Choosing the right location to Live in Spain ...
Whether you're renting or buying, where you live is an important question. But if you're planning to purchase your home, the location becomes even more important. Packing up to move from a bad neighborhood could be a real problem if you own the house and selling in a poor location could be next to impossible without facing a loss.
If you're buying in Spain (or any other country that you don't already live in, for that matter), the issues become even more critical. You may be planning to purchase the property without ever actually seeing it yourself. You may be depending on someone else to do your legwork for you. You may be taking your life savings in your hand and preparing to pass it off to a total stranger - literally.
If at all possible, visit an area at various times of the year before you buy. You may find that you absolutely love some seasons, but that winters are simply too harsh or that you're not ready to face the broiling suns of summer.
One of the most important things to remember is to think rationally about your "dream home" before you make an offer. Do you have an anxious salesperson pushing for an immediate decision? Simply say you'll think about it and then do that!
Don't depend on your memory. After you've visited several homes, you may find that you have trouble remembering which seemed to have plumbing issues and which was the awesome home but in a somewhat run-down neighborhood. Make notes of all your impressions as you visit the potential houses.
You should also make lots of photos. One of the best ways to then make a good decision is to go back to your kitchen table, spread out your notes and photos, and start eliminating those houses that seem less than acceptable. Compare condition, location, price and anything else that factors into your decision.
It may seem like you're really going to extremes to spend all this time on the house buying process. But remember that this is a significant investment, even if you aren't going to live there year round.
Buying Spanish Property as an Investment ...
If you're considering purchasing property in Spain as an investment, your decision of what kind of property to purchase could be very different than if you were simply buying property for your personal use.
More than likely, you're going to offer the property as rental property when you're not using it. That means that the only way you're going to get a good return on your investment is if you have property that is going to be in demand. A cabin hidden away in a tiny village may be just what you want when you vacation in Spain, but you have to ask what most people are looking for.
But how do you judge what locations will be in demand and what amenities are necessary? Take a look at the most popular vacation spots for the answer.
The experts say that there are some things that are simply non-negotiable if you want to keep your property rented as much as possible. Access to beaches and pools is one of the biggest, but the rental property most often in demand is also near to shopping opportunities, clubs and similar "nightlife," and other attractions.
Don't overlook transportation. Most vacationers aren't going to arrive in the family car so access to airports, car rental companies and public transportation is also important.
If you were buying property exclusively for your own use, price would likely play an important role in your decision. If you're looking for property as an investment, you have some additional points to consider.
First, you're going to have an income from the property so you can probably afford to pay more than you would otherwise consider. Just as importantly, those who travel to Spain looking for holiday rentals probably aren't going to be looking for second-rate accommodations. Quality houses, good furnishings and plenty of extras will entice more renters to seek out your property and to return next year - and the next.
Even if you're not going to be purchasing a top-rate villa, pay attention to the impression visitors are going to have. Look at your rental - whether it's a home or a small apartment - with the eyes of someone who has just paid to spend their holiday there. Chipped dishes, mismatched sheets and ragged towels probably aren't going to make a good impression.
Arrange to have the place cleaned following each guest, and consider leaving a small welcome gift - perhaps tickets to a local event or even refreshments in the refrigerator.
Must I use an Estate Agent to Handle my Spanish Property purchase? ...
Purchasing property in Spain may seem like an incredible feat, and one that you wouldn't dare take on alone. But the truth is, a real estate agent isn't required for purchasing your property in Spain any more than it would be required for you to purchase property in any other neighborhood. If you have time to invest in the search, and if you work with a good lawyer, you'll find that could be all you need.
You may have some preconceived ideas about a real estate agent and his or her role in your purchase. Some people feel that an agent is simply a middle man with an expensive price tag. But some people think that the agent is necessary. Neither is completely true, but whether you need an agent depends entirely on the amount of time you have to work on this project on your own.
Remember that an agent will have listings of houses, apartments or property that might fit your needs. He or she will already have knowledge of these properties, meaning that they won't send you out to look at houses that simply aren't anything like what you want. You won't always be able to judge for yourself looking only at advertisements. In addition, an agent can often steer you toward or away from particular neighborhoods. He or she will have knowledge of the area that might not be apparent to the casual observer.
