In addition to bank commission and charges, life insurance, multi-risk insurance, you must add stamp duty on the amount financed.
There are many aspects to take into consideration when buying a first home. Asking questions and clearing all doubts is fundamental to making a conscious and informed decision. Don’t forget to share all your doubts with the real estate consultant who is intermediating the sale of the property, or to the owner, the bank that will grant the bank financing, the condominium – and even to the neighbours if necessary. The purchase of your first home is too important a decision to leave any doubts unanswered.
Did you like these tips? Share these 5 tips with those who are looking for a home.
5 Tips for buying your first home
Buying your first home can be as exciting as it is daunting. So that nothing fails when it comes to making one of the most important decisions of your life, there are 5 key aspects to consider before closing the deal.
-
1. Need for bank financing
For most of us, buying a house, especially a first home, implies relying on bank financing. Therefore, simulation is vital, and several banking institutions should be consulted. This way, you will understand which one will be able to offer the most advantageous terms. This step also helps to understand the maximum amount of financing that can be obtained and establish a maximum value for the house search.
-
2. Choosing the location
Location is one of the most critical elements to consider when it comes to choosing a house. A good location can make it easier to manage the daily routine, but it can also contribute to a higher future property valuation. The proximity to central access roads, transport, schools, commerce, and services are relevant aspects to consider when buying a house. Think about what you will value the most from the location of your home.
-
3. Choosing the characteristics of your home
No two people are the same, and no two houses are the same. Therefore, it is necessary to decide what type of house you want to buy and the most valued aspects. What is the typology? Is it essential to have an elevator? And a garage or parking? Do you want a house with good sun exposure? Are the construction materials and appliances the kitchen is equipped with relevant? Make a list of what is essential and indispensable for your house. This way, you will exclude and reduce the list of potential homes to visit during the search.
-
4. The general state of repair
If it is true that buying a new house can be very appealing, buying a used property can also have some advantages. The purchase of a used property can allow you to negotiate the price if building repairs are required, presenting you the opportunity to further adapt the house to your taste.
-
5. Costs associated with the acquisition and maintenance of the property
There is a range of costs to be considered when buying a house, such as taxes, transfer of the deed, bank commissions, interest and insurance. But it is also necessary not to forget the monthly condominium fee (if applicable) and any building repair costs that may be necessary.
Several costs inherent to the purchase of a house vary according to how you will buy the property. For example, if you buy the property entirely with your capital, you will only pay taxes and registration without reliance on a mortgage.
Taxes associated with buying a property
The purchase of a property is associated with some expenses such as taxes. You must be aware of the amounts since they may vary, considering many facts about the property you will acquire.
Municipal Tax on Real Estate Transactions – IMT
The IMT is a tax charged whenever there is a financial transaction of buying and selling a property. This tax is also necessary in the case of a property exchange.
The calculation of the amount to pay is done as follows:
IMT = Deed Value or Patrimonial Taxable Value (whichever is greater) x Rate to be applied – Portion to be abated.
There are other factors to consider when calculating the IMT. For example, will the property be used as a principal or secondary residence?
Stamp Duty
In addition to the IMT, stamp duty is another tax levied by the Portuguese state to purchase a property. The rate of this tax is about 0.8% of the value defined in the deed.
Municipal property tax
The municipal property tax is paid by all who own property to the municipal council every year. This tax varies depending on the value of the property and where the municipality is located.
You can check the IMI rate charged by each municipality here.
The calculation of the amount of IMI to be paid is done as follows:
IMI = IMI Rate x Taxable Patrimonial Value
AIMI – Additional to IMI
As its name indicates, this tax is an additional tax to the IMI, paid annually, usually in September. This tax is added to the IMI when the taxable value of individuals or legal entities is higher than 600 thousand euros.
In addition to these three or four taxes, we have to add insurance, property maintenance, and other charges. However, if you have to take out a mortgage, there are further charges that you must take into account and account:
These include commissions and bank charges, life insurance, multi-risk insurance, and on top of the stamp duty on the purchase; you have to add the stamp duty on the financed amount.
There are many aspects to take into consideration when buying a first home. Asking questions and clearing all doubts is fundamental to making a conscious and informed decision. Don’t forget to share all your concerns with the real estate consultant who is intermediating the sale of the property, or to the owner, the bank that will grant the bank financing, the condominium – and even to the neighbours if necessary. The purchase of your first home is too important a decision to leave any doubts unanswered.
Did you like these tips? Share these 5 tips with those who are looking for a home.