Buying a new-build home is an important and exciting decision. It means moving into a brand-new house, starting a new stage in life, and making choices that have long-term impact. That’s why understanding the entire process from the beginning helps to avoid surprises and experience the purchase more calmly.
Expenses when buying a new-build home
When someone considers buying a new-build home, they usually think almost exclusively about the price of the property and how they will finance it. However,the purchase process goes beyond signing a contract and receiving the keys. There is a series of steps that occur naturally and that it is worth knowing to have a realistic view of the whole.
From the initial reservation to signing before a notary, the buyer moves through different stages. In each of them, professionals, documents, and procedures are involved that are necessary to ensure that the operation is safe and properly formalized. It is not just a legal matter, but also one of organization and foresight.
Furthermore, during the process, decisions may arise that influence the total budget, such as choosing certain finishes, improvements, or changes to the initial project. All of this is part of a responsible purchase, in which it is important to consider that the final cost is not limited only to the property itself but to the entire acquisition process.
What are the expenses associated with buying a new-build home?
When buying a new-build home, there are a series of common expenses that accompany the operation and that it is important to know from the beginning.
VAT
VAT is applied to the purchase price of a new-build home. This tax is a mandatory part of the transaction and is paid directly when acquiring the property. It is one of the most important items to consider, as it represents a significant percentage of the property’s value.
Stamp duty (AJD – Actos Jurídicos Documentados)
AJD is applied when signing certain official documents related to the purchase, such as the deed of sale or, if applicable, the mortgage. Its amount depends on regional regulations, but it should always be included in the purchase budget.
Notary fees
The sale of a property must be formalized before a notary. The notary ensures the legal validity of the operation and that everything is correctly reflected in the deed. Their fees are regulated and are part of the usual expenses of any property purchase.
Land registry fees
Once the deed is signed, it must be registered in the Land Registry. This step is essential for the property to be officially in the buyer’s name and to guarantee the legal security of the transaction.
Appraisal fees
If the purchase is financed, the property must be appraised. The appraisal determines the value of the property and is a common requirement for obtaining a mortgage. This expense is usually incurred at the beginning of the financing process.
Administrative or management fees
In many cases, a management company is hired to handle taxes and submit administrative documents. While not mandatory, it makes the process easier and prevents errors.
Mortgage opening and related fees
When taking out a loan, there may be opening, study, or linking fees. These are common costs that must be considered in the budget when the purchase is financed.
Utility connections and initial bills
Connecting electricity, water, gas, and other services is necessary when moving into a new home. In addition, the first bills must be paid, and in some cases, homeowners’ association fees from the date of delivery.
Proportional Property Tax (IBI)
IBI is paid annually, and when buying a new-build home, the proportional part from the delivery date must be paid.
Home insurance
If there is a mortgage, home insurance is usually mandatory. Even if it is not required, it is recommended to have it to protect the property against possible incidents.
Upgrades or changes to the property
Some developments allow customization of certain finishes or minor improvements. These additional costs should be considered within the total budget.
Buying a new-build home and considering the expenses
As developers on the Costa del Sol, in Myramar we know that buying a new-build home is an important decision. That is why, in our developments, we focus on transparency and accompany the buyer at every stage of the process, helping them understand what they will encounter along the way and how to plan better.
We work with developments designed to enjoy the surroundings, the design, and the quality of life offered by the Costa del Sol. Our goal is for those who buy with us to do so with confidence, having a clear vision of the whole and knowing that there is a team behind the scenes taking care of every detail, from the first contact to the delivery of keys. Contact us.