Five things to consider when buying a Spanish property
Purchasing a property is one of the most important decisions in anyone’s life. It is therefore, essential that you have a clear idea of what you want and to be aware of the processes involved, especially when buying a property abroad. There are many things to consider but here are the five things that we think are most important.
1. Your Budget
The most important thing to do before looking for a property is to set your budget. There is no point in building up your hopes and expectations until you know what you can spend. By having a budget in place at the start will allow you to narrow down your search and will allow any agents to quickly and effectively identify suitable properties for your consideration. This can save you a lot of time and money.
When working out your budget it is important that you factor in an extra 10-15% to cover taxes and fees depending on where you are buying and what type of property you are buying, i.e. a resale or new build. These costs can be higher if you are obtaining a mortgage on the property.
It is very important that you seek independent legal advice regarding any potential property purchases in Spain. This will stop you from making any costly errors and will give you peace of mind that everything has been checked out legally. The lawyer that you employ, will carry out all the necessary due diligence checks on the purchase and if granted power of attorney (this allows the purchasing process to quicken so documents don’t have to be sent back and forth if you still reside outside of Spain and you don’t have to travel back and forth also) and they can on your behalf open a bank account, obtain an NIE number and deal with any other procedures.
3. Your mortgage
Obtaining a mortgage will mean that you incur additional costs on your purchase as there will be extra fees to be paid to the Notary and the bank will apply charges also. The current situation in Spain means that it is possible to obtain a mortgage of up to 80% when buying from a bank and if you are buying a resale property you will normally be able to get around 50-60% of the property’s value. Like in the UK, you should shop around to get the best mortgage deal as banks will offer different deals.
4. What is the property for?
When purchasing a property you will need to decide what you want from it. Will it be a permanent residence, a holiday home, an investment property or a mixture of options? It is important to know what you want from your property as it will affect the type of property you purchase and its location. It is recommended that you carry out some research on regional laws to ensure that the property you want is achievable.
5. Your dream
Once you have sorted out your budget and what you want from the property you should draw up a list of requirements for the property itself. You will need to consider if you want a new build or a resale, buy on a development or not and what characteristics you want the property to have. Be realistic and search firstly for what available within your budget as this will give you a good idea what you can actually afford.
At present it still is a buyer’s market in Spain and therefore there is a lot of choice in many areas so you can be a little more demanding with your specifications.
Your Dream Home have helped hundreds of people from all over the world find their slice of the Spanish sunshine. Please feel free to contact us with any questions or to book a no obligation property inspection.
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