Decor : Things to keep in mind when buying a home
Despite the crisis caused by Covid-19, the real estate market continues to function. Buying a new home or selling apartments is a practice that does not stop. It may do so at a greater or lesser rate, but in the end the market continues to move. Today our publication will be focused on the case of home purchases, since we want to highlight some things that must be taken into account when we decide to take this step so that the purchase of your dream home does not become a nightmare.
Location: center or periphery?
Choosing the location of the house is one of the most important aspects, more if you are looking for a big city. Its location will affect the final price, being more expensive the closer it is to the center. We have a clear example in the case of buying homes in Barcelona or Madrid, where the price difference can be substantial.
The choice will depend on many factors. In the case of a family, it is important that they have health services, schools and shops nearby, while if it is a young couple, the choice could depend on other factors.
Calculate your budget
Another important aspect is knowing the monthly budget that you can allocate to the purchase of the home. Everything will depend on the money that comes into the house and the expenses that we have. Experts recommend not allocate more than 30% of monthly income to pay the letter of the mortgage.
It is also important to know that it is necessary to take into account that banks do not always give 100% of the mortgage, so we will have to have some money saved to face this difference and to pay the costs of the purchase.
New or used housing
This is one of the big doubts of those looking for a home. Everyone would like to buy a new home, but it is not always possible for whatever reason. It is important to know that the taxes to be paid are different in these cases. If the house is new we must pay VAT, while if it is second hand, what you pay is the Wealth Transfer Tax (ITP), which is usually less than the VAT to pay, although it will depend on each Autonomous Community.
If it is a used home, a simple note must be requested in the Land Registry to verify who owns it and if the house is free of charges or has any foreclosure.
This is very important in the case of a second-hand home. It is necessary to check the physical condition of the same, as well as determine if there are any installation problems, either plumbing or electricity. In the event that the house or apartment is damaged, it will be necessary carry out reform tasks, which will suppose a greater disbursement.
In the case of new homes, it will also be necessary to check that everything is correct and in the event that it is not, discuss it with the developer so that they can solve all the problems before signing anything.
Essential of the house
Before starting the search, it is highly recommended to make a list of the essential things you should have. Here enter the size, number of rooms, bathrooms, dressing room, garages and other things. In the case of an urbanization, you can also take into account if there is a garden, pool or gym. Of course, the more things, the higher the price will be.
Finally, it is important to know part of the documentation that will be asked for the purchase of the home. This documentation could vary depending on whether it is a new or second-hand home.
The necessary documentation would be the following:
- The housing deed.
- The last IBI receipt.
- A certificate from the community of owners (to know that you have no debts).
- The simple note from the Land Registry.
- The energy certificate.
In this other case, the documentation would be as follows:
- The promoter’s information.
- The plans and memory of qualities of the house.
- Registration in the Land Registry.
- The document with the price and method of payment.
In addition to everything we have seen throughout our publication, what other things do you think it is important to consider in this home buying process? Encourage you and share your comments with all of us. We are waiting for you!