How and when to buy a second home: useful tips
The Marina Alta is consolidated as one of the best Valencian real estate investment territories
A. P. J. | València, Source: www.levante-emv.com
Your search on Google generates more than ten million results in just one minute, the purchase of second homes in coastal areas upward and the causes are very varied. Thus, the acquisition of these types of properties has several advantages, including profitability, tourism activity and, therefore, a dynamic real estate market.
However, acquiring this type of property implies a high economic outlay, so knowing the state of the sector to discern which are the most optimal proposals is essential.
After the economic crisis and the period of recession that dynamited investment rates at the end of the previous decade, Spain has managed to stabilize its market. A fact that directly influences the supply of goods and their price.
And, according to the latest estimates published by various industry entities, buying a home in Spain will be up to 2% more affordable in just two years. A trend that has not gone unnoticed among the population, since a recent report from the Casaktua real estate portal establishes a significant percentage increase in the volume of people who are immersed in a process of searching for second homes, especially in the Valencian Community.
From renting it or acquiring it for personal enjoyment or to resell it, the second residences trace a wide horizon of possibilities for the real estate market, as well as for its owners. So much so, that the same monograph predicts that 43% of new buyers will acquire a second home.
Five tips to buy a second home
Type of housing use. When buying a second home, establishing its type of use is vital. In this sense, it is necessary to consider whether the new property will be for personal use or if, on the contrary, it is intended to obtain some profitability from it through rentals or resale. For example, if the second house is not in regime or is not linked to any economic activity, the owner cannot use it to deduct expenses in the declaration of his rent.
Formalize the mortgage. The formalization of the mortgage is one of the most important steps in the process of buying and selling a real estate. From presenting the required documentation - NIF, certificate of registration, deed of the property, proof of income, etc. - to the provision of notarial funds, this action must be carried out with all the guarantees established in the new mortgage law. In addition, details such as the conditions of the mortgage or the maximum financing fund should not be overlooked, which is usually reduced in the case of the acquisition of a second home.
Record of expenses. The purchase of a new property generates numerous expenses that should not be overlooked, such as property maintenance, home insurance, taxes, etc. It should also be taken into account that if the transaction occurs through a real estate agency, it will incur mediation costs. Thus, experts recommend that the economic charges do not exceed 35% of the new owner's income.
Consult experts of the real estate market. The real estate market has numerous specificities that can be ignored by the owners, so having the criteria of experts in this sector can be very useful. In this regard, your council can prevent, among other issues, a disproportionate price for a home.
Location. When buying a second residence, the decision must be made assessing the location of the new property, as it involves numerous risks. In fact, a non-optimal location could hinder your economic profitability. In addition, if the property is located in an area away from the first residence, it will be necessary to visit it and analyze the conservation of the materials to avoid their degradation.
What are the best areas to buy a second home?
Spain is a country with great richness and diversity both geographically and culturally. From interior areas where it seems that time has stopped, to transgressive constructions that are built on urban centers as champions of innovation. The tourist or holiday destinations are endless, although the coastal area is still the preferred destination.
Thus, the Costa Blanca, on the Levantine coast, offers its visitors and residents endless opportunities. And, the Valencian Community is one of the reference regions at the state level in terms of the quality of its beaches.
To its high number of blue flags there is also an unbeatable climate throughout the year with pleasant temperatures and, therefore, various leisure alternatives, both in summer and winter. From walks along the promenades to taking the aperitif on any terrace overlooking the sea, the coast allows you to enjoy a relaxing reading with the sound of the waves as a soundtrack or perform sports activities with friends on a sunny afternoon.
The Marina Alta region offers all these options and many more, since its proximity to Valencia makes it a relaxed and perfectly connected space with the big cities.
Homes in the Marina Alta, quality and tranquility connected
Located to the north of the province of Alicante, the Marina Alta region is one of the most visited and admired territories in the entire autonomous territory. Its diverse orography is able to combine mountainous landscapes, such as the Penyal d'Ifac, with the most attractive beaches with crystal clear waters and a diverse marine fauna.
Thus, the region has iconic municipalities such as Xàbia, Calp, Gata de Gorgos or Dènia. Economic, social and tourist activity is constant throughout the year, so the Marina Alta is consolidated as a timeless destination of quality for anyone who wants to invest in a property in this area.
