PROPERTIES FOR SALE IN COSTA BLANCA
We assist all our clients from the moment of the search for housing until the delivery of keys, advising them at all times in case they need a mortgage which we study and see several options with numerous banks to get the best option, make the necessary arrangements to The opening of the NIE number such as requesting an appointment at the immigration office, preparing all the necessary documentation and paying the corresponding fees, opening a bank account since it is necessary to buy a property in Spain, we have a team of experienced agents with several languages since most foreign clients need a translator to understand all the documentation and make the public deed before a notary, general procedures before buying a property; carry out all the necessary steps to verify the good condition of the home, such as requesting an informative note in the property registry, checking that no amount is owed, either with the neighborhood community or with the basic service providers (electricity, water, gas) review of all documentation provided by the seller etc. After-sales service to make all ownership changes in both water and electricity supplies and in the community of owners if there is one.
BEFORE BUY A PROPERTY IN COSTA BLANCA
Define the search
The area and location of the house
Steps to buy a property on the costa blanca
Define the search
Before we begin the search for the house of our dreams, we must be clear about the tastes and needs we have. Our recommendation is to define a series of priorities that housing should cover. A house is an expensive and long-term investment, so we must be very clear about what type of housing we are looking for and for what reasons (Permanent residence housing, Summer house, Tourist apartment, investment housing, rental apartment, etc … )
The type of housing We are looking for an apartment, a large apartment or an attic, a semi-detached or semi-detached house, an independent villa or villa. Generally, the type of housing will be defined by the offer of the type we are looking for. In the center of the city or on the beachfront we will find flats and apartments, and in urbanizations far from the center we will have bungalows, farms and independent villas.
The age of the house Know if we want a completely new house that would be the most comfortable option since all you would have to do is enter to live, or second-hand to reform, this that expands the possibilities and we can adapt it to the taste of each one.
The characteristics of the house Define the space we need as the number of rooms and bathrooms, if it should have parking, storage, orientation, surface and distribution of the house, the quality of materials and other additional services such as the installation of air conditioning, heating, pool, etc.
It will be difficult to find a home that has all our current and future needs, but if we can establish some essential characteristics that the house has to have.
The area and location of the house
The area and location of the house is perhaps one of the most important things, since it can influence prices, quality, infrastructure and services. It is convenient to study the area in which we are interested in buying a house in advance to see the different factors of interest, such as transportation, schools, shops, beaches, golf courses and other services that fit our use and need. It should be noted the difference that represents a house on the beach, an estate inside or the apartment in the center of the city.
The budget is surely the main factor that determines the purchase of a home. Already with the main characteristics defined (area, type of housing, bedrooms, etc.) we must establish a budget for the purchase of housing. Therefore, we must be clear about the possibilities of access to financing that we have and know what annual expenses we can pay (IBI, neighborhood community, maintenance, insurance, etc.)
We must try to make numbers and see how far we can go, being realistic with the characteristics of the house we are looking for and the area, to avoid unnecessary risks and to be able to pay the house comfortably, both if a mortgage is accessed as if savings are used or the money from the sale of another home.
In the case of deciding on a new flat house, the key is to succeed with the developer. Review his career and the promotions he has made. If you have time, it can be even interesting to go see some of the ones that have already finished and ask the neighbors for finishes and qualities etc.
The same also applies to homes already built. In both cases you should know the costs of buying a new house compared to a second-hand one. When buying a new home you will have to pay 10% VAT on the purchase value. If the house is officially protected that VAT will be only 4%
When buying a second-hand house you will not have to pay VAT, but the Property Transfer Tax or ITP. This tax depends on each autonomous community, although the average ranges between 6% and 10%
If something is clear the banks are what they are willing to risk in each operation. For starters, the bank will rarely give you a mortgage above 85% of the value of the house, to which you will have to add additional expenses
In addition, entities will also consider your expenses and income. With some exceptions, most will limit your borrowing capacity between 35% and 50% of your expenses, also depending on the value of the house. If you get a bargain it will be easier for them to get closer to the maximum.
In this sense, the most common formula to request more mortgage money is to extend the term of the loan. Before doing so be careful and make numbers because the total cost of the house can skyrocket.
As a general rule, the bank will finance up to 80% of the value of the house without taking into account the expenses of writing, notary, registration, appraisal … The average cost of these expenses added to the purchase of the house is between 10% and 15%.
Before you start looking at home you should visit the bank to specify what mortgage they give you and how much money you have. It is easy for the entity to cover their backs by telling you that the loan will depend on the specific home. It is true that the house counts, and much, when granting the mortgage and the percentage to be financed. However, it is also that the bank can offer you a reference on which to operate.
