Property Abroad - Buying Property In Spain
If you are buying property abroad the chances are you are thinking of or have considered Spain. Spanish property is by far and away the most popular choice for British people buying overseas property. The warm climate, friendly locals, excellent beaches and ease of access from the UK make Spanish properties a favourite with British property investors. This article outlines some basic but important information you should be aware of before you begin your search for a property in Spain.
Property In Spain - How Much?
How long is a piece of string? You may pick up a Spanish finca for a mere £50,000 or spend £250,000 on a plush Spanish villa. Either way decide how much you are going to spend BEFORE you do anything else. Whatever you do, don't get carried away as this may involve overstretching yourself and embroiling yourself in a property situation you cannot afford. If you decide your budget for a property in Spain is £80,000 stick to it. It's all too easy to get carried away when you view a property you love but can't afford. In addition, European lenders are less likely to tolerate defaults in payments than British banks.
Don't Buy A Spanish Property On Impulse
I recommend visiting any overseas property you are interested in at least three times before you put the wheels of purchase into motion. Take a video camera or even a still camera when you visit. Upon your return to the UK look at the pictures rather than go from memory. You'll be glad you did. Sometimes things may appear better than they are at first and believe me this has happened thousands of times with potential buyers of Spanish property. Once you recover from the initial "oh I just love it", take the time to think clearly, visit multiple times and photograph the property in full. Above all view other properies within your budget.
Have A Chat With Your Neighbours
This is another top tip before buying a property in Spain. Lets say you have found a potential overseas property within your budget and you have visited the property two or three times. Go to your neighbours and talk with them, find out about the area, its advantages and disadvantages and make sure you chat with a reasonable variation of people. I don't mean simply another British family next door that have been living there for two years, I mean real neighbours, including Spanish ones. There may be things about the area surrounding your Spanish property that you would otherwise be unaware of. For example, perhaps the local town is a little too far away, or the local school isn't up to scratch. Maybe your neighbours are people you wouldn't want as neighbours. Either way- talk to them.
Get Your Property In Spain Properly Inspected
It is absolutely crucial that you have your potential Spanish property fully inspected by a qualified surveyor before you purchase. I know this might seem like obvious information but believe it or not I have personally met people who have invested in property in Spain on the spur of the moment only to regret it at a later date. Get your structural survey done and make sure your property in Spain is what it seems. Be wary of people who stand to profit from faults with your Spainish property, such as builders, roofers etc. Use a surveyor.
Who Owns Your Property In Spain?
Find out who owns the property through legal channels, including any outstanding debts or liabilities connected with the property. Do NOT simply go on the word of a developer or vendor. A recent example has been the selling of properties in Spain, usually apartments, in buildings that have been erected without any planning permission. This is a current issue and the Spanish authorities are clamping down on these cowboy real estate dealers. The losers are going to be the owners, as these properties may soon be demolished with no compensation to the property investors.
Allow For Currency Fluctuation
If your property in Spain is £105,000 today in UK currency it may be a different price tomorrow due to fluctuations in the Euro/Pound exchange rate. Before you buy your property in Spain make sure you are fully aware of the cost at the time of purchase and build in a contingency fund to account for currency differences. It could be 3-4 thousand Euros difference within a couple of days. This way you avoid any nasty surprises when you purchase your Spanish property - especially if you have a limited budget for investment in a property in Spain.
Showing posts with label overseas property. Show all posts
Showing posts with label overseas property. Show all posts
Buying Property In Spain
Overseas Property - Finca
Finca. What is a finca?
A finca is a smallholding of some description in the Spanish countryside. It doesn't have to be a farm or croft-style holding to qualify as a finca. It may or may not have olive groves, and orchard or a piece of arable land beside the main property. Basically as long as it is located in between towns and villages and has some sort of useable land (not development land) it could be classed as a finca.
Why buy a finca in Spain?
So now that you know what a finca is, why would you buy one? Purchasing a finca can be a shrewd and wise move if your plan is to buy a property overseas located in the countryside. Lets say you intended to purchase a villa inland in order to save money. What if your new overseas property was a finca? It may have olive groves, a vineyard or an orchard attached. Your finca could provide a valuable income in future years if you intend to say in the property full-time and you don't mind rolling your sleeves up!
Fincas and problems with a finca.
Some problems that can occur when buying a finca in Spain are the likes of water supply. Many Spanish fincas have their own well, which needs to be checked and overlooked, whilst some are on the mains supply. The same could be said for electricity. Make sure you consider these factors before you buy your finca or any other rural overseas property. You may be responsibe for any costs involved in accessing these utilities.
Finca popularity in recent years.
Twenty or thirty years ago it was almost exclusively Spanish people that owned and operated fincas. Back then they could be bought for low amounts of money because foreign overseas property buyers only saw the disadvantages. However in recent years fincas have become much more popular and therefore their prices have increased considerably. This is even more true because of the Spanish planning laws. Older fincas in less popular areas often have an abandoned or ruined property on site which can greatly speed up permissions to either renovate the existing property or erect a new dwelling.
Fincas - a final word.
If you are considering buying a finca in Spain please remember what the property is. Don't buy a finca simply to get your hands on a huge building plot. Failing to work the land or look after the orchards or groves could not only antagonise the locals but also the local planning authority. If you are wise and not afraid of hard work you will reap the rewards of running and owning a finca in Spain.
A finca is a smallholding of some description in the Spanish countryside. It doesn't have to be a farm or croft-style holding to qualify as a finca. It may or may not have olive groves, and orchard or a piece of arable land beside the main property. Basically as long as it is located in between towns and villages and has some sort of useable land (not development land) it could be classed as a finca.
Why buy a finca in Spain?
So now that you know what a finca is, why would you buy one? Purchasing a finca can be a shrewd and wise move if your plan is to buy a property overseas located in the countryside. Lets say you intended to purchase a villa inland in order to save money. What if your new overseas property was a finca? It may have olive groves, a vineyard or an orchard attached. Your finca could provide a valuable income in future years if you intend to say in the property full-time and you don't mind rolling your sleeves up!
Fincas and problems with a finca.
Some problems that can occur when buying a finca in Spain are the likes of water supply. Many Spanish fincas have their own well, which needs to be checked and overlooked, whilst some are on the mains supply. The same could be said for electricity. Make sure you consider these factors before you buy your finca or any other rural overseas property. You may be responsibe for any costs involved in accessing these utilities.
Finca popularity in recent years.
Twenty or thirty years ago it was almost exclusively Spanish people that owned and operated fincas. Back then they could be bought for low amounts of money because foreign overseas property buyers only saw the disadvantages. However in recent years fincas have become much more popular and therefore their prices have increased considerably. This is even more true because of the Spanish planning laws. Older fincas in less popular areas often have an abandoned or ruined property on site which can greatly speed up permissions to either renovate the existing property or erect a new dwelling.
Fincas - a final word.
If you are considering buying a finca in Spain please remember what the property is. Don't buy a finca simply to get your hands on a huge building plot. Failing to work the land or look after the orchards or groves could not only antagonise the locals but also the local planning authority. If you are wise and not afraid of hard work you will reap the rewards of running and owning a finca in Spain.
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