How to buy home as an investment in Costa Blanca
Fulfilling the dream of owning your own home is a considerable investment that you are sometimes not willing to pay for. However, the best thing you can do to use your life savings is to sign a real estate contract. If you want to invest in a property on the Costa Blanca or anywhere in Spain, here we help you to achieve it.
Tips for learning how to buy a home as an investment on the Costa Blanca
Deciding to buy a home carries many questions in its back. Buying a new built home is different from buying a resale property. Hence the importance of having a list of useful tips to help you make the best decision. In addition, with the guidance we provide, you can learn how to buy a home as an investment in Costa Blanca at a reasonable price and with a fair and affordable contract.
New construction - Apartment / Flat - Pilar de la Horadada
Know the steps before you buy
Before signing a contract it is important to determine the amount of money you have to spend. You should also be aware of the way you pay (in this case, through an investment). Of course, you have to keep in mind the kind of home you need or want. This last one is very important when selecting the seller.
Real estate agencies are an excellent option for buying. They attract thousands of sellers who wish to find a person like you. They will help you get to know all the details of the house, neighbourhood and the neighbours. Also, they will inform you about the potential charges on the property.
How much can you pay for a house?
It's not how much you're willing to pay, but rather how much you have available to spend. While this point is obvious, many people fall in love with properties that are out of their reach and end up missing out on better opportunities that are more in line with their budget.
Therefore, it is necessary for you as a buyer to be foresighted and make the corresponding calculations according to your possibilities. Consequently, you can take into account a rule for this question: the capacity of indebtedness.
Debt capacity is based on your ability to pay monthly instalments. It is calculated on the basis of your net monthly income. In the real estate sector, it is recommended not to exceed 35% of the basic salary in order to achieve the planned objectives.
What are the expenses for buying a house?
It is important to point out that a large part of the expenses corresponding to the process of buying and selling a flat is borne by the buyer. Of course, these can change according to the autonomous community in which the property is (Alicante, Torrevieja, Orihuela, Murcia, Altea, Benidorm).
Then, before choosing a property, you should ask the real estate agent about the mortgage costs that include, appraisal, notary, insurance, opening commission and more. You should also know the taxes of documented legal acts or for patrimonial transfers, VAT, among others.
However, there are also common expenses such as registration, agency and notary that will be the real estate that makes the calculation to make the job easier. This point is important because in great part the calculations will depend on if the house is new or second hand.
How to calculate the price of a house?
How will you know if the property you want to buy has a fair price? Although on the Internet we find thousands of simulators that allow us to calculate the price of a flat, they are not always accurate in this sense.
If you have thought about selling, follow this link where we teach you how to value or appraise a house in Aliante.
The value of a property is determined by the appraisal. However, you can have an idea of the estimable price according to two points:
Average sales value by province
The average sales value per square metre will depend on the province. Valuations are carried out by institutions accredited by the Bank of Spain. According to this, quarterly reports are issued on the price per square metre of the properties in the area.
Then, we talk about statistics of the properties sold in the last quarter. That way you will have an estimate of how much the property you want to buy costs. Of course, buying a home in Madrid or Barcelona is not the same as buying a home in other less central communities such as Orihuela or Benidorm.
Average Sale Value per Neighbourhood
In this case, the valuation calculation is carried out according to a comparison method. Broadly speaking, it consists of collecting the price of at least 6 properties that are for sale in the Neighborhood and comparing them with the property you want to purchase.
Of course, these properties must have the same amount of square meters or nearby, as well as similar characteristics to the house to buy. The condition of the house, the age of the building and the height of the floor are then taken into account in order to begin the comparative search.
Keys to buying a home successfully on the Costa Blanca
Many times buyers come to our real estate with some data they have researched. For example, they already know the state of the house, if it needs reforms, how are the facilities and carpentry. However, these are not always objective and valid data to make a decision. So you always need help from a market expert.
We always recommend to investigate the environment as well, it is very important. This factor is essential to know what kind of life you will have in the area. In this way you will also be able to determine the possible negative effects that are not perceived in a single visit. For example, disturbing noises, pollution, construction works... etc.
Other things to keep in mind when buying a house are the services nearby. Are there hospitals, pharmacies, schools, public transport or supermarkets nearby? Without a doubt they are very useful elements. In addition, they are aspects that can increase the cost of the property you want to buy.
I recommend that you ask about the charges on the property. If you want a property without economic charges you will have to request the certificate of community, document that certifies that the housing is up to date of all its payments. Also you need the receipt of satisfied urban contribution, the copy is requested in the municipal treasury ;)
Following these tips on how to buy a property as an investment in the Costa Blanca by your own means will help you not to fall into scams or pay too high a price for a property. The aim is to make the best investment of your life by buying a property in Spain.
But if you want to have an expert real estate agency in Alicante and the entire Costa Blanca, don't hesitate to contact our real estate agents in Torrevieja.
Calle Maria Parodi No. 2
Torrevieja 03181 (Alicante).
(+34) 671 200 307 · (+34) 966 056 676