Grupo ASA, the best residential home in Costa Blanca
The ASA Group offers the best benefits at minimum cost, as the business group stands out for its strong ethical and professional commitment, which has led it, along with the great professional trajectory of more than 30 years, to become one of the main entities of this sector in the Spanish coast.
Its Tossal Gross promotion adapts to all the needs of its owners, offering residential homes and luxury villas in the ancient city of Dénia. Some who can visit thanks to its pilot floors and Sales Office by appointment.
For more information click here.
Dénia Beach, a paradise at your fingertips
In front of the beach and with 7,000 meters of green areas with swimming pool, Dénia Beach is a perfect place to establish your first residence. Its apartments offer large terraces overlooking the sea, Montgó or the well-kept urbanization, trying to take full advantage of the Mediterranean light. You will find ground floors with terraces of up to 100 square meters and attics with up to 30 meters granted of magnificent views.
The urbanization has large gardens for walking, a large beach-shaped pool and many trees. All this, accompanied by Balinese beds and hammocks to enjoy Dénia as if it were on a remote Caribbean beach.
For more information click here.
Engel & Völkers: experience and safety in the highest quality
The best option for demanding clients looking for high quality residential properties in the northern part of the Marina Alta is Engel & Völkers. The German services brand, specialized in the intermediation of residential properties, has two franchises in this area of the Valencian coast, one in Moraira and another in Calpe. In addition, this same 2019 they have obtained the license to work in Altea, within the Marina Baja.
For more information click here.
Do you want to sell your house? This is what you have to know
If you want to sell your home there are a number of issues that must be taken into account.
Author: MARTA GRACIA Source: www.elperiodico.com
Buying a home is not an easy task, but neither is selling it. It is not enough to hang up the “sell” sign or put the ad on a real estate portal and wait for them to call. A series of previous knowledge is needed, such as the fact that price negotiation is the process that consumes the most time or that all the necessary information must be collected before starting the process.
According to data from C21 Spain, the average time to sell a second-hand house has increased considerably. If in 2018 the transactions reached 60 days, in 2019 it takes about 100 days on average to sell a property. So everyone who plans to sell their property should take it easy and take that time to prepare it and look with magnifying glass all the expenses and paperwork that must be carried out previously.
SOME OF THE CHALLENGES TO BE FACED DURING ALL PURCHASE AND SALE PROCESS:
Set the correct market price. Solvia points out that the most common is to track the prices of similar surface homes sold in the area. However, each property "is a world", and the amount will also be determined by the distribution, facilities, qualities, lighting or reforms made of the property, as well as by the type of building and preservation of the building where it is located. “We will have to know how to correlate these values and not set exorbitant prices that scare off potential stakeholders.
Expert advice. No one knows the local reality and the needs of potential buyers better than an experienced real estate consultant. Therefore, from C21 they ensure that having the help of a real estate agency is always an added value for any seller since they will be professionally advised on how to get the best out of the home they want to sell and what steps should be taken to Ensure this process in the correct, agile and most beneficial way for the property owner. Solvia's experts agree and point out that although the sale of a home can be done in a particular way, relying on the advice of professionals facilitates the process, saves time and ensures “the attainment of a sales transaction that satisfies all concerned parties". In this case, Solvia notes that it makes available a team of personal advisors.
Identify potential buyers. To avoid wasting time, it is important to detect which buyers really want and can acquire the property. Therefore, before continuing the relationship with a potential interested party, Solvia recommends knowing if you are in the first stage of searching for housing, if you have sufficient economic capacity for the acquisition, if you have already consulted with a banking entity the possible grant of a mortgage, if you intend to pay in cash, if you need to buy in a short period of time, if you have savings ...
Have a commercial vision to capture the buyer. A home is still a product for sale that requires a series of specific value proposals that capture the interest of a buyer. "The challenge will not only be to detect them, but also to work them (adapting the house) and know how to transmit them, both at the time of announcing it (description, photographs, videos ...), as well as in the visits", they point out from Solvia. Some attractions that can be exploited are: renovations and renovations carried out, energy efficiency, special provisions, lighting, location and nearby services, good relations with the neighborhood community, elevator availability ...
Know how to answer the questions of buying and selling of those interested. It is very common for a person who visits what he considers his future home to ask many questions related not only to the state and situation of the property, but also to the buying and selling process (taxes, legal procedures, mortgage issues, etc.). Although it is not necessary for the latter to answer the seller, they are very useful to establish the confidence of the interested party and increase the possibilities of sale.
