Buying Your Spanish Property
Many property experts believe that the Spanish property market is still a strong entity, and that one day soon it will regain its former strength. Some wise investors are using the current state of the market as an opportunity to search for reasonably-priced, quality Spanish properties either for personal or business investment purposes.
There are numerous opportunities to be had for willing and wise home buyers. But it will be difficult to sell properties for a profit given how the values continue to decline. Indeed, most people are having trouble selling their properties and getting thier expected prices. Some home owners wait while others are forced to sell at very low prices.
Various factors are making it hard for the Spanish real estate market to lessen its oversupply of properties waiting to be sold. Most of the banks in Spain are crippled and are now unwilling to take on any more mortgages except on their own repossessed properties. The VAT on new homes and resale properties has been recently increased and mortgage tax reliefs have been abolished. These are some of the reasons why local buyers seem to have disappeared.
Bargain properties on sale are head-turners. But is 'now' really a good time to invest in the Spanish property market?
It can be indeed a good idea to consider buying a property in Spain now because long-term investments made at incredibly cheap prices can be really rewarding when the market starts to recover and get back on track. This is why a growing number of foreign investors are making inquiries andmany have already made their purchase, especially if they can manage to get a decent mortgage and deal with the problems (e.g., increasing long-term unemployment rate, low GDP and less tax relief) that many Spanish home owners are currently putting up with.
But regardless of how attractive it seems to buy a Spanish property these days, always keep in mind the risks and the potential outcomes of a hasty purchase. Always look before you leap into the pool of cheap Spanish properties. You should carefully and extensively research the market, and hire an English-speaking solicitor; especially if you are unsure or not knowledgeable about the Spanish property market. You must have an understanding of the rules and regulations of property buying.
Moreover, you should look into the different kinds of properties for sale with patience and caution. Assess those which you are better off investing in while taking into account your budget and specific needs. Take note that it can still be very risky to invest in properties in coastal areas or in cities such as Valencia. Research as much as you can, especially in terms of locations with relatively-improved economic growth. If the prices seem to good to be true, it's imperative to inspect the property carefully.
More and more bargain hunters are being enticed by the many company websites that are promoting seemingly top quality properties at knockdown prices. A lot of these bargain hunters, particularly those buying with cash, are scrimping on proper legal advice and proper valuation of the property. As a result, they are often faced with more costs and distressing problems over their property at a later date.
So take note that many developments were built poorly and some of them have even breached planning rules and other aspects relevant to building licensed and good quality properties. For a more rewarding (and safe) property investment, you must be very selective and diligent in finding the right property.
Do not follow the lead of those hasty buyers who made regrettable decisions. You may easily be pulled in by 'cheap' prices and other appealing descriptions, but you don't want to find yourself putting up with nasty property simply because you chose to cut corners or failed to do your homework.
According to Marc Pritchard, a sales manager of Taylor Wimpey Espaņa, buyers should study the market very carefully and take into account the great importance of choosing the right location.
A great deal of bank-repossessed Spanish properties are located inland. So reflect on whether you would go for properties which are away from the coasts or do you really want to own a property that has a view of the sea. You should also think about the nearby infrastructure, if the property is situated in an unfinished or empty development, if there is any maintainable or structural guarantees, and if there is an after-sales service. Otherwise, your investment could be hard-earned money down the drain.
However, high-quality properties are not that easy to get hold of. Expect to deal with resilient prices in decent areas with decent properties and improving development. On the other hand, it is not impossible to find easy to maintain properties that actually fit the bill in some good areas in Spain.
The saying that goes 'Someone's misfortune is another person's gain.' is quite applicable in the current condition of Spain's property market. Investors who are ready and willing will surely find the right location and the right property regardless of the crisis in the real estate market and economy. For when the opportunity arises, it will not be a boat anyone should miss.
So if you are one of the brave people out there who are considering buying a property in Spain, due diligence is of great necessity no matter where or what property you intend to buy. If possible, rent in the area where you want to buy a property to have a feel of the lifestyle and other factors that could affect not just your purchase but also your overall experience in Spain. You should then work with a reputable lawyer and real estate agent. Find out everything that has something to do with the property that interests you especially with regards legal matters. It will be an investment worth making.