BEFORE PURCHASING YOUR HOUSE
You want to buy a flat or a house, it is an important step in your life and before making a decision, you must take some very important facts into consideration…
Our homes are designed with the best distribution, the highest quality and comfort. We select the best surroundings. Our priority is your quality of life.
The expense of the mortgage should not exceed 30% – 35% of your annual income. You need to calculate your net income, divide by 12 and multiply by 0.3: that would be the “ideal monthly repayment” of your mortgage. You may have some money saved (30% of the value of the house) that can facilitate the initial expenses that can be up 10% – 12% of the price of the house (down payment, notary, registration, processing agency) and 20% of the value of the house, as a mortgage will not give you more than 80% of the estimated value of the property.
You must also take into account any monthly community expenses and the number of neighbours.
When choosing a place to live, in addition to emotional criteria, you must weigh up objective factors such as: access and means of transport, shops and shopping centres, eating and leisure services, health services, nursery schools, schools, high schools and universities (if any), and finally, urban planning or construction of public works in the areas that could benefit or damage the house and its surroundings. You can find this information in the Town Hall in question.
SURFACE AREA: You will see that there are three types of surface area considered, constructed area includes all the m2 built, including walls, beams, partitions, etc. The useable area refers to the m2 built discounting walls, beams, partitions and half the m2 of the terraces, here is where you can see the m2 of the house you can use with greater precision. Finally, constructed surface shows the total amount of m2 also counting the proportional part of m2 assigned to common areas such as staircases, entrance to the building, etc.
Orientation: Exterior houses get a lot of natural light, interior houses in a block are quieter. Houses facing the south are outstanding for the quality and quantity of natural light they receive.
Distribution: the number of bedrooms and bathrooms is essential, as well as having storage rooms, fitted cupboards or spaces for storage and exterior windows in all rooms and bedrooms. Optimum distribution is where no space is wasted in corridors and passageways and an intelligent layout of rooms that allows quiet resting areas close to bathrooms, as well as large and pleasant areas of activity are very important in a house.
Finishes: the quality of finishes is a guarantee of safety, solidity and quality. You should check paintwork, tiling, parquet, skirting board, mouldings…
Water, electricity and heating and air conditioning: It is necessary to check that taps can be open at the same time without losing water pressure. Check sockets for electrical appliances, heating, air conditioning and make sure that the system is earthed. You should know the type of energy the house uses: natural gas, solar energy, aerothermal, electric …, to see if it complies with regulations and if it has heating and cooling. The seller will normally supply an Energy Certification (CEE) or Planned Energy Certification (if the house is not finished) for each house, so as to calculate its energy costs.
Doors and windows: Must provide light, ventilation, visibility and views, as well as thermal and acoustic insulation for comfort as well as energy savings.
Garage: An important factor to take into account is if it has a garage next to the house. You should note if it is big enough for your vehicle, if it is easy to park in the space, and if it has direct access from the house. The garage is also a property, i.e., an urban space and a property with regard to Property Registration. The garage can be in one of two different legal situations: it can be an annexe inseparable from the house (in this case, the owner of the house will also be the owner of the garage space), or in a different property and therefore it will be purchased separately.
1- Check in the Town Hall that the area will not be affected by future urban planning
2- Check in the Property Registry that the seller is the owner of the house and que that it is not subject to expenses (mortgaged or subject to any other duty, such as under seizure, resolutory conditions, rights of usufruct, renting, purchase options, etc.) and unencumbered (up to date with payment of taxes, rates, census, judicial seizure, etc.).
3- Insurance, if the house is new or being built, has the developer taken out an insurance policy covering possible structural defects? Ask for the Insurance policy completed with the document that accredits its entry into force legitimised by a notary.
4- When purchasing off-plan: Check in the Mercantile Registry that the company has been inscribed, the posts of administration, representatives and statutes.
Owners of property must pay taxes in it, this is called in Spain Impuesto sobre Bienes Inmuebles (IBI) (Property Tax). Make sure that the payments are up to date as the house will respond for the last two annual payments. The cadastral reference is mandatory in the property deeds and it is necessary for its inscription if the Property Registry.
VAT: A newly-built house must pay 10% VAT on the purchase price. If it is another type of property, the VAT rate is 21%.
AJD: A newly-built house must pay the Actos Jurídicos Documentados (AJD) tax or Stamp Duty, the rate of which varies from 1 to 1.5% depending on the autonomous community.
If it is a house being built, the buyer is entitled to demand a guarantee for the amount handed over so that, if the property is not delivered within the agreed deadline, the money will be returned with the corresponding interests.