Buying a flat in Oropesa del Mar, is it a good time?
Buying a home is an important and thoughtful decision that directly affects our personal finances. In about a week, many will begin to enjoy the usual good Easter weather and the most privileged will do so from their apartment on the beachfront.
In this article, we will analyze four relevant factors that influence the decision to buy a property in Oropesa del Mar – Cabanes and provide valuable information to help you decide if this is the right time for you.
Factors that influence buying a home
The real estate market in Spain
In recent years, the real estate market in Spain has experienced significant growth.
According to the Idealista price report, the price per square meter in the Valencian Community is worth 14.4% more than last year. And its tendency is to continue increasing.
So those who wait to invest in housing will pay a higher price for the same properties than those who have pioneered the same investment.
Buy apartment in Oropesa del Mar - Cabanes taking into account the current financing
According to Datos Macro and the newspaper Expansión, the Euribor has closed the month of February at 3.534%, that is, 0.197 points more than the previous month, in which it stood at 3.337%.
The Euribor is the index to which most mortgages in Spain are referenced.
This quote assumes that an average mortgage, which in Spain is 120,000 euros over 20 years, which is reviewed in February will pay 214.7 euros more in its monthly installment, which will mean a difference of €2,576 per year, since the Euribor It has risen 3,869 points compared to February 2022.
Thanks to our current purchase conditions, the rise in interest on variable mortgages will not be a problem for you. Contact us and we'll tell you why.
The term of the mortgage
The mortgage term determines the amount of time you have to pay off the mortgage. Currently, mortgage terms in Spain are relatively long, which means that monthly payments are lower. However, it's important to note that a longer mortgage term means you'll pay more interest in the long run.
Property value can be affected by many factors, including location, quality of construction, and the state of the real estate market.
While it's true that property values can fluctuate over time, it's important to keep in mind that buying a property in a good location and in good condition can be a solid long-term investment.
According to the data compiled by the Idealista real estate portal, the gross yield of holiday rentals in the coastal areas of Spain has increased slightly in recent years, standing at 7.5% per year in 2021.
In summary, if you are considering buying an apartment in Oropesa del Mar or Cabanes, this is a good time to do it. The real estate market in Spain is booming and mortgage interest rates are low.
We tell you what are the common expenses associated with buying a house if you are determined to buy an apartment on the Beachfront.
Common expenses associated with buying a home:
Along with the cost of buying an apartment in Oropesa del Mar or Cabanes (the apartment itself), there are other expenses associated with buying a home.
Here are some of the common expenses you can expect:
Home Purchase Taxes
One of the biggest expenses associated with buying a home is the purchase tax. The amount of taxes varies depending on where the house is located and its price. Therefore, it is important to research the tax for the area where the house you want to buy is located.
In the Valencian Community ITP that is applied is 10% in general. In addition, there are two reduced tax rates:
- Of the 8% and will be applied for the acquisition of housing of public protection of general regime or for the first habitual residence of young people under 35 years of age.
- 4% applies to VPOs, large families with a joint income of less than €45,000 and the habitual residence of a physically or sensory disabled person, with a degree of disability equal to or greater than 65%, or mentally, with a degree of disability equal to or higher than 33%
Mortgage expenses are the expenses associated with the mortgage loan. These include account set-up fees, attorney fees, appraisal fees, and real estate broker fees.
Notary fees include the deed and registration of the property, the registration of the mortgage and the cost of the notary services.
At Inseryal by Marina d'Or, our writing team advises each client individually on the steps to follow and the necessary documentation before the visit to the notary.
Registration is the process by which property is registered in your name. The registration fees include the registration fee and administration costs.
How to save money on home buying expenses
Now that you know the common expenses associated with buying a home, let's look at how you can save money on each of these expenses.
Saving on mortgage expenses
To save on mortgage expenses, you can compare different mortgage loan offers. Look for a low interest rate and try to avoid account set-up fees and attorney costs. If you have good credit, you may be able to negotiate a better offer.
Saving on notary fees
Notary fees are a fixed expense, but there are still some things you can do to save on this expense. First of all, make sure you work with a notary that you trust and that offers reasonable prices. Our team offers you a trusted notary office with which the company has been working for years.
Second, make sure you review all documents before signing them to avoid mistakes that can increase costs. Our writing team reviews your documentation to avoid surprises and errors.