1. What house did I buy?
If you have thought about buying an apartment, the first thing you should think about is whether it will be a new home or a second-hand home. The promotions of new housing that have common areas such as gardens or swimming pool can suppose greater expenses of community. In the new promotions there is no risk of unforeseen spills. On the other hand, in second-hand housing, it is advisable to find out if there is a spill, for this the last minute of the community of neighbors is requested to know in detail the state of the building. The savings in energy consumption can be very significant in the case of energy efficient buildings, in contrast to the energy consumption of buildings with several years of use. Taking into account these points you must decide what is best for you.
The location is one of the most important factors when buying a home. We must keep in mind what our priorities are before we start looking for a flat. What we want? That is near the beach, in a quiet area, away from the center of town / city, near shops and restaurants ... etc. all these are aspects that we must consider very well.
The price of the house must be adjusted to the market of the population in which we want to buy our apartment, taking into account different variables such as the area, the views, the qualities and the amenities of the apartment.
You must keep in mind three concepts that credit institutions will consider for the granting of a mortgage loan:
1. Percentage of financing. Currently banks are offering mortgages that can finance up to 80% of the value of the home. That is, you must have previously saved the remaining 20%. And we must also take into account the forecast of expenses derived from the purchase, writing, registration, taxes ... etc. Example: for a house with a price of 250,000 euros the bank will finance 80%, therefore, you will be left with a maximum mortgage of 200,000 euros.
2. Financial capacity. If you keep the mortgage within adequate limits with your ability to repay the loan, it will be easier for you to repay it. Accessibility compares the price of the home you have chosen with the available annual gross salary. The appropriate ratio should never be higher than the gross family wage of four or five years.
Example: Price of the house: 250,000. Annual gross salary: 75,000 (3.3x). For the calculation of gross annual salary, a family unit composed of two or more members has been taken into account.
3. Effort With an estimated mortgage quota of 948 euros and a net monthly payroll in the household of 4,063 euros, you would have to allocate 23% of the income to pay for housing. The most suitable proportion is that the monthly mortgage payment oscillates between 30 and 40% of monthly net income.
4. Expenses and taxes associated with the purchase of a home
Knowing the taxes levied on the sale of a home in first transmission will avoid many last minute surprises:
- VAT: The first transfer of housing is subject to the Value Added Tax at the reduced rate (10%). The tax falls on the house and its annexes.
- AJD: In addition, at the time of granting the deed, it must satisfy the Tax on Patrimonial Transmissions and Documented Legal Acts.
- I.T.P.A.J.D: In its type of Documented Legal Acts (A.J.D). This tax is levied on the deed documenting the transfer of the home for the amount of the sale.
- I.I.V.T.N.U .: The payment of the Tax on the Increase of the Value of the Land of Urban Nature, commonly also known as Municipal Goodwill. Indeed, it is a municipal tax and each City Council applies its rates. This tax has to be paid by the seller of the property.
-I.B.I .: The ownership of a home accrues the annual payment of the Tax on Real Estate. It is a municipal tax that accrues on January 1 of each year and is paid on different dates depending on the municipality. Its amount will depend on the cadastral values assigned to the home and that, for new homes, will be calculated later by the cadastre, so it is difficult to know a priori a guideline value.
5. Will it be an investment or your usual home?
If the purchase is purely for investment you will only have to think in terms of rent yield. In addition, you must be aggressive in the final price, without sentimentality. On the contrary, if the house is to live for 10 years or more, you can be a little more flexible if it is the house of your dreams, although you should always ask yourself if you can afford all the expenses of that house, especially if it is a big I jump from your previous home.