Questions to Answer When Choosing a Property in Spain

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There are plenty of options when purchasing property in Spain. To make the right decision you should think properly about all the advantages and disadvantages of each type of real estate. With the help of Spain-Real.Estate you can find Spain real estate agency that will advise you on an option that is best for you.

The most enormous controversy lays in the field of choosing between newly built and previously owned homes. It is worth listening to the arguments of both the one and the other side. Here is a questionnaire for those who have plans to buy real estate in Spain.

 

The Cost of Living: Tips for Financing a New Home Build

 

Questions about money

  1. Budget: what is the total amount you plan to spend?

On average, the prices of the newly built market in Spain exceed the prices of the secondary own market by 6 percent. According to the Ministry of Development, on average, one square meter in a Spanish new building costs 1518.5 euros, and for the previously owned housing, it is 1434.1 euros.

  1. Additional expenses: how much are you ready to spend on repairs? 

Since the resell properties were previously in use, this may require additional investments for repairs. On the other hand, the newly built real estate market offers housing units, the condition of which does not require additional expenses.

The condition of the newly built housing makes it possible to quickly move into a new house. As a rule, it is enough to buy some furniture to get started and live. When buying real estate in Spain as a resell, you should provide a certain amount of money and time before the completion of the renovation.

  1. Real estate tax

In Spain, the tax of real estate depends on the segment of housing:

  • Newly built property is subject to VAT in the amount of 10% of the total certified value, if the property is “independent”, i.e. the seller is a private company and the price depends on the market. If the value of the object is determined by the state then such real estate is “officially protected” – “vivienda de protección oficial”, VPO; and the tax is 4%.
  • Aftermarket properties are subject to Title / Ownership Transfer Tax. For old houses, it is usually not revised for 20 years, that is, as a result, the maintenance of real estate costs you less. The amount of such tax is set depending on the region and the value of the real estate, for example, it is 10% in Catalonia.

 

One more vital question 

Geographical location: what area do you want to live in?

The main factor that affects the cost of housing is the location of the property. New buildings are located outside the city limits and have a common infrastructure with neighbors (sports grounds, parks, play areas for children).

However, there are certain advantages of the housing that has been preowned: being close to the city center and its infrastructure, low or no public transport costs, because you can get everywhere on foot. 

Purchasing real estate 

The indisputable advantage of a new building in Spain is the good condition of the housing and its location almost on the outskirts of the city. The streets are more spacious here, and there is more greenery.

Real estate in the segment of reselling homes is attractive for its lower price, but due to the depreciation of this housing stock, it may require additional material costs for repairs. In the end, the buyer is faced with a dilemma – what to give preference to? Check out Spain-Real.Estate website and make your choice to invest in a property in Spain.

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