Buying your first home should be a reason to look forward to a new project. It will be the first large disbursement that one faces, so it is important to know all the implications, paperwork and expenses that this operation has. Far from being a brake, the following list of points to take into account is intended to serve as a checklist so that the decision can be made with as much information as possible.
Moving house implies new situations, where it is essential to know how to manage time and organize the move, so that everything is resolved in the fastest and least noisy way. It is highly recommended that you have the help of expert professionals along the way, who can review your steps and analyze the documentation so that nothing is missing. Gilmar , with more than three decades in the real estate sector in Spain, are the guarantee partner to achieve the objective.
Decision-making is constant in the process of buying a house . To choose the correct alternative, it is best to have all the information. Here are a series of recommendations or points to take into account when buying your first home.
1.- New home or second-hand home?
The advantages of a new home is that when buying off-plan, the price is often somewhat lower than that on the second-hand market. On the other hand, the costs derived from taxes are also different. In the purchase of a new home, VAT must be paid at 10% (IGIC in the Canary Islands, at 6.5%), while if the property is second-hand, the Property Transfer Tax (ITP) must be paid. The general ITP rate varies between 4% in the Basque Country and 10% in Catalonia, Cantabria, the Valencian Community and Galicia.
When buying a new home directly from the builder, it is normal for all the finishes to be in optimal conditions, in addition to having the quality report available and it is easier to pursue the seller if any anomalies or construction faults are detected after buying a home , for example in networks and supplies. The bad thing about new construction promotions is the usual delay in handing over the keys and the slowness of some processes such as registering services or setting up a community.
2.- What price range am I looking for?
In the event that external financing is not required, the limit will be set by savings and personal capacity. The most common is that you have to resort to a mortgage loan to complete the purchase of the home. Banks currently offer up to 80% of the value of the home as a mortgage. Some banks can give 90%, but these are exceptional cases.
Will it be enough then to have 20% saved on the price of the house? Unfortunately not. When buying a house, you must estimate at least an additional 12% of the purchase value in taxes, derived and unforeseen expenses. This amount is higher if it is second-hand housing and we want to make some reform in the house.
Experts have always agreed that the maximum percentage of income that is used to pay a mortgage should be less than 35-40%. Based on our income, if we want to opt for a more expensive home, we must either set a longer term for repaying the loan or provide more initial outlay.
3.- The veracity of the information
To avoid fraud and legal problems arising from the purchase, it is convenient to request a simple note from the Property Registry where the home is located to ensure that the owner of the home is who he claims to be, or that the builder of the housing development actually has everything the right to perform such works. The notary will also request this information for the signature, but it is good if we do it beforehand.
4.- The state of things
The simple note provided by the Property Registry will also help us to ensure that there is no charge on the home in question, nor does it have any mortgage registered, which could complicate the enjoyment of it.
It is very important to visit the house that we are going to buy accompanied by a real estate expert so that they can evaluate the state of the plumbing and electricity connections. And we do not have to carry out a reform shortly after moving in.
5.- Other expenses derived from the purchase of a first home
If the management of the paperwork has been commissioned, the appointment with the banks and with the notary to an agency , we must calculate the minutes that will be passed on to us. In some real estate agencies this service can be managed directly with them.
Notary and registration fees must also be added. Together with the corresponding tax settlement that we have already seen that varies depending on the type of home and the community where the home is located. Still, remember that there are tax benefits to buying a home .
6.- Live in a community or single-family house
Living in a community allows you to enjoy a series of common services, but requires you to observe certain standards of behavior and pay monthly fees that will be defined in your statutes.
7.- New trends in demand
The rise of teleworking and the situations of confinement have led to the search for more and more bright homes, ground floor apartments with gardens increasing the value of penthouses with views and flats with large terraces .
8.- Obligations for the buyer after the delivery of keys
The main obligation we have when buying a new home is to pay the corresponding taxes. Also to give publicity and legal certainty we will have to put the house in our name in the Property Registry. Finally, you have to domicile the payment of the supplies that have been put in the name of the new owner. And if the house belongs to a community of neighbors, it will be necessary to pay the fees.
9.- Permit for moving and change of address
Among the benefits of changing your usual address is the possibility of requesting from the company the right to a paid day off due to moving (article 37 of the Workers’ Statute). In addition, we will be exempt from paying fees when renewing the current DNI if that change of address is proven.
10.- Smile, a new house is a new illusion
Few things generate as much excitement as a new house. When opening a home, thousands of opportunities open up before us. The possibility of getting to know the new neighbourhood, the pleasure of being able to decorate and personalize the new home and the new stage that is beginning are more than enough reasons to make us smile. A first home purchase is a nod to a new life.