What are the expenses associated with buying a home?

There are several expenses associated with buying a home. When deciding to buy a house, it is essential that you know and take into account, at least, the four types of basic expenses:

1. House Value: It is the price that you agree to pay to the seller. Initially, you will have to pay a part of the amount of the house in the initial payment (private contract), usually about 10%, and the rest at the time of raising the public deed of sale in the notary.
2. Mortgage expenses: Since mid-2019, in Spain, mortgage expenses must be paid by the entity that gives the credit. Therefore, the only thing you have to pay is the appraisal cost and, depending on the bank, the opening and study commission, although many no longer charge it.
3. Real Estate purchase and sale expenses: At this point, you have to differentiate the taxes from when it is new construction (First transmission) or if it is second-hand housing. New homes are taxed throughout the territory in the same way since they are subject to VAT, a national tax at 10%. On the other hand, a community tax is paid for second-hand housing. This tax is called I.T.P. (Property transfer tax) and can range between 4% and 10%, in addition to having bonuses for the first home, for V.P.O., large family, etc.
4. Real estate consultant fees: This varies depending on the area and if you hire the service of a real estate personal shopper.

All these expenses must be paid before or at the time of signing the deed of sale. With another part of your monthly payment, interest on the loan will be paid if needed.

Because there are several costs associated with buying a home, you must speak with a professional real estate agent who can advise you on everything related to expenses and debt capacity.

This article is for informative and informative purposes. For this reason, it is essential, before making any decisions, you visit or contact a certified specialist in the field, as the expert's opinion is what should be considered.

Rafael Sanchis

Reliable and well known real estate investor in the area, who puts their clients first while guiding them through every step of the process.

To offer our clients personal and legal advice and assistance, while offering the best houses in the town of Villanueva del Rosario (where the Real Estate Agency is located) as well as towns in the province of Malaga and the province of Granada as our Real Estate Agency is included in a large network of Exp Realty agents distributed throughout the Spanish territory.    

Exp Inmobiliaria Tian has a wide range of properties, villas, flats, townhouses, penthouses, luxury properties and plots.  Our Real Estate Agency belongs to the Association of Real Estate Experts and we manage the sale of all the properties in open exclusivity, in this way we collaborate in its sale management with 88.000 thousand real estate agents all over the world belonging to EXP Realty, as well as, the collaboration with more than 500 external real estate agencies composed of 3.000 Real Estate Agents. 

Exp Inmobiliaria Tian puts at your disposal a professional cabinet of consultants specialised in different fields to offer you an integral coverage on other aspects that you may need: - Insurance for companies and individuals, - Integral legal advice for companies and individuals, - Processing of inheritances and wills.