Choosing the house to buy on the costa blanca
Once we are clear about what house we are looking for, the area we want and the price we would be willing to pay for it, we will begin your search. This phase of the purchase process is surely the one that has evolved the most thanks to the revolution that the Internet and new technologies have brought about. In addition to real estate portals, it is convenient to explore all possible routes.
- Internet portals and real estate websites.
- Stroll through the area where we want to buy in search of “For Sale” posters.
- Get in touch with individuals through press announcements or through acquaintances.
- Go to a real estate agency specialized in the area we like.
If we are looking for new construction homes, ask in developers and construction companies.
Each search option has its advantages and disadvantages. A real estate agency is perhaps the most convenient if we do not have time and we want to avoid problems so that the purchase process is much more comfortable and bearable. In a Bank, many of the homes usually come from foreclosures, so in many cases they are very damaged. With a private individual we have the possibility to negotiate the price directly, although we must take a series of precautions to get rid of deception and hidden payments.
In any case, it is convenient to be patient and search without haste until finding the house that best suits our needs.
Visit the house
Before deciding on a property, it is essential to visit the house in detail, and have a first contact with the seller. It is on this first visit that we must pay attention to many details and not get carried away by the rush.
In this visit we will study if the distribution and characteristics fit with what we are looking for, looking at details such as possible damages, doors and windows, floors, walls and paint, smells and noise, stains and dirt, exterior of the house etc …
We can ask the seller for a report of qualities, plans of the house and certificates of the facilities. If this is not possible, it would be advisable to have a professional perform a technical inspection that determines both the state of the home and all the legal aspects of it.
Housing offer and negotiation
Without a doubt, the most complicated step as a homebuyer. When you find the desired home, you have to know how to tie it making a suitable offer. If you have the services of a real estate agency, it will advise you if the house is at a realistic market price.
If the offer is not too low, even if it can be rejected, it can lead to negotiation for the price of the house. In general, the more offer there is in the area, the easier we will negotiate. On the other hand, if there is a greater demand than supply, it will be we who must adjust to the existing offer without much possibility of negotiating the price of housing.
Procedures prior to formalizing the earning contract
We have already negotiated and closed the price of housing with the seller. But before formalizing the contract of sale, we must make several steps and checks to find out the status of the property and avoid scares. The services of a real estate agency can handle these tasks:
- Request a simple note from the Land Registry to identify the legal owners of the property, and know in a reliable way the surface of the house and existing charges: foreclosures, mortgages, preventive annotations etc.
- Check that the property is up to date with the Property Tax (IBI) in the City Council.
- Know the minimum deed value, since if we are going to pay less than this minimum value established by the Ministry of Finance of each Autonomous Community, we can subsequently receive a complementary statement.
- Know the expenses of the community of neighbors, if any, and the services that are included in the community expenses (hot water, gas, heating, garbage collection, cleaning, common areas)
- Check if you are aware of the community’s payment and if there are any spills scheduled soon or pending payment.
- Check if the property includes parking and storage, as an integral part of it, as an annex or as an independent property.
CONTRACT TO BUY A HOUSE ON THE COSTA BLANCA
Having reviewed the above, it is very convenient to leave the conditions in writing in a contract of sale or a contract of sale. In this document the seller agrees to deliver the home to the buyer in exchange for the agreed price.
In said contract;
- The seller and buyer are identified.
- Property is identified.
- The price and payment method are agreed.
- The seller has the obligation to deliver the house and, in cases of hidden defects, he will have to clean them up.
- The buyer has the obligation to pay the price fixed in the time and form established in the contract.
- Penalties are established in case one of the parties does not fulfill its obligations.
In this contract the signature of the notary is not necessary, and although it is usually carried out in an agency or before a lawyer, it is advisable to perform this procedure before a notary to add a security bonus.
AFTER BUYING A HOUSING ON THE COSTA BLANCA
Home payment and notarized deed
In the term agreed in the aforementioned contract of deed, the act of public deed will be carried out before a notary, necessary for the registration in the property registry.
We will make the payment of the house, and we will have several payment options that will be indicated in the contract of sale:
Cash payment: in the same act of notarial deed we will pay by certified check or through a transfer via Banco de España.
Mortgage loan: the most common option, where the bank will issue the documentation to the notary to prepare the deed, to which the agent of the bank will go to formalize the mortgage.
Subrogate to the arranged mortgage: the buyer can subrogate to the seller’s mortgage loan, changing the holder.
Purchase expenses and taxes
Finally, as owners, we must settle a series of expenses and taxes that correspond to us as buyers:
Mortgage expenses, which include appraisal and management expenses to formalize the opening of the same.
Notary fees for the contract of sale and public deed
Property Registry Expenses
VAT (Value Added Tax) or ITP (Property Transfer Tax)
IAJD (Tax on Documented Legal Acts)