Determining The Price Of A House When Buying It

Determining the price of the property you want to buy will rely on whether you have capital or not, whether you have another house to sell or the borrowing capacity. Studying the possibilities of creating a home account for savings will also be a good idea and also choosing to buy and sell your house safely.

Borrowing Capacity

  • We must consider what percentage of the income you can use to pay the loan installments so as not to borrow beyond our possibilities. Analyze the amount for which you can borrow annually, which can be dealt with without problems. As an orientation, the credit quota should not exceed 35% of net income.
  • Normally, the mortgage loan will cover around 80% of the appraised value of the home you want to buy.

Tax Advantages

  • Not all homes will enjoy preferential tax treatment, but only the so-called habitual housing (it has to meet the following requirements: that they live in it for at least three consecutive years and that it is inhabited effectively and continuously in the twelve months following its acquisition or completion of the works)
  • In the year, the acquisition corresponds to a deduction of 15% on the amount invested in the purchase

If We Already Have Housing And Want To Sell It

  • If what we have planned is to sell our usual home to buy another one, we should not rush and plan the operation well to obtain the greatest advantages of the transaction
  • When selling our old house, it is reasonable to make a profit. If we reinvest the money on time with the purchase of the new home and fulfilling a series of requirements, we will not have to pay taxes for this tax benefit

Housing Savings Account

  • These are bank deposits whose purpose is to plan the necessary savings for the purchase or rehabilitation of the first habitual residence
  • Among its drawbacks is the one that sets a deadline for the purchase of the home, usually four years after its opening, and that once completed, the entire balance must be invested
  • However, it has the advantage that it allows you to deduct for longer while saving before buying the home, and it helps you to reduce the costs of a possible loan

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