REAL ESTATE – MARBELLA – How to prepare to buy a home in Spain

REAL ESTATE – MARBELLA – How to prepare to buy a home in Spain

How to prepare to buy a home in Spain

Defining the budget, knowing how the purchase can be financed and what type of home can be purchased are crucial elements before taking the big step and becoming an owner

Buying a home in Spain is one of the most important investments in a person’s life, both emotionally and financially. Therefore, it is key to prepare for the questions that arise when becoming an owner. How much money should I have saved? How much should I pay for the home? What must be taken into account before requesting the mortgage?

Is now a good time to buy a home in Spain?

The savings of Spanish families have reached record figures in recent months, due to the situation derived from the pandemic, which limited the spending and activity of many citizens. With the gradual reactivation of the economy, the number of mortgage loans granted in Spain is on the rise and is already approaching the levels registered before the outbreak of COVID-19. All this, in a context in which interest rates are at minimum levels (which is why applying for a mortgage is cheaper) and in which prices, although they are beginning to increase in a slow and controlled manner, remain stable.

Set a budget

The first question to answer is what house can I afford? This will depend on financial solvency. Experts recommend not allocating more than 30% of the monthly income to the payment of the house or that the purchase price is not more than five times higher than the annual gross salary. In other words, a couple that together have an income of 50,000 euros a year should buy a house whose price does not exceed 250,000 euros. In addition to the sale price, it is convenient to take into account the cost of owning a home, such as taxes, the quota for the community of neighbors or home insurance, and other expenses derived from a possible reform.

Obtain financing to buy a home

In the process of looking for a house one of the most important elements is how the operation is going to be financed. To do this, most people apply for a mortgage at a bank. At this point, it must be taken into account that banks grant mortgage loans, at most, for 80% of the appraised value of the property. Consequently, it is necessary to have saved at least 20% of the price of the house. That is, to buy the 250,000-euro property in the previous example, future owners should have a minimum capital of 50,000 euros. In addition, the purchase of a home also entails a series of additional expenses (appraisal, notary, taxes …), which can represent between 10% and 15% more. Ultimately, buyers should have around 35% of the home price in savings.

What to take into account when choosing the type of home?

Opening a completely new home is a wonderful experience, however, second-hand apartments and houses also have their charm and, above all, many advantages

Before making a decision, it is convenient to analyze the market and the different types of homes. It is not the same to acquire a new construction house than a second-hand property. Depending on the type chosen, there will be differences in the price and expenses associated with the purchase, such as taxes. In the case of second-hand homes, it is also advisable to request a simple note from the Property Registry to have detailed information on its condition and the possible charges that it may have attached. Being clear about the type of property you want to buy will help narrow your search and, therefore, save time. Some aspects such as location, size and number of rooms and other elements such as having a garden, terrace or community pool will define this process of looking for a house. It is also important to study the environment, the neighborhood community, energy efficiency or the availability and status of nearby public services.

Buying a home can be simple if done with the best professionals. Do you need more info? We will be happy to help you get the house of your dreams.

Marbella WOHNEN Immobilien

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