REAL ESTATE INVESTMENT IN SPAIN . BASIC GUIDELINES FOR OWNERS
It's easy to take a quick trip abroad, fall in love with a property, and make a decision on the spot. But real estate investing in Spain should be a calculated step and not a rash reaction.
Rule 1 . You must be sure of:
Which area suits you best: inland, coastal, tourist, residential, rural, urban, Spanish or international?
The type of property you want – apartment, house, with or without land.
What basic requirements must be met?
Your budget – What can you comfortably afford after taking all the taxes and additional costs into account?
Much of this type of research can be done from your country of origin. There are many books, magazines and online articles that can help you decide where to start your search for real estate investment in Spain.
When making these decisions, don't just think about what meets your current needs. You may consider selling the property in a few years and buying something else.
But if you're looking for a place to settle down, you should also consider whether this idyllic rural setting can meet your needs for years to come.
Rule 2 - Ask for the best advice
It can be tempting to take shortcuts and find the cheapest option to see who will help you buy the property.
There are many online professionals who have no formal legal training and may have some fluency in Spanish.
Remember that this is a different language and culture, with different rules and regulations, some of which may surprise you.
For example, did you know that in Spain it is customary to sign an initial contract and pay a deposit?
Before doing this, we recommend doing basic research on the property – which leads to our next guide.
Rule 3 - Don't rush
Of course, if possible, you will need to look at a range of properties first.
For many people, this part of the real estate investment journey is the most exciting.
You can combine this with a vacation and imagine that you are the final speculator on the world-famous TV show “Where the Sun is”.
However, real estate agents will naturally want to secure your sale.
We strongly recommend that you do not sign anything until you have instructed a reputable company to help you ensure the following:
The legal status of the property, including home renovations
Check utilities and taxes
You could find yourself surrounded by fake investors, just like you, waiting if you don't sign on the dotted line in the next few days.
It may not have seemed like it at the time, but even if it was true, there were other assets in the market and it wasn't really worth the risk.
Rule 4 - Review of Power of Attorney
You may have a lot of free time and want to take the opportunity to go to Spain and supervise the process yourself.
However, if you are not always able to travel, you can arrange for a trusted representative to obtain a limited power of attorney to sign documents in your absence.
Rule 5 - Don't expect anything for nothing
Although we have seen property prices fall here, there has been a recovery and although property is still cheap compared to many other countries, don't expect to be able to negotiate a very low price on properties that have caught your eye.
If the property seems much cheaper than other similar properties, be cautious and find out why.
Rule 6 - It's definitely worth it .
Investing in property in Spain can represent a significant financial commitment for most of us.Any decision like this comes with moments of uncertainty.Are there easier investment options?
If…? The past few years have certainly shown us that we can never be sure what will happen.
However, the money in the bank will not grow and bring the happiness that you might expect from your real estate investment in Spain.