There are the most important factors to consider when buying a new house. Before buying a house, which is inevitably a significant transaction you are about to deal with, it’s imperative to take into account some factors that will determine the purchase of the desired property.
As per the forecasts of the real estate market, positive conclusions are drawn for the sector. It is consolidating the recovery cycle in the housing market, with growth in demand due to factors like a slight improvement in employment, better access to financing and for sure the increase in the tendency to buy a house as an investment.
Considering this increase in interest, you know that buying a house is amongst the most important decisions you make in life. In many occasions, searching for the home you want can become a stressful process if you don’t consider some key factors.
Factors To Consider When Buying a New House
There are essential factors like knowing what area to live in and the budget is, but as you search and look for the process, it can get complicated, and you think it’s good to receive a small dose of advice with these tips to buy a house. So let’s dive in;
Own Resources to Buy a House
One of the main points to consider when buying a house is the financial capacity, the budget with which you will meet the corresponding payments to access the purchase of housing. Within your current & future payment capacity, you ask yourself: How much am I able to afford? What’s the maximum amount that I can allocate when buying a house?
To make planning as accurate as possible, the need to buy a new car or potential unforeseen expenses that may arise; you should take into account expenses inherent to the home purchase process like an appraisal, costs of writing a house, registration in the Land Registry and taxes.
Buying a home means a significant outlay, and you’ll have to take into account the own resources you have.
When applying for a mortgage, the appraisal of the home will serve the bank to know the value from which it’ll grant the financing percentage. The cost might vary depending on the type of property and surface, with an approximate amount between 250 and 350 USD.
What are the Expenses?
To establish the expenses of writing a house, the notary must certify the change of ownership of the house. When buying a home, the cost that you’ll have to face would depend on the fees asked by a notary, which are regulated by the Administration and depend among other factors on the property value, length of the deed or number of documents issued.
In an example of a home purchase of 250K USD; taking into account that the mortgage loan is 175K, notary expenses would amount to approximately 700 USD.
Registration in the Land Registry
The inscription in the Property Registry doesn’t have a fixed cost; it varies according to property value with rates approved by the government that can also be consulted in the BOE, with an approximate amount of 350 USD.
When buying a house, you should take into account an amount of 10% VAT, while in the second-hand dwelling the buyer is obliged to pay the Tax for Patrimonial Transmissions whose tax rate varies according to the autonomous community.
Read Also, Renting your house for the first time
Besides, you’ll have to take into account other taxes in the purchase of housing. Keep in mind these useful factors to consider when buying a new house whenever you see a property for sale you will be interested.