Alicante Estate Agents
Other expenses you will have to pay if you have a home in Spain
Apart from the mortgage, there are other expenses derived from a property that all landlords have to pay.
The purchase of housing has increased in 2016 by 13.6% according to INE data. Is it an indication that we have recovered from the crisis? Are the buyers foolish who want to live beyond their means? Has the mortgage loan facility been opened from the bank? The causes, motives and consequences of the decision to buy more than 400,000 houses during the past year are diverse.
This year there will also be people buying houses and real estate to be sold. Future homeowners, in addition to the price of the home or mortgage conditions if any, will also have to value other expenses related to having a home.
These will be the expenses derived from the use and maintenance of common spaces. If your home is part of a shared space, it is usually a flat, there will be expenses that must be faced by each owner. There are several ways to manage community expenses, but it is usually done on a monthly basis.
The most common expenses in a community of neighbours are those of light, water, insurance and those for small repairs. If in your neighbourhood a community of owners has been constituted, the Horizontal Property Law in its article 9.1, says that it is necessary to allocate 5% of the budget to contingencies.
If it is a small community with little maintenance, it may not be a significant figure to rule out housing. However, there are communities where this spending can exceed 100 € per month or even be higher than 200 €. These figures usually occur in communities where there are added services (swimming pool, sports areas, central heating ...). In these cases, it can play an important role in the purchase decision.
The IBI is the property tax that each City Council charges the owners of flats, houses, garages, premises... It is a tax that is charged for the simple fact of owning a property.
There are some exceptions. Properties that do not pay IBI are those owned by the State, communities or local entities intended to preserve security or education. There are also other exceptions, but for one in particular, the law contemplated and that may cause IBI not to pay is to live in a property classified as historical heritage
The cost will vary depending on the City and the characteristics of the property. It is possible to know what the IBI of a property will suppose consulting the cadastre. This is an annual expense that can make a significant difference from one building to another.
A dwelling in which life is made is going to require maintenance, however careful its owner may be. It is convenient to make an estimate of how much this expense will incur each year, to provide for a reserve fund to keep housing in full condition. Needless to say, the maintenance of an apartment of 60 square meters will not be the same as that of a house with garden.
The garbage rate is a tax that depends on the municipalities and each has its own tariffs. This cost is accounted for by the collection of waste from homes or premises and the whole process until disposal.
The cost of the garbage rate can be asked in the city hall or a neighbour. It is also important to know if it is included in community expenses.
Securing the property in which you are going to live means being covered by contingencies and avoiding extra expenses that destroy a monthly or even annual budget. Knowing the price of home insurance before the purchase is as simple as asking for a quote from an insurer. There may be enough difference between insurers and hedges, so it would not hurt to ask several options in several companies.
If it is a floor make sure you do not pay for coverages that already cover the insurance of the neighbourhood community.
Complete Spanish Property, Alicante estate agents.
Whether you are seeking a new build property or a resale, please contact Complete Spanish Property. We will gladly help you with everything you need. We offer an individual and personalised service throughout the buying process, from the initial visit of the properties through to completion and we also have a great after sales service.
Complete Spanish Property provides a relaxed outlook to the Spanish property market, to ensure an enjoyable experience for all of our client´s. We are passionate about Spain and property and this passion together with our integrity and customer service allow us to fulfil our client´s expectations.