Housing Tax Account
Housing accounts are one of the most profitable banking products that we buy when we buy the security within a relatively short housing. Profitability not only due to its interest rate, but mainly to the possibility of tax relief that we can apply the total amount contributed to it throughout the year.
The deduction reaches 15% of the sums within the fiscal year to the housing account, in case they are engaged in the purchase of the first housing and with an annual limit of 9,015 euros. That is, the maximum amount that can be deducted annually from EUR 1352.28. But these accounts homes must meet two basic requirements to be considered as such:
* What are separate accounts and is not linked to any other type of bank taxation.
* Not counted if part or the total amount contributed is dedicated to a different purpose than the acquisition of the main dwelling.
These accounts must be included explicitly in the statement of Finance and is valid only one account per taxpayer. Also lose the right to deduct the following cases:
* In the event that the sums intended for a purpose other than that provided for residential accounts
* For four years have elapsed since the hiring of the housing account. All of the amounts paid must be allocated before that time to the acquisition or rehabilitation of residence. Amounts not provided for in this period are not entitled to deduction, unless the housing is under construction.
* In the event that the acquired property is not used as main residence
* Failure to fully identify the account, indicating the number and the bank
Delinquent in the Community Neighborhood
Many times we have considered what happens if you stop paying your Community! Do they have the same rights as those who are familiar? What process can be against the defaulters?
Almost all communities have a neighbor delinquent owners. The existence of these can cause serious damage throughout the Community and its left action could lead to paralyze works or that they can not close deals. In the Community interest that somehow non-payment will lead to a loss of the right to vote in the Neighborhood.
The payment procedure is a legal procedure which seeks to require payment of fees due. To this end, the residents themselves, through a board, must approve the settlement of money due and detail the defaults. The next step is the notification of assessment in the home that once gave the defaulting owner. By law just a notice in the bulletin board of the residents for a period of three days. After three days, the President of the Community can begin the payment process, for which must go to District Court and file a complaint.
It is then followed a period of arguments for the defendant, and finally, the Judge decide.
This process allows the delinquent payment has no vote at meetings of the Community, although it can have a voice.
It is also important that the buyer of any floor, before signing any papers, find out if the owner is selling debts to date with the Commonwealth of housing for sale, and that these debts should not be awarded before are affected housing, so the new owner would become the debtor of previous defaults.
Costs of buying and selling of real estate
As important as knowing how to negotiate a mortgage is to know all the expenses that will affect the formulation of a sale, and even though for practical purposes, in most cases it will be the bank that you will pass a responsible manager minuta is not more that you all that you know in advance which are the same and, of course, consider whether you are interested in who you hire to make appropriate representations.
* Cost of valuation
Assessment is made of housing mortgages, as required by law This makes the valuation will be taken by the Bank as a reference when grant the amount requested. Generally, the grant amount will be between 80 and 100% of that valuation.
* Insurance
It is normal to have to make a disability insurance or death, so if you happen one of these two cases would be the insurance that would take over the outstanding amount of debit. It also tends to be done, but not required, home insurance to cover the possible contingencies that may occur to a foreclosed home.
* Solicitors
Expenses are incurred in connection with the handling of the sale of the house, its subrogation, mortgage cancellation, etc. Processing includes the Land Registry, the cost of completing the transfer tax in case of sale or of Stamp Duty in the case of mortgages.
Benefit of Purchase Leasing
What are the benefits?
When you have a floor marked out and the bank does not give us the mortgage, is a formula often used by developers to save the operation and pending in a few years, the solvency of the family is greater or more banking conditions light.
The housing price is fixed at the time of signing the contract. If floors are expensive, making the purchase since the price markup is less than that available in the market. If the home depreciates, of course we will go to market for the purchase or renegotiate the price with the owner.
The money paid in the form of rental fees in whole or in part payment of housing, and therefore not going to be wasted. Therefore, the tenant does not lose the money invested in the lease, but part of the final price of the property.
This type of mixed funding enables young people access to housing, since it gives the tenant a truce and prevent you from taking a strong initial investment and payment of a mortgage for a period of time.
What are the drawbacks?
Possibility of breaking the contract because of unpaid mortgage possible homeowner. Possibility that the conditions for granting of mortgages to harden even more, but is expected difficult. In a few years we should have come out of this financial crisis and possibly the conditions will be better.
You have to pay a certain amount of money by way of signal for granting the call option especially when the rental period exceeds two years. It is a way of making sure the purchase is going to run really.
Purchase Leasing
Given the difficulty of getting a mortgage because of the lack of liquidity of financial institutions, is becoming increasingly popular rent to own as a recipe for home buyers. Also do not have to make a big initial investment.
This formula for the purchase of housing, or a tool to overcome these years of financial crisis in which banks have cut their taps, as well as advantages also contain drawbacks that you must know in advance in order to avoid trouble in investment of our lives.
What is lease purchase?
The call option is a contract where one party, the landlord, is obliged to sell the property, if the other party, the tenant decides to buy after the agreed rental period.
In the option has to state the value of the future sale and the length of time that the beneficiary has to exercise its right to purchase. It can be a separate contract or be contracted as part of the lease. You can register for the registration of the property to be payable to third parties.
What additional clause be added to the lease?
Within the lease must be added the following points for the Purchase Option, which describes the conditions that will make a future sale:
- The selling price of housing and the discount of the monthly rent.
- Revealed that the property is free of charge.
