¿How much does it cost to maintain a house? Cost recap.
Are you thinking on buying a house? If that’s the case, consider as well as the Price, the future expenses you will need to cover in a future.
In conclusión, you wonder how much does it cost to maintain a house?
We answer all the questions relative to the cost of being an owner. From the biggest to the smallest details. This will allow you to predict and be able to afford the expenses of a Property.
- How much does it cost to be a Property owner?
- How much is the monthly cost to maintain a Property?
- The real cost to own a Property in Spain.
Keep on Reading and find out.
Monthly fixed cost of a property
The most important is to be aware of the fixed monthly expenses on a Property. It use to be the ones with bigger amount, monghly payments that increase an annual cost. Is true that are the expenses we must take into account.
Fixed monthly outlays could be summarized:
- Mortgage: No doubt is the biggest cost. Furthermore, is a long term expenditure. Obviously it will depend on the conditions you signed. It will also depend on the posible long term loan revaluation. Is recommended that the mortgage has to be less than 30% of the total income on a family. That is something difficult to keep to.In any case, if the bank has already approved your mortgage, that means you’ll pay it without any problema. At least is how theoretically has to be. Banks before granting a mortgage must be sure about the buyers solvency.
- Community: The community fee is another outlay that will last forever. This assessment depends more on the community size, although the médium cost in spain isa round 50 euros per month.
Is true that we talk about a average fee, on modern communities with parquin, swimming pool, caretaker, … this cost use to be bigger. It is calculated according to the squared meters of the Property. If your house is bigger than your neighbour’s house, you’ll pay more than them.
You have to take into account that the fee will eventually change, mainly increeasing. The amount will depend on different elements. Normally will be more expensive if the community has: lifts(if more than one will increase), swimming pool, employees ( cleaning staff, caretakers, etc…) or parking spaces, among others. It will punctually change in case of rufurbishing or maintenance charges. Obviously the expenses will be reduced sharing with more people.
- Supplies: The main supplies are: electricity, water, telephone, internet and gas. In some communities the water fee is included inside the communal water expenses. It can be another outlays as cleaning service, alarm, etc… It depends on the companies you contract with. Generally that expenses could be around 180-200 € per month ( gas,electricity, water and telephone).
Annual and occasionally expenses
- IBI, local tax. Is the main tax to be paid and controlled by the townhall. It is charged to every comercial, garage or proerty owner. The amount depens on the land registry value and the property squared meters. Average amount in Spain is around 500 € per year. Depends on the city.
- Local tax (rubbish collection). The usual taxes are handled by the townhalls. The most common is the usually called rubbish collection tax, paid to cover the waste gathering. In some cities the tax is directly included on the ibi receipt. Average amount of this tax in spain is around 100 € per year.
- Home insurance: Main insurance is the Property insurance. Is recommended to contract one and on some cases is even compulsory. Is the insurance that protects against possible flaws, faults and third part damages. Depending on the insurance company we contract, average cost isa round 200-250 € per year.
- Community apportionment. These are ocasionally expenses and depend on the community. The main reason can be a repairs or refurbishing on the community. Also with different payment terms. If the apportionment is small, there will be a single payment. If it is an expensive apportionment, then a better payment terms agreement will be set up with the community.
Be aware of the small home expenses
As you could see most of the outlays are not easily predicted on a Property purchase. Some others that can be predicted, is not a voluntary decision. For example, we don’t choose to live on a place depending on the taxes. Think that, despite you choose from going to a city intead of another, in a future taxes can change.
Another outlays depend on the negotiation or findind the best offers. Home insurance, supplies or the mortgage are examples. Our recommendation, do nut underestimate any expenses. Even the smaller montly outlay will vary after years and can supose a big issue or a big sabe. Choose from different offers and find the one according to your needs with the best posible Price.
We expect this summary of fixed monthly expenses, year outlays and future occasional expenses will allow you to make a foresight. With this board you can do a better and accurate forecast of being a Property owner.