Our clients are delaying the decision to buy a home for 2013 waiting for price drops; most of them think that if they buy later, they will get price advantages, however, they will lose all the tax advantages they have by buying before the end of the year.

What are these advantages?


Tax Advantages

The tax relief of 15% of the mortgage payments with a maximum of 9.040 euros for each of the purchasers that currently exists, supposes a very interesting fiscal saving, and although it represents a smaller amount of saving the more expensive the house is, it is a tax relief that lasts during all the years of the mortgage. This tax relief is going to be eliminated for 2013.

In addition, the purchase of a property before the end of the year 2012, can give rise to the fact that when selling it, at any time later, 50% of the payment of the capital gain is exempted. This is a lifetime benefit; therefore, it is very important to take it into account.


Mortgages

At this moment the purchase of a house benefits from a super reduced Euribor that in the time can only go up, this in addition to the forecast of hardening of the conditions in the future to acquire a mortgage loan make that this factor is very important at the time of deciding if to advance the purchase this year.


VAT on housing

Our clients buy luxury homes in the areas of La Moraleja, Encinar de los Reyes, and surroundings, most of them are second hand homes, and therefore, the VAT increase planned by the Government for September 2012 does not affect these homes that are currently taxed with the ITP (Property Transfer Tax). In any case, we do not rule out that there will be a change in the taxation of the ITP that taxes the acquisition of second hand properties in the future and the ITP, which is currently in general terms 7%, will suffer a rise.

This being so, if the buyer has the opportunity to buy at a good price, we recommend not to wait since, otherwise, he will lose the tax benefits previously exposed.