Is it time to sell my house and buy a bigger one with more light? Keys to reducing risks

• MARÍA HERNÁNDEZ

  Madrid

Monday, September 14, 2020 - 02:05

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Many Spaniards were still confined when they began to consider that they wanted to change house.

Faced with the risk that a new confinement would catch them without a terrace, a good number of owners opted for an apparently easy plan:

.

Technically known as replacement demand and has seen a considerable increase in recent months.

Teleworking or the idea that new confinements may occur have caused many owners to look for more spacious properties in which to spend more time from their day to day.

This is constantly verified in the

offices

, where

, deputy director of the company, reports on the growing interest in this type of transaction.

"Clients sell their homes in areas that are generally more expensive, and move to other areas where prices are lower. But they do not do so because of prices, but because of the type of home. For the first time it is relegated the location versus the qualities of the property.

", he assures.

A pandemic had to occur for one of the pillars that until now had remained most immovable in the residential market of our country to shake in this way.

This is a change in social habits that has begun to be noticed from the first moment of the de-escalation call.

and, judging by the requests received by professionals in the sector, the trends seem clear.

"They ask us for properties that have a terrace or balcony, natural light and that are spacious", says

, vice president of

(International Federation of Real Estate Professions).

Attics are in high demand, flats where the sun shines a lot and those that are more spacious, "because our perception of home and teleworking has changed," he says.

So the owners who meet these requirements and are interested in selling are the ones who have it easier at this time to close a good transaction.

How to do it?

From the real estate firm

point out that carrying out a replacement sale is not easy and implies financial risks, "since the process will be conditioned by the sale of the first property, the change or the contracting of a new mortgage or the additional costs", between other aspects.

The sale of the first property, which is the main residence, is the key so that the rest of the process is as satisfactory as possible for the owner involved.

"It is convenient to know what is the

to the neighborhood of the house you want to sell. Likewise, it is recommended to study what is the forecast of the evolution of the value of the properties for the coming months (in case it is convenient wait), and consider the possibility of including in the search for the new home those booming locations that are in the process of expansion. Although they are not currently very attractive, they offer the opportunity to buy at a good price, allowing to obtain a greater profit during the process, since the profits from the sale of the previous property will be higher than the price of the new purchase. Not to mention that, over time, this new home will be revalued because it is located in a developing location ", they explain from the company.

Mortgages

In the event that the seller is still paying a mortgage, it is advisable to

to face the purchase of the new house.

For the most privileged pockets, you can always choose to maintain two mortgages at the same time, or try to contract a bridge mortgage, which is nothing more than a mortgage loan that allows you to change from one property to another without having sold the previous one and no need for savings.

In the event that the seller is still paying the mortgage on a home, it is advisable to sell first, cancel the debt and apply for a new loan

Solvia

If the client does not have a previous mortgage, Solvia advises to do everything at once, that is, find the right buyer and find the ideal home to buy, all at the same time.

The phenomenon of selling to buy is more appreciated in large cities such as

, in relation to the municipalities of the first urban belt, where the price jump is very evident.

Many citizens consider that now is the right time to embark on a transaction of this type, optimistic about the price adjustment they anticipate in the market.

And the truth is that some drops are expected, but they will be shallower than desired and located in certain parts of the country.

In no case generalized and in no case as profound as in 2008.

We asked Emiliano Bermúdez if this is a good time to venture into a sale of this type.

may happen that if there is some urgency when selling the first property a price is set slightly lower than the area where it is located, but in return you are also buying cheaper the new residence, so both movements can compensate, "he explains.

Personal income tax return

Whatever the strategy or the times that are chosen, the time will always come to settle accounts with the Treasury through the declaration of personal income tax.

"As it is a case of reinvestment of the habitual residence, since all or part of the money obtained by the sale of the habitual property is destined to the purchase of a new home, it will be exempt from facing the sales tax, provided that the total amount obtained by the transfer is reinvested in the acquisition of the new property. In the event that the amount reinvested in the purchase is less than what was obtained in the sale, only the proportional part of the property will be excluded from taxation. profit obtained that corresponds to the amount that has been used for the purchase of the new home ".

In addition to the tax aspects, the person interested in this type of transaction will also have to take into account all the expenses that they entail.

As specified by Solvia, apart from the sales tax there are other expenses to consider, such as the Municipal Capital Gains Tax, the expenses of the deed of sale when selling the property, the expenses derived from the possible liquidation of the mortgage in progress , the real estate commission (if applicable), moving expenses or, if applicable, the realization of reforms in the new home.

The figures are still very incipient, but Mercedes Blanco, from Fiabci, calls us to the last quarter of the year to measure its impact on the market.

According to the criteria of The Trust Project

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