Step by step guide to buying a property in Spain

A guide to buying property in Spain

Buying a property in Spain should be a hassle free process. However make sure you are not one of those we see on TV programs. Some people do get into trouble because they simply are not aware of the pitfalls there might be out there. We do assume that for you buying a property in Spain is a serious matter, which asks for some research up front.

Never rush into any decision, no matter what a sales person from a big estate agency or a developer says. This will make you think “They won’t have me here, I decide whenever I feel like ready to decide, but take it from us – and we like to think we know a thing or two about the Spanish property market – the temptation is never far away. When after a long day of viewing properties (with the so called “Inspection Tours” most of the times even 3 or 4 days on a row) you might get the feeling that that last property you saw that day is the right one for you. When they then start telling you that you have to make a decision quick, your mind has to switch to the alert mode.

It could be true that you might lose this property, because you want to tick all the boxes regarding the legal and financial side of the process, but then it just isn’t mending to be. Most common sales arguments to create urgency are:

> There is already another client very interested in this property, but the other client hasn’t reserved it just yet. So if you really want to have this property you have to pay the reservation fee right now;
> This property is priced to sell. We took it on the books for much less then the actual valuation; If so, you might want to consider to ask for a valuation from an independent person who does valuations and surveys for big lenders, who in the end will have to give you the mortgage.

We would advice not to pay a non-refundable reservation deposit on a property without a statement in the reservation agreement that this reservation deposit is subject to finance. This means that if, for whatever reason, you can’t get a mortgage for this property you will not end up losing your 3.000 or 6.000 euros.

You can read more about financing your property in “The Financial Guide ”.

Just as with everything in live that sounds to good to be true, make sure you never lose contact with your common sense and ask yourself the questions we discuss below.

Please bear in mind that we are not giving you fiscal or legal advice in any way and we assume no responsibility for how you use this information. For fiscal and legal advice you should always consult a lawyer.
Defining your needs for your Spanish property

Having your needs clearly in your mind will make your property search easier and reduces the possibility that you buy a property that in the end doesn't suit you.
The sorts of questions you need to ask yourself are as follows:

Will this be a main residence where you will spend most parts of the year or will this be a holiday home for a few weeks a year?

A main residence requires more attention. If you have the intention to live there for a large part of the year, you need to be somewhere that makes you feel at home throughout all the seasons. Some areas turn into spoke towns during the off season. The shutters are closed, bars and restaurants only open during high season and the streets are empty.

The best advice here is to research the different season of the year. Speak to people who already live there and ask them how the place changes throughout the different seasons.

A holiday home means you probably will not be there for large parts of the year. Therefore you will need a property that doesn't require a great deal of attention on a regular basis. The last thing you want is for your holiday home to become a burden that interferes with your life. Apartments or villas on urbanisations are the best option in this respect as security and maintenance tend to be easier for these types of properties. Perhaps look for something with good rental potential to earn income and avoid leaving the property empty most of the year. But be aware here for the community fees. The can be extremely high especially in places where there are a lot of communal areas where you might end up paying for the pleasure of the main residents who use the facilities throughout the main part of the year where you just use them for a maximum period of weeks to a month.

What will make the others of the family happy?

Generally speaking, if you have young or teenage kids, your life will be a lot easier if you a buy property that allows them to have fun without you having to drive them everywhere. Residential estates that attract families are ideal, as both parents and kids are happy.

Is investment a primary or secondary concern?

Many people have bought Spanish property in recent years primarily as an investment, both in terms of rental income and capital gains. If you are buying as an investment then you have to focus on the type of property with the greatest potential in these terms. A good property agent will be able to advise you on the factors that drive property investment returns, along with the tools to help you analyse them. If you are buying primarily as property for living in and enjoying, then you will find you have a wider choice of properties.

How much effort do you want to put into maintaining the property?

Essentially it is just the end of the beginning when you complete the purchase. Property in Spain, as anywhere, doesn't look after itself, and maintaining property in a foreign country can be more of a challenge than at home. Depending upon what you buy, you may find yourself having to deal with local government, local builders, cleaners, plumbers, gardeners, and what have you, and all in Spanish.

What sort of maintenance budget do you have?

You need to be clear about the maintenance costs that different properties involve, and budget for them before you purchase. Otherwise you may find yourself owning a property that is too expensive for you to maintain. A good agent will give you a guide to the maintenance costs of different properties. For more detail on the sorts of costs you will face see the 'Owning a property' section of this guide.

What sized property do you need?

Be realistic about the size of property you need. Don't buy a property on the assumption that extended family will always be staying, as you may end up with something too big for you. Focus on your own requirements.

What kind of property do you need?

Different kinds of property (for example new build/resale, villa/apartment, on- estate/off-estate) suit different needs, and it is important that you are aware of their relative merits before deciding what to buy. This is one of the most important questions that you need to answer.

Which regions best suit your needs?

Whereabouts in Spain to buy is another important question. You may have personal reasons for choosing one region, such as family or friends located there. However bear in mind that each coastal region of Spain has a different set of advantages and disadvantages, and it helps to know which one best suits your needs. The vast majority of real estate agents are locally focused which means they know very little about the other regions of Spain, and will be determined to sell you a property in their area. If you have no strong personal reasons for choosing one area, then it is in your interests to know about the merits of all areas. You may be surprised to find that some of the lesser known areas are the most attractive. The only way to find out is to visit and research the area.

How important is accessibility?

Convenient access will be important to you if you wish to travel regularly. As an expatriate you will probably find that you need good access, both for you and for the convenience of family and friends who may wish to visit. Good access means a choice of international airports that can be reached within an hour or two by car. It could also mean proximity to a TGV/fast train terminal.

What is really important to you in terms of surroundings?

Some properties offer rural charm whilst others offer urban glamour. Being in the centre of town or right on the beach front will have advantages and disadvantages, as will being out in the countryside. What to choose depends on the qualities you value the most at this time in your life. You also need to think about the infrastructure you would like to have around you, such as hospitals, schools, shopping, leisure activities, and so on. A good agent should be able to advise you on all these issues.

What kind of community would you like to be living in?

Some people may prefer the solitude that comes with a house in the woods far from anywhere. Others may like the idea of a vibrant international community that you find on many of the best residential estates. Think about what you would like from a social life if you are going to spend a lot of time in Spain.

What will you need from the property in 5 years time? In 10 years?

Never forget how quickly the years pass by. If you are buying a property for the long term then bear in mind how it will suit your needs as they change over time. As always a good agent should be able to advise you on this matter.

Useful Tools

Property Finder Service :
A new service designed to take the legwork out of finding your property within 30 minutes from Gibraltar. You simply tell us what kind of property you are looking for, and we will send you details of properties matching you search profile.
Property Search:
Browse our database for properties for sale and long term lets within 30 minutes from Gibraltar.

Useful Guides

Area Guide:
Information about the different areas within 30 minutes from Gibraltar. Comprehensive guides about the history, the culture and the property market for the different areas.
Buying Guide:
Step by step guide to buying a property in Spain. Having your needs clearly in your mind will make your property search easier and reduces the possibility that you buy a property that in the end doesn't suit you.
Financial Guide:
What do you need when financing your property in Spain. We will tell you which documents you need, which different options there are to financing your property and which connections we have to help you.

Legal Guide :
Useful information to consider before purchasing your property in Spain. Read the information and ask a questions to a lawyer from our panel of lawyers. A free consult? You’ll find the contact addresses here.





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Buying Guide - Step by step guide to buying a property in Spain, en www.aj-andaluciaestates.com -