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How To Safely Buy Real Estate In Spain
Before the crisis of 2008, property prices in Spain were on a huge increase with most properties doubling their value since the introduction of the Euro. However, this has all changed, in fact many properties are now lower then they were before the introduction of the Euro. These unnaturally low prices make for great buying opportunities. If you are interested in purchasing Spanish real estate you have a wealth of choices to consider. Whether you are interested in a luxury villa, seaside condo, country residence or commercial property you are guaranteed to find several bargains to choose from. Many sellers are desperate and some of them have lost hope of selling which usually means that they will go even lower on their prices. All of this may seem too good to be true. However, if you take certain precautions it can really work in your favour. It is, however, important to understand how you can safely buy real estate in Spain. Spain has become somewhat infamous for property problems. You may have heard stories about foreigners that lost their entire investments because of scams or unclear laws. Whereas there may be some truth to such stories, there are some simple precautions that you can take in order to avoid such problems while safely investing in Spanish real estate. Follow these simple tips to ensure your transaction goes smoothly:
- Remember that you are dealing in a foreign country. Their laws are different from what you are probably used to, so do not assume anything. Keep alert and be careful and cautious.
- Unfortunately there are quite a few illegal real estate transactions that take place in Spain each year. Have all titles checked thoroughly. One thing to take note of is whether or not there are any future infrastructure deals that the state is planning. In Spain the state can take parts of your land or force you to help fund an adjacent project.
- You should take some time to understand basic Spanish property laws. For example it is important to understand the differences between “urbanizado”, completamente urbanizado”, and “rural” real estate. These differences change the laws governing the property.
- It is essential to find a reliable Spanish lawyer to assist you. While searching for a lawyer it will help to keep the following points in mind:
- The lawyer should be independent from the seller. This is important since he should have your best interest at heart and not that of the other party.
- Your lawyer should fluently speak your language. This will avoid important details being lost in translation.
- It is important that you find a specialized lawyer that knows how to move in the real estate realm. Make sure he has a very good, up to date public liability insurance.
- A final suggestion is to get everything in writing, not only from the other parties, but also from you lawyer.
5. Be careful to never sign anything that you don’t completely understand. Read everything carefully and if needed get it translated and sign the translated copy. Do all signing in the presence of, and with the approval of, your lawyer.
6. Whereas most agents are very friendly, remember that they have their best interest at heart. Agents are much more interested in their commission than your savings. Don’t forget that usually the more you pay the more they get. Most agents are desperate because of the huge decrease in sales, so never fall into the trap of believing that the agent is your friend or that he has your best interest at heart.
7. Never pay a dime for anything that has not been surveyed by an independent surveyor. When searching for a surveyor look for one that is experienced, qualified, insured and that speaks your language. After the property is surveyed, get a complete written report of the property, the condition of it, and any hidden planning breaches that may be connected to the property. The report should include any building licenses or guarantees that effect the property.
8. Be very attentive as to the location of the property. It is easy to fall in love with a particular house or yard and overlook the location. If you plan on living there full time consider how far you must go to buy groceries or to other daily essentials such as medical provision etc. If the property is in the city, what is the neighborhood like? Imagine your day to day life in the property and try to realistically foresee any potential problems. This is important since it is a buyer’s market and not a seller’s. If you decide to sell in the near future — before prices shoot back up — you might loose your shirt. It is a good idea to find a rental property in the area and stay for a few months before deciding to buy, or if it is a vacation property try vacationing there before you buy.
9. Even if you intend to spend the rest of your life in the property, there is a great chance that someday you will need to sell. So keep this in mind when you buy. Make sure that you buy a property that has good selling features.
10. Take your time! Agents always try to convince you that if you do not act immediately you will loose out. Nine times out of ten this is not the case and even if it is there are so many bargains in Spain right now that you will surely find several others in no time. Rushing into a bargain can be disastrous if you buy the wrong property.
If you follow the advise in this article you will definitely find a wonderful property in Spain which will be an invaluable investment for many years to come.
