Buying a home in any foreign country, including Spain, can be a complicated undertaking. This is especially true if you do not have the necessary information required in order to arrive at a rational decision.
There are many things to contemplate before deciding to buy, such as legal matters, fluctuating property markets, mortgages, and real estate agencies. There are also language differences, market differences, and tax differences.
But you can address these issues one by one if you have sufficient details to analyse what there is to know before you purchase a property in Spain. Here is some important information to help you make a decision.
Off Plan Property
When you hear this term, it means that you buy a property that is not yet constructed, meaning you will buy “off the plans”. Usually there is a developer with apartments for sale who will have scale models, plans, and a show home available for viewing.
This developer is the person or company that builds the flat, villa, or townhouse. If you want to view a show home, the estate agent or the sales consultants will meet you and take you around different show homes. On completion of a successful sale, the estate agent or sales consultant will get a percentage of the sale. The advantage of purchasing a property “off plan” is that you pay less than the price of a Spanish apartment or villa for sale that is completed.
In Spain, there are property developments that usually encompass several properties consisting of around 40 flats, townhouses, or villas. These developments are enclosed communities which, apart from the properties, have amenities like gardens, a swimming pool, and other facilities.
If you choose to buy housing in a property development, you will pay towards the development and the cost of pool and garden maintenance as well as security. These developments are usually very well maintained.
Advantages of Buying a Property in Spain
There are certain benefits when you buy a home in Spain. One of which is that property will usually increase in value like when you buy off plan. Your property may cost around 150,000€, but within a few years will have a resale value of 170.000€.
Another benefit is that during the tourist season, you can rent your property out. Let’s say you find renters for four months out of the year, you should earn enough to cover your mortgage, and for the rest of the year, you can enjoy it for your own use. However, bear in mind that this may not be the case, and property buyers should not rely on rental income alone to pay a mortgage.
If you’re buying a Spanish property, you won’t need to fret about expensive living costs. Spain is among the cheapest European countries, where everyday living costs are still relatively low.
Of course, this depends on where you decide to live. As is the case in every country, living costs vary from location to location.
Important Reminders When Buying
There are benefits, but there are also potential pitfalls when buying a property in Spain. Here are a few reminders that you should bear in mind:
- You should be prepared for a hard sell as in Spain, almost everyone and his brother owns a real estate agency, and many agencies come from a time-share background. So shop around and ask for recommendations until you find a reputable agency.
- Do not believe everything a sales consultant tells you. Sales consultants who work for developers make a lot of money from selling you a property, so expect to be hit with a strong sales pitch. Remember, if it sounds too good to be true, it probably is.
- Never take anything for granted. Find out all the necessary information you need, like the total price you will pay, the local area, and the many other factors you should first look into before purchasing a property. You should check this information with the help of a trusted lawyer or solicitor.
- And lastly, take time to think about the big decision you are making. Rushing into a deal will rarely do you any good. Make sure that you take all the time you need and do not let anyone pressure you into anything. Remember, buying a property is a big investment, so make sure it is worth it.