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Buyers GuideIf you are considering a property in Spain the information on this page will assist you in your decision: Off Plan Invesment Purchases Off Plan Investment Purchases:Off Plan Investment purchases are probably the most popular method of playing the property market here in Spain, and it does generate some very large profits. However there is still some risk involved and it can not be said that all off-plan is a "sure thing". Careful consideration must be taken with reference as to who the construction company or developer is, which area the development will take place in, who the architect is, the amount of living space that you get for your money, and what infrastructure is in, or planned to be in, the area. Direct Property Spain will advise you on all of these points and more, explaining what you need to look for, whether it be for an apartment or luxury villa, inland or coastal. Most off-plan developments have deferred payments schemes and are designed to tempt you with low initial deposits. The basic idea is that you find the projected property of your choice and secure it with an initial deposit of between 3,000 Euros to 6,000 Euros. This takes the property off the market whilst your lawyer does the necessary checks to ensure that all the licenses and permissions are in place, along with bank guarantees to ensure that your deposit is protected. If this all checks out then your lawyer will take you to the next stage which is the signing of the contract. It is at this stage that you commit yourselves to the purchase of the property and penalties can be levied if either the buyer or the seller pull out. As most of these off-plan properties take between 18 months to 2 years to complete it is usually arranged that at the contract stage you pay 30% of the total price of the property (the price is fixed and stays the same, irrespective of any subsequent rises by the developers), the balance being 70% which is due when the property is completely finished. This can be paid in full, or an arranged bank mortgage will kick in and it will only be the monthly repayments that you will have to meet. This is fine if you are keeping the property and intend to use it or let it out for the rental income, but if you are only after the investment turnover it can pay you to dispose of the property before the keys are handed over. This can save you a great deal of money on taxes. Indeed many apartments may change hands up to four times before the keys are handed over to the final occupier! A reasonable amount of flexibility can be obtained from some developers but it is useful to remember that most Real Estate agents want you to pay the 30% at the contract stage because of two important things:
We at Direct Property Spain will advise you on the developments honestly, and without bias. After all, advice costs nothing, making the wrong choice could cost you money.... Resale Property:Direct Property Spain has an extensive database of property covering the Costa del Sol and Inland areas, with everthing from one bed studios to luxury villas. We all have different budgets so we tailor your viewings to meet your requirements in style, price and area of your choice. If you do not know the costa del Sol well we will listen carefully to what you say and recommend and show you different areas and properties that meet your requirements. We will explain the differences between the busier coastal areas to the tranquil inland villages, show you apartments or traditional fincas, explain the difference between villas and fincas, cortijos and almacenes, show you traditional spanish buildings and more modern building techniques that blend into the surroundings. So come with us to see what Spain has to offer, relax and let us guide you through the viewing, and hopefully, the buying process. Build Your Own:Getting your own home built is by far the most satisfying route to getting you perfect property. First you find a project for sale from a builder,
in an area that you want. As the project has not been started you are able to negotiate with the builder to change the design to suit yourselves. Obviously if you increase the basic specification the price will also change. The other method is to buy yourself the plot of land and then engage an architect and builder to complete the project to your specifications. This method requires that you obtain the necessary licenses and permissions for the proposed construction, find out exactly how big a property you can build, what restrictions are in force in the area, etc. It is often far too easy to purchase a plot of land only to find that you will not be able to get permission to build, so beware, and make sure that you use a good lawyer! We can help you with these problems and advise you on specifics for many areas as to what you can and cannot do. Legal Representation:Legal representation is a must in Spain, even if you speak the language fluently. If you are considering purchasing property in Spain you are advised to appoint a Lawyer to protect YOUR interests. Do not take the offer to use the vendors Lawyer as although this can save you a little money in the short term, remember who their obligation is to. We at Direct Property Spain will advise you on recommended Lawyers, who are fluent in your language, who are relevant to and have extensive knowledge in the area of your purchase and that we are satisfied will look after YOUR interests. We accept no payments or commissions from these introductions, but we do expect in return that you are treated with the highest professionalism and you recieve quality service. All transactions carried out in Spain must be completed in the Spanish Language to be legal so it is vital that your lawyers are multilingual and you recieve copies both in Spanish and English. You will be advised at every stage of the purchase proceedure and your interests protected. Lawyers fees are generally levied at a charge of 1 to 1.5% of the total purchase price, all our recommended Lawyers charge 1% at this moment in time. |
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