The negotiation with the buyer. Once you have managed to capture the attention of a potential buyer and know your real motivation for purchase, it will be necessary to know your expectations for the negotiation. Providing solutions that facilitate the decision and having professional and personalized advice can make the difference between a deal and a well done deal.
Collect all the necessary documentation for the sale. When formalizing the contract of sale, the seller must provide, apart from his ID, the title deed and the simple note, the certificate of outstanding debt, the housing habitability cell, the community expenses, the receipts of supplies of the property, the Energy Efficiency Certificate, the urban qualification and the Certification of Technical Inspection of the Building (ITE). All of them are necessary to make the contract with the future buyer. Subsequently, the signature of the public deed of the property will be made before a notary, a document that, once it has been provided in the Property Registry, will certify the change of ownership.
Face transaction costs. Selling a home is not free. The seller must meet the costs of state (IRPF) and municipal capital gain (IBI), mortgage cancellation and processing of the mortgage cancellation process (if any), energy certificate, as well as the certificate of being up to date of community payments.
Fine tunning. Any detail counts and that is why it is essential for the owner to prepare the property in order for any prospective buyer to “enter his eyes” on his first prospecting visit. In this way, Century21 Spain advises to take care of cleanliness, order and even make a previous reform if necessary, they will always be points in favor. Likewise, every owner must present the deed of sale of the house and the data of the property registry. You must also keep the receipts of the Property Tax (IBI), the community fees and provide the status of the charges if you had them. In addition, it is advisable that the seller has prepared, in case it could be requested by the potential buyer, a plan of the house and its location, as well as a general and specific description of the property and the building itself.
What is better for me to buy a new house or renovate a second-hand one?
The purchase of second-hand homes is majority month by month. In the month of March, 81% of the sales were used housing
Source: www.elperiodico.com Autora: MARTA GRACIA
The decision to buy a home is one of the most important to take. Therefore, it is necessary to make a study before deciding on a property or another. You have to know in which area you want to buy the house, how many meters you need or if you want new or used housing. Currently, most of the homes purchased are used housing. Many of them must be reformed, so it is convenient to know which is better.
According to the latest data from the National Statistics Institute (INE), in March 42,649 sales transactions were carried out. 81.1% of these transmissions were made in used housing, that is, 34,604 second-hand homes. On the other hand, in the month of March the sale of 8,045 new homes was carried out.
Currently, "the issue of the rehabilitation of real estate is very fashionable," says María Alcázar, head of Development and new business of Casaktua, and explains that there are companies and television programs that sell that you no longer have to buy the house of your dreams, but you can make it yourself. "It is a blank paper that you can buy, it has become very fashionable for this," says the head of Casaktua.
Ferran Font, director of Estudios.com floors, explains that “a new home will always be more attractive at first, given that the buyer is reluctant to face tedious works. However, in certain locations, it is more important to bet on rehabilitating a second-hand house. Not only will the owner be completely at ease after the reform and it will have been revalued in the face of a future sale, but it is very likely that the farm is located in a consolidated neighborhood ”
María Alcázar says that, currently, the purchase of second-hand homes is at a "very interesting" time. However, they have to assess whether the value of the property will increase after the reform. "You have to evaluate the prices in the area, since it will not be the same to reform in a central neighborhood of Madrid, than in one of the periphery of Huesca," he says.
That is why he insists that yes, first you have to see how much that reform will cost you and if you have the money for it. “If you have it, it will be more profitable, that if you don't have it and you have to ask for financing you have to count on the interests that will be charged for that money,” he explains. In this way, Alcazar points out that the red line that must be taken at the time of a used home is that it has no structure problems "because there you are not going to get in."
However, reiterate that if you get the opportunity to buy a property in a good area, but in which you could not afford a new home, "it is a good opportunity." And remember that if that property does not have major problems, "if it is only a face lift or small works that are really the ones that give value to a property such as the kitchen or bathrooms there, no doubt ahead."
María Alcázar sums up that "if you know how to take a good opportunity and don't have big problems, it is cheaper to take a second-hand home and rehabilitate it." The head of Casaktua says that you are going to make a short-term return, "much more than what you would take from a house that you would buy now."
HOW MUCH DOES IT COST TO REFORM A HOUSING ACCORDING TO THE AREA?
