Comparison: New Build Properties vs. Resale Properties in Spain
Buying a home in Spain is one of the most important financial decisions you can make, and choosing between a new build or resale property can be key. In this article, we break down the most important differences to help you make an informed decision, both legally and financially.
- Price
Price is one of the most important factors. New-build homes tend to be more expensive due to the modern materials used and their location, often in expanding areas. However, the resale value is often higher, making them an attractive long-term investment. On the other hand, second-hand homes tend to be more affordable, but you may face unexpected expenses if the property needs renovation or updating.
- Quality of the construction
New homes are built to the latest standards, ensuring greater durability and less need for maintenance in the short term. They also tend to have modern finishes and higher quality materials. In contrast, resale homes may have been built to old standards, which can result in outdated electrical and plumbing installations. However, many older homes were built using techniques that are difficult to replicate today, making them particularly robust.
- Energy Certificate
One aspect where new-build homes stand out is energy efficiency. Under European regulations, these homes are designed to consume less energy, thanks to better insulation, more efficient heating systems and sustainable materials. On the other hand, a resale home may involve higher energy consumption, although energy reforms can improve this aspect, which could mean an added cost when buying the property.
- Associated Costs
Additional costs are a key point to consider. When purchasing a new-build home, you will have to pay VAT, which is 10% of the purchase price. On the other hand, in a resale home, the main expense will be the Property Transfer Tax (ITP), which varies between 6% and 10%, depending on the autonomous community. In addition, second-hand homes may have short-term maintenance costs due to wear and tear.
- Legal Procedures
In legal terms, the purchasing process is similar in both cases, although there are subtle differences. With a new-build home, you are likely to sign a sales contract with the developer before the home is ready for delivery. resale homes, on the other hand, require the signing of a deposit contract, and the paperwork at the registry can be somewhat more complicated if the property has previous liens or encumbrances.
Conclusion
Ultimately, the decision between a new build or a resale home will depend on your personal and financial priorities. New builds offer modernity and efficiency, while a resale home may offer a more affordable price and a more central location. If you have questions about the legalities or need advice about your purchase, A&G Lawyers can guide you through the entire process.
