That’s why at Vivienda Capital, your Real Estate Agency in Madrid, we propose these 6 strategies for planning the purchase of your home. Don’t miss them and make your dream come true at last!

How to save to buy a home. 6 Easy Strategies for Planning Your Home Purchase

Making the best decisions for savings is possible.

Analyze your level of control over your daily expenses with a good financial education and with the awareness and internalization of a series of positive habits to save month by month and achieve the dream of buying your home.6

Practical and easy to carry out tips to achieve our goal:

• First Create a target:

As we mentioned at the beginning, it is recommended to have 20% or 30% of the cost of housing. This money will be used to pay taxes, the deposit contract and the opening commission of the mortgage if it is not 100%.

Once we have established what is the amount of that 20% or 30% we can determine the month, depending on the time in which we want to get it and within our possibilities, a fixed amount to save.

• Separate the savings:

Create a savings account specific to the purchase of your home and enter the amount you have committed to the same time you collect your payroll. You will avoid temptations. On the other hand, experts recommend that you have in your current account at least the equivalent of the expenses of at least 6 months. This way you can cover unforeseen expenses.

• SAVE IT:

Analyze your buying habits and fixed expenses. Do you really need everything you’re consuming? Netflix, HBO, Amazon Prime, Spotify, etc… Or do you think you could do without something? And what about those impulse purchases that in the end you haven’t made the most of – or any! because they’re still in the closet unreleased? At the end of the year, those small or big daily expenses can make a real fortune.

To give you an idea, a “small” expenditure of 3 euros a day (which a priori can be considered a fully affordable amount) per year amounts to more than 1000 euros. Unbelievable, isn’t it? Imagine how much you could save by making small changes in habits that really won’t take so much effort.

• Sets budgets:

Food, clothes, leisure…Set an amount that is adjusted to the cause and commit to it. One idea is to put the money you have proposed in an envelope so as not to pull the card unlimitedly and adapt to that pre-set budget.

• Avoid debts. Avoid paying in instalments:

Financing your purchases means a greater expense due to the percentage of interest that increases the quota of your purchase. It is preferable to pay, if you can afford it, to in cash, or postpone consumption for when you have collected the money

• Invest your time in Financial Education:

A good financial education will help you control daily expenses and develop other skills such as self-control, perseverance or common sense.

Saving can bring you a multitude of benefits in addition to the obvious ones. Tranquility, freedom, satisfaction or growth are just some of them.

And it is that from the month of March and by mandate of the administration of the previous city council, an essential requirement exists: They must count on a differentiated access of the rest of the neighbors.

What has this meant? The closure of up to 95% of apartments for tourist use. That is to say, more than 10.000,+ dwellings according to municipal calculations.

Holiday Apartments in Madrid Centro

Regulations and inspections

The legal clutter around tourist apartments continues to grow. And it is that the social reality, supposes and passes for giving legal place to this type of housings that come appearing mainly thanks to Internet, that is the channel and the means that has allowed its diffusion and to lower costs, making its offers more attractive.

For all these reasons, Madrid has added a series of regulations and inspections to limit this phenomenon, which is growing and multiplying and which means that what may be legal in a municipality is not legal in the one next to it.

The rental of private apartments to tourists tries to make compatible the daily life of the neighbors, with the hundreds of tourists that enter and leave the portals and that modify commercial activities and services in the downtown area.

Although this has not prevented that in the month of August the overnight stays in tourist apartments in the Community of Madrid rose by 25.9% over the previous year according to the National Institute of Statistics.

And is that despite the movements that had made the previous administration of the City Council of the capital, it seems that this model of tourism continues to boom.

What is the aim of regulating this situation?

1. The administrative and fiscal compliance of the exercise of a business activity.
2. The quality for the user of the accommodation service as well as the rights of consumers.
3. Avoid intrusion and unfair competition affecting tourism.

The really tricky part of the matter is whether or not it is possible to throw the tenant out for the sale and what the rights of each one are. At Vivienda Capital Agencia Inmobiliaria in Madrid, we explain what happens to the landlord when the owner makes the decision to sell.

Do you want to sell your apartment in Madrid with tenants within the rental system?

This is what you should know:

No one who is interested in buying a house in Madrid is going to decide to do so without first having seen it carefully. So you will have to obtain the consent of your tenant, who a priori may not find the matter very amusing, or perhaps yes, if he is interested in acquiring it.

• Tenant’s Right of Acquisition vs. Other Buyers

The tenant has, if desired, the opportunity to acquire and buy the property in the first place in front of other buyers. With a term of up to 30 days after the owner announces the sale of the property, the lessor may intervene and acquire it for the price established by the seller.

For that reason, it is necessary that in order that the apartment can be sold in a legal way, the owner announces the intention to do it, to the tenant of the property. This is called Preferential Acquisition Right.

• If the buyer is an investor

It may always be feasible for the tenant to continue to have you as a tenant and to be able to sign a long-term contract. So it could be a good argument for the tenant to agree to show the house and facilitate the process.

It is necessary to give all kinds of comforts to the landlord since by right, because the law protects him, if he does not want to show the apartment, he will not have to do it and you will find it practically impossible to sell it.

What if I want to sell a house with a tenant who has a long term contract?

Rent contracts vary according to the years of duration. For example, in a three-year contract, tenant and landlord ensure a certain stability. Even if this is the case, in this type of long-term rental contract, the landlord can put the property up for sale if he wishes. However, the tenant may not be evicted until the tenant’s exemption. This does not mean that you cannot sell the apartment.

In short, if the dwelling is registered in the Land Registry with a formal contract, the owner of the flat cannot evict the tenant until the contract has been waived.

Finally, and although in the end it is definitely a good faith procedure, in the worst case scenario the tenant can always be compensated with some kind of advantage so that he can leave the property within a maximum period of 3 months.