Climb out of the darkness and into the world of property

Climb out of the darkness and into the world of property

Everyone buying or wanting to buy property on the Costa del Sol will be asking certain relative questions, especially if they have been in this situation before.  However there are a number a things that the 1st time buyer will need to access and knowing the right questions to ask in order to make a completely satisfying decision is imperative. Especially when dealing in property that may be out of your usual comfort zone or geographical area.

Its very exciting to start the process of owning your very own home and that feeling can sometimes be a driving force but common sense is also needed, so here are a list of important questions to ask before stepping onto the property ladder.

  1.  Where do you want your Spanish property and why?

This may seem like a straightforward question but you must look into the different areas of Spain to assess what is there for you and what is not.  If you have children, what is there for them and are schools near by?  Just going to the beach or playing in the pool everyday in the Summer is going to get really boring really fast. Or are you people looking for some tranquility and are prepared to live a more rural life?  You may love that view from the beach side apartment but maybe its not for you come the busy time of the height of Summer?

  1.  What is the reason for buying a Spanish home?

Do you require the property for yourselves or are you going to rent it out as a holiday home perhaps?  Then the above answer may be as important to this question.  The beachside apartment is just perfect as everyone has all they need right on your doorstep, which makes you a very sought after property. Where you have beachside properties you have bars, restaurants and shopping.

  1.  How much capital can you afford right now?

Be as realistic as possible about this one, its a deal or no deal decision that could make or break you.  Think about all the possible hidden costs involved, taking into consideration and setting aside a percentage for lawyers fees, land registry and other taxes that will hit your overall budget.  You should possibly allow between 10 – 12% of the purchase price to be allocated towards these charges.

  1.  Getting your first Mortgage – What happens?

Its important to know that although Mortgages are more expensive to set up in Spain the interest is much lower than in many other parts of Europe.  Happy Days!  Although its important to ask also what loans you may qualify for as this will be an outstanding factor as to whether you can put up the initial costs percentage.

  1.  What loans do you qualify for?

You must find this out as you will be expected to come up with at least 20 – 30% of the asking price, plus the mortgage costs.

  1.  What are the extra costs like taxes and insurance?

  • Municipal Added Value Tax (PlusValía)
  • Rates or Annual Property Tax (IBI)
  • Refuge Tax (Basura)
  • Wealth Tax (Impuesto de Patrimonio)
  • Income Tax (Impuesto sobre la Renta)
  • Capital Gains Tax (Impuesto sobre Ganancias Patrimoniales Inmobiliarias) and Retention
  • Municipal Added Value Tax (PlusValía)
  • Rates or Annual Property Tax (IBI)
  • Rubbish Tax (Basura)
  • Wealth Tax (Impuesto de Patrimonio)
  • Income Tax (Impuesto sobre la Renta)
  • Capital Gains Tax (Impuesto sobre Ganancias Patrimoniales Inmobiliarias) and Retentions
  1.  Get Title Insurance

If you want complete peace of mind when it comes to the security of your home you must cover yourself and your property by purchasing Title Insurance.  This will cover the property owner for sudden or unseen eventualities like third parties claims such as undisclosed heirs, unrecorded tax liens, alteration or loss of title documentation, fraud, forgery and even typographical errors that may affect your title.  These may seem like small matters but can have huge consequences if not anticipated.

  1.  Do I need a property expert?

There is one very simple answer to this question and that is a resounding ‘YES.’  It would be very foolish to say the least to think that you will not get lost in the property mine, get bogged down and scared witless if you do not have someone who knows exactly where to lead you out of any potential danger areas.  This would be the advice of every home buyer not just in Spain, because to try to navigate this complex arena in another country, with limited knowledge you are in fact setting yourself up for heartbreak.  Don’t do it!  Also find one, like Europrestige who are already well established and have a proven history and knowledge of real estate and properties in Costa del Sol and Marbella properties. There are so many cases now of investigations into real estates selling illegal properties that it is just not worth the risk.

Now you know what to expect, enjoy your house hunting!

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