The decision to buy one type of home or another is personal and depends on the circumstances and tastes of each person. But, generally, second-hand homes require some type of renovation to make them comfortable for the future owner, either because they have an older layout and design, they have higher energy consumption than new constructions and they may have some type of defect. or tare.
On the other hand, new construction homes have been built under the standards set by the current market and, in theory, are free of defects and defects.
The newly built houses have large surfaces, rooms for teleworking, outdoor spaces (mainly terraces and gardens), common areas of all types and energy efficiency measures, among many other aspects.
Perhaps the most important thing is that the new construction home facilitates initial payments during the approximately two years that construction lasts, in such a way that the client can gradually advance 20% of the initial price of the home and, later , access a mortgage for the remaining 80%. In the case of a second-hand home, the disbursement must be made immediately.
Steps to buy a new construction home
In general, these are the common steps to buying a new construction home:
Set the budget
It may be the most important step: knowing how much budget you have to buy your new home. The money you have saved or what you can get comes into play here.
Depending on what you have, you will need a larger or smaller mortgage amount. Nowadays, banks usually give around 80% of the value of the home, although there are entities that, depending on the profile, the guarantee and other issues, can grant up to 100%. To this percentage we would have to add the expenses and taxes of the purchase.
Ideally, the monthly payment should never exceed 35-40% of the family’s monthly net income. That is, a family with an average income of 2,500 euros per month should not have a payment of more than 1,000 euros. That is why it is important to choose a mortgage that cannot be a problem in the future.
Find the right house
The ideal is that you search according to your needs, your possibilities and make as many visits as possible. To do this, having a trusted real estate agent can make the difference.
Choose a recommended mortgage
The first step is to know if the development in which we buy has a promoter loan, that is, if the promoter requested a loan to finance the work to which we can now subrogate. It is essential and we can achieve great savings if we compare the best offers on the market and get the banks to compete among themselves. It is also very important to know all the details of these offers (interest rate, commissions…)
Since the entry into force of the latest mortgage law, there are no differences in expenses between subrogating the loan from the promoter bank or contracting the mortgage from another entity, except for the cost of the appraisal. This cost is borne by the buyer and ranges between 250 and 600 euros, depending on the entity that carries it out.
In general, there are three mortgages:
- Fixed mortgage: One to which the same interest rate is applied throughout the life of the loan, even if market interest rates rise or fall.
- Variable mortgage: One in which the amount of the monthly payments varies according to a reference index (the most common is that this index is the Euribor).
- Mixed mortgage: The interest rate remains fixed for an initial period of more than one year and then is variable.
Request all possible information from the promoter
The promoter is obliged by law to have a series of data and documents about the work. Some will be available from the beginning, but others will be generated as you progress.
The more information you have, the better. In this way, unforeseen events and harmful situations can be avoided. The most important data that you should request are the following:
- Quality report of the house for sale: It is a document that details the materials that will be used for the construction of the home, as well as the qualities of the finishes or surfaces of each area.
- Ask for the plans of the house to find out information such as the surfaces of the rooms, the orientation of the house, the arrangement of the windows and all the available equipment.
- The price and payment method: It is important to transparently define the delivery and payment terms, as well as how they should be carried out.
- Review the contract: Although it may seem obvious, it is essential to analyze the contracts to purchase homes for sale in detail, to ensure that there are no abusive clauses. For this, it is best to consult with an expert in the real estate sector who knows the characteristics that a contract of this type must have. It is advisable to include a clause with penalties in case the developer fails to comply with the delivery deadlines related to the home.
Know the warranty
According to the Building Planning Law (LOE), new construction homes must offer coverage for labor and materials to cover any damage or hidden defect that may have arisen in the construction of the property:
- 10 years for structural defects (beams, pillars, floors, foundations, etc.). This falls within the ten-year insurance, without which, the developer cannot transfer the home.
- Three years for habitability defects.
- One year for defects in finishes.
Taxes and expenses
These are the expenses and taxes that you will have to face when purchasing a new home:
- VAT: In 2023 it is 10%, except in the Canary Islands, which is 6,5%.
- Documented Legal Acts (AJD): This tax is borne by the buyer and depends on each autonomous community.
- Opening commission: It can reach up to 2% of the capital loaned for the mortgage, although the percentage may vary, or may not even be charged.
Close the operation
If you have already found your next home, now it’s time to close the transaction. These are the contracts that you must sign as the process progresses:
- Deposit contract: It is the reservation of the home and involves the disbursement of a certain amount of money. Failure to comply with this agreement carries penalties for both parties. This contract establishes a payment method and a maximum period in which to disburse the remaining amount of the operation.
- Purchase and sale contract: The client must contribute a disbursement close to 10% of the price of the home. In the event that one of the parties terminates the purchase and sale contract, a series of penalties are agreed upon for both parties as set out in the document.
- Deed of sale: The buyer and the seller sign their signature on the deed of sale before a notary. The developer makes the sale of the property official to the buyer.