In view of the upturn of the home purchase experimented during the last two years in Costa del Sol, the question most frequently asked by those who intent to buy one, is what type of property should they acquire a new or a second-hand property?
If we stick to recent numbers, in most of the transactions made in Spain during 2015 and 2016, we can observe that more than 600.000 have been buying and selling of second hand properties.
The choosing of buying new properties has both advantages and disadvantages, the most important are:
– The main advantage is the possibility to find a tangible reluctant, which at first, won’t need the maintenance of a second-hand home.
-Also, we mustconsider that the lowering of prices experimented by the sector has affected a lot this type of properties.
-However, the urbanite buyer usually does not have a large offer of brand new properties in the centre of the city and they usually are forced to move to further areas.
– This type of new properties tends to be located in the outskirts and imply an additional expense in movement.
-Most of the complex tend to be located in residential areas with pools, gardens and equipment, so, therefore, the community fee also tends to be higher than it is in the centre of the city where these services do not exist.
In the case of first occupancy housing, it is clear that no refurbishing is expected because the property will bin in perfect conditions or the developer will cover the possible repairs that may be needed, however the situation is different in the buying of a second-hand property.
In the second case, the general conditions of the property are an element to consider and its valuation can even reduce the selling price in the negotiation of significant amounts. The recent crisis of the real-state sector has increased the room for negotiation with the buyer in the acquisition of second-hand properties and today it is very likely to get a price reduction in the market rice previously stated.
However, if you are considering buying a second-hand property do not forget to take into account the following details:
– General conditions of the kitchen, furniture, and electric appliances.
– General conditions of the toilets and replacement of bathroom.
– General conditions of floors (Wood flooring change? Polishing of marble?)
– General conditions of windows and thermal insulation.
– Is it necessary to tune-up the electrical installation?
– And the gas installation?
– General conditions of the walls and ceilings.
– Other small exceptional Works (and value them in case that that may become expensive).
In case of refurbishment works, you should value the cost prior to the buying so that to be sure that the price plus the cost of the future works is worthy. You also shouldconsider that in case of carrying out a refurbishment work to hone the property, theory indicates the its price will be increased by a 10% over the price prior to the work.
And finally, but not less important, we must take into account that second hand properties are subjected to the PTT Property Transfer Tax, while new properties acquired to the developer are subjected to VAT.
By Massimo Filippa
Information given is offered for information purposes, excluding the company and the author from all responsibility, not constitute an official publication nor will it be binding. We always recommend check with your lawyer or adviser.