Home Essentials: Design, Location, and Financing

Housing Essentials: From Concept to Ownership

Basic Housing Needs

• Intimacy: Providing personal space and privacy.
• Hygiene: Facilities for personal cleanliness.
• Food Management: Ability to conserve, store, and cook food.
• Shelter: Protection from the weather and external elements.

Location Considerations

City Center

Characterized by numerous shops, services, and extensive public transport options.

Suburbs

Generally calmer and quieter, closer to nature, but often involve longer commute times.

Optimal Home Orientation

North-Facing Zones

Typically colder and shadier. Ideal for non-primary living areas such as storage pantries, bathrooms, or toilets.

South-Facing Zones

Warmer and brighter, receiving ample natural light. Best suited for primary living areas like living rooms and dining rooms.

East-Facing Zones

Receive morning sunshine until noon, offering a bright start to the day.

West-Facing Zones

Receive sun from noon until sunset, providing warmth and light in the afternoon and evening.

Functional Distribution of Space

Work and Service Zone

Includes the kitchen, pantry, utility room, and bathrooms/toilets.

Isolation and Sleep Zone

Dedicated to rest and personal quiet time.

Living and Social Zone

Comprises the living room and dining room, areas for discussion, entertainment, and social gatherings.

Connection and Access Zone

Encompasses the hall and corridors, facilitating movement throughout the home.

Accessing Housing: Construction and Purchase

Constructing a home requires significant financial investment, covering land acquisition, project design, administrative paperwork, material costs, and labor.

Promoter's Role

A promoter, which can be a company or an individual, initiates the construction project and is responsible for securing the necessary funding.

Essential Permits for Building

Several administrative steps and permits are required to legally construct a building:

• Building License: Issued by the local council, ensuring the project meets safety regulations and urban planning requirements.
• First Occupancy License: Certifies that the construction adheres to the approved project plans and that basic services (water, electricity, etc.) have been connected.
• Certificate of Occupancy (Habitation Certificate): A document issued by the general administration, based on documentation provided to the council, which certifies that the housing meets habitability conditions and can be legally occupied.

Understanding Mortgages

If you lack the funds to finance the construction or purchase of a home, you typically approach a bank or savings institution to apply for a credit or loan. A mortgage loan is secured by a specific contract, as the bank requires a guarantee for repayment, usually the home itself, if deadlines are not met.

Interest Rates

Mortgage interest rates can be:

• Fixed: The rate remains constant throughout the loan term.
• Variable: The rate fluctuates based on a reference index (e.g., Euribor + 1% or + 1.2% for mortgage loans).
• Mixed/Hybrid: A combination of fixed and variable rates over different periods of the loan term.

The Annual Equivalent Rate (AER) represents the true cost of borrowing over a year, including all charges.

Major Mortgage-Related Costs

• Solicitor Fees: For drafting and reviewing legal documents.
• Registrar Fees: For registering the property and its ownership at the land registry.
• Appraisal Fees: For valuing the property.

It is generally recommended that monthly mortgage payments for housing should not exceed 35% of your total income.