- A statement that the property is sent free of tenants, occupants and squatters.
- Day to raise public write the sales contract.
- Costs and taxes to those concerned.
Tax on the purchase of housing
When buying a house, plus the price of it, we take into account the expenses and taxes arising from the purchase, in order to have enough money to meet these charges and taken into account to determine how much Money has to apply for a mortgage.
As a general rule, expenses and taxes for the purchase of a home mean 10% of the cost of housing. If we also note that financial institutions generally accorded more than 80% of the floor, when we choose our ideal home, we must have enough money to afford the 30% of the floor at the time of writing.
That 10% of the costs could be reduced if you meet certain conditions and benefit from certain tax advantages. Let’s check each of these taxes that we pay at the time of purchase.
VAT (Value Added Tax): You pay only when buying a new home (first transmission). The rate applied to free housing is 7% and the VPO (social housing) is 4%.
ITP (Property Transfer Tax): This tax is levied on resale properties and its type is between 6% and 7% depending on the Autonomous Communities.
AJD (Stamp Duty Tax (AJD): Gravel notarial documents, in this case is the deed of sale and the rate applied is 0.5%.
Buying a Home for Resale
When buying a second hand property: What we should look before we decide?
Before we decide on buying a second hand property, it should consider some tips that are not always repaired before taking the final step:
We look at the location of the property and take into account adjoining premises (the existence of supermarkets, banks, bars or areas of potential noise)
Talk to the concierge and residents of the building in order to know the condition of the building, construction defects and relations between neighbors.
The housing must ensure there are no cracks, moisture and damage carefully. When buying white goods, verify the correct operation thereof.
If it comes home with garage, access should do the same, both from home and from the outside door, because in principle, although the square that our part is wide, not always access to it are also .
Should visit the home at different times of day to check the brightness of the rooms.
We must take into account the orientation of the house. The south facing is best, since it is the one that receives more sun, thereby taking better natural lighting, and better temperature. (Which leads to considerable savings in heating in winter)
Incentives for Homeownership
The crisis has hampered the sale of housing, but the tax remains an incentive for investment in this asset. However, it is necessary to understand the upcoming changes in deductions and capital gains taxation.
The crisis has hampered the sale of housing, but the tax remains an incentive for investment in this asset. Sellers should know that since January 1, 2010 changes to capital gains taxation on the sale of real estate.
For their part, buyers have to bear in mind that the Government’s intention is to eliminate deductions for primary residence purchases from January 1, 2011 for incomes above EUR 24107.2. They have, therefore, a year to ensure relief to buy a house.
Those who have purchased a home or do so before January 1, 2011 continue to keep the rebate as it applies today. In general, the investment in the acquisition, rehabilitation, construction or expansion of primary residence can deduct 15% of the total contributed a maximum of 9,015 per year, representing a maximum rebate of 1352.28 per year in income tax . This stop includes principal and interest amortized in the case of requesting a mortgage loan.
In case of making a joint income tax return, the deduction base is also 9,015 euros, as the boundaries are established by declaration and not by the declarant. This figure also applies in the case of separated and divorced, they can continue claiming tax relief that was his main residence during their marriage if she continue to live in their children and the other parent.
Among government measures included in the Law of Sustainable Economy emphasizes the reform on the taxation of residence. If finally goes ahead, the financial year 2010 will be the last to buy a house with a right to relief under the current plan. Thus, from January 1, 2011, amended tax deductions for home purchase and eliminated for incomes above EUR 24107.2. Will only have a base of 9,015 deductible for income less than EUR 17700.2. From this amount, the deductions would be reduced linearly until it disappeared in those 24107.2 euros.
Mortgage Rates
In addition to the existing mortgage rates as the reference rate at which they were hired, there mortgages to the profile or requiring the customer needs.
Mortgages with any features that set them apart from the rest are:
Young Mortgage
This type of mortgage is usually aimed at young people between 18 and 35 years, establishing a facility to the public. It is usually the term of the mortgage as it is extended. The mortgages are recruited so that the client’s age and the term of the mortgage do not exceed eighty. In this public have been arranged mortgages up to 50 years, and has even expanded the recruitment age to 40 years in the case of some entities.
Mortgage multicurrency
It is that mortgage that is engaged in a different currency to the euro, Japanese yen or pounds typically Swiss. The client handles your mortgage so the mortgage will be cheaper by hiring lower-value coins, so the customer saves money. The opposite may happen, hence the risk of such mortgages.
Mortgage-plan
A mortgage loan that facilitates promoter and then included in the value of the mortgage. It is no longer managing this type of mortgage as the Bank of Spain does not allow to give more than 80% of the appraised value of the house.
Bankruptcy System
In the event, than anyone expected but we knew that one day would happen, that people could not afford the payments, the banks do not recover their capital because no one can acquire the goods they auctioned, companies that depend on the real estate sector pummeled him and in turn these other sectors drag chain.
The bursting of the housing bubble caused by the massive over-investment and confidence in the sector and speculation both sellers and buyers when-fattened borrow to finance other expenses apart from the housing-as well as the lack of ethics approved appraisers that abusive market values even knowing that exceeded its true value, only to meet objectives of the institutions or self-enrichment will have consequences of incalculable proportions.
For now, have caused a chain reaction of business failures and, therefore, the dismissal of employees resulting in more unemployment and collapse of the country’s economy, which will cost several years and much effort to recover.