Purchase Costs

Old Feb 17th 2006, 7:40 am
  #1  
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Default Purchase Costs

Hi all,much written on the net etc about purchase costs and add ons.
Can anyone advise what the likely add ons are and any to look out for that are actually shall we say added on when not really required.
Are there any things on this side which give away if someone is trying to scam you?
Have one example of friends who purchased near Alicante who had an agent that said they called get IVA % down to 5% they steered clear as they felt uneasy by this and I wondered if this is a tell tell sign of something dodgy?
We plan to rent anyway for at least 12 months but I am trying to get a fact file together.
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Old Feb 18th 2006, 11:25 am
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Default Re: Purchase Costs

Originally Posted by gazzpfc
Hi all,much written on the net etc about purchase costs and add ons.
Can anyone advise what the likely add ons are and any to look out for that are actually shall we say added on when not really required.
Are there any things on this side which give away if someone is trying to scam you?
Have one example of friends who purchased near Alicante who had an agent that said they called get IVA % down to 5% they steered clear as they felt uneasy by this and I wondered if this is a tell tell sign of something dodgy?
We plan to rent anyway for at least 12 months but I am trying to get a fact file together.
Can no one shed any light on this at all, please
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Old Feb 18th 2006, 11:26 am
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Default Re: Purchase Costs

general rule of thumb is to add 10% onto purchase price for IVA solicitor etc.
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Old Feb 18th 2006, 11:36 am
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Default Re: Purchase Costs

Originally Posted by gazzpfc
Can no one shed any light on this at all, please
Yes, when we purchased about 18 months ago we were advised to budget an extra 10% for all the associated charges and thats pretty much what it worked out to in the end. You should of course always cost this into your budget when you are buying (just as you do in the UK).
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Old Feb 18th 2006, 8:01 pm
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Default Re: Purchase Costs

When we purchased a new build in 2003, our extras came to about 11.5%. Thus making a significant difference to budget when dealing with property prices
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Old Feb 18th 2006, 10:52 pm
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Default Re: Purchase Costs

Originally Posted by montgomail
When we purchased a new build in 2003, our extras came to about 11.5%. Thus making a significant difference to budget when dealing with property prices
Thanks all for replies we have been told by agent to budget 10% my only concern is each agent discusses a different set of costs in that they quote different % for certain elements but if we keep a % in mind it helps.
We are going to purchase a resale I think as the market seems tight in some areas enabling better bargaining
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Old Feb 19th 2006, 9:21 am
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Default Re: Purchase Costs

Originally Posted by gazzpfc
Thanks all for replies we have been told by agent to budget 10% my only concern is each agent discusses a different set of costs in that they quote different % for certain elements but if we keep a % in mind it helps.
We are going to purchase a resale I think as the market seems tight in some areas enabling better bargaining
We were told to allow 10 per cent and the extra 1.5 per cent created problems as we had a tight budget. Even with a purchase of 150k, the extra 1.5% will make a difference of over 2,000 sterling. It is difficult to get an accurate breakdown of costs but do allow a bit more than 10 percent if you are likely to be burdened by going over budget.
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Old Feb 19th 2006, 4:23 pm
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Default Re: Purchase Costs

Hi

I agree completely with what everyone else has said about % required to be added mine was about 10% on a resale property.

Also bear in mind you need to factor in your deposit, I understand some places are now doing 100% mortgages but there are also some mortgage set up costs and life insurance which if you do not have any in Spain you will need to advise the bank manager how you are to arrange such insurance. I paid a single premium for mine which is refundable should I pay my mortgage off early or sell my property. I managed to get an 80% mortgage so had to trump up 20% deposit along with my other costs on a resale property with a sale price of 124,000 euro's I had to find about 35,000 euro's to cover everything. I know ever case is different but unless you are sure of your mortgage percentage (ie you already have it arranged) make sure you allow enough for some possible extras/deposit.

Having said all that I love my place in Spain and can't wait to move into it full time later this year.........
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Old Feb 19th 2006, 4:53 pm
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Default Re: Purchase Costs

Originally Posted by Costa-Convert
Hi

I agree completely with what everyone else has said about % required to be added mine was about 10% on a resale property.

Also bear in mind you need to factor in your deposit, I understand some places are now doing 100% mortgages but there are also some mortgage set up costs and life insurance which if you do not have any in Spain you will need to advise the bank manager how you are to arrange such insurance. I paid a single premium for mine which is refundable should I pay my mortgage off early or sell my property. I managed to get an 80% mortgage so had to trump up 20% deposit along with my other costs on a resale property with a sale price of 124,000 euro's I had to find about 35,000 euro's to cover everything. I know ever case is different but unless you are sure of your mortgage percentage (ie you already have it arranged) make sure you allow enough for some possible extras/deposit.

Having said all that I love my place in Spain and can't wait to move into it full time later this year.........
We have been offered a 100% mortgage and more by some agents on houses that have been on the market a while it seems in many cases some German owners are prepared to throw in dosh to deals as they need to get rid quickly.
We plan to rent first as we are unsure of area to settle in what is the area Playa Flamenca like we thought we would go Torrox way further south
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Old Feb 19th 2006, 5:03 pm
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Default Re: Purchase Costs

Originally Posted by gazzpfc
We have been offered a 100% mortgage and more by some agents on houses that have been on the market a while it seems in many cases some German owners are prepared to throw in dosh to deals as they need to get rid quickly.
We plan to rent first as we are unsure of area to settle in what is the area Playa Flamenca like we thought we would go Torrox way further south
Playa Flamenca is in Orihuela. Just north of Torrevieja and slightly inland (only just though).

I know there are some good deals around I think the Germans are desperate to sell because they are now being taxed on oversea's properties. On the urbanisation that I live on there are lots for sale mostly owned by Germans and some by Irish (I think they may have similar tax issue's!!).

I always think it is better to rent first rather than buy, I was lucky my friend has a place near to me so I knew the area and was happy with the house but I know some people have bad experiences when choosing a property without knowing the area or the neighbours!!

I hope you find what you want, good luck with your quest I enjoyed mine and still am!!!!!!!!!!!!!!!

Jo
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Old Feb 19th 2006, 5:12 pm
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Default Re: Purchase Costs

Originally Posted by Costa-Convert
Playa Flamenca is in Orihuela. Just north of Torrevieja and slightly inland (only just though).

I know there are some good deals around I think the Germans are desperate to sell because they are now being taxed on oversea's properties. On the urbanisation that I live on there are lots for sale mostly owned by Germans and some by Irish (I think they may have similar tax issue's!!).

I always think it is better to rent first rather than buy, I was lucky my friend has a place near to me so I knew the area and was happy with the house but I know some people have bad experiences when choosing a property without knowing the area or the neighbours!!

I hope you find what you want, good luck with your quest I enjoyed mine and still am!!!!!!!!!!!!!!!

Jo
Cheers we have experience as we have lived in America and still own there its in fact the only place we own as when we came back some good friends left for a 5 year stint in America so we moved into their place!
We rented first in Raleigh and it was worth it for we purchased in a totally different area to where our trips before getting there had led us to think we would live.
We have friends in Almoradi and in Velez Malaga so both areas and surrounds appeal flying to Murcia Saturday for a look around and a game of golf.
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