Buying a home: Everything you need to know

Everyone needs housing. And nowadays it is very difficult to find a good house to rent due to the high demand and the scarce supply. So, the question arises. What do I have to do to buy a house? Is it a good time to buy? Buying a flat as an investment? Second hand or new construction?

I'm going to buy a house: Is this a good time?

Buying a house is a decision that depends on multiple factorsand determining whether it is a good time to do so may vary according to the personal and economic situation of each individual.

Generally speaking, the real estate market is on the rise. In other words, property prices are going up and up and up. Logically this makes it a very good time to sell. a property and get a return on investment and at the same time, it offers the peace of mind that the purchase of a new home will not lose valueThe opposite will be the case over the coming years. It is therefore an assured investment.

Costs when buying a house

Buying a house, whether new or second-handThe cost of the project involves a number of additional expenses that it is crucial to take into account in order to plan the budget properly.

Costs when buying a new house

1. Purchase priceThe cost of housing itself, agreed with the developer.
2. Value Added Tax (VAT)For new dwellings, VAT is 10% of the purchase price.
3. Stamp Duty Tax (AJD): Varies between 0.5% and 1.5% of the purchase price, depending on the autonomous community.
4. Notary fees: The public deed of sale must be executed by a notary, with costs ranging from 600 to 1,200 euros.
5. Land RegistryThe registration of the dwelling in the land registry has at a cost of between 400 and 600 euros.
6. GestoríaIn case of of using an administrative agency for administrative formalitiesThe cost can be as low as 300 to 500 euros.
7. Mortgage: If you finance the purchase with a mortgage loan, you will have additional costs such as valuation of the property (300 to 500 euros), opening commissions, etc. (about 1% of the loan amount) and notary and registration fees associated with the mortgage.

Costs when buying a second-hand house

1. Purchase price: The cost of housing agreed with the seller.
2. Transfer Tax (Impuesto de Transmisiones Patrimoniales - ITP): Varies between 6% and 10% of the purchase price, depending on the autonomous community.
3. Notary feesSimilar to new construction, between 600 and 1,200 euros.
4. Land RegistryRegistration of the dwelling, 400 to 600 euros.
5. Gestoría: Between 300 and 500 euros.
6. Mortgage: Including appraisal (300 to 500 euros)), arrangement fees (around 1% of the loan) and notary and notary fees. registration associated with the mortgage.
7. Reforms and repairsDepending on the condition of the property, it may be necessary to invest in renovationsThis can significantly increase the budget.

Approximate total budget

For a newly built house, considering a 300,000 euro house:

• VAT (10%): 20,000 euros
• AJD (1% average): 2,000 euros
• Notary's office: 800 euros
• Registration: 500 euros
• Management: 400 euros
• Mortgage: appraisal (400 euros), opening fee (2,000 euros), notary and registry fee (1,000 euros)

Approximate total: 327,100 euros

For a second-hand house of the same price:

• ITP (8% average): 16,000 euros
• Notary's office: 800 euros
• Registration: 500 euros
• Management: 400 euros
• Mortgage: appraisal (400 euros), arrangement fee (2,000 euros), notary and registry fee (1,000 euros)
• ReformsVariable (can be from 5,000 to 50,000 euros, depending on the condition of the property).

Approximate total: €346,100

The importance of shopping with a professional

Acquire a house with a real estate professional that is also a developer and builder of his own homes. represents a strategic and advantageous decision. This holistic approach not only ensures greater transparency and confidence in the purchasing process, but also in the ensures that the dwelling has been built with high quality standards.

Moreover, by eliminating intermediaries, the buyer can benefit from more competitive sales pricesthus optimising your investment. Ultimately, this duality of roles allows the buyer to access a personalised service and to a home that meets their expectations and needs, all at a highly favourable cost-benefit ratio.