In this post we are going to look at five of the factors that should be at the top of your priorities when starting out with your property purchase in Spain.
If you would like to discuss any of these subjects in more detail, simply use the search box at the top of this page. We have written many articles on these prime factors. If you have any questions that we have not already covered simply drop us a line and we will be happy to be of assistance.
1. Set a Realistic Budget
When setting the budget for your property purchase in Spain, ensure you understand all the costs involved. It is important to not only budget for purchase costs, which can amount to 12 or 15% of the purchase price, but also for other annual costs such as IBI, community fees and non resident tax obligations.
Be careful of agents who only show you properties at the top end of and over your budget. Some owners are not willing to lower prices. Falling in love with a property over your budget can cause all kinds of problems.
When setting the budget for your property purchase in Spain, ensure you understand all the costs involved. It is important to not only budget for purchase costs, which can amount to 12 or 15% of the purchase price, but also for other annual costs such as IBI, community fees and non resident tax obligations.
Be careful of agents who only show you properties at the top end of and over your budget. Some owners are not willing to lower prices. Falling in love with a property over your budget can cause all kinds of problems.
2. Research and Take Your Time
Use internet portals and property publications to make price comparisons between properties in your target areas. In Spain, property prices tend to vary drastically, compared to other countries. A value cannot be put on a property simply by knowing its dimensions and postcode.
It is important to research different areas and to have an understanding of prices before moving forwards.
Visit the areas you are considering at different times of day and in different seasons. An attractive, bustling coastal area may look wonderful in the summer sunshine but a grey ghost town may not be so attractive in the winter months. Remember WHY you are buying the property and keep your priorities clear at all times.
3. Use an Independent Property Finder
A reputable independent property finder is not influenced by sales commissions nor fast deals. Their role is to secure the best property for you, in the best location and at the best price.
The role of an independent Property Finder is not to sell you a house. That is the estate agent’s role.
Some estate agents are so good at their job that you may sometimes feel that you should be buying what they are selling you, even though it is not what you are really looking for.
The best estate agents are great at promoting unbeatable deals. They know a bargain when they see one. However, is it really a bargain you are looking for?
An independent property finder will keep you focused. They will not let your heart rule your head. They will be the devil’s advocate. They will keep your feet on the ground. They will introduce you to the best estate agents, source properties from private sellers, negotiate the best price for you and guide you through the whole process.
4. Contract an Independent Lawyer
Purchasing property in Spain, whether a small holiday apartment or a luxury villa, is an investment. All property investments should ideally be safe and free from risk.
Using carefully selected Spanish Property Lawyers can reduce any risk involved to an absolute minimum and even eliminate risk completely.
In the Malaga, Costa del Sol region, the cost of such services is usually 1% plus VAT on the purchase price of the property. It is not uncommon for some law firms to fight for business by offering 0.9% or less, but be careful. Seek recommendations and advice before entrusting them with your property.
We have spoken to many agents and lawyers and have been, shall we say “surprised” at comments about legal practices. These are the stories that the tabloids like to expose to deter people from buying property in Spain. Sadly, it is not unheard of for discrepancies to be overlooked to hurry along a close of sale. These kinds of incidents can be very costly for the purchaser, in the long run.
5. Use a Currency Transfer Company
If you need to exchange currency to complete your purchase (ie. from sterling or dollars to euros), it is very advisable to consult with a currency transfer company before you find your ideal property. This can save you a substantial amount of money.
There is no point negotiating a fantastic property at an excellent price if you then lose what you have saved by having to exchange currency in a hurry at a low rate.
