Owning a home is still the goal of a good number of young Spaniards, and one of the biggest challenges they have to face. Currently opting for a loan to buy your home involves paying mortgage payments that end up adding a high amount and difficult to finance.
For this reason, more and more young people prefer save to buy a home and open a savings account, this financial product that not only allows them to generate interest in exchange for depositing the savings in the account, without depriving them of immediate access, but will also increase their finances.
LThe expenses involved in buying a home
Buying a home comes with a series of initial expenses, even if the buyer goes into debt through a mortgage. This means that a certain level of savings is necessary, regardless of the way in which the necessary resources are obtained to buy it.
The mandatory expenses associated with buying a home are:
- Notary, whose fees are regulated by law and amount to between 0.1 and 1% of the value of the property.
- Property registration, a procedure in which the deeds signed by the notary are registered. The fees are also regulated by law and have an approximate cost of 600 to 1,000 euros, depending on the value of the home.
- Taxes: depending on whether the house is new or not, one tax or another will be applied. If it is new, the home will be taxed with the VAT, 4% for officially protected housing, 10% for over-the-counter housing and 21% for premises that are partly used for housing. In the event that the home is not new, the Patrimonial Transfer Tax, regulated by each Autonomous Community, which ranges between 6 and 10%. In addition, in both cases you will have to pay the Tax on Documented Legal Acts, which is paid whenever a notarial document is signed that must then be registered in the registry and with an economic amount, and which ranges from 0.5 to 1.5% depending on the autonomy.
Taking these calculations into account, the initial expenses that any home buyer will have to face could amount to up to 20,000 euros in the case of a new home with an appraised value of 150,000 euros, around 15%. In any case, experts recommend a initial savings of between 30 to 35% of its value, taking into account that most banks grant the mortgage for a maximum amount of 80%. Likewise, the OCU affirms that it is not necessary to invest in a home more than four times the net family income.
Saving, a fundamental factor for buying a home
The savings road to buying a home is long, but the results are rewarding. It requires a lot of patience, self-discipline and perseverance to accumulate savings in a fund that serves, at least, to meet the initial expenses of the house. And if it can be to pay it without resorting to bank financing, much better.
Some products can contribute to this Like the time deposits or the savings accounts of the main banks, which generate additional returns with total security and guarantee. In case you want to get a better return on your money, you can look for some of the main European banks, whose interest is higher than the Spanish ones.
And if, in addition, you are an investor who likes risk, investment products can provide greater returns, but also present greater volatility. Be that as it may, saving is a fundamental aspect before buying a home.
–
