Expenses of buying a second-hand home in Marbella – Costa del Sol
Before carrying out the purchase of a second-hand home, it is essential to take into account all the expenses that it entails.
On the one hand, there are a series of expenses of buying a home that are common in all sales operations, whether it is a new-build property or a second-hand property:
- Notary. These expenses are regulated by law and amount to between 600 and 875 euros.
- Registration of the property in the Land Registry. They are also legislated and usually range between 600 and 1,000 euros.
- Agency. In the event that the future owner chooses to hire a manager, he has to pay a fee of around 300 euros.
On the other hand, it is in the payment of taxes where new-build housing and second-hand housing differ. In this case, the buyer is obliged to pay the property transfer tax (ITP), the amount of which depends on the autonomous community in which the property is located, although it is usually between 6% and 10%.
Expenses associated with the mortgage
In addition, if the buyer is going to apply for a mortgage to acquire a second-hand home, they must consider the following expenses:
- Home appraisal. Its price ranges between 200 and 600 euros.
- Commissions. Usually, banks apply an opening commission when contracting a mortgage loan. However, entities such as Banco Sabadell lack it.
The aforementioned expenses and taxes associated with the purchase of a second-hand home represent between 10% and 15% of its total price.
It is important to have capital saved to meet these expenses, to which must be added 20% of the so-called entry, since banks finance, at most, 80% of the appraised value of the home. Therefore, in total, the future owner must have saved a minimum of around 35% of the price.
Other aspects to take into account when buying a second-hand home
Opting for the purchase of a second-hand home may mean having to carry out a reform. Depending on whether it is a partial or complete rehabilitation, this investment will require a smaller or larger budget.
We must not forget that the Spanish housing stock is very old and has many properties that need to be rehabilitated. 51.4% of homes in Spain are over 40 years old, according to the National Association of Rehabilitation and Reform Companies (ANERR).
According to Idealista, comprehensively reforming a 100-square-meter home that is more than 50 years old costs around 50,000 euros.
Get advice from a professional here