On the other hand, if you have the time and feel confident in your ability to do the research for yourself, there's nothing that requires you to have a real estate agent. You may find that agents are anxious to tell you that you're likely to face a myriad of problems and issues that would be easier resolved if you have an agent. In truth, an attorney can handle all the issues you're likely to face when you purchase property in Spain.
You'll also find that an agent will increase the cost of your purchase - a cost that can be saved if you've the inclination to get out and pound the pavement on your own. Remember that if you do hire an agent, that commission could be negotiable.
One thing you must keep in mind if you decide to hire an agent is that you need a reputable firm. Look for a company or agent with a good local reputation, and for someone who's been in business long enough that you're sure they know the ropes.
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Must I use a lawyer to handle my Spanish property purchase? ...
The majority of real estate buyers know the value of a good lawyer when it's time to purchase property anywhere. But Spain isn't just "anywhere" and there are those who still step off into agreements without an attorney. Even if you have a real estate agent, it simply isn't a good idea to tackle a property purchase without a lawyer.
If you want to know how important a lawyer is in your property transaction, just look around. It's pretty easy to find horror stories of people who handed out money for property only to find out that they had limited ownership, that the people who sold the property had no right to do so, or that they'd simply been scammed.
Some people think that a real estate agent is enough. If you've got that agent on your side, there's no need to have anyone else working for you. That's simply not true. Remember that the agent is making a commission from the sale and their job was to find a buyer.
Most don't have the legal knowledge to make sure the interests of either buyer or seller are protected.
One point that a lawyer can help you is when there's communal property. Apartments are one example, but there are others. If you all share in the responsibility of pools, park areas, fences or whatever, you as a new owner need to have your responsibility clearly outlined. Leaving these areas vague are one potential pitfall that can come back to bring serious financial repercussions later. It might even be something so simple as the color of a fence. Who knew that someone wanting to paint a fence purple would create such a disturbance?
A lawyer who specializes in these kinds of transactions can look ahead and help you solve these issues before they have the opportunity to arise, simply by putting it all in black and white on a contract.
Spanish law, community regulations and other rules can all be potential problems that a lawyer can wade through, giving you the best advice and helping you ensure that your interests are protected.
Probably the most important service your lawyer will perform is to be sure you get what you're paying for. From the deposit to the final sale, you'll know that your money is secure and that you're going to get clear title to the property.
Remember that the services are only as good as the attorney. Look for someone with a good reputation that others trust.
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Buying Property in Spain "off plan" from an agent or developer ...
Want an extra closet in the master bedroom? Do you need shelves lower because of someone who's wheelchair bound? Maybe built-in entertainment centers are so important that you just can't live without them. Whatever your personal wants, you can indulge them by buying "off plan." This means simply that you're purchasing a house that hasn't yet been built.
In addition to having the chance to put in all the extras you want (or can afford) and making adjustments that will make your house exactly what you want, this option is sometimes simply less expensive. But there are some potential pitfalls and you need to take some steps to protect yourself and your investment.
One point is to be sure you're working with a reputable contractor and builder. If these guys don't have the appropriate licenses and permits, and if they're not able to meet deadlines, you may find yourself living in a tent while you pay additional fees to keep the work going. Take time to research the company you're trusting with this important task before you hand out any of your money.
Another point is property ownership. While it's going to be a great house, it's not going to do you any good if you don't own the property it sits on.
Even if you've got an awesome contractor, there are always things that can go wrong. Contractors all over the world have accidents, financial issues and other problems.
Find a good lawyer who can handle the purchase of your property and the contract for the building, just so that your interests are well protected.
One sales gimmick that many fall victim to is the "take a free tour" sales pitch. You're offered something free to take the tour, then pressured to make an instant decision and sign a contract on the spot. The best rule of thumb, according to most, is to avoid these for what they are - gimmicks. If you are considering one, don't be rushed. There's no deal that's so "hot" that you have to sign now or lose your opportunity forever. Take time to consider the deal, talk to an attorney and be sure that you're making a good decision.
