One of the main challenges in terms of access to housing for young people is related to the lack of available funds. Normally, banks do not grant mortgages for the full appraised value of the property, but are limited to a maximum of 80% of its value.
In any case, what often happens is that at the time of signing, buyers are forced to make significant down payments, which is difficult to save. Furthermore, with the impact of inflation and rising prices, it becomes even more difficult for citizens to raise funds for their most significant projects. In this sense, the purchase of a home is one of the goals that requires a great effort, since in most cases it is not possible to acquire a property without making a down payment.
Today we are going to solve some very common questions when thinking about buying a home.
How much do I need to buy a house?
Experts agree that when buying a home, it is best to have approximately 35% of the estimated value saved. In this way, if the cost of the property that we want to acquire is 150,000 euros, it would be ideal to have 22,500 euros saved.
This percentage of savings exceeds 20% of the value of the home, which would allow us to contribute the remaining 80% that the bank will probably grant us for the mortgage, and still have a part of the money destined to cover the expenses associated with the sale. . However, this would not be enough, since there are other additional expenses to consider.
What are the expenses that must be faced in a sale?
In addition to the funds needed to cover the value of the home, other significant expenses must be met.
Expenses associated with the purchase of a new home
- It is necessary to face the Value Added Tax (VAT), which is calculated on 10% of the purchase price. Following the example of a house that has a value of 150,000 euros, this would represent an expense of 15,000 euros.
- If the house is new and classified as a VPO (Official Protection Housing), the tax would be 4%, which would imply a payment of 6,000 euros in VAT.
Expenses associated with the purchase of a second-hand home
Let's examine what happens in the case of second-hand homes. In this situation, it is necessary to pay the following expenses:
- Property Transfer Tax: The amount of this tax varies depending on the autonomous community, but is generally between 6% and 10% of the sale price.
- Real Estate Tax (IBI) for the current year: This tax must be paid to the seller and corresponds to the year in which the sale is made.
- Municipal capital gains and registration costs related to the registration of the sale.
Consequently, it would be convenient to have around 9,000 additional euros to cover the expenses associated with the operation itself.
Usual expenses in new-build and second-hand homes
In addition, both in new-build homes and in second-hand homes, although in many cases they are financed by the bank, the following expenses must also be paid:
- Notary expenses: These expenses are usually shared with the bank, representing up to a maximum of 50% of the total.
- Writing costs.
- Housing appraisal.
- Opening commissions.
However, it is important to note that some financial institutions can assume these expenses in certain circumstances.
The importance of having savings for other expenses
It is quite common that when considering a sale, attention is paid only to the price of the home, without taking into account a series of additional expenses that are important to take into account. In addition to the initial payment, it is necessary to consider the taxes, as well as the expenses related to the notary and registrations.
On the other hand, it is crucial to keep in mind that once the mortgage has been signed, it will be necessary to pay the monthly installments, as well as other expenses such as homeowners association fees, possible spills and all those works, reforms and adaptations that you want to carry out in the house. Therefore, it is essential to have savings to cover these additional aspects.
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