Is The Boom Over In Spain?
Like all world markets there are peaks and troughs when looking at the popularity of buying property in Spain but while these dips may reach Rift Valley proportions in some markets, they are mere holes in the road when it comes to investing in Spain.
In recent years Spain has certainly experienced a phenomenal boom and we believe this will continue because Spain provides the level of facilities and infrastructure that people need. In the long term, continued demand and dwindling availability of building land will mean increases in the market of Everest proportions.
Southern Spain is blessed with one of the most attractive climates in the world. Hot but pleasantly dry in the summer and mild in winter, with well over 300 annual sunny days, the weather suits both young and old all year round.
There is no ‘shut down’ in winter. Marbella and the surrounding towns are more than summer resorts. Hundreds of thousands of us live and work here all year round and although considerably busier in the summer months, when the tourists pack their bags, Andalucia continues as normal 365 days of the year.
Would I Be Better Off Buying In An Emerging Market?
It depends entirely on what you want. The infrastructure available in countries that are becoming popular is obviously not what it is in Spain. If you are considering a re-location it may be difficult to work or set up a business, language may be a problem and the locals may regard the winter months as a time to hibernate behind locked doors.
Contact us if you would like information about emerging markets and indeed to discuss purchasing property world wide. We might be able to help.
How Do I Sell Before Completion?
We are confident that we can re-sell your property before completion, if this is what you wish, because we were happy to sell you your property in the first place. It is therefore a sound property and as long as we have plenty of time to market it, with the interagency network, at a competitive price we should have no problem selling it and putting your profit in your pocket.
What Return On My Investment Can I Expect From Rental Income?
This depends on many factors. Obviously rental rates vary throughout the year and depend on the size, quality, accessibility and proximity to the beach of your property among other things such as décor and facilities such as swimming, golf and tennis.
Using an agent to rent your property will eat up some of your profit but may increase the amount of occupancy you achieve. You might successfully rent through friends and family and contacts at home. This brings the added benefit of having some idea of who is in your home and is the preferred option of people who rent their properties only when they are not using them themselves. If you choose to rent your property on a weekly basis, do be aware that it will be difficult to fill every week, especially during off peak times.
The other option is long term rental of your property perhaps for 11 months of the year, which should cover all costs relating to owning property in Spain and leave you with a month to enjoy the property yourself. How much of a surplus income you receive from long term rentals depends on how much capital you initially tied up in your spanish home and the size of your monthly mortgage repayments. As a rule rental rates should cover your mortgage if you borrowed 70% or less and your community fees if applicable.
What Are Community Fees?
All properties in Spain that form part of an urbanization, must contribute to the upkeep of communal areas by paying a community fee. Community finances are managed by an elected member of your community or by an accountant and should be available for you to view.
Your fees pay for the upkeep of your garden, your swimming pool and for general repairs and costs as and when they arise. Fees vary from urbanization to urbanization and sometimes include costs such as buildings insurance, water bills and the upkeep and servicing of alarms. When you purchase a property, your lawyer should ensure that the accounts relating to the urbanization are in the black. As a rule debts are unlikely as failure to pay community fees can result in forcible sale of your property.
What Is My Capital Gain Liability?
This question is best answered by an expert. Speak to one of our independent financial advisers for accurate up to date information regarding taxes. Remember that being liable for any tax means that you have made a profit! Our financial experts can also provide advice about how to register your property. Registering carefully now could result in a considerable financial saving later, depending on whose name you put on the title deeds. All advice provided prior to purchase is free and without obligation.
Should I Buy On The Coast Or Inland?
Many people arrive in Spain with dreams of a little farmhouse in the country, nestled in an orange grove where the peace and quiet is only interrupted by the tinkling stream running by. The Andalucian countryside is spectacularly beautiful and a lovely place to live if you are really prepared for rural Spain. If however, you work on the coast, socialize on the coast and indeed spend hours a day commuting to the coast you may wish to reconsider your ideas and live on the coast. Rustic style properties are available and greenery is provided in abundance with expansive gardens and golf courses.
If you really do want a country property and are prepared to commit to a rural life there are some gems to be found but don’t delude yourself it is an undiscovered market with prices to match.
Which Area Of The Coast Is Best?
The different areas along the Costa del Sol each have attractive features and all have a different ‘feel’. Choose to live where you feel most comfortable, whether it be among the hustle and bustle of lively Fuengirola or the jet set in Puerto Banus. We recommend you visit the area that you want to live in to make sure it has all the amenities you need.
Should I Buy An Apartment, Townhouse Or Villa?
Unlike in some countries where apartments are reserved for the less fortunate in life, spanish apartments can be as opulent as palaces while a country detached villa may have housed goats in a previous life! So budget aside, the property type that best suits you will depend on many factors.
The most important question you should answer is ‘will you be here all year round?’ if the answer is no, consider that apartments and townhouses often form part of a community where the lush tropical gardens and turquoise swimming pools are looked after by someone else. The beauty of this being that you can lock your door and leave without worrying about the upkeep of your property in your absence.
If you intend to live here permanently nothing beats a villa and private garden, although children may miss the opportunity to make friends in a community pool.
Can I Work In Spain?
If you are a citizen of the European Community you are entitled to live and work in Spain. All that is required is that you obtain a fiscal identification number (NIE for short), open up a bank account and fill in a few forms. If you are from a non EC country it may be more difficult to obtain permission to work and live here permanently. A lawyer can advise you according to your personal status and circumstances.
Who Should I Employ To Reform My Property?
Whatever you need doing to your property we can help you. Our after-sales team is waiting to assist you and can put you in contact with numerous reputable trades-people or provide you with advice about interior design and furniture packages or indeed with any information you might require about anything.
Should I Buy Off-Plan Or Resale Property?
If you want to take immediate possession of your property it would make sense to buy a resale property. Some resale properties need varying degrees of modernization so you may have to factor into your budget refurbishment costs. Of course some resale properties have never been lived in and are brand spanking new. Often a resale property will include furniture and fittings and can represent a good buy.
If you are happy to wait for your property to be built you can make considerable savings on price and may have some say as to the final internal design and décor of your property.
Call FREEPHONE 0800 107 0003 from the UK
or +34 952 813 303 today!