How much we want to secure a management to buy a property we must take into account the value of the property to buy it. And we are always left in doubt, if that’s all there is to pay? And we are always left in doubt, if that’s all there is to pay? leaving us in intrigue, then, would you be interested to read some details that seems like a lot but it is the real thing and as it should be Read on!
PURCHASE OF A PROPERTY
When buying real estate it is important to take a number of things into account, because it is something to think a lot since it is a single life expense, and high considerable amount of investment to live, and making a mistake in any of the points can lead to a quite serious economic and temporary loss.
Fulfilling the dream of owning your own home involves a lot of playing with money, to buy a house or apartment, to cover a series of expenses that are part of the purchase of a property. Documentation, taxes and commissions carry an extra cost that must be taken into account when making the purchase and calculating how much money we are going to spend in total, something that is not always taken into account.
RISKS AND EXTRA EXPENSES
There are many parties that may intervene in the purchase of real estate, at one time or another, and that can make the costs grow and the risks increase, so it is advisable to make a previous study and a planning of the steps to be taken when investing in a house.
BUYING A PROPERTY INVOLVES SOME EXTRA EXPENSES
The first thing to set is the budget limit. Make the necessary calculations and think long term. It is an investment that you are unlikely to make all at once but, whatever the case may be, you will always have a maximum amount that you should stick to spending. This is something you can even apply to any type of purchase, not just real estate.
PROPERTY VALUE AND EXTRA DETAILS
However, it is essential to keep in mind that any real estate purchase requires extra expenses in addition to the value of the property. However, it is essential to keep in mind that any real estate purchase requires extra expenses in addition to the value of the property.
Every legal process involves taxes. In this case, you must pay:
In this case, you must pay:
- This means that the Municipality charges a fee for transferring the property from one owner to another.
- Cost: 0.3% of property value
- Cost: 0.3% of property value
- IVA, one of the extra expenses when buying a property
- In the case of real estate, this tax applies only to 30% of the value of the house or apartment, the rest is exempt.
- The IVA in this case corresponds to 5% of this 30%.
- Cost: 1.5% of the total property.
In this case it is the Registry Registration Fee, which is paid at the General Directorate of Public Registries (Dirección General de Registros Públicos).
Cost: 0.8% approximately
As the interested party, do I have to pay the Transfer?
No. The public deed of transfer of real estate is a procedure that is covered 50% by the person who buys the property, and the other 50% is paid by the person who sells the property. This includes the cost of a notary public.
Cost: approximately 0.8% of the cost of the property.
Real estate commission
It is common that a real estate agency accompanies the entire purchase process, since it facilitates the operation for both the buyer and the owner, taking into account the process of appraisal, documentation, that the property has everything in order, negotiation and intermediation. These services are paid with a small commission already added to the final value.
Cost: It is flexible, but it is around 5% of the value of the property.
¿WHY IS REAL ESTATE THE MOST PROFITABLE INVESTMENT?
As we mentioned at the beginning, it sounds like a lot but it’s not: you’re paying for your new home and the extra expenses are, in total, about an additional 9% of that total amount (probably less). The process of buying your home is a very important moment in your life, you have to enjoy it, and the fewer doubts there are to take the first step of looking for a new home, the more gratifying it will be.