September 18, 2006 at 3:51 pm #52248
I was wondering whether anybody has had similar expriences to me. I have recently bought a brand new property in spain and it feels like i am continuosly paying out fees. Where i think i have underbudgeted are with the notary fees for the buying and the mortgage. I have already paid approx 5000 euros in notary fees end of July although i do believe this includes stamp duty and escritura etc etc but i have now received two more bills. both approx 600 euros for the aduedo-entidad factura-fra notaria compraventa and the other aduedo-entidad factura-fra notariaptmo hipotecario. It all just seems so expensive on a flat bought for 162k with 93% mortgage in the Costa del Sol. I have accepted these costs although will be interested in other peoples experiences. So far my costs incurred for buying this property including mortgage fees have come to around 14.5%.
The icing on the cake today was a phonecall from the ayuntamente saying that my water contract is ready and will be about 200 euros…. surely not!!!
Any thoughts welcome
September 18, 2006 at 4:03 pm #65796
people are advised to budget 10% but the cost varies if you take up the builders mortgage or your own and other cost varies in which region you buy.
Welcome to the world of Spanish property ownership. You will have to deal with the service charges of the block which will be another experience
September 18, 2006 at 5:28 pm #65797
the normal costs are 10% without a mortgage and 12% with a mortgage – the reason being that you effectievly have two notarial signings when you have a mortgage – the first to grant you the mortgage and the second for the actual property itself.
There is also a 1% opening cost for the mortgage but this does vary from bank to bank and can be as high as 3%.
As for your water bill – you will have to pay for the installation of the water meter – which should only have cost you about 100 euros but as I dont know your town hall or water board I couldnt say. You will also find you have to pay a start up cost to Iberdrola for your electricity – this may well be a further 200 or so euros as well as your upcoming community costs.
Yep the Spanish way of life is much cheaper than the UK – until you actually buy a property here of course
September 18, 2006 at 6:15 pm #65800
Sounds about right.
We tell our clients to budget for total buying costs of 10-11 per cent without a mortgage – and around 14 per cent with a mortgage.
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