According to flats.com, the houses that need a reform are 62,520 euros cheaper than those of new construction: 148,800 euros on average compared to 211,320 euros. Taking into account that the average amount of a comprehensive reform is 22,704 euros, this would save 39,816 euros. They ensure that a brand new house will always be more expensive, while the price of a property with decades behind it could be negotiated based on the degree of reform that had to be carried out.
The price of the type of new construction home has risen 5.45% compared to 2018. If we compare the price reached in 2017, the increase would be 10.75%. With regard to the housing used to reform, it has experienced a rebound of 5.55% compared to last year and 7.43% compared to two years ago. In this regard, it is important to note that the budget for reforms has increased 5.2% compared to the previous year, while the price of a comprehensive reform has also risen 5.95%, which balances the possibilities.
What should I consider if I buy a used house from a company or a bank?
Aspects such as ensuring that the seller is a representative of the company or knowing what taxes it is necessary to pay
Although home sales have slowed in recent months, due to the new mortgage law and the economic slowdown, the last quarter of the year is usually a good period to buy a home. And if you buy a flat from a company it is important that you consider aspects, such as making sure that the seller is a representative of the company or knowing what taxes you have to pay.
The Law Attic Law Firm details the key aspects below:
Check that the seller is the company representative
The Law attributes the representation of the company to the administrator based on how it is determined in the bylaws. But the company can also grant powers of representation to people with the consideration of distressed.
The advice offered by the law firm is that before the signing of the private sale contract, the buyer reviews the bylaws of the company, the deed of appointment of an administrator or the proxy, to verify that the company is validly represented. A note may also be requested from the commercial register to verify that the administrator continues to hold his position.
Check that there is agreement of the partners to sell the flat
Para vender una vivienda considerada activo esencial es necesario que los socios lo hayan acordado en junta general. Tiene tal consideración la vivienda cuyo importe supere el 25% del valor de los activos que figuren en el último balance aprobado por la mercantil, una exigencia que se introdujo en la Ley de Sociedades de Capital, tras la reforma del año 2014. Además, al margen del valor cuantitativo y aunque el valor no supere el 25% del total de bienes de la sociedad, el inmueble puede tener la consideración de activo esencial para poder venderse.
Legal Attic recommends that before signing the information is requested from the company or that the seller is requested a certificate stating that the property to be transmitted is not an essential asset.
Delivery to the company
The signing of a private contract of sale with delivery of money as a penitentiary deposit is a frequent formula, although it does not guarantee the buyer that the operation is carried out. The selling company may sell the flat to another person, but, in return, it must return the purchase delivered to the buyer in duplicate. In the event that the company does not deliver them in duplicate and declared insolvent, the buyer could lose the floor and money, having to claim the return of the amounts delivered to an insolvent company.
Legal Attic points out that it is possible to avoid this risk, by formalizing directly the sale before a notary. If such an option is not possible, the buyer can find out in the commercial register if the company that sells is solvent or has other assets. It would also be possible to sign the private contract by depositing a check for the amount of the deposit, at the notary where the deed is planned.
The act of real ownership of the selling company
This means that those partners with more than 25% participation in the selling company must identify themselves to formalize the sale. Companies created after the year 2010 in which the Law on the Prevention of Money Laundering came into force, already incorporate in their articles of incorporation the act of real ownership. If the selling company is prior, it will be necessary to have the minutes to be formalized before a notary. Said act of real ownership is easily obtained in notary.
Taxes to pay
First, the tax to be paid by the buyer for the purchase of the house is VAT of 10% in case the house is new (and 4% if the house is officially protected by special regime or public promotion) . And if what you buy is a business premises or a new office, the VAT rate is 21%.
But if it is second-hand, the transfer will be exempt from VAT and then you must pay the Property Transfer Tax (TPO).
Of course, if the one who buys is an entrepreneur or professional in the exercise of his activity, and is entitled to the total or partial deduction of VAT, it is possible to waive the exemption from this tax. This will ensure that the purchase is taxed by VAT instead of TPO, and in this way the tax paid can then be deducted, as Legal Attic remembers. In the event that the buyer has to pay VAT, he will be in charge of entering it into the Treasury, that is, it will not be the seller (for what is known as the “investment of the taxpayer”, referred to in article 84.1.2.e of Law 37/1992).
If the buyer had the right to deduct the VAT, in the declaration that he presents he will enter the VAT of the purchase on the one hand, and on the other hand he will deduct it, obtaining thus the neutrality of the tax, as they remember from Legal Attic.
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