What expenses entails to 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 about 10 % and about 15 % of the price of maison purchase, which is why it suits to 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 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 be paid 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 it 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 the 10 % in housing of new construction, even if you have lived earlier there of rent. The VAT is of the 4 % in the case deviviendas of public promotion.
    • Tax of Stamp Duty (IAJD): it is the tax that it is necessary to pay to the autonomous community in which is located the house if is of new construction. Every fixed community the receivable tax, that it usually supposes between the 0?5 % and the 1?5 % of the property price.
      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 it fluctuates between the 6 % and the 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 to contract a mortgage can manage the procedures of Notary's office, Record and taxes on his own or to 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 is paid the financial institution:
    • Start-up fee and/or of study: the start-up fee establishes it the financial institution. It can fluctuate between the 0% and the 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 is paid the financial institution:
    • Valuation: it is necessary to present one valuation of the property on that which to 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: it is the confirmation in writing of the details of the property. It is a document that it issues the Mortgage registry. You can request online and it 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 one provisioning to tackle expenses. Once completed the process, gives back the surplus part to the client.

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