Thinking of buying a property in Spain?

[totallyproperty]

The Spanish property market has been particularly attractive for UK property investors for many years now. It is not difficult to see why it has proven particularly attractive for the UK market when you bear in mind the weather and the perceived lifestyle. However, if you're looking to buy a property in Spain there are a number of issues you need to be aware of including: –

Potential legal issues

Legal problems have arisen in many areas of Spain which have on some occasions led to properties being demolished and investors losing all their money. You need to do in-depth research to ensure you have the correct legal rights to the property and the land. Advice can be sought from various sources in Spain with many companies dealing with the expat market.

Will your rent cover your expenses?

Many people automatically assume that the rent on their Spanish property will cover their expenses when unfortunately this is not always the case. It is very dangerous to assume anything in the investment arena and again you should do your homework.

Maintenance costs

The maintenance costs associated with a Spanish property can be very different to those associated with a UK counterpart. Many investors have experienced year-on-year increases in maintenance costs and that is before you even take into account properties with a pool, large garden and other expenses.

Travelling to your Spanish property

While there's no doubt that airline fares have fallen over the last few years, if you're looking to fly to your property in the peak season it can still be very expensive. If possible it is may be worthwhile trying to travel in the off season where travel expenses can be significantly lower.

Second home taxes

So, it is not just the UK where the government is looking to increase taxes on those with second properties. This will kill the expat property market in many areas of Spain but with austerity such a problem at the moment there is not an awful lot that the investment arena can do about this.

These are just a few of the issues you need to bear in mind when looking to buy a property in Spain and we would welcome any more additions to the list.

 

[MaxMarbella]

I think this is good advice. As an estate agent in Spain we always advice our customers to use a lawyer to properly check the property they want to buy and make sure it is fully legal and there is no outstanding debt that could get passed to them.

Also very good advice that your rental may not cover your expenses. You have to count on times that your place may not get rented out and if that happens can you still cover your costs if that happens. We find that some people want to take out a mortgage to buy a property then rent it out and use the rent money to pay for the mortgage but what if your place does not get rented, can you still afford the payments on your mortgage?

On top of all that you need to remember when you come to Spain what will you do. Are you going to eat out all the time or go to the supermarket and buy groceries, can you afford to eat out all the time if thats your plan? Then how will you get around? do you plan on bringing your own car (how much will that be in petrol) or would it be cheaper to rent a car each time? There are many little things that all add up but people do not take into consideration.

It is a really good idea to properly research and see if you can realistically manage because otherwise you may end up being disappointed.