lunes, 13 de julio de 2020
Tips before buying a second home
From Marti Projects, Real Estate in Teulada we want to transmit a series of tips when buying a second home in Spain.
Having a second home is a dream that many families want to fulfill, and during the summer it can be an ideal time to choose that desired home.
Within our desire to inform you clearly and confidently, we want to mention a series of very important steps that must be considered before making that possible purchase that will make the experience of getting your second home a pleasant moment or hell. .
In all purchases, a series of fixed costs and others of a variable nature must be faced. In times of crisis, real estate investment is characterized more than ever by its liquidity.
The purchase of a second home regardless of where you want to make it; city, beach or mountain, represents an outlay for families or having to take the option of a mortgage loan, putting the family group in a new economic situation where we have to value highly the type of operation that we are going to carry out, in the case of Having to resort to the application for a mortgage loan, comment that currently financial institutions are contributing approximately 60% of the appraisal value as long as the applicant provides all the requirements required by said entities and comply with them.
What to say has that the prices of the houses after the crisis are cheaper, even falling in some areas below 50% of the value they had or for which they were acquired, this indicates that to buy and maintain a second We must maintain a comfortable family economy, because the acquisition of a new property comes together with a series of fixed expenses, in exchange if this property is well bought, for example, in this cycle of falling prices, it can offer great capital gains in the future or provide them a profitability through their rental during the time that they are not going to use.
Taxes and purchase expenses
From Marti Projects we have already commented in previous posts about the type of taxes that must be paid when making a home purchase, but it never hurts to remember it, if the home is second-hand, you must pay the ITP (Property Transfer Tax) ), which depending on the autonomous community is between 6% and 10%, in the event that the property is new, it is subject to VAT, which is 10%
To this we must add the costs of notary, registration, management, etc.
Up to this moment it is all the same as the acquisition of a habitual residence, but and very important to highlight that the new property for much of the year is free, and its maintenance is necessary and the community expenses become one of the most important chapters. .
We want to provide a small list of fixed expenses that the purchase of your second home entails;
- Real Estate Tax (IBI)
- Minimum electricity or water, apart from the consumption made
- Community of neighbors if the property is within an urbanization (Pool expenses, lifeguard, gardener, if the urbanization had it, spills if necessary, etc.)
- Mortgage, in the case of having to have had to reach the case of requesting it
- Garbage collection rate if any
- House insurance (Optional but always recommended)
- Declare in the personal income tax
The acquisition of a second home is taxed in the income statement, which is equivalent to 2% of the cadastral value of the property, being in the case of 1.1% if said value was revised after January of the year 1994, this is always declared in the event that the house is not rented and is for personal use.
From Marti Projects we hope that the aforementioned has provided and helped you in any doubt or lack of information that would have been raised in the case of thinking about the option of buying a second home, obviously with all this and once united and knowing all the expenses, the financial situation of each family and their interests will mark the way and steps for the important decision to buy or not that dream second home.
Tips from Registrar of Spain to buy a house in Spain
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Mistakes to avoid when signing a mortgage
Keep your second residence in perfect condition
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