What is the process of buying a property like?

In Spain we have always been very fond of “brick”, and we are very used to hearing stories from friends or family about buying and/or selling a property. But do we really know what processes are behind the purchase of a Realty? Precisely in this article we are going to break down the different steps in buying a property, as well as some aspects to consider.

Find the ideal area

First of all, we must look for a property in a zone that interests us, this may change depending on the exploitation to be carried out of the property, that is, either to obtain a return on its rent or sale, or if you want to live in the house. Logically, once we have found the desired area, we must look for a property that fits our characteristics, such as number of rooms, bathrooms, type of kitchen, layout of the house, interior and exterior design, views, and of course, priced for purchase. We know that finding a property that meets all the requirements can be a herculean task, but that's where the magic of the matter lies. Don't you think? By the way, keep in mind that you can always go to a professional, such as personal shoppers to help you with this crucial process of real estate investment

Analysis of the condition of the property

Let's say the idyllic case that you've found the Perfect property, before buying it you should do some prior analysis. Mainly, you should review the property, reviewing its registration, owner, outstanding debts, and we also recommend chatting with some neighbors and asking for the minutes of the last meeting of neighbors, where we can find pending spills or other aspects affecting the property.

Purchase of the property

Imagine that everything is in order, good luck, let's continue with the process. If you want to formalize your intention to purchase, the so-called Arras Contract, which is nothing more than the expression, on the part of the buyer and the seller, of the intention that the purchase and sale will take place. It should be noted that this contract involves a down payment, so the property would be reserved for you.

Subsequently, one of the most tedious processes of buying a property begins, the mortgage. Although of course, it is always possible to buy the property without external financing, but in Reental we believe that indebtedness is good as long as it is used well. In this step we will have to gather all the documents required by the bank, sign them and receive the approval of the mortgage according to the financial characteristics of each one. The bank in question will send an appraiser to the property to assess it. If it matches the requested loan, the financial institution will be informed of a study on the property and the mortgage will be accepted.

In the next step, the transfer of the property will be certified by a notary. Both parties must provide the necessary documents to formalize the process, once everything is correct, the contract will be signed and authorized by a notary. Finally, once it has been verified that the taxes have been paid, the property is transferred. After going to the Land Registry, the buyer officially becomes the homeowner.

Taxes.

Below are some taxes that affect the process of buying a property.

- ITP: The transfer tax is directly related to the transfer of ownership, the amount to be paid will depend on the autonomous community, but it ranges from 5% to 10%.

- Documented Legal Acts Tax: This tax is only applicable to housing. Again, it is around 0.75% and 1.5% depending on the region. It is usually paid with the ITP.

- IBI: The famous real estate tax is usually between 0.5% and 1.1% of the cadastral value of the property.

Aspects to consider if we are looking to obtain a return on the property.

First you will have to find a property, which is not only attractive or is in a good area, but it rewards more profitability that the asset can be taken out of it. To do this, we can look at properties with similar characteristics in the same area, in order to set an optimal rental price. To avoid scares, keep in mind in your calculations that there may be a period in which there may be no tenants, either due to rotation or because you can't find a suitable one.

Let's not forget about the expenses derived from the asset, such as the maintenance of the property, renovation if necessary, possible spills, community, IBI, home insurance, mortgage if you have requested a loan, etc. In other words, when a property is already purchased, the problems don't end, on the contrary, you have to pay a lot of time and attention to it.

We know that all this can sound a bit overwhelming, and it is, because at Reental we deal daily with all the processes mentioned above and the care of each of our tokenized properties. So if you want to invest in real estate, but you want to save all the work and time that goes with it, switch to the tokenization of Reental real estate, where you buy your tokens and you don't have to worry about anything. Every month you will receive your dividends and capital gain at the time of sale, without the need for additional costs or attention. And as if that weren't enough, you can make your investment liquid at any time thanks to the liquidity pools, something never seen in the traditional real estate sector.

In order not to miss any of the opportunities we present, we recommend that you join our group of Telegram To get to know others Reentels and the whole team. Of course we invite you to take a look at our articles on the blog to continue informing you.

Welcome to the new way of doing finance, welcome to Reental.