1. Assess the potential of the purchased housing, the possibility of its revaluation.
Price is the main component for determining a successful purchase, but you should not discount the other argument of vital importance: potential revaluation - it is recommended to combine an attractive price with the expectations of a solid future. In areas of high demand, there is little chance of achieving a price reduction in bargaining and the probability of missing the desired object is high. Therefore, before the visit it is very important to determine the adequacy of the declared value: to find out the average price in the zone where the apartment is located and the prices for other apartments of similar characteristics. But even more important is to imagine yourself in the seller's place for about 5 years, even if you buy for personal living. It is natural that over time, there will be a need for a bigger apartment for family reasons or because of career growth, prestige or the well-being growth.
2. Examine existing taxes related to the purchase of real estate in Spain.
VAT on the purchase of new build - 10%; when buying a secondary real estate ITP (el Impuesto de Transmisiones Patrimoniales) 6% -11%. In Catalonia, this tax is 10% and 4% when buying subsidized housing (la vivienda de proteccion oficial). The right to such housing, subsidized by the state, has poor people permanently residing in Spain. In a consequence, resell the housing for 30 years will be possible only at fixed prices. Despite the attractive value for investment, this option is completely inappropriate.
Also there are small taxes related to legal acts, notarial costs, 2-3% of the purchase amount.
3. Calculate the cost of housing as an important component that affects the profitability of real estate.
In addition to the final price for a property itself, experts on the real estate market recommend checking carefully the maintenance costs. So, for example, with a small number of neighbors, the monthly quota (co-millionaire) can be quite high. Try to predict additional fees for repairing the facade, the entrance, the installation of the elevator .. Cheap at first glance, housing in a dilapidated fund can be very expensive. Also, the buyer of the home must foresee that every year he will be obliged to pay the Tax on the Property Tax (IBI), depending on the cadastral value of the object and the locality in which it is located.
If You have any doubts or questions about buying property in Spain, contact us by phone +34 938 328 094 or write us an email email@example.com