Spain has witnessed bustling real estate activity and price rises over the last couple of years. Property Spain has gained great importance and popularity because of its reputation as a favorite tourist hub. This has also led to quick profits and tidy incomes for most investors. However before you take the plunge there are some things you need to know before investing.
5 essential things you must know
It may seem all hunky-dory to buy that dream home in Spain. However before buying it is essential to understand what will ease the process. Most property Spain has is along the coastal regions where prices are very high. Therefore it makes sense to invest wisely so you don't lose out in the process.
Learn the language: If you're a foreigner wanting to invest in property Spain, it is time you learnt Spanish. It will help you negotiate prices better, realize if you're being conned and above all, even from a long term perspective, prepare you for settling down in Spain.
Know the health care facilities offered: Although property Spain may be enticing, if you're from a developed country, chances are you might find the health care facilities offered in Spain a tad backward. Therefore, at least initially you need to have the basic medical supplies at hand so that you are prepared for any eventuality.
Schools and education: If you intend to permanently move to Spain and invest in property Spain has to offer, consider exploring the schools and educational facilities in your destination. This will help you be better prepared when you land there. It will also prepare your children for their education.
Seek a real estate agent's help: You will find it much easier to evaluate the best properties if you hire a real estate agent. They will guide you better and get you the best deals in the market.
NIE number: Did you know that before you can invest in any property Spain you will need an NIE number? This is a unique tax identification number that will enable you to complete formalities of any property purchase. You can get this number through a solicitor. The process of buying property Spain
There are a series of stages to buying property in Spain. After selecting the suitable property, you need to sign what is known as a 'reservation agreement'. This is a written agreement between you and the vendor and it clearly lays down the roles, responsibilities, various clauses etc. At this stage you will need to pay an upfront amount or fee equaling one or two percentage of the value on the property. After this the vendor will withdraw the property from the market to disable any deals on it from other buyers. Your solicitor will then perform ?land registry checks'. This seeks to establish that the property Spain is clear without any pending liabilities. After this a contract is drawn up which is then signed by both concerned parties. Then the title deed gets transferred in your name.
There is no shortage of real estate investors in the Spanish housing market. The focus has merely changed from grabbing cheap homes to seeking quality investment opportunities.
Today's investors look for houses that offer more than just a place to hang one's hat. They consistently sink money into properties that come with the advantage of proximity: access to shopping, schools, recreation, beaches, and other desirable amenities.
Rather than flipping cheap homes in average areas, they focus their efforts on upgrading higher-end homes that have more to offer by way of location.
Much of this focus on quality has come about through Spain's efforts to cater to the tourism sector. With new hotels and resorts being built at lightning speed, surrounding areas reap the benefits of rising property values. Thanks in part to events like the Mallorca Classic and the America's Cup, tourism likely will remain a strong factor in the value of real estate.
Another factor that contributes to the housing market increase is the moratorium on building in several areas of the country. The efforts to protect the very natural resources that draw tourists to Spain means the country is more land-locked than ever before. With fewer places to build, existing properties values are rising faster than in previous years.
Investors aren't the only ones who buy homes in this country. Holiday makers still purchase vacation homes at a steady rate. Wealthy Brits continue to invest in Spain, though their reasons for buying and the qualities they seek have changed. Vacation homes on the coast and the islands remain a popular commodity with those who look for long-term gain over short-term investment. Most of these vacation and second homes are purchased by UK investors. In fact, business is so steady that many agents cater specifically to buyers from the UK.
This doesn't mean there aren't any more economical properties left. For those who are able to venture inland and away from the cities and major resort areas, the odd bargain may still be found. Prospects for native Spaniards who want to upgrade, however, are few and far between. Those who wish to sell their homes and invest their gains into purchasing a larger residence have to leave urban areas for smaller, less populated towns.
Real estate experts predict that the housing market in Spain will get tighter. Buyers seeking vacation homes will continue to make up a large percentage of investors, especially in cities and resort areas.
These investors typically hold onto their properties for many years. So, while there is some opportunity to make money, investors (vacation home buyers or otherwise) should not bank on making a fast flip. They can, however, likely count on seeing lasting value with their purchases, particularly properties with quality perks.
Both Steven Magill & Roger Munns are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.