Expenses to consider when buying a home

Buying a home is one of the most important steps in a person's life. However, beyond the property's sale price, there are a number of additional expenses that are essential to consider in order to avoid surprises and plan your budget effectively.

In this article, Gogo Estates explains the main costs associated with buying a property, whether it's a new or second-hand home.

? 1. Notary and registration fees

Each sale must be formalized through a public deed before a notary.

Notary fees: these vary depending on the value of the property, but usually represent between 0.1% and 0.5% of the price.

Property registration: once the deed is signed, it must be registered, which generates an additional cost of between 300 and 600 euros, approximately.

? 2. Taxes associated with the purchase

Taxes vary depending on the type of housing and the autonomous community, but the main ones are:

Property Transfer Tax (ITP): This tax is paid when you buy a second-hand property. It usually ranges between 6% and 10% of the price.

VAT (Value Added Tax): This applies if the property is new. In Spain, it is 10%, although it can be 4% for subsidized housing.

Documented Legal Acts (AJD): this tax is paid for formalizing the public deed and varies between 0.5% and 1.5% depending on the autonomous community.

? 3. Mortgage expenses (if you finance the purchase)

If you are going to apply for a mortgage loan, you should consider some additional expenses:

Property appraisal: usually costs between 250 and 600 euros and is mandatory for the bank to determine the real value of the property.

Bank fees: although many institutions have already eliminated them, there may still be opening or management fees.

Home insurance: lenders usually require it as a condition for the mortgage.

? Gogo Estates tip: compare between several banks and carefully review the APR, which includes all the real costs of the loan.

? 4. Community expenses and maintenance

Once you become the owner, you will need to assume:

Community fee: if the property belongs to a building or housing development.

IBI (Property Tax): municipal tax that is paid annually.

Utilities (water, electricity, gas, internet): if the property was closed, you may have to pay for new connections or contract transfers.

Renovations or furniture: especially if the house is old or you want to adapt it to your taste.

? 5. Professional fees

Other professionals are also involved in some operations:

Real estate agency: their fees vary, but are usually between 3% and 5% of the sale price.

Agency services: if the purchase is made through a mortgage, the bank can appoint an agency to process the paperwork (around 200 to 400 euros).

✅ Conclusion

Buying a home involves much more than just paying the sale price. Between taxes, notary fees, registration fees, appraisal fees, and other expenses, the additional outlay can range from 10% to 15% of the property's value.

Therefore, before taking the plunge, it is advisable to create a realistic budget and seek advice from real estate professionals like Gogo Estates, who will guide you through each stage of the process and help you make the best decision.

? Are you thinking about buying a home?
At Gogo Estates we help you find the ideal property and offer a complete real estate advisory service so you can buy with complete security and without surprises.

? Visit us at www.gogoestates.com or contact our advisor directly:

? Ronald Goosen
? Email: hola@gogoestates.com
? Phone / WhatsApp: 615 282 15

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