All of those interested in buying a newly built property in Spain are always wondering when would be the best moment to buy a home. It is a very important decisión to take, as buying a property supposes a significant investment. For that reason, it’s obvious we want to find the ideal time to do so.
As the last financial crisis finished, the last few years have been great time to buying new build homes. Since 2017, the real estate market has been giving us signs that times were right to invest in new build properties. Right now is a good momento to buy a property in 2020.
The real estate sector has proven to be an excellent way to invest, both for its safety as for its’ high return on investment. An option is to buy for rental purpose, looking at how the rental prices rise in Spain, and not only in main cities such as Madrid, Barcelona, Bilbao and Sevilla
When buying a property, both to rent out, as to move permanently, or as a second residence, finding the right location is essential. In Spain it is not the same being in Teruel or in the Costa del Sol, as well as for climate as for prices, for example Alicante unites interesting property prices with a great climate and amazing beaches.
NEW CONSTRUCTION NEXT TO THE MEDITERRANEAN SEA
One of the factors that most influences the right time to buy a property is the Euribor: the type of interest applied to the financial operations between the Banks in Europe: The percentage of money to be paid to the bank when granted a mortgage.
It is important to know that the Euribor can be fixed or variable, each with their advantages and disadvantages. Normally, at present, the bank would offer a variable interest rate on the property mortgages.
Buying a piece of clothing more or less expensive seems to be an easy solution, but buying a property is more signifcant and relevant to the family’s finances. It is necessary to set up a realistic budget for the purchase of a home, keeping in mind the following points:
The bank will only lend you 80% of the taxated value of the property that you want to buy.
The purchase fees when buying a home are in between 10 % and 15 % that have to be added to the total purchase price. For this reason, you need to have savings of more or les 30-35 % of the price of the property you are looking to buy.
There are additional costs, after buying a property, you have to take into consideration: the possible move from your current home, the purchase of furniture when buying an unfurnished new build, the community charges and taxes such as the IBI (real estate owner tax), etc.
To avoid possible payment difficulties, it is recommendable that the mensual mortgage fee does not exceed the 30 % or 35 % of your total net montly income.
The mayor part of real estate transactions in Spain are buying and selling resale properties. But it is the purchase of new build properties which could offer lots of advantages and that should be considered before making a final decision. The newly built properties offers a serie of important benefits which add an extra value to the property for sale:
You move into a brand new house, that has not been occupied before, and that you can decorate completely to your taste. On top of that, when buying an off-plan property, lots of building companies offer the possibility to customize your home with different finishes, floorings, paint work, sanitary installations, etc.
The law protects you for possible incidents or defects to the construction. The Spanish law obliges for all the real estate projects to be under a building guarantee. From the moment of the handing over of a new build property, the house has a one-year guarantee for any visible defects to materials, three years for any installation or unvisible defects and ten years for structural problems.
The energetic efficiency and the savings on electricity bills reduce the running costs. This is just another very important advantage for new build properties in comparison with resales, the use of newer and more advanced materials that increase the thermal comfort and acoustic isolation of the property.
Better communal areas and installation. Lots of complexes build lovely communal areas with plenty of amenities and services such as a pool, garden, sports courts, children’s playground, etc. These increase the quality of daily life and again save you time and money in your free time.
LIVING BY THE SEA
Buying a home is a long-term investment. For this reason it is always recommended to analyse your immediate plans, but more importantly your future goals. Both on personal, including your entire family, level as on professional level, thinking about work or possible retirement.
Do not think about the type of property you want at present, you should think on what will be your ideal home in a few years from now. With more space or less living area, with one or more bathrooms, with or without communal pool, close to the beach, etc.
In all rankings of health and life quality, Spain is one of the leading countries. For its ideal climate, the variety of gastronomic life, interesting prices of food, for being in the European Union and sharing most laws and the euro, etc.
Within Spain, the Alicante región, apart from the great weather and lovely dinging, offers spectacular beaches, natural parks to visit, the best golf courses, and envíes with the international airport and sanitary facilities. Alicante is one of the best places to enjoy your retired life.