment. Yes, it is not an NGO, it is a listed company that will be profitable, but less than what could be obtained in the market. "I make money, I have a percentage of profits, and I do not want to earn more," says Francisco Gómez, president and CEO of Tu Primer Hogar.

"I make money, I have a percentage of profits, and I do not want to earn more"

Francisco Gómez

President and CEO of Tu Primer Hogar

The idea is mainly aimed at young people with the goal of "completely eliminating initial financial barriers." The functioning of the market causes those who want to buy a home to have up to more than 30 percent of the cost of the property in the bank (between the 20% not covered by the mortgage loan, taxes, and formalization expenses). If the house is worth 300,000 euros, about 95,000 are needed and if it costs 400,000 euros the figure rises to approximately 127,000. "Today only 30 percent of young Spaniards between 20 and 35 years old own a home, which means that in the last 17 years this rate has fallen by half, and the most striking thing is that they perceive average salaries, but cannot afford the initial payment. That's why Tu Primer Hogar was born, to provide an answer and hope to those who aspire to their personal project of emancipation," explains Gómez.

Model, projects, and prices

The company, headquartered in Marbella, will develop its first project in the province in Estepona, in the area of Llanos de la Boladilla, where villas and homes for the luxury segment are being built. There will be 27 homes, 16 of two bedrooms and 11 of three, with a built area of between 84 and 154 square meters, accompanied by a storage room and parking space with an electric charging plug and a community pool. In addition, the SOCIMI has three other projects in the towns of Tomares, Villanueva del Ariscal, and Umbrete in Seville, adding up to another 256 homes, and is studying other projects in Cádiz, Granada, and other territories outside Andalusia.

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The Estepona promotion will be marketed starting at a price of around 400,000 euros with a lease of 1,300 euros per month and a term for the acquisition of the house of five years, although there will be an option to do so in three. Thus, at the end of that period, the buyer will have paid 78,000 euros, 19.5 percent of the sale price, almost the same amount that the buyer would have to put up to complete the mortgage loan, so the buyer will only have 322,000 euros left to pay. Tu Primer Hogar emphasizes that alongside its Estepona promotion there are others that are sold at a price up to 40 percent more expensive. However, prices vary depending on the project. The homes in the Umbrete promotion, for example, will have a sale price of 290,000 euros and the rent will be 850 euros per month.

To be able to access one of these houses, it will be necessary not to own another property and for the rent payment to represent around 35% of the person's or family unit's income

To be able to access one of these houses, it will be necessary not to own another property and that the rent payment represents around 35% of the income of the person or the family unit. Gómez argues that it is "a pioneering model that moves away from the speculative phenomenon of the sector" and that responds to a goal: "to offer the opportunity to buy property to a segment of the population with stable incomes, but without saving capacity."

"The uniqueness of this innovative formula with a social vocation is that the sale price of the house is established from the beginning and will remain fixed even if there are market fluctuations," points out the president and CEO of Tu Primer Hogar, who emphasizes that the formula "provides stability, as well as family and economic planning in a market from which they have been excluded."

The Andalusian Regional Government and Marbella celebrate this "pioneering" and "courageous" solution to address the housing problem

For the delegate of Development, Territorial Articulation, and Housing in Málaga, María Rosa Morales, who was present at the project presentation, it is a "pioneering and fantastic" initiative insofar as it "offers young people an opportunity" for access to housing. For his part, the councilor for Urban Planning of the Marbella City Council, José Eduardo Díaz, welcomed "a brave company" that brings to the table "a solution to the problem."