The economy in Spain has recovered little by little. For this reason, the projections are optimistic about the growth of the residential market: the construction sector took flight, the presence of foreign buyers increased and employment has also increased. In fact, an article published in ElEconomista.es detailed that in 2016 sold 458,781 homes, 13% more than in 2015.
Since buying a home is still such an important step, this web portal, in collaboration with the Madrid Promoters Association (Asprima) and the real estate developer Neinor Homes, has developed a guide to go through this process and provide the investor with the steps follow. These are some of the points that includes:
1) If you have decided to buy a house, you must first define whether you want it to be a new or an old one. The first option has the advantage that it will not need remodeling, while the second alternative will probably require reforms. One thing to keep in mind is that, although new buildings may involve higher expenses, if it is an apartment in a building with energy-efficient technology, they will in future lead to a great savings in bills.
2) Of course, the previous decision is subject to what your budget is. At this point there are three aspects to consider because they are the ones that the bank evaluates to grant mortgage loans:
Percentage of funding. Banks are offering loans that can finance up to 80% of the value of the home. That is, the buyer must have previously saved the remaining 20%. And it is necessary to take into account, in addition, the forecast of the expenses derived from the purchase.
Financial capability. If you keep the mortgage within limits appropriate to your ability to repay the loan, you will find it easier to make the payments. Accessibility compares the price of the home you have chosen with the annual gross salary available, the appropriate proportion should never be higher than the gross family salary of four or five years.
Effort. With an approximate mortgage payment of 948 euros and a net monthly payroll in the household of 4,063 euros, the person would have to allocate 23% of the income to pay the house. The most appropriate proportion is that the monthly mortgage payment is between 30 and 40% of the monthly net income.
3) Real estate agencies, newspapers and internet sites are the first options to look for housing today. New technologies have enabled users to access the information they need through their smartphones and tablets.
4) It is important to check the conditions of the home loan underwritten for the construction of the house and, in any case, the approval of the bank to subrogate the same. The law states that the buyer is not obligated to subrogate himself in the loan that was requested for the construction of the house nor to assume the expenses of the cancellation if you choose to obtain a new mortgage loan.
For the granting of this mortgage loan, the housing must be assessed, which implies the corresponding cost, which will probably be assumed by the bank. You must know that in order for the mortgage to be valid, it must be registered in the Property Registry. Therefore, the financial entity you choose will be in charge of managing the registration of the deeds prior to the mortgage. For this management service you will have to assume an additional cost in addition to paying at the time of signing a provision of funds to the management.
5) It is important for the future buyer to know all the information of the house, such as name or business name, address and registration details in the Commercial Register of the seller. Also the plan of the house and the drawing of electric networks, of water, gas, heating and the measures of security in case of fires must be handled.
Other key information is the reference of the materials that were used in the construction of the house. Do not forget to access the copy of the works permit, the urban permit and the first occupation license, if any.
If they exist, you should have in your power the statutes and rules of operation of the community of owners, as well as information on service and supply contracts of the community.