What to do to save and buy a house.
Experts recommend not allocating more than 35% of monthly income to housing
Source: www.abc.es (pisos.com)
Having a home on property remains the goal of a good number of citizens. The security provided by having something tangible for the future means that many current tenants are considering the option of buying a property in 2020. The main obstacle to taking the final step is the lack of the previous savings needed to access a mortgage, It is around 20% of the price of the house. From flats.com we want to give you some tips to save and get financing next year:
1. Define a budget. Specifying the objective is essential. We must take account to know how much money we need to save. Keep in mind that experts recommend not allocating more than 35% of monthly income to housing. Thus, it would be easy to calculate our maximum budget and, therefore, how much we should save to access bank financing.
2. Start as soon as possible. The habit of saving must begin to grow even before shuffling the idea of buying a property. In fact, it is recommended that, at the time you have a regular salary, you start with this healthy routine. The 50/20/30 rule promotes the allocation of 50% for basic expenses, 30% for personnel and 20% for savings. If you have not anticipated, start now.
3. Goodbye to waste. Analyze your expenses and ask yourself what you can do without. It is always possible to spend less on supplies, insurance, leisure, and even in the shopping cart. It's about being aware of those little black holes of everyday life that diminish our ability to save: from eating out from home instead of cooking to a mobile rate that does not fit our real needs.
4. Technology as an ally. The digital age is on the saver's side. Today, there are many totally free apps that can help us design a budget, create piggy banks or meet our expenses. The latter are especially useful, since they keep a record of how much we spend and what. It is a valuable resource to keep our finances under control.
5. A separate account. There is nothing better than formalizing savings. To do this, the best we can do is open a new account in the bank dedicated exclusively to savings. This money, being separated from our checking account, we will avoid having it in our day to day. There are still entities with deposits that, although they do not generate great profitability, do not penalize the total or partial withdrawal of funds.
DO I HAVE TO NOTIFY MY COMMUNITY, IF I SELL MY FLAT?
Author: Vicent Selva (contributor to idealista news)
Selling a flat can be an arduous task. The process can be lengthened greatly from the moment the owner decides to launch it to the market until, finally, a buyer takes over it. However, it should be remembered that the procedures to be carried out do not end with the delivery of the key to the new owner. One of them, very important, especially for the seller, is to notify the community that the apartment has been sold.
It may seem obvious and, in fact, in small communities if someone decides to sell or transfer their property to another person it is unlikely that the operation will go unnoticed, especially if there are signs of moving, both who is leaving, and of who arrives However, in large communities, where a large number of neighbors live together, or if the selling party does not live there, it is more likely to happen. In any case, whether the neighbors realize it or not, it is necessary to notify the community of owners that the sale has been made.
This obligation arises from the provisions of art. 9.1.i) of the Horizontal Property Law, which reads as follows:
“They are obligations of each owner:
i) Communicate to those who exercise the functions of secretary of the community, by any means that allows proof of receipt, the change of ownership of the home or premises.
Anyone who fails to comply with this obligation will continue to respond to debts owed to the community accrued after the transfer jointly and severally with the new owner, without prejudice to the right of the latter to repeat on it ”.
Therefore, it is clear that failure to comply with this obligation can have serious consequences, since, if the seller does not make this notification, he will be obliged to pay the debts jointly with the community contracted by the new owner.
The norm forces to carry out this communication, although, on the other hand, it does not indicate neither the form nor the means by which it must be carried out. That is, it can be interpreted that any type of written notification is valid, without it being required to be reliable.
That is, a simple writing addressed to the secretary of the community, in which the sale of the home or premises is communicated, as well as the data of the new owner is sufficient to comply with the obligation imposed by the Horizontal Property Law. Of course, to avoid problems in the future, it is appropriate to do so in such a way that it can be demonstrated that we have complied with the obligation and that the notification has been carried out successfully. Therefore, you can choose to do it through a burofax, a telegram, a certified letter. Even an email to which the secretary has responded will be sufficient, as stated by the Provincial Court of Madrid in a ruling dated 18/07/2019. It is also possible to deliver it in person, but in this case it is important that we keep a signed copy by the secretary.
It is true that the art. 9.1), in its third paragraph it indicates some cases that would exempt the seller from the consequences, if applicable, of not complying with the mandatory notification:
“The provisions of the preceding paragraph shall not apply when any of the governing bodies established in article 13 has been aware of the change of ownership of the home or premises by any other means or by conclusive acts of the new owner, or when such transmission is notorious ”.
