Housing is, without a doubt, one of the main assets that any person can possess. Owning a home is not only a right of every citizen, it also entails a series of duties and responsibilities that must be met. The costs of a home are one of the concepts that most concern the future tenants, both purchase and rental. In Sir Lender we know all this and that is why we have decided to create this article.
Costs of a home
In recent years the well-known and feared crisis has shown signs of weakening, appearing the so-called green shoots in the financial and economic areas of the country. Although the real estate sector has been the main victim of the consequences of the aforementioned crisis, it is now a sector that is experiencing a moment of great prosperity and growth.
Both supply and demand in the real estate sector has increased progressively , reaching truly admirable shares. The year 2017 is presented as a turning point for this market, with forecasts of surpassing the numbers related to the purchase / sale of homes, in addition to the great upward trend for the rental market.
At this point one of the major concerns of future tenants is closely related to the cost of a home or the costs of maintaining a house . The doubt comes when trying to find the highest profitability in this aspect, because while there is a majority group that say that the acquisition costs of a home are much greater than those of a rental, another large part of consumers think that in the long term the Expenses for a rental home are much higher or cause more problems.
Having said that, we are going to try to break down the different types of expenses that involve both the purchase of a home and those related to those of rental housing.
Do you already know what are the costs of a home? We tell you all!
Main expenses of a dwelling
Today, one of the great actions that directs the life of an individual is the decision to invest in the purchase of a home. This is a very important decision because it will influence a large part of the financial health of, in all likelihood, a good part of your life.
First of all, before worrying about the acquisition costs of a home , it is necessary to go through a period of reflection, analysis and search of the desired property. It is more than advisable to know what our needs, desires and expectations are in front of a house.
Once known the characteristics of the property that is desired, the next step is to know the prices of the real estate market, in order to have the certainty of the real value of the house. So taking into account these simple primary steps, it is time to control the main costs of a home in 2017:
- Mortgage appraisal . Mortgage appraisals are necessary to facilitate the process of financing the purchase of a home through a mortgage loan. A cost of between € 100 and € 500 is usually estimated, depending on the financial institution.
- Pre-contract In recent years the percentage of users who make pre-contracts between buyer and seller has risen to ensure compliance with the operation to be performed. Notary fees should be added to the final cats of this process.
- Public deeds Not all are obligatory but they are really advisable to carry them out. The deed of sale and the writing of the mortgage in front of a notary. The notarial cost (regulated by law) must not exceed € 500 per deed.
- Taxes Many of the expenses in the sale of a home are directly related to the payment of taxes . So we can list the following: IBI, VAT, Property Transfer Tax (ITP), Tax on Documented Legal Acts (IAJD), etc.
- Property registration . Registration in the property registry is a mandatory step, should not exceed its cost 1% of the total cost of housing.
- Mortgage. The return of the mortgage loan occupies a certain monthly payment, depending on the type of mortgage acquired and the agreed conditions.
- Maintenance and repairs . To all the above expenses must be added all those derived from the costs of maintaining a house and repairs, adding the essential insurance.
In the event of unforeseen problems in a home, it is always possible to request an urgent loan, with good conditions that can help solve this type of problem.
On the other hand, the expenses derived from a rental house can be minor and give greater flexibility, but they have their own characteristics and conditions:
- Bail. After the signing of the rental contract (if any) one of the first expenses of a rental house is to pay the deposit (usually a value between 1 to 3 months) which will be returned at the end of the rental agreement.
- Payment of the first month. In addition to the deposit, you must pay the first month of rent, so the final amount, in the beginning, is usually very high.
- Aval. Many owners require a guarantee to confirm the solvency of the tenant, the bank offers financing solutions to process this step, assuming an expense.
- ITP tax. Tax and unknown but mandatory when signing the contract.
- Other type of expenses. In general, a series of maintenance expenses of a house is agreed with the owner, as well as problems derived from repairs or problems.
both the rental and the purchase housing provide a series of important and periodic expenses. While it is true that the costs of buying a home are much greater than those of a rental property, the generalized idea in today’s society considers that when buying a house we are acquiring a property, a property for the Although the economic obligation can be very long term, on the other hand the rent offers more flexibility and lower expenses, but at the end of the contract the owner can stop renting the house, starting from scratch again.
Depending on the desires and personal situations, it is important to carry out an important reflection, looking for the best possible housing option for each case.