What expenses entails buy a property

 

The expenses associated with the purchase of a property they are those which are matched the administrative costs and financial that it can have the operation. The total of these expenses it usually supposes between 10% and 15% of the price of maison purchase, which is why suits have planned this amount to avoid overjumps before closing the operation of purchase.

If to buy a property need request a mortgage -you can use a mortgage simulator to calculate your fees' amount-, you should take into account that the mortgage colleva some handling fees.

Therefore, when buying a house it is necessary to differentiate between the overhead costs for the purchase and expenses derived from the mortgage.

The overhead costs they are the ones referring to the administrative procedures to formalise the purchase and sale agreement, and they have always pay, is requested or not mortgage to finance the operation.

  • Notary's office: with a fixed tariff established by the Government, according to the amount of the property. The final figure to pay can vary according to copies of the writing that are requested, or its area, that it can vary if, for example, the property is accompanied by some annexe, as a parking space.
  • Mortgage registry: the enrollment of the property in the record also has a fixed price marked by the Government, so much if purchases a new home as though is a title transfer in a second-hand home. This procedure it is not compulsory, but recommendable yes for future operations related to the property.
  • Taxes:
    • VAT: with general character, the Value added tax (VAT) is of 10% in housing of new construction, even if you have lived earlier there of rent. The VAT is of 4% in the case deviviendas of public promotion.
    • Tax of Stamp Duty (IAJD): is the tax that it is necessary to pay to the autonomous community in which the house is located if is of new construction. Every fixed community the receivable tax, that it usually supposes between 0?5% and 1?5% of the property price.
      The council houses (public housing) are exempt from this tax.
    • Patrimonial Transmission tax (ITP): is applied if the property is of second hand. Additionally depends on the autonomous community where it is located the property, but fluctuates between 6% and 10% of the amount of the purchase. The amount is more reduced for public housing, large families and young.
    • Handling fees: they are an optional expenditure, since if the client does not need contract a mortgage can manage the procedures of Notary's office, Record and taxes on his own or request the services of a management.

 

The expenses derived from the mortgage they are those which correspond to the payment of the operations necessary to put the afoot loan. These costs can be variables according to the type of loan granted.

 

  • Expenses that charges the financial institution:
    • Start-up fee and/or of study: the start-up fee establishes it the financial institution. It can fluctuate between 0% and 2%, and the amount negotiated is deducted directly of the total amount of the mortgage. In some cases, exists also an appraisal fee in which the company determines if it can give the mortgage and in what conditions.
  • Expenses that charges the financial institution:
    • Valuation: is necessary to present one valuation of the property on that which calculate the mortgage amount. Every valuer can establish freely its fares. Similarly, every client is free to choose the valuer that it prefers.
    • Simple note: is the confirmation in writing of the details of the property. Is a document that issues the Land registry. You can request online and has a cost of around 10 euros.
    • Management: for the procedures of Notary's office, Record and taxes. The management establishes its own fares and it usually requests a provisioning to tackle the expenses. Once completed the process, gives back the surplus part to the client.

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