Buying Property in Spain - ...

 

The Easy Guide to Buying a Property in Spain
When embarking on purchasing a property abroad there are various points to remember and steps you can take to ensure that your money is in safe hands.

 

Choose the right agent.
Everyone in Spain thinks they are an “estate agent” and many vendors give their keys to friends to “sell” their home. Showing someone round a property is the easy part, but what happens next?

 

This is where expertise is really required. A true estate agent will immediately ensure that a lawyer has been appointed and that thorough searches are conducted, to ascertain whether the property has any outstanding debt. If it does, and this is not paid before completion of the sale, then you, the purchaser, will inherit the debt. Of course the first thing to find out is if the person selling the property is really the owner, or has power of attorney to do so!

 

Buying a Re-sale Property
There are many re-sale properties available and it is important to be as specific as possible when describing your requirements. The more you can tell us, the easier it will be for us to find the right property to suit your budget and preferences. The steps to buying a re-sale property are as follows:

1. Identify the property and pay 3000€ to remove it from the market.
2. In approximately 7-14 days the “Compra/Venta” contract will be signed and you must pay 10% of the purchase price (minus the 3000€ already paid)
3. The two parties must then decide on a completion date (once your lawyer has conducted all the necessary searches) and you pay the balance then.

 

Off Plan Developments
Any visitors to Spain will undoubtedly have seen the new buildings constantly appearing along the coast. Buying off-plan (before the property is built) is an excellent way to invest a lesser sum of money and, at a later date, sell at a profit. We have seen properties make double the initial investment in less than 3 months after down payment and have the paperwork to prove it!

 

Alternatively, you can take possession of the property on completion and enjoy a wonderful, brand new home, built to the highest specification and with excellent rental potential. In general terms, this is how it works;

1. Once you have identified the property a reserve deposit is required.
2. In 4 –6 weeks a “compra/venta” contract will be signed and at this point you pay 30% of the sales price, plus 7% tax.
3. On completion you either pay the balance of 70% plus tax, or take up the mortgage offer.

 

Many investors choose to sell-on their property (with a profit) before completion. It is important to ensure that there is not a clause in the contract preventing this. A reputable agent will be able to confirm this for you.

 

There are many new developments springing up all over the coast, but which one should you buy? We investigate all new developments and only recommend those, which have the following qualities:

• Good Location
• Excellent Standard of construction and finish
• Good re-sale potential
• Good rental potential
• Bank guarantee (Aval)

 

Why not buy directly from the developer?
This is always an option. The price will be the same, as developers do not give a discount to private buyers. But who will chase them up and act as your representative if there are any problems? ... Well, We will!

 

Think of what the return on your money would be if you left it in the bank. Why has buying property abroad become a lucrative business? Because there is money to be made!

 

Country Properties & Fincas
Not everyone wants to live on the coast and would prefer to be in the beautiful Andalucian countryside. We have a wide portfolio of country properties, smallholdings, plots of land, village houses and ruins to renovate. Tell us what you want and we will find it for you.

 

NIE Number
All foreigners in Spain must have an NIE number (Numero de Identificacion Extranjero) to make any purchase (Due to change 2008). We can assist you with this. It is a simple process, but without it you will not be able to complete your purchase. Perhaps once you have made your purchase you will return to your country of origin. It is important that you have someone in Spain to follow progress on your purchase. We will liase with your lawyer and ensure that progress is being made.

 

Nowhere to stay?
Contact us.  We may be able to arrange a short term rental through an associated company for you.

 

Food For Thought

or
Get your brain into gear and don't be a mug because you didn't consider these points

 

Defining your Spanish property needs

Clarifying your needs makes your property search easier and reduces the chance of you buying a property that doesn't suit you. The sort of questions you need to ask yourself are as follows:

Will this be a holiday home or will it be a main residence?
A holiday home means you probably will not be there for large parts of the year. Therefore you will need a property that doesn't require a great deal of attention on a regular basis. The last thing you want is for your holiday home to become a burden that interferes with your life.

