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New build or second-hand home?
That's the question. Buying a home, especially with a mortgage, is one of the most important decisions we will ever face in our lives. Aside from a hugely exciting future project, it comes with great responsibility that will last for many years. If you're at that crossroads, at Bankinter we tell you everything you need to know and encourage you to take the plunge. Be sure to enjoy it!
Let's start with the foundations
As you can imagine, a new house, or new build is a home that has been recently built. You can purchase one directly from a properly developer, perhaps under favourable conditions if it qualifies as state-subsidised housing.
Meanwhile, a second-hand property is a property that has already been lived in at least once and is the type of property that is commonly involved in mortgage or purchase and sale transactions. There is also the option of building your own home, but that's something else entirely....
Let's focus on the first two options: new or second-hand housing
Like everything, there are pros and cons to both:
The best things about a new home...
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First of all, enjoy that brand new home feeling. The materials and quality will be better, and your new home will boast a more modern layout and design. And it goes without saying that you will have the property developer's warranty.
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We can build and design it exactly as we want: choosing the floor, wall quality, etc. We can adapt it to our preferences while it's still on the drawing board, thus avoiding renovation work down the line.
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And by meeting the latest energy standards, you will be saving loads on your bills.
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And new builds often come with certain communal amenities you can enjoy with your neighbours: tennis or padel courts, swimming pool, gym, parking spaces, etc.
And the cons...
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Also, new builds tend to be more expensive because everything is new. If we are going to apply for a mortgage, although the Mortgage Law now splits the costs between the bank and the buyer, we will have to pay VAT, with the exact amount depending on the autonomous community of Spain in which the property is located.
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It is also likely to come with higher costs, whereas new builds will allow us to save on our electricity and heating bills, among other expenses.
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Moreover, new homes are likely to be located on the outskirts of your town or city, where there is more room to build. While many people prefer this (less pollution, less noise, etc.), the fact is that your choice of where to live will be more limited. The upside is that your home will be larger for this same reason.
The pros of buying second hand...
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En primer lugar, el precio y loa gastos: en condiciones de ubicación y características, comprar una vivienda de segunda mano siempre será muy inferior a la nueva (concretamente podremos ahorrar entre un 20% y un 50%). Además, tendrán una menor carga impositiva (sobre el 4% aproximadamente, frente al 10% de la nueva).También tendrá menos gastos de comunidad. Y como el metro cuadrado es más barato, lo más probable es que podamos adquirir una casa más grande por el mismo precio.
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Además, lo normal es que podamos entrar a vivir cuando la compremos.
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Y si preferimos esperar un poco para reformarla, también podremos personalizarla, adaptarla a nuestras necesidades.
And the cons...
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Although we save on VAT, when purchasing a second-hand property we will have to pay transfer tax (known as Impuesto de Transmisiones Patrimoniales, or ITP).
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On the other hand, we will be somewhat more limited when it comes to location, as they are most commonly found in city centres.
What about a mortgage?
At Bankinter we can explain everything. Find out here what a mortgage loan is, what types you can find and which one will be best suited to your needs and savings profile. You can also simulate the instalments you would be paying.
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