The coronavirus crisis has altered the preferences of many Spaniards and expatriates living in Spain: some choose to find a house on the outskirts of the major cities, while some go to the countryside for more room and a fresh air. However, the process of selling one major residence to buy another in Spain is not free of many complications, such as contracting a new mortgage, annulment of the old one and many other things. real estate in qatar
Let us examine, together with the Solvia experts, the main questions of such a decision with some useful advice on selling and buying real estate in Spain simultaneously:
What is the real estate market situation?
How could you sell a house if you still pay a mortgage?
Is it best to first sell or wait until you have found your new home if you do not have a previous mortgage?
How do you plan to correctly sell the property?
How will house sales affect the IRPF statement?
What are the other costs of selling a property to buy another property in Spain?
What is the real estate market situation?
The development of prices on the property market and the sales periods that correspond to the neighborhood of the home that you want to sell are important to know. It is also advisable to study market forecasts to indicate the changes in property value in the coming months (in case it is convenient to wait and sell later). You can also consider including locations in your search during the expansion process. Although not many of them appear to be very attractive at this time, they offer a chance to buy at a good price that allows you to get better benefits during the process, since the sales profit for the previous property is higher than the new purchase price. Not to mention that this new home will over time be re-evaluated because it is located in a developing place.
How could you sell a house if you still pay a mortgage?
There are several alternatives in this case. The best thing to do is to first sell the debt, cancel the debt and apply for the new house buy loan. You also have the option to apply for a new mortgage and take both of them at the same time until the sale is complete if you have the purchasing power necessary. Another option is to take what is termed a "bridge mortgage," a mortgage loan that enables you to move from one property into another without selling the previous property and without saving money. Finally, there is the alternative to negotiate with the bank a subrogation, whereby the mortgage on the property will be in the name of the new proprietor. Find out more about expatriate mortgages in Spain.
Is it best to first sell or wait until you have found your new home if you do not have a previous mortgage?
The ideal is that you can do it all at once. In other words, finding the right buyer at the same time and finding the ideal place to buy. In order to do this, you can try to agree to conclude the sale in the deposit contract in a certain time frame. It is recommended to request a 4 or 6 month period, in this way you will have the tranquility to have found a buyer and enough time to find a suitable home and, if necessary, undertake some renovation. If this is not feasible and you have the savings necessary to pay for your new purchase (i.e. 20% of the property price + about 10% for expenses), you can apply for a mortgage loan and, once the current home has been sold, you are entitled to pay off your debt.