 

Apartments or villas on urbanisations (urbanizaciones in Spanish) are the best option in this respect as security and maintenance tend to be easier for these types of properties. Perhaps look for something with good rental potential to earn income and avoid leaving the property empty most of the year

A more permanent home requires greater thought. You plan to spend large parts of the year living there, so you need to be somewhere that offers you the best quality of life. This means considering the local infrastructure and facilities, community, security, accessibility, and so on.

family needs
Generally speaking, if you have young or teenage children, your life will be a lot easier if you a buy property that allows them to have fun without you having to drive them everywhere. Residential estates that attract families are ideal, as both parents and kids are happy.

 

Investment: a primary or secondary concern?
Many people have bought Spanish property in recent years primarily as an investment, both in terms of rental income and capital gains. If you are buying as an investment then you have to focus on the type of property with the greatest potential in these terms.

 

A good property agent will be able to advise you on the factors that drive property investment returns, along with the tools to help you analyse them. If you are buying primarily as property for living in and enjoying, then you will find you have a wider choice of properties.

How much effort do you want to put into maintaining the property?
Essentially it is just the end of the beginning when you complete the purchase. Property in Spain, as anywhere, doesn't look after itself, and maintaining property in a foreign country can be more of a challenge than at home. Depending upon what you buy, you may find yourself having to deal with local government, local builders, cleaners, plumbers, gardeners, and what have you, and all in Spanish.

What sort of maintenance budget do you have?
You need to be clear about the maintenance costs that different properties involve, and budget for them before you purchase. Otherwise you may find yourself owning a property that is too expensive for you to maintain. A good agent will give you a guide to the maintenance costs of different properties. For more detail on the sorts of costs you will face see the 'Owning a property' section of this guide.

What sized property do you need?
Be realistic about the size of property you need. Don't buy a property on the assumption that extended family will always be staying, as you may end up with something too big for you. Focus on your own requirements.

What kind of property do you need?
Different kinds of property (for example new build/resale, villa/apartment, on- estate/off-estate) suit different needs, and it is important that you are aware of their relative merits before deciding what to buy. This is one of the most important questions that you need to answer.

Which regions best suit your needs?
Whereabouts in Spain to buy is another important question. You may have personal reasons for choosing one region, such as family or friends located there. However bear in mind that each coastal region of Spain has a different set of advantages and disadvantages, and it helps to know which one best suits your needs.

 

The vast majority of real estate agents are locally focused which means they know very little about the other regions of Spain, and will be determined to sell you a property in their area. If you have no strong personal reasons for choosing one area, then it is in your interests to know about the merits of all areas. You may be surprised to find that some of the lesser known areas are the most attractive. The only way to find out is to visit and research the area.

How important is accessibility?
Convenient access will be important to you if you wish to travel regularly. As an expatriate you will probably find that you need good access, both for you and for the convenience of family and friends who may wish to visit. Good access means a choice of international airports that can be reached within an hour or two by car. It could also mean proximity to a TGV/fast train terminal.

What is really important to you in terms of surroundings?
Some properties offer rural charm whilst others offer urban glamour. Being in the centre of town or right on the beach front will have advantages and disadvantages, as will being out in the countryside. What to choose depends on the qualities you value the most at this time in your life. You also need to think about the infrastructure you would like to have around you, such as hospitals, schools, shopping, leisure activities, and so on. A good agent should be able to advise you on all these issues.

What kind of community would you like to be living in?
Some people may prefer the solitude that comes with a house in the woods far from anywhere. Others may like the idea of a vibrant international community that you find on many of the best residential estates. Think about what you would like from a social life if you are going to spend a lot of time in Spain.

What will you need from the property in 5 years time? In 10 years?
Never forget how quickly the years pass by. If you are buying a property for the long term then bear in mind how it will suit your needs as they change over time. As always a good agent should be able to advise you on this matter

 

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