More and more people these days are investing in Spanish properties. Properties in Spain have seen a rise and fall in prices, which has made many more foreigners interested in making investments in Spanish properties. However, although it is possible to locate inexpensive yet incredible Spanish properties, there are many challenges to buying property in Spain.
In order to ensure a successful, safe and smooth purchase, there are several important things that needed to be considered ahead of time. In order to avoid having problems, you need to have a thorough understanding of all the pros and cons of investing in properties in Spain.
Here are some critical factors and tips to help you invest successfully in Spanish properties.
The Right Location
It is very important to view several different locations before buying a property. You want to find a property that is located in a specific region that meets your individual requirements. Keep in mind that throughout Spain the climate does vary. In some areas of the country, you won’t be able to enjoy sunshine throughout the entire year.
If climate is something that is important to you, make sure to thoroughly research the region’s climate where you are interested in purchasing a property. Also take into consideration the region’s cultural differences, as traditions and customs can vary from region to region. Another important thing to assess is the area’s cost of living. Most important of all, make sure the property is situated well. You will want to consider your convenience.
The Property’s Accessibility
Figure out how far the property you are interested in is from a commercial area. Check to see how long it will take to get to stores, schools, clinics and hospitals. Are there any issues with the public transportation in the area? Put some thought into what you would like the location of your property to be. Compare features of properties located at the coast compared to those inland.
The more accessible the property is, the higher chance you will have to resell it or make money from renting it out. Be practical and explore various options.
Potential Growth Of The Location and Return on Investment For The Property
Try to find a property in Spain that can potentially generate a good income for you or a property that you will be able to resell for a nice profit. If you are planning on buying a property as an investment, it needs to be one that can potentially provide you with a good return on investment. Calculate or estimate the potential income you can derive from the property, while also taking into account the expenses or deductions you will need to deal with.
Also, learn all you can about the region’s growth prospects, such as the potential for future developments. It is a good idea to invest in Spanish properties that are within or close to commercial areas. Make sure to do thorough research before purchasing any property.
Before you make an investment, make an assessment of your personal situation to ensure that you have sufficient financial resources for purchasing a property in Spain. The good news is, it isn’t necessary to spend a fortune in order to be able to buy a well-situated and highly functional Spanish property. Really amazing Spanish houses can be found at very affordable prices.
You need to figure out the best way to finance your investment. Do want to secure a mortgage or pay cash for it?
Legality Of The Property
Don’t make any payments until your solicitor is able to completely verify all of the legal documents. If at all possible, have the documents translated or prepared in English. It’s important that you be able to read and thoroughly understand everything. Be sure to thoroughly check all the paperwork, particularly when you are considering purchasing distressed or repossessed properties.
Get a property survey done if necessary to confirm the property boundary legalities. Determine whether there are any documents that have to be rectified. Before you close the deal, make sure the seller sorts them out. Keep in mind that some Spanish properties for sale are not all they appear to be. Make sure to hire a Spanish property lawyer and be very thorough and cautious.
Type Of Ownership
Check with the local area’s land registry to determine who owns the property that you are planning to purchase. Try to obtain documents confirming the property’s ownership in order to avoid having any problems in the future. Some properties in Spain apparently have multiple owners. Pass on buying this kind of property in order to avoid a complicated and difficult buying process.
You should look for Spanish property that has only one owner. Confirm and check all of the documents, then wait for your solicitor to verify them.
Accuracy Of The Title Deed
Make sure you thoroughly understand the property’s title deed. Before you sign the contract, you should be provided a translation of the title deed by your solicitor. All of the details should be verified and checked. Be sure to get clear terms and conditions, and make sure everything you have specified is included. The title deed needs to clearly state the property’s features and dimensions, boundaries and agreed upon sales price.
The date that the contract was signed should also be accurate and visible.
Make sure you are thoroughly informed so that your investment is not put at risk. When purchasing a Spanish property, you need to be prepared to deal with numerous responsibilities and challenges. Be patient, systematic and diligent, especially if it’s the first time you have invested in property in Spain. Look for an experienced solicitor and real estate agent to work with.
It is very beneficial working with somebody who is experienced and knowledgeable with the area. Don’t ever buy a property on a whim. Proceed with caution always.
By Jeff Jones
Jeff is an expert in Spanish property and the Spanish property market. He writes regular columns on it for zsanchez