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Buying within a community of owners ...
Whenever there's a community with property owners' associations, dues and rules, there are going to be some fantastic benefits and the potential for problems. It's true with any organization, and this is no exception.
One of the biggest benefits is that you pay your dues and someone else takes care of the details. One of the biggest negatives is that you pay your dues and someone else takes care of the details. You may find that you're "regulated to death." Some communities have by laws that govern every aspect of your daily life - down to what you can have in your yard, whether you can have a pet and what colors you can use on the exterior of your house.
One other potential source of problem is when power struggles erupt. Sometimes, particular people want to be in charge and may take it upon themselves to become self-appointed officials, endeavoring to drive the community even when they don't hold elected offices. These power struggles may develop into full-scale conflicts and the community becomes the battle ground. Scars in the form of unkept property are sometimes the result.
So is it always bad? Actually, there are some real benefits, aside from the fact that someone else is going to take care of a myriad of maintenance issues for you. One of the most notable is that these communities are often filled with others who have interests similar to yours. You could very well find that you have a built-in neighborhood of people who will become your friends.
So how can you tell whether this is a peaceful community where you'll fit right in or an area where conflicts continually erupt? Check out past issues of the community's meeting minutes. Look for a history of conflict. You may find the local newspapers are also a source of information.
Visit the neighborhood. Spend some time getting to know the "locals," and listen to their opinions.
Having the regulations may not be a problem at all for you, but you should know what the rules are before you commit to buy property in the area.
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The cost of buying property in Spain...
As is the case in any property transaction, there are some costs in addition to the actual purchase price of a house, apartment, villa or vacant property in Spain. What those costs will actually be varies, but you can get an idea of what to expect.
First, expect to pay about 10 percent of the purchase price for a variety of fees and taxes. This may very well impact that amount of money you have to spend on a piece of property in Spain, but you need to be prepared for this before you're actually involved in the purchase. It could be very costly if you've already made an offer and submitted earnest money, then find that you can't complete the transaction. Typically, you'll lose your deposit if you pull out on the deal. (Note that the seller will usually be required to pay you double the deposit amount if he or she decides to kill the deal.)
Remember that your attorney will charge you for his advice and for helping with the contract and details. Most experts agree that you really can't afford to skip this step, even if you're looking to save money. You probably won't pay more than about 1 percent of the purchase price for attorney fees.
The real estate agent's fee may be another extra charge you're going to be paying on the deal. Be sure to find out whether these fees for both the seller's agent and your agent are figured into the selling price before you make an offer. Remember that some agents are willing to negotiate on the fee.
There are several steps commonly accepted in the purchase process. You may be asked to put down a small deposit, or to put down about 10 percent to hold the property and to indicate your seriousness. Having an attorney's advice about these steps is vital to ensuring that you don't lose any of that money.
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Other Things You Should be Aware of when Purchasing Property in Spain... !
One of the most important steps in your decision to purchase property in Spain is just like decisions about purchasing property anywhere - look toward the long term.
There are a few people in the world who aren't at all bothered by running water down the drain. If you're one of those, congratulations. For the rest of us, there's a need to consider what will happen to your property in the future. That brings you back to choosing property that is attractive to others.
Location is important and having property with a great potential for resale should play a role in your decision of which property you'll buy. While a quite mountain get away is a great idea for some, will you be able to resell that at some point in the future.
You may be planning to make a permanent move to Spain, but remember that there's no way to see the future. You or your spouse may have health issues or family concerns may be what it takes to end your life in Spain. You may find it need to move back to your native country, closer to family, or even closer to needed medical facilities.
Consider the potential for resale if that happens. If you've chosen well - a type of property that's in demand and has gained in value over the years - you'll find yourself able to quickly liquidate the property if the need arises. Of you may need to rent the property while you're away. Again, choosing property that is desirable to the masses means that you'll quickly recoup your costs.
So how do you know what's desirable? Check with rental agencies in an area before you buy. If they have a waiting list for rental units, you're in the right place. If you can rent a great place at any time of the year and there's always units available, you may not be in the most desirable location.
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Article from: http://www.spaingolfproperty.co.uk
