Investment Property Spain - Investment Guide to Purchasing Property Abroad

 

Buying New or Old Property?

With European law changing building standards nowadays, new developments are where people are buying.

 

This is because all new construction comes with damp proofing, sound insulation throughout, air conditioning and heating, fully fitted kitchens and 10 year building guarantees with all payments made to the developer until time of completion.

 

Buying something new and "off plan" also means that you are buying at the original and first price and not paying for an overpriced resale with lots of plumbing and damp problems.

 

Buying new and "off plan" is where clients make an investment, remember by the time the development is complete (usually 15 to 18 months) you will have earned capital appreciation.

 

Also, the price is fixed once you pay the deposit which, given the steady rise in Spanish property values, means that the house you eventually move into will be worth considerably more than the money you owe for it.

 

It is quite common for people buying investment property in Spain purely as an investment to sell the property before moving in or even before the building work has been finished, in turn making a considerable profit.

 

Villa or Apartment ?

When purchasing Spanish property for full time stays, a villa would be the sensible option as you would need the space, however, if you are not there all year round, this villa needs security, a full time gardener and generally lots of maintenance to keep it in good condition.

 

Also remember that apartment communities here in Marbella are built to a five star standard, with private 24 hour security on site, daily community gardening and the advantage that once you leave, you will be safe in the knowledge that it will be exactly how you left it once you return back to Spain.

 

Is it Safe to Buy Property in Spain?

With stories circulating in the media of people being evacuated from their homes due to changed planning permission of certain areas and the ample choice of developments it's a necessity rather than a luxury to appoint a reliable estate agent up to date on current affairs in the business.

 

It would be silly not to seek such service, as it is totally free of charge unlike in the U.K. and can only benefit the client.

 

Our staff here in Spain are trained to the highest of standards to offer that service.

 

Experience has taught us that the most satisfying business comes from the many referrals we've had over the years, which make up for 34% of our clients.

 

I think that number speaks for itself and the impression we make on our clients.

 

It is with great enthusiasm that a selected team of highly trained professionals has been chosen to advice and guide you through the stages of buying property in Spain.

 

What is the Legal and Buying Prodecure?

When purchasing investment property in Spain, It is customary to add 10% to 11% onto the price of any property you are looking at; this covers all taxes, notary charges and legal fees.

 

Once you are here in Spain, we will introduce you to an English speaking Spanish lawyer who you will have the option of using for the purchase of any properties here.

 

The buying procedure is the easiest part. Once you have found that perfect property, you will need to put down a reservation deposit varying from €3,000 - €6,000.

 

Usually within a one month period you will be asked to pay over between 30-50% of the purchase price in order to sign a private purchase contract.

 

The balance will then be payable once the property is completed. These dates will all be stated within the purchase contract.

 

Is Your Money Safe?

This is a normal question to ask when purchasing property abroad and the answer is that with every payment you make, there is an option of a bank guarantee, which protects you against any kind of problem that may arise.

 

With European legislation nowadays, your money is protected and whilst you are here in Spain we will introduce you to a lawyer who can answer any questions that you may have on this matter.

 

How Do You Know Everything is on Schedule?

All of our clients get a 90-day report on the progress of their property regarding completion schedule and the appreciation it has increased by.

 

This report can be mailed, e-mailed or given to you on the phone.

 

I hope that all of the above has helped you in your decision to choose the right location and agent in Spain.

 

What Do I Stand to Lose if the Developer Ceases Trading Before the Sale Has Been Completed?

New laws have been introduced in Spain to protect you from developers not completing their developments for various reasons which completely protects you the buyer.

 

Property developers are required by law to take out bank guarantees or insurance policies that make sure you will be paid back in full of any monies that you have already paid, plus interest, in the event of bankruptcy before completion of the property.

 

You will not be able to buy the property if this happens but you will not have lost any money either.

 

Do I Have to Be A Resident of Spain to Buy Property Before I Can Buy a Property?

No, anyone who is a resident to any country in the EU may buy a property in Spain.

 

There are other methods where buyers outside of the EU may also purchase an investment property in Spain.

 

Let Spanish Invest help you find your perfect investment property, select your property by location, join our mailing list for up to date property development information or contact one of our experts right now!