Buying a property in any foreign country including Spain can be a difficult undertaking especially if you do not have the essential information needed in order to arrive at a sound decision.
There are lots of things to consider before deciding what to buy such as legal issues, fluctuating markets, mortgages, and estate agencies. There is also a lot to deal when it comes to language differences, market differences, and taxation differences.
But these issues will be addressed one by one if you just have sufficient information for you to analyze all there is that you have to know before you buy a property in Spain. Here are some of the essential information that will sure help your decision:
Off Plan Market
When you hear this term, this means that you would buy a property that is not yet built, meaning you will buy it “off the plan”. In Spain, usually there is a developer that will have scale models, plans, and a show home made available for you to view.
This developer is the company that builds the apartment, villa, or townhouse that you wish to have. If you want to view this show home, the estate agency employers or the so-called Sales Consultants will meet you and take you around different developments. Then upon the completion of a successful sale, the estate agency is entitled for a commission on the property’s sale value and the Sales Consultant will also get a percentage. The advantage of buying a property “off the plan” is that you pay a lot less than you would when the property is completed.
Property Developments
In Spain, there are property developments wherein a development usually encompasses several properties consisting of around 40 apartments, townhouses and villas. Basically, these property developments are enclosed communities on which aside from the properties, there are also amenities like gardens, pool or pools, and other facilities.
If you prefer to buy one apartment from property development, you would pay towards the development that also covers the cost of pool and garden maintenance as well as security. It is said that these developments are usually kept very nice looking and really well maintained.
Benefits of Buying a Property in Spain
Just like in any other country, there are certainly benefits when you buy a property in Spain. One of which is that your property will usually increase in value like if you buy your property “off the plan”. Your property may cost around 150,000 euros, and upon completion of the development, whereas at first point at which you can live in your property, the value may have risen considerably.
Another benefit is that during variable tourist seasons, you can have your property rented, let’s say for half a year, so there is sufficient amount to cover your mortgage, and then the remaining half of the year can be for you own use. But in reality, this is not possible to happen that is why property buyers should not rely on this alone as income in order to pay for mortgage.
Important Reminders When Buying
If there are benefits, there are also pitfalls when you buy a property in Spain. Here are a few reminders that you should remember when you buy a property in Spain:
• You must always be prepared for a hard sell since in Spain almost everyone and his brother owns a real estate agency and most of these agencies come from a time share background. You should never expect UK business standards with these agencies.
• Do not believe easily to what the Sales Consultant tells you. Sales consultants that work for agencies make a lot of money from selling you a property so expect to be hit with the hard sell from day 1. If a Sales Consultant is too convincing, better check up on him from reputable sources.
• Never take anything for granted especially all the necessary information you need like the price you will pay, the local area, and all the other factors that you should first look into before you purchase a property. You should check these information for yourself or if you can’t, you can get someone that you trust to do this for you.
• And lastly, take time to think what you are going to do. Rushing can never do you any good. Make sure that you take all the time you need and do not be pressured into anything. Remember, buying a property is an investment, so make sure it is worth it.
