Budget is where projects succeed or get bogged down. Many buyers start from listing prices; we suggest starting from the other end: the money you really have, all in. Here is the method, in four steps.
1. Start from the total amount
Add up your own funds and, if you are borrowing, the amount the bank is willing to lend. Get this figure confirmed before viewing: confirmed financing changes everything in a negotiation. If you are considering a Spanish mortgage, first read what deposit you need.
2. Subtract the purchase costs
In Catalonia, allow around 12% to 14% of the price for a resale property: ITP, notary, registry, gestoría. In practice, an all-in budget of €350,000 lets you aim for properties at around €305,000 to €310,000. The item-by-item breakdown is in our article on purchase costs in Catalonia.
3. Keep a reserve
- For work: even a 'move-in ready' property often needs freshening up, air conditioning or bringing up to standard.
- For furnishing: furniture, appliances and linen, if the property is sold empty.
- For the first year: IBI, community fees, insurance, utilities. Our article on annual upkeep helps you cost them.
4. Test the figure against the market
Once you know your net budget, the question becomes: what does it buy, and where? That is the time to look at real prices by area. If the budget does not match your original idea, there are several levers: another town, inland areas, a property needing some work, a flat rather than a house.
A realistic budget is not the tightest possible budget. It is one that leaves room for the unexpected, and for peace of mind.
