HomeFINANCE5 points you can't "jump"

5 points you can’t “jump”

Buying an apartment can be the biggest investment you’ll ever make. Bearing in mind the amounts involved, before proceeding with the purchase, you must have a set of fundamental aspects. In this article, we gather the steps to follow to make a “good” purchase.

zone choice

A first step in the buying process is to define the areas in which you may be interested in buying. So, depending on what you consider to be your main needs define the zone(s) which may be more suitable for you.

At this level, there are some factors to considernamely:

  • proximity to services;
  • proximity to schoolswhich is important if you have children;
  • Check if it’s a safe and quiet areawith no history of problems related to crime, among others;
  • Service of public transport Nearby;
  • If you use your car, you must confirm that it is an area with good road access, and also check if it is an area with a lot of traffic or not;
  • O average housing price and check if they are values ​​within your budget.

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Finding the “ideal” property

So, after defining the area(s) in which you are interested in buying, the next step is to start looking for properties in those areas.

To help you in this search, there are a number of search engines online, such as Imovirtual. In addition, you can search for websites of real estate agencies, or you can always resort to more traditional methods, such as, for example, going to the area where you want to buy and looking for properties with sale signs.

When analyzing the real estate ads, in addition to the photos, must check some features, such as:

  • THE typology of the property (T1,T2,T3, etc.), as well as the number of divisions in it, such as the total number of bathrooms it has;
  • THE area useful;
  • THE energy rating of the property, which evaluates its energy efficiency. Thus, the better the classification of the property, the lower its energy consumption, which represents savings in the electricity bill every month;
  • existence of garage and number of seats;
  • Existence or not of elevator in the building;
  • Construction year of the building, if used.

In addition, the price is a decisive factor, as the ultimate goal should be to buy the best apartment possible at the lowest cost. Thus, it is important compare the price of the various options, and in particular check the price per square meter of each.

couple signs purchase papers for a new home

purchase financing

Considering the volume of capital required to buy a house, most likely will need to resort to bank financing.

That is, it is important to ensure that you obtain advantageous credit conditions, with reduced costs. Thus, you can carry out the search work on your own, obtaining proposals from several banks, and choosing the most competitive solution. Alternatively, also know that there are credit intermediaries that can help you with this task.

Although banks finance a significant part of the purchase, there is a maximum financing limit of 90% of the value of the property, with the exception of bank properties that can be financed at 100%. Therefore, count on the need to give a down payment of 10% of the value of the property. In addition, you should save some money to pay the costs of taxes, registrations, bank commissions, among others.

Check the property documents

Before “closing” the deal and signing any contract of promise to buy and sell (CPCV) request all the property documentation and analyze it.

Thus, the most important documents to which you must have access and analyze are the following:

  • Land registration certificate: in this document you can verify the identification of the owner and the data of the property. In addition, it has information about possible mortgages, liens or other types of charges on the property. You should always ensure that the property is sold to you free of encumbrances and charges, so as not to have any unwanted surprises in the future. Ask the owner to remove this document at an early stage of the business, as well as at a date very close to the final deed of purchase;
  • habitability license;
  • land book: document issued by the Finance Department, containing information about the property and the owner. It also has a set of relevant tax information, namely the Tax Asset Value, which serves as a basis for calculating the Municipal Property Tax (IMI);
  • Most recent minutes of the condominium, where you can check some important information, such as works in the common parts of the building, debts, among others. You must ensure that the current owner has no debts to the condominium;
  • Proof of non-existence of IMI debts;
  • Energetic certificate.

In the case of acquiring the property using a bank loan, the bank will request a part of the above information and analyze it.

Costs of purchasing an apartment

In addition to the purchase price of the apartment, there are other costs that must be paid at the time of purchase. These costs vary depending on whether or not you have resorted to bank financing.

Costs without using bank credit

  • Stamp tax of purchase: this is a tax payable to the State that corresponds to 0.8% of the higher of the property purchase price or the Tributary Asset Value (VPT). As a rule, the purchase price is higher;
  • Municipal Tax on Onerous Property Transfers (IMT): it is also a tax payable to the State, and the rates apply in the same way as Stamp Duty, that is, on the highest value between the purchase price and the VPT. However, unlike stamp duty, fees vary depending on the amount in question. Note, also, that in the case of acquiring the property exclusively for your own and permanent housing, you are exempt from paying IMT up to a value of €92,407. To calculate the amount of IMT payable in the Doctor Finance simulator;
  • Purchase registration costwhich amounts to around €250;
  • deed cost which varies depending on the notary.

Costs using bank credit

In the case of resorting to bank credit, in addition to the above costs, there are also following additional costs:

  • Loan stamp duty: tax payable to the State, corresponding to 0.6% of the financing amount;
  • Cost of registering the mortgage in favor of the bankwhich amounts to around €250;
  • bank commissions for opening the loan and appraising the property.

Costs after acquisition

In addition to the purchase and all associated costs, you should also be aware that when purchasing an apartment you have a set of regular costs. So, take into account the existence of costs with the condominium, with the maintenance of the property or even taxes, such as IMI.

Finally, with regard to IMI, if the apartment is acquired exclusively for own and permanent housing, there is a exemption for the first three years after purchase.

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