Looking forward to buying property in Spain but don’t know how to go about it? Don’t worry; this buying property in Spain guide is sure to help you out when looking for the best homes on offer.
Buying a property in Spain or a new home is like a dream come true for all. It is a moment of pride and happiness for an individual who buys a house which he can call his own. However, it may cost him a small fortune in order to purchase a decent house and one may have to make a huge investment with the money he has been saving since years and years. When buying a property, one should keep in mind to be generous, invest correctly, save some money after investing and be able to live with a peace of mind.
How much to spend?
The most important question that comes up when planning to buy a property is how much an individual should spend depending on his annual income. It is generally advised that an individual should buy a property that is two and a half times his annual salary. However, if one has saved a lot of money earlier, he could spend much more than that and buy a lavish place to stay in or if financial resources a limited, an individual may be forced to choose a small house to call his own.
Buying a Property in Spain – How Much Should You Have as Down payment?
Generally, a down payment of 20% is made, which helps you to save for the future and releases you from the burden of paying private mortgage insurance. A standard rule of spending around 30% of a person’s monthly income on mortgage, property tax and insurance are already set though variations are always possible. As soon as you decide that you wish to buy your own home, you should try to save as much possible and take on as little debt as you can. This will help you accumulate money faster than you thought and release you of the financial stress you would otherwise be forced to live with.
It is important to discreetly and truly assess how much money you can spend on a house. Making false assumptions or taking too much loan to buy a house is not advisable as it will spell trouble for you in the long run.