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What expenses do I have if I buy a home?

What expenses do I have if I buy a home?

Are you thinking of buying a new home but it is not clear what expenses you have to face? We will explain them to you.

For most people, buying a home is one of the most important decisions of their life and the one that monopolizes the most financial resources. Therefore, before taking the step in question, it is essential to calculate the global outlay that you are going to have to make.

When buying a home, you don’t just have to look at the price of it, but also the expenses derived from the management and processing of the purchase. Not sure exactly what they are? Pay attention.

Notarial charges.

The notary is responsible for preparing the deed that formalizes the transfer of the property. These expenses can vary depending on the price of the house. For example, if it costs 100,000 euros, the notarial expense is 675 euros; while if the house costs 250,000 euros, the price to pay to the notary is 790.

These fees were set in a Royal Decree issued by the Government in 1989, so they are the same for all notaries. There is only a reduction in them in the case of subsidized dwellings or subrogations.

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Property registration.

Registering the acquired home in the Property Registry is an essential step for the apartment to appear in your name. These costs are also established by government regulations. Depending on the price of the house, they will be higher or lower, but they are usually between 400 and 600 euros.

Each buyer must go to the registry of the community in which the apartment is located to be able to register it. You can consult the nearest office on the official page of the College of Registrars.

Taxes are derived from the sale.

To calculate the amount that you are going to have to pay in taxes from the purchase of a house, you have to take into account whether it is new or second-hand.

Buying a new home: The main tax when buying a new home is VAT, which is currently at 10% of the total value of the home. A ‘new house’ is understood to be one that has been delivered direct by the developer or builder, as well as one that is acquired after having previously lived in a rental scheme (rent with option to buy).

The VAT is paid to the seller of the house and this will be the one who sends it to the Tax Agency in his income statement. When it comes to officially protected homes, the VAT payable drops to 4%.

Another tax that must be faced is the IAJD (Tax on Documented Legal Acts). It is a lien after the registration of the house in the registry and signature before the notary and is determined by the legislation of each autonomous community, but generally ranges between 0.5% and 1.5%.

Buying a second-hand home: In houses that have already been previously inhabited, the tax that is paid is not VAT, but ITP (Property Transfer Tax). This is set according to the price of the house and the Autonomous Community in which it is located since each establishes its own rates.

Generally, these are between 6% and 10%, but they may be lower if the buyers are large families and young people, or it is a VPO.

As in the purchase of new construction houses, the IAJD is also paid for second-hand ones with the same interest rates established for the former. In addition, you have to pay the agency in the case of having to open a mortgage.

The manager is the one who carries out all these procedures. Their remuneration varies depending on each agency, since they are not regulated by anybody.

Municipal capital gain.

The last expense that can be faced is this municipal tax on the value of urban land. As a general rule, it is a lien that the seller must face, although there are cases in which the opposite can be agreed or even include its cost in the final price of the house so that the seller does not lose money.

This tax can be calculated using the cadastral value of the house and the number of years that the owner has owned the house (the limit is 20 years, even if the house is owned for a longer time). The term to pay it is 30 days from the date of the new deed.

Work and family: keys to reconcile them

The reconciliation of work and family life is an issue that has been debated for a long time. To achieve this, companies and workers must become aware.

Despite the fact that in our country there is current legislation that regulates the reconciliation of family and work life, the truth is that there is still a long way to go in this regard. You just need to get close to the data to realize that something is wrong.

According to the Ministry of Health, Social Services and Equality, there are 1,997,800 women who do not have a job or seek it for family reasons.

This number is more shocking when compared to that of men, which drops to 130,800 cases. These are numbers that only show that the bulk of the burden of family care still falls on women.

What can be done to reverse this situation? The truth is that it is not an easy task and requires the involvement of various bodies such as the Government, trade unions, companies and, above all, society in general. From Comisiones Obreras, they defend that conciliation can help improve the following aspects:

  • Reduction of stress and labor conflicts.
  • Increased employee satisfaction.
  • Improved work time management.
  • Retention of qualified talent.
  • Cost reduction in recruitment and training.
  • Increase in the commitment of the workforce.
  • The higher performance of workers.
  • Decrease in absenteeism.
  • More prestige and a better image for the company.
  • Productivity increase.
  • Better work environment and better relationships between colleagues.
  • Greater employee commitment to business goals.

However, for all this to be effective it must be translated into concrete actions, some of which fall on the companies and others on the workers themselves. Let’s see what are the measures that must be adopted by both parties:

Good practices by the company:

Time flexibility: When you have dependent family members such as minor children, having time flexibility to combine work and family is something to be thankful for.

Simple measures such as allowing these employees to come to work half an hour later so they can take the kids to school, involve very little effort for the company and mean a lot to the employees.

Teleworking: Better known as remote work, it is an effective measure that favors conciliation. Allowing staff to work one day a week from home can be positive to prevent any of these from missing work for reasons such as the illness of a family member.

It also helps them to be better organized at home, saving considerable time by avoiding commuting to the office or workplace.

Social benefits: On many occasions, there is a tendency to mistakenly think that what employees value the most is a salary increase. Really, people with a dependent family appreciate the social services that the company can make available to them more than the financial reward.

Simple measures such as having a nursery service, transport, private health insurance or a dining room will contribute to the well-being of the staff.

Good practices by employees:

Optimize working time: If there are conciliation measures within a company, it is understood that employees have to be more committed to work and be more effective.

By not having so many personal concerns, during working hours the staff must be focused one hundred percent on their tasks and, therefore, be much more productive. Better time management will make projects complete in a faster way, thus reducing economic costs for the company.

Better personal and work organization: By having greater flexibility in time management, it is understood that the organization both personally and at work must be better. If you have everything under control at home, this will influence work and vice versa.

Simple measures such as having a personal agenda in which to capture everything that needs to be done for days, sharing out household chores with the partner or other family members or prioritizing the fundamental tasks of those that are not, will contribute to a better organization in all the scopes.

Do not take work home: More than a measure, this is advice. Taking work to do it at home affects that personal issues are not kept up to date and, therefore, that the organization is ruined.

Try to find a balance between work time and personal life, and try to be as effective as possible in both areas to avoid situations like the one mentioned at this point.

If you can achieve an optimal balance between these two important aspects, you will achieve a better quality of life and even a lot of leisure time to enjoy with your loved ones.

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