Specifics of Buying Property in Spain |
Posted: October 21, 2014 |
Presented by 320 Sunny Days, LLC Investing in the real estate is one of the most popular individual investments strategies. However, investing in a foreign real estate market requires needs additional research. It requires intelligence and vision. Additionally, it requires close guidance of trustworthy professional agent acting as your Buyer Agent. The real estate market in Spain offers great opportunities for individual investors. In this post we asked Mr. Gary Gabriel, co- partner in 320 Sunny Days, LLC to answer some of our questions. Question: How easy is it to buy a property in Spain? G.G.: The Costa Blanca real estate market is quite diverse speaking about types of property, but also actors. Our clients usually come from the U.K., Benelux, and Scandinavia and also from Russia and China. Once they make decision to book their flight to one of the two airports serving Costa Blanca region, Alicante and Murcia, they need only 3 to 4 days to find their dream Spanish second home. It sounds may be too short but this is valid for about 90% of the buyers we have worked with. Our clients arrive in Costa Blanca well educated about the Spanish market, in particular about the advantages of the Costa Blanca region, and most importantly, they have a good idea about what they can buy for their budget and where they would like to look. The rest are technical details – previewing select properties, signing Contract, obtaining a National Identification Number, making deposit. Most of our clients finalize the transaction and obtain ownership on their Spanish villa, apartment, or townhouse within 45 days if they buy a resale property. The new construction transactions are usually finalized within one year timeframe but the selection of the property and contract ratification is made also within the 3-4 day visit. Occasionally, builders have new homes available for immediate delivery. Question: Is it Easy to Sell in Spain? G.G.: If you decide to sell your Spanish property, the chance for quick resale is purely a function of the market and the quality of the professional assisting you with the sale. You should plan to hold your investment for at least 3-5 years. Making wise decisions on the purchase end with go a long way toward realizing a profit when it comes time to sell. A knowledgeable Buyer Agent should be looking far enough down range to plan an exit strategy. The Buyer Agent you should be looking for is the one who knows which of the many properties in the complex Spanish market are holding the best resale potential. If you are individual investor in Spain, no matter for how long time you plan to keep your investment, you need to make sure the property you purchase does not suffer lack of liquidity. The key to making a wise decision is to choose the right Agent. Question: Does Spain offer a good profit from your investment? G.G.: Depends on what your goals are - do you plan to buy a place to live in Spain, or just to spend holidays there? Based on these goals you will have different profit generation strategy. If you would like to use your Spanish investment property as a second home location, which usually is the case with our clients coming from Northern and Western Europe, you may be planning to spend July and August in your home country. Then, you can profit from your investment by renting it out for 8 weeks during the high season. The income easily can be used for your yearly property maintenance expenses and may be to fund some renovation projects. However, if you are interested in renting during the year and using during the summer, then you can hope for quite better returns, usually about 5% to 7% of your investment. Quite better than a regular bank deposit!
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