1. ESTIMATED PRICE
The first thing before buying a House is to decide an estimated budget.
The amount that must be setting aside every month for the purchase of a house should not exceed 40% of your monthly net income.
· Divide your annual net income between 12.
· Calculate 40% of your monthly income (by multiplying it by 0.4): that would be the "ideal monthly payment" of your mortgage.
From this "ideal monthly payment" you can calculate the total price of a mortgage you should request.
You can also add the money you have saved to the mortgage.
Besides, you should keep in mind that there are extra fees for the purchase of a house that will be around 10% to 12% of the price.
These expenses must be paid at the beginning and, therefore, they must be added to the sale price, considering the highest cost of acquisition.
The amount of the mortgage, plus your savings, would be the price of the home that you have to search (including the extra fees).
2. EVALUATING THE AREA
When considering objective criteria, you should assess the following:
1. Local transportation from or to work. This can help you to save a lot of time and money.
2. Stores, food service, and entertainment centres.
3. Health services.
4. Universities, schools and kindergartens, if you have children.
5. Parking situation.
6. Leisure, sports and outdoor activities.
7. Developing areas and public buildings can benefit or harm your house and its environment. The town hall should be able to facilitate this information.
3. DECIDE THE AREA
If you have decided on the area and have an approximate price of the house you want to buy, you can search with more chances of success. The possibilities are many: magazines specialized in offering real estate, classified ads, real estate supplements of newspapers, local or regional services, real estate websites, making a survey of the area, or attending a real estate agency.
A very good option is to talk to a real estate agent, who will inform you of accurate prices in the area, as well as of its important features. This agent will also give you advice on how convenient a transaction will be and will also help you with all the paperwork involved.
The assistance of an agent will not make the experience more expensive for you since his services are paid by the owner.
Keep in mind that the real estate agent can save you a lot of useless effort and problems since a real estate agency of prestige will not dare intervene in an operation in which one of parties will not have benefits… If you are able to clearly convey your needs and the type of home you are looking for, a good professional intervention ensures your success.
4. SURFACE OF HOUSING
The surface of the housing is one of the most important features, although it is convenient to clarify the terminology used more frequently.
Built Surface (Square meters built): it is the surface of the housing including all elements, such as walls, beams and terraces. It is usually the data reflected in the plans of the housing.
Floorspace (Square meters to use): it is the total area minus the thickness of the walls, beams,... it Is usually around a 15% less than the surface built. In the case of the terraces, if they are open, it is considered half of its surface in the calculation of the surface to be used.
Total or computable surface: it is the built surface to which the share of the common elements is added. They are called common use spaces shared by all neighbours, the portal, the stairs, the gardens... It is what normally defines the share of the house in the community charges of a flat and it is the basis of property valuation.
5. CHARACTERISTICS OF HOUSE
When you're in front of your possible future home, note among others the following aspects:
Space and the general distribution of the house: number of bedrooms and bathrooms, exterior windows in rooms, corridors, halls, fitted wardrobes, storage rooms and other storage spaces.
The orientation of the house: The exterior houses receive normally more natural light, the interiors are often more quiet. Those oriented to the inside of a block are normally silent. . Houses, oriented to the south, are usually valued higher because of the quality and quantity of natural light.
The building quality and finishes are a guarantee of safety and strength.
The state of maintenance of the self and common elements: structure of the building and any cracks or humidity.
Water circuit: check that the taps can be opened simultaneously without losing water flow. And the hot water system it is adapted to what you need.
The gas system: check if it is natural gas, city gas or butane and if the installation accomplishes with official regulations. If this is not correct, the company will require you to make the necessary changes.
Electricity: check plugs for appliances, heating, air conditioning and make sure they are grounded and safe.
The type of heating: check if it exits and what type it is; electric, central air or individual.
Air conditioning or heat pump: check if it is preinstalled or installed and if the system is individual or centralized. Also check if the power is suitable for the m2 and the orientation of the room to be conditioned.
Doors and windows: they should provide light, ventilation, visibility and thermal and acoustic insulation for comfort and energy savings.
6. THE GARAGE
The garage is another important aspect that may influence the choice of the house.
Keep in mind:
1. Access easiness to the garage: entrance, opening system...
2. Dimensions of the place and use easiness.
3. Direct access from the garage to the house.
The garage is also a building, it is a space with urban characteristics and a property for the purposes of the Registration of the property. The garage place can be found in two different legal situations:
1. It can be a joined section to the house. In this case, being the owner of the home it means to be the owner of the garage place. Usually, in this case, we find in the registry of property a single inscription referred to the house and to the garage place.
2. It can be an independent registered property therefore the purchase must be done separately. With the purpose of saving costs, you can use the same notarized document for the transaction, specifying both the purchase of the house and the garage. In the registry, however, there will be two entries, one for each property.
Note: If the purchase is being made through a Real State Agent, he will be the person who can inform you of the house status, formalities and documentation that you must provide or must be provided to you. Otherwise you should be informed about the compulsory paperwork needed to ensure your success.
7. THE TOWN HALL
An important point is to check the situation of the house in urban terms. This means to make sure that future development plans are expected to be approved, under public consultation or performance may affect your house or to its environment by changing the circumstances that influence your decision.
8. THE REGISTRATION OF PROPERTY
It is a file of public and official character where all acts and contracts related to a property and other property rights are registered.
The Registry identifies who is the current owner and if the property is has a mortgage or some other conditions , such as law seizure, usufruct right, leases, purchase options, etc.
You must make sure that the property is free of charge, which means that it has all taxes, fees etc currently paid.
If the property has a mortgage, the owner must pay it financially and in the registry before signing it.
9. RESIDENTS ASSOCIATIONS
You must request the administrator of the property or the residents association the certificate attesting that the house has all the payments to the community done correctly.
The notary should state that such certificate is presented. This will prevent delinquent owners to sell their property without paying these debts.
Find out if there is provided distribution of extraordinary expenses, some work or rehabilitation, elevator, front of the building, etc. which causes future notarized.
You must also keep in mind the monthly community expenses and the number of neighbours.
10. TAXES AND THE HOUSING
In the transmission of a house, taxes are collected from the State Administration, Regional Administration and Local Government. It is therefore necessary to seek advice from a professional who can inform you of the costs.
11. OTHER DOCUMENTATION THAT REVIEWS THE REAL ESTATE AGENCY BEFORE FORMALIZING THE PURCHASE
1. Title of ownership of the transferor.
2. Tax Situation (in Spanish IBI)
3. Community Association stating that the seller has paid all the community fees.
4. Ownership and fees situation of the house.
5. Situation regarding supply services.
6. Technical Building Inspection, regulates the conservation of buildings. Mandatory in some Autonomous Communities.
If you buy a house in promotion, the information available varies slightly as there is no residents association, usually it will be made once all the houses have an owner.
7. Original drawing of the property and the house.
8. Description of the house: living area, services and supplies, common areas, security measures, etc.
9. Quality standards.
10. Data Property registration.
11. Contract with its general and special conditions (price, payment, delivery ...).