Planning your Purchase Costs
Here we give you an in depth breakdown on the costs you should expect to pay when purchasing an apartment, villa or house for sale in Benalmadena. We will explain this in detail to include mortgage costs also.
Before purchasing here, it would probably be useful for you to know the costs in purchasing a property . The following breakdown is based on the purchase of a resale property as the purchase tax applicable is referred to ITP and is not IVA (vat) as when purchasing a brand new property. Firstly in relation to the mortgage, the banks are really quite difficult. They use to give non-residents a mortgage of 70%, nowadays I believe they prefer to lend on the 60% level.
Also to note, at the time of this publication the ITP purchase tax rates (applicable to resale properties) are as follows:
Below 400.000€ – 8% tax rate
Between 400.000€ and 700.000€ – 9% tax rate applicable
Above 700.000€ – 10% tax rate applicable
NOTE:BRAND new properties have IVA (VAT) applicable not ITP therefore rate at time of publication is 4% where this increases to 10% in 2013.
If we take for example purchase of a property at 200.000€.
Lets calculate the purchase costs first.
Purchase tax = 8% = 16.000€
Notary & Land Registry = 1.700€ aprox
Lawyers Fees = 2.360€ aprox
These Purchase costs = 20.060€
Mortgage Costs! – Consider this too
The bank will lend according to the purchase price / valuation, sometimes it may be the lower of these figures. Therefore, assuming the the valuation reaches a minimum of 200.000€, the bank will lend 60% of this, being 120.000€. They will normally charge an opening commission (up to 1%) and also have Notary /land registry fees associated with the mortgage deed, as well as gestoria (admin charge) Therefore the costs of the mortgage may be around 2.000€ -2.500€.
So the Total Purchase Costs with a mortgage based on Property of 200.000€ may be around 22.560€
Purchase Price = 200.000€
Mortgage = 120.000€
Pending = 80.000€
Plus Costs in Purchase = 22.560€
Therefore funds needed will be 80.000€ + 22.560€ = 102,560€
Please note, the figures above would need to be confirmed via your bank of choice and lawyer. There may be banks that offer a higher percentage but best to assume the lower rate.
In addition to the above the banks will request proof of employment/salary , bank statements etc to assess the risk in lending.
If you have any questions on the above please feel free to make a querie and i will answer as best i can.
Let me know your plans or thoughts, perhaps feedback on your property requirements in order to select other possibilities, and I will do my best to help with maximum clarity in a safe purchase. Look forward to your reply.