I sometimes here clients say;
“I’d like to buy somethingkeep it for a couple of years and if I like it here, I’ll sell it and buy something bigger”
Obviously, as a salesman, when a client utter the words “I’d like to buy something”, my ears prick up an the client has my attention.
But! Is this really a good idea?
No: They costs of buying and selling a property in Spain are high.
Let’s take an example let’s say the client wants to test the water and buy a townhouse or apartment for 100,000€ in the first instance and if they like it, sellit and buy a villa for 200,000.
Vs Renting a town house for two years and then, if they like it, buying a villa…
Rent a townhouse for 500 euros per month costs 6000€ per year. Over 2 years that’s 12000€
Buying town house at 100000 keeping it for 2 yearsand selling it.
Property appreciation 3% = 6000€
Rental saving 12000€
Purchase Tax + Costs
In the valencian community (Alicante, Valencia, Castellón) property transfer tax is charged at 10%
10% of property price 10000