According to recent reports, purchasing property is the more affordable option compared to renting a home in Spain. In 15 of the major cities, it is cheaper to cover the cost of a mortgage than to pay rent to a landlord. In none of the major cities did the cost of a home mortgage exceed 31% of the homeowner’s household income. Also, in many cities, like Merida, the cost of renting is just eight percent of the person’s average salary.
However, not everyone has plans of homeownership, and in these situations, they may find the idea of long-term rentals spain more appealing. The key is for each person to think about the option that is right for them. Keep reading to learn more about what to consider when making this important decision.
Finding the Right Property
When someone decides they want to purchase a home, it is something that will take time. While this may seem obvious, it takes even longer than normal in Spain, and in most locations throughout Europe. Also, the language may be an issue. The paperwork and websites related to buying a home are all in Spanish (or mostly in Spanish). If an individual doesn’t know this language, they may have to pay someone for additional help.
There are many people in Spain who currently own their home. This is why so many young people will remain at home, with their parents, until they are able to find a good job that will allow them to earn enough money to rent their own place.
It is also important to note that in Spain, the transaction costs related to selling or buying an apartment or house are mortgage compared to other locations in Europe and winds up being approximately 15% of the total property value. What this means is that to remain ahead financially, a person should plan on staying in the house for at least two to three years.
The Signing Process
As a possible buyer, it is necessary to make an offer for the home through the seller agency used by the property owner. This is the typical first step. If the offer is accepted, the seller and buyer must sign a preliminary contract. After this, a deposit is paid, which is a minimum of 10% of the total purchase price.
In Spain, expats are allowed to purchase all types of property, including residential homes, commercial buildings, and land. However, a financial number must be acquired from the local police station to do this.
Legal Requirements for Buying Homes
It is smart to have the services of a notary when purchasing a home, but this is not required. The seller is responsible for all defects in the apartment or house, even if they are not aware of their existence. The buyer must register the property and pay all the taxes and costs that are associated with the purchase.
Buying a Home in Spain
There are a lot of things to know and consider for those thinking about purchasing a home in Spain. While this is true, it can be a smart investment for those who plan to live in the area for a while. Being informed and knowing what to expect are the best ways to ensure the right home is found and purchased.