It is the stuff of dreams for many to own a property in Spain and enjoy the sun-soaked coastal regions of the Mediterranean. The location has proved to be the biggest selling point for properties in Spain but it’s absolutely vital that any property purchase is accompanied by substantial research that helps you feel assured about your new property.
Purchasing a property in a hassle-free way will come down to the amount of research you have done beforehand. Use the following points to structure your research plan and prepare yourself for the life-changing transition to Spain.
Understanding Spanish Mortgages
Mortgages in Spain are based more on long-term gain, with the expense at first seeming far more expensive than your standard upfront price in the UK. However, the interest rate is lower compared to other European countries.
Foreign buyers will often receive around 80% of the bank valuation of the property, though this is not necessarily the selling price. You would therefore have to find around 20-30% of the property price as well as the mortgage costs.
The structure of your budget is the first thing you need to consider. Are you founding your purchase using money stored in your bank or the building society, or will it come from a second mortgage on your home back in the UK? You may be funding using the cash you’ve earned from selling your home in the UK.
Any Spanish-based mortgage needs evidence related to how you will service it. You will also need to tell your real estate agency as they will show you properties applicable for a mortgage. Your budget will depend on your savings or the amount you intend to put down as a deposit.
Your Preferred Choice of Property
Depending on your specific circumstances, you will likely have a type of property in mind that you would prefer to purchase in order to meet your specific requirements. You need to make a list of things your property needs to have, from close proximity to schools to public transport options.
In addition, a list of things you’d like your property to have can also be compiled, perhaps a Jacuzzi, tennis court or parking area. Consider whether you are prepared to renovate your property as this will require a second review of your budget.
What Are Your Intended Uses for the Property?
Depending on what you plan on using the property for, a number of specific requirements will need to be met. For instance, a holiday home should be within close proximity to extensive transport options including an airport.
You will likely consider other aspects of the property if you plan on making it your home, such as the views, the surroundings, the size and the options to improve the property. Remember that a property requiring renovation will likely set you back due to surveyors, architects and builders, thus another review of your budget.
What’s Your Preferred Location?
With a list of essential requirements and a budget reviewed, it’s time to look at your preferred location. Start your research using the numerous property search options available online. Start a detailed search that includes your budget and area instead of going by each specific town.
This will almost certainly give you a thorough idea of what your budget can get you. You may notice that properties closer to the coast gradually get more expensive. Another useful way of researching your preferred location is to visit Spain and take in the surroundings of your chosen area. From here you can safely assume whether it’s the best option for you.
Article provided by www.panorama.es; Marbella’s largest and longest running real estate agent bringing buyers and sellers together since 1970.