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How much money do you have to save to buy a flat?

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The house is usually the most important purchase of a person, at least for the amount of money involved. The majority of mortals ask for a mortgage to be able to meet the expense. That is, he borrows money from the bank to which he will return it in exchange for interest. The problem (or one of the most serious) is that credit institutions are not willing to grant 100% of the purchase money (with exceptions).

As a general rule, banks give up to 80% of the purchase or appraisal value of the property that is mortgaged… you must have the other 20% remaining in addition to the money for expenses, which are calculated at between 10% and 15% of the purchase price. We talk about notary fees, taxes and appraisal.

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For example, if you want to apply for a mortgage to buy a house of 200,000 euros, you will need to have saved around 64,000 euros (32% of the value of the property) to pay the part not covered by the loan plus the aforementioned expenses.

Main expenses in the purchase of a house

1. Taxes: if it is a newly built home, you will have to pay 10% VAT. While, if it is a second-hand house, you will pay between 5% and 10% of the value in the Property Transfer Tax (ITP). This percentage depends on the Autonomous Community in which the house is located.

two. Appraisal: between €200 and €400 and is paid by the buyer.

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3. Notary: between €400 and €800, paid in half with the bank.

Four. Registration: between 100 and 300 euros.

5. Tax on Legal Acts (ACJ): tax that is paid on the notarial deed when a mortgage is signed. This has to be paid by the bank, but it is convenient to know it. The amount to pay in this case depends on each Autonomous Community and ranges between 0.5% and 1.5% of the value of the purchase.

6. Agency: between €300 and €500, paid in half with the bank.

Tips to save to buy a house

You will most likely need time to save up the amount needed for an entree. Also keep in mind that the mortgage payment with which you do your accounts should not be 35% of your monthly net income.

Some things you can do to make it easier for you to save are

1. Allocate a fixed amount of your monthly income to savings.

two. Reduce expenses. Do a study of where you spend money and see if you could reduce them.

3. Think about your credit profile: having job and economic stability will be an advantage when obtaining a mortgage.

Source: Lasexta

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