This paragraph is the one that can lead to doubts. Therefore, it is important to keep in mind that it means “conclusive acts” and “notorious transmission”.
By "conclusive acts" can be understood the fact that someone appears as the appearance as owner and occupant of the house and has been the recipient of notifications and agreements taken by the community (Judgment of the Provincial Court of Salamanca, Sec. 1. ª, 27/2004, of January 29); or that the community has admitted to the Board the new owner (Judgment of the Provincial Court of Valencia, Sec. 8th, 639/2004, of November 15)
Transmission that is notorious can be understood, for example, when the property has been acquired through a public auction (Judgment of the Provincial Court of León, Sec. 1.ª, 76/2005, of March 14); or if the community has taken an action to claim a debt to the new owner, so that, even if the notification by the previous one had not been made, this would show that the community knows who the new owner is so that the claim would not fit to the previous one (Judgment of the Provincial Court of Alicante, Sec. 5.ª, 413/2005, of November 17).
In spite of everything, without any kind of doubts, it is advisable to always make the corresponding notification, as provided in the standard. That way, sure, we will save any problems that might occur in the future.
REDECOR Inmobiliaria y Reformas, is an associate of MLS Elche (Association of Realtors of Elche)
3 more repeated mistakes when selling a house.
Javier Moronatti Fuente: www.businessinsider.es
Getting your home purchased is not always an easy task. But it is even more complicated to sell the property while satisfying the expectations that you have created or within the calculations you have in mind. Basically, with respect to two variables: the time frame - if you had determined it to be in a hurry - and the desired economic conditions.
Set the price of the house
Establishing how much the house or the apartment you want to get rid of is worth a key factor. Obviously, every seller aspires to obtain the maximum possible with the operation, so in many cases the temptation arises to ask too much money for good. Therefore, it is important to take into account the following factors listed by José Manuel Diestre, from Remax, to stipulate the most reasonable price.
The location is essential to find the monetary value of a property. "You have to consider issues such as transportation, services, commerce, leisure, green or sports areas, schools, etc.," said the expert.
The building, common areas, equipment or porter service are key aspects.
The state of conservation of the house and the works carried out - if any - are important to establish the price. If you are thinking of renovating a house to sell it, we discover the changes that are worth making.
The location of the property within the community - the height, whether it is interior or exterior, etc. - makes the money requested in exchange for the apartment greater or less.
The annexes, such as storage room or garage, also influence significantly.
The market and the competition of the moment. We must analyze both sales prices and those paid for the houses already transferred.
How much is the property worth? The market has the answer
On the other hand, Antonio Mañas, real estate agent of Keller Williams One, affects this last point. "The value of the house depends solely and exclusively on the market. It is not about what our property is worth, but what people are willing to pay for it. Of course, the state of conservation, qualities, location and benefits they influence, but the one that will determine the final value of our asset will always be the market, "he says.
The 3 most repeated mistakes when setting the sale price of a home
With the help of 3 experts we explain two mistakes that are repeated over and over again in the real estate market and that can be an obstacle when trying to sell your property.
"Setting an incorrect price for the property is a very common mistake. It is not about setting the highest market price to earn money in abundance, but it is clear that we are not going to set a sale price so low that it means losing money" , says Javier Torrens, director of offices at Casas MT.
"A good real estate agent will recommend you to hire an appraiser so that you can know the real value of your home from aspects such as location, surface area, the state in which it is located, etc. If you want to attract buyers, it is advisable to properly assess your house through a professional appraiser who teams up with your real estate agent to do an exhaustive market study and the area in which your property is located, "said the specialist.
Value the house from a sentimental perspective
José Manuel Diestre reveals that, according to his experience, "there are several mistakes that owners usually make when setting the price. For example, think only of the money they need, what they have spent at home or depending on the price from which they are going to buy, "he shares.
"But a very common mistake - this expert specifies - is to value it based on the feelings that have towards the house, of the lived experiences, of the memories ... That makes lose the necessary objectivity", concludes. In that sense, here you can discover what housing can be purchased for 150,000 euros.
The already named Antonio Mañas influences that idea about the most typical mistakes when trying to sell the property: "To think that housing is worth more than it really is. We should not mix feelings or needs when putting a price on a property to its subsequent sale and be totally objective, "he warns.
