Although it can be very rewarding to buy a Spanish property, it is not that easy to make an investment; especially if this is your first time in the world of real estate. You are very likely to struggle from various problems if you don't make an effort in understanding the pros and cons of investing in properties in Spain. So in order to avoid putting your investment at risk and regretting the decision to purchase a property, make sure that you are well-informed and prepared. Be very careful and patient.
Here are the most important factors to consider before investing in any property in Spain:
Is the region right for you?
Learn about the region where the property you want to buy is located. Take note that it is imperative to choose the most appropriate and convenient location, especially if you are aiming to invest in a Spanish house. In fact, you have to assess your needs and preferences before making an attempt to buy any property in Spain. Carefully make an assessment of the location whether or not it meets your specifications. Use a checklist or find some guidelines to help you out. Be systematic with your search.
Think about the climate, culture and the cost of living in your desired location. Look into properties for sale in the southern region of Spain if you want to experience an average of three hundred sunny days per year. Decide on whether to go for inland properties or perhaps those located on coastal areas. Be informed about the culture and traditions. Check the neighborhood and find out if you might have difficulty interacting. Moreover, determine the cost of living. Is it wise to live and invest in such region?
The size and the accessibility of the property.
Always check on the features and specifications of each property before deciding to make a purchase. It is highly recommended to have several different options, and be meticulous until you can single out the best. Find out how accessible the property is to hospitals, schools, stores and other business establishments. It will be convenient to you and your family, and you can easily make an income out of your property if it is well-situated. You can improve and resell the property with more ease and success.
The growth prospects and/or return on investment.
Remember, it is not wise to invest in properties that do not have any potential—be it for rent or resale. So think about what you can possibly gain from the property which you consider buying. Is it located near commercial areas where the value of properties constantly increase? Will you be able to resell at a reasonable and rewarding price? Study the growth prospect of your desired location and property.
In addition, make an estimate of the potential ROI or Return On Investment. Evaluate the property and find out whether you can generate a sustainable income out of it. If you are investing in a Spanish property in order to have it rented, calculate how much you can gain along with the possible expenses such as for repair/improvement, maintenance, utility bills and taxes. Do your homework accordingly.
Financing options to utilize.
See to it that your wallet is prepared to make an investment. But remember, do not settle for anything less if you really want the best property. When you want to invest in a truly rewarding property in Spain, you should be willing to stretch your wallet or explore other financing options that will ensure a smooth purchase. Fortunately, you don't have to spend every penny you have to get a hold of a worthy Spanish property. Apply for a mortgage if you don't have sufficient private funds or cash on hand. Verify the repayment terms and conditions. Seek guidance from professionals to avoid any confusion.
The legality of the property.
Have your solicitor verify all the legal documents before handing out any payment. Make sure that you understand everything before signing anything. Get the documents in English or have it translated by your solicitor. If possible, check the property personally. Otherwise, have it surveyed by your solicitor; especially if it is a repossessed property.
Rectify all legal issues, especially when investing in distressed Spanish properties. Confirm the legality of the distressed property, and that all paperwork has been corrected and dealt with. If possible, have the seller pay for the cost of rectification. Go for properties which do not include any hassles and/or added expenses.
The ownership.
Learn about the ownership regardless of whether it is a property that has been resold or a new one. Visit the local land registry to confirm the ownership of the property or to obtain relevant documents. Some properties for sale may have multiple owners, particularly if it is an inheritance from a large family. It may have been transferred from one person to another so make sure to tie all loose ends. It's best to go for properties with a single owner. Your solicitor should check the documentation before closing the deal.
The title deed.
Check and confirm all the terms and conditions in the title deed. Ensure that everything is clear and in accordance to the Spanish law and government norms. Have all the necessary documents verified by a reputable, English-speaking Spanish solicitor. All the details concerning the property that you want to buy must be clearly specified. The dimensions of the property, the boundaries, the agreed sale price and the date of contract signing as well as other important details must be included in the title deed.
Other crucial factors to be considered before making an investment include safety of the property, security of the location and availability of additional amenities (e.g., swimming pool). Hire the services of a credible real estate agent so that you can easily find the best property to invest in. Equip yourself with all the information that you need before taking on the challenges of investing in a Spanish property. Remember, it is very easy to get lost in the plethora of cheap properties for sale in Spain.