When trying to buy a home, you must evaluate all the costs it will include. Depending on these costs, you will be able to determine whether or not your purchase will prove to be a good investment. You can divide the house purchase costs in three categories:
Registration and Notary Fees
The fees a notary charges are regulated by the state, who determines the cost depending on the final price of the real estate asset acquired. You must also consider the expenses involved in registering the property. This can be done electronically by the notary him/herself, or presented at the registry with a paper copy authorized by the notary. Notary and registration usually compile 2% of the total property purchase price. Lastly, if you choose to involve a person to manage your expenses, you must also consider the additional expense.
Las tres Comunidades Autónomas que vamos a valorar son Andalucía, Comunidad de Madrid y Comunidad Valenciana que muestran un crecimiento de su PIB muy parecido al del crecimiento del PIB español.
Como se puede observar en la gráfica, la Comunidad Valenciana es la comunidad que más le afecto la crisis y cuyo crecimiento ha sido más tardío y constante.
When investing in Spanish real estate, you must consider the tax burden implicated. If you’re concerned about purchasing a second hand home, you must pay a Transfer Tax (ITP), which will vary depending on the Autonomous Community where the real estate investment is made. The ITP usually falls between 6% and 10% of the property sale price. In the event you purchase a first-hand sale directly from the developer, you must pay the Value Added Tax (VAT) and the Documented Legal Acts (AJD) expenses. The percentage that must be paid from AJD is different in each Autonomous Community, but usually falls between 3% and 5% of the property’s sale price.
A series of costs are implicated from the moment you solicit a mortgage:
In conclusion, when evaluating a real estate investment, not only do you have to take into account the sale price of the asset being valued, but you must also assess the expenses incurred at the time of purchase. It is estimated that these expenses represent a 15% to 18% of the total sale price of the real estate asset.