Tag Archives: Invest in Spanish property

Buying Property in Spain

Buying property in Spain is quite straight forward. There are basically 4 different stages which we have listed below for your information.
1. Reservation Deposit
2. Exchange of the private purchase contract
3. Before Completion
4. Completion

1. Reservation Deposit

Once you’ve found your ideal home you simply reserve the property with a Reservation Deposit. A deposit between 3000 – 6000 Euros is usually sufficient. The deposit is refundable if the vendors change their mind but is not refundable if you cancel. Paying the reservation deposit guarantees that the property is taken off the market and is reserved for you at the agreed fixed price. If you haven’t previously appointed a local lawyer, we will be happy to arrange one for you. They will explain the procedures for buying in Spain and all the associated costs. From now on, up to, and even after completion of the purchase, our support staff and your lawyer will take full responsibility for the entire transaction, advising you, and keeping you up to date every step of the way. Choosing the right lawyer is your guarantee that Spanish Legal requirements are met, that the property is genuinely registered in the vendor’s name and is free from any mortgage, charges or restrictions. Your lawyer will negotiate and discuss the purchase terms with the vendor’s lawyer and as well as the agreed price will include all your other requirements such as fixtures and fittings, the completion date and your preferred method of payment.

2. Exchange of the Private Purchase Contract

Once you’ve paid the reservation deposit you then have a period of up to 30 days to exchange the private purchase contract with the vendor. You can arrange for your lawyer to handle both this stage and the completion on your behalf if you are unable to attend. Before your lawyer exchanges contracts he will have completed the detailed searches and investigations at the Land Registry in respect of the property.

3. Before Completion

With a new property, before you instruct your lawyer to complete the purchase, we inspect the property and detail anything that might need putting right. Once everything is corrected and you are satisfied, the title deeds can be signed.

4. Completion

Finally, on the day set for completion you will go to the Notary Public with your lawyer to sign the Title Deed, making the final payment to the vendor who simultaneously passes you possession of the property and hands you the keys. In this way the Notary and Land Registry are acting jointly to protect and guarantee your interests.

Invest in Spanish property

Investment Pointers

Is the Costa del Sol a good place to invest in property? The answer has to be a resounding Yes!

The massive upgrading in facilities, services, infrastructure and aesthetic appeal of the area has had a positive effect on property values. Since December 1995 the average price of a Spanish home on the Costa del Sol has risen by a yearly accrued rate of just over 17%.

Invest in Spain

Invest in Spain

 

Extensive research completed over the past few months has found that a new property now sells at a price over 5 times higher than figures achieved in 1995. Why invest in Spanish property?

A recent report released by the Spanish Press Agency stated that  property prices rose by over 23% in Andalusia. Why invest in Spanish property ?

Yes – you should have bought four or five years ago but hindsight is a wonderful thing! Reports demonstrating how (some) properties increased in value by over 35% per annum are reliable however do not fear, you haven’t missed the boat since property prices continue to rise albeit at a more sensible, controlled rate.

It is still safe to assume an annual growth pattern of at least 15% on well presented properties in popular locations. Why invest in Spanish property ?

A shortage of available building land between the sea and the mountains means that land prices on the Costa del Sol must rise with further population growth an invest in Spanish property is still a valid option. The introduction of the Euro has enhanced Spain’s position as the number one choice for overseas property purchasers, through ease of payments. In fact, the introduction of the Euro further highlighted the “strong value” of Spanish properties when compared to properties for sale in other European countries.

The Costa del Sol boasts the fastest growing population in Europe. Currently standing at 2.5 million, this figure is expected to rise to 6.5 million quickly.

Do you need even more reasons to invest in Spanish property ? Well here goes:

over 50% of purchasers are Investors of some kind with many seeking “buy to let” properties. In addition to seasonal tourists or holidaymakers, Spain currently occupies the second position globally for residential tourism after the United States.

The huge choice of championship golf courses is another major advantage for those owners who want the luxury of knowing they can choose to successfully let their Spanish property.

A staggering 2.5 million golfers visit the Costa del Sol each year; enthusiasts pay several hundred pounds a week in the “quieter” winter months to rent a well furnished and equipped property, one with easy access to golf courses and local facilities.

Unlike most other places, the Costa del Sol does not close down and go to sleep for the winter! Invest in Spanish property and you will get year round returns.

With the general trend towards quality in all aspects of consumer purchasing, the Costa del Sol really does satisfy and in many cases, exceed customer expectations.

It is worlds apart from those dreary, high rise, concrete jungles or pure “package holiday only” resort areas

Investing in Spanish Property

Whilst many still have useful disposable income, recent reports highlighting the risks associated with over reliance on pension plans, the volatility of the stock market and other traditional savings schemes have encouraged people to consider alternative methods of realising returns on investment including longer term financial planning initiatives.

Investing in “traditional bricks and mortar” has always been and will continue to be a safe and popular option. Indeed property purchase has been referred to as the “new pension plan.” This is especially true if you invest in Spanish property.

Investment in overseas property has become increasingly popular over the last decade. It is no longer considered a novel, high risk, logistical nightmare.

Also the benefits associated with owning a property overseas have multiplied. Traditionally a property abroad was viewed as a quaint little luxury only enjoyed by the select few.

Today, investing in an overseas property is considered a real opportunity for realising useful, ongoing income, significant capital gain and the chance to enjoy regular, inexpensive, relaxing breaks without having to take lengthy time off work.

An increasing number of Europeans are taking early retirement and relocating permanently to Spain, particularly the Costa del Sol.

Indeed several Developers, having recognised this upward trend in foreign nationals seeking the perfect retirement home, now proudly promote the alterations they have made to the design of their new properties and “urbanisations” to satisfy the demands of the “early retiree”.

So, you finally achieve your dream and buy your Spanish property – now what do you do?

Well, the great thing about the Costa del Sol is the choices are endless. You are now the proud owner of an asset that should increase in value over the coming years.

Depending on your personal circumstances, you may decide to live in it for a few weeks or months each year or perhaps it’s the perfect base for entertaining friends and family.

Once you discover how much rent can be achieved, especially during the busy summer months, you may find 2 or 3 months rental income more than covers a significant chunk of your annual expenditure.

Or you may decide to let it to golfers in the quieter winter months. Perhaps you just want to sit back and watch it grow in value. Some Investors cash in and re-invest their profits in a larger property or a second investment opportunity.

The “Buy to Let” Overseas Investment

What makes a good Investment Property? Location, Location, Location!…………. Yes, that now familiar expression also applies abroad!

Buying “off plan” is likely to afford an excellent return on investment since, by the time construction has finished, perhaps two years later; your asset could have increased in value by 30% or more.

Ideally you should reserve your property as soon as the building plans are released; buying in the early phase of pre-construction will allow you to secure a property that will increase in value each time another phase of the Project is released for sale.

Be prepared to make a decision, act fast and you could snare a real bargain!

If you’re looking for a property that is ready to let immediately then you could purchase a “re-sale”. Sometimes you can find one which includes all the fixtures and furnishings.

Re-sales will be more expensive however, unlike new build, the seller may often negotiate on the price for a quick sale.