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.
Buying Property In Spain
Buying Abroad Advice
Property Abroad - Buying A Property Abroad
Buying a property abroad doesn't need to be a harrowing experience. In the 30 years I have been investing in overseas property most of the problems I have witnessed have been caused by the clients themselves. It usually involves dealing with an unscrupulous agent or foreign lawyer, taking the advice of friends or family rather than professionals or investing in schemes in countries outwith the European Union which often seem, and are, too good to be true.
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This page outlines some basic principles which you should adhere to when buying a property abroad. As I said in my introduction, don't assume you know everything or treat basic principles as being too simple for you. If you are serious about investing in overseas property these factors will be invaluable to you.
Deal with professionals. Make sure any lawyer or estate agent you deal with speaks good english and is fully certified with all the relevent local licences.
Make sure you understand everything. It doesn't matter how professional or even carismatic your overseas property agent seems, you MUST understand all aspects of your purchase. If you don't understand something, stop where you are until it is explained thoroughly to you. Its your property abroad - not theirs.
Do not assume things are the same as the UK. This is a very common mistake and one I have encountered many times in my dealings with overseas property. I have heard people saying "that would never be the case in the UK" so many times it makes me laugh. If you are buying a property in Spain or Turkey its obviously going to be different - they are different countries with their own laws. Get to grips with that fact and make sure you understand the law. In some countries the purchaser of the overseas property can actually inherit the debts of a previous vendor. Sounds crazy? Well thats the way it is - make sure you don't get any nasty surprises.
Be aware of all your legal fees for buying a property abroad. Again, this varies from country to country so be fuly aware of ALL costs. Set up a bank account in the country you are buying your overseas property in and try to pay as many bills as possible from there. Remember there may be additional fees or commissions to be paid in addition to regular property fees.
Buy your overseas property in writing. By that I mean never assume anything. All formalities, no matter how menial, must be put in writing. For example, lets assume you are buying a Finca in Spain. The seller promises to fix some tiles on the roof before the sale happens. It doesn't matter of he's a nice chap, get everything in writing.
These are basic points when buying a property abroad but at the end of the day many people overlook what may seem obvious to others. You may be thinking I am pointing out the obvious and yes I am! Take heed before you buy your property abroad!