Inflate the price of the house
To this, this real estate agent adds that "setting a high price, can often mean ending up selling below its market value. A house with a higher price than the market, will help sell those of competitors" , he says.
"Buyers seek to filter by price: if a house is outside the range of the area, buyers will probably not even see the ad and so many opportunities will be lost. The property will end up losing interest to buyers because they will think that if it takes a long time in the market, it's because something bad happens with her", Antonio Mañas reasons.
As if that were not enough, problems could arise with the appraisal. "If someone were willing to pay a price above the market, it is most likely that the bank did not grant the loan," warns the professional.
Similarly, it is the Remax specialist, who flatly rejects the amount requested by the property. "From my point of view, it is one of the biggest and most common mistakes in the sector. In the end the price is what it is and we will reach it whether we put a price below the market, as if we put it above. The difference is that, having a high price, the property will be much less attractive in the eyes of the final buyer, which translates into less potential buyers and more time in the market, a time that is also money and that many times We forget. Put a house at the right price and you will see how no one bargains", he advises.
3 tips to save on home acquisition costs, according to the Valuation Institute
To save thousands of euros in the purchase of a home, it is recommended: compare appraisal companies, sign a mortgage "without commissions" or take advantage of the real estate discount campaigns, especially on holidays such as Black Friday
After the entry into force of a Decree Law in November 2018 and the Regulatory Law of Real Estate Credit Contracts, in June 2019, several of the costs that were previously borne by the buyer - Documented Legal Act Tax, would notice, registration and management - have become the responsibility of the banking entity. In this way, there are three the number of expenses that the person who is interested in buying a home must face: appraisal, opening commission and taxes.
While it is true that the number of taxes payable has been reduced, the sum of their amounts continues to be a strong outlay for buyers, who wish to minimize spending. One of the most common ways to get real estate at the best possible price is to take advantage of the rebates, in the same way that would be done when buying any other asset ... and that is that in the brick world there are also discounts.
Thus, when purchasing a home, the buyer must bear the cost of the property as well as other expenses related to the acquisition. Valuation Institute explains how to minimize all these expenses:
Check the prices of the different appraisal entities, it can mean savings of up to 20%
One of the essential requirements to formalize a mortgage is the appraisal report. This document, prepared by a qualified technician, determines the real value of the property, considering factors such as the characteristics of the home and the market situation. For this document to be accepted by financial institutions, it is essential that it be issued by an appraiser approved by the Bank of Spain.
The rates of a mortgage appraisal are normally similar, however, they are not officially established, so each appraisal company can establish the amount and reductions it deems appropriate. It is advisable to check the prices of several companies before requesting pricing and visit their online spaces for discounts. The Valuation Institute appraiser, for example, offers a reduction of up to 20% in the online contracting of an official appraisal service.
Use online comparators to get the best mortgage loan
The opening commission on mortgage loans is one of those expenses whose application has been put on trial in recent times. At the beginning of 2019, the Supreme Court denied that it was abusive and admitted its validity, although, even so, many banks have decided not to charge it. Therefore, it is recommended that before signing the mortgage, an investigation is made to find out which banks charge the opening commission and which do not, since it can imply a percentage of up to 1.5% of the capital that is available for the acquisition.
A good way to know which mortgage loans do not involve commissions is to make a comparison study through the online comparators available. This step is highly recommended since, signing a mortgage without opening commission can save several thousand euros, depending on the total amount of the property.
In addition, the mortgages qualified “without commissions”, renounce not only the collection of the opening rate, but also the collection of some possible subsequent services such as early amortization, subrogation, novation or the change from variable to fixed.
Take advantage of special brick promotions, such as Black Friday this 29/11
Just as the times of sales are used to buy furniture or decoration for houses, in the real estate world there are also offers. Although the same trend of winter sales and summer sales is not followed, many real estate portals, agencies and even banks carry out discount campaigns in their offer of flats, garages, storage rooms, premises and even industrial warehouses at prices reduced for a specific period of time. This year, the Black Friday of the brick takes special relevance, and this is the 29th of November the annual day of the offers.
Many real estate agents have already begun to announce sales of 20%, 30% or 40% in real estate throughout Spain, so now more than ever, it's time to get good opportunities. The good thing is that in this market the offers are not limited to a single day, but generally extend for a month or a period of time around the key date.
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