How to Find Your Property in Spain |
Posted: October 31, 2014 |
Whether you are an investor, or someone that wants to relocate to Spain - you need to build a plan in order to make a purchase decision which best serves your interests. In our previous blogs we shared some information about the current state of the Spanish residential property market. More specifically, I offered data, provided by several analysts, suggesting that the Spanish real estate market is in early stage of recovery with prices still far from their 2007 levels. I like this point of the recovery cycle and believe it is actually good news for investors. Precisely because we have just turned the corner this is a perfect time to gather information and decide when to make your entry into a market expected to grow modestly in the next 3-4 years. At this post I want to provide some tips about how to take the plunge – emphasizing good decisions, correctly choosing the property that best suits you, and finally closing the transaction safely and accurately. How to start your search? No doubt your first step in this process will likely be to conduct a little on-line research. In this phase your goal is to collect as much information as possible on your country of interest – Spain. Then to focus in on the region or regions you are interested in. in other words, you basically define your geographical target as accurately as possible. This first step is very important because it will determine a great deal of the success of your Spanish project, in terms of personal enjoyment and future resale potential of your property. The questions you may want to answer during your research phase are: How the geography of the different Spanish regions serves your major goals? If you want to live in the property but still keep your home in your country of origin, it makes sense to look for a region with convenient travel connections, for example, number of flights per day from your primary residence, presence of other members of your national community, proximity of education facilities, medical facilities, and other infrastructure responding to your special interests. If you are investor whose primary goal is to purchase and lease your property it would make sense to look for a region offering a longer holiday season. Again, during the research stage your goal should be to find answers to these questions. At the end of this phase you should know which region you want to target – Spain’s sunny coast, a major city or a quiet inland Finca or country residence. If you are considering Spain’s beautiful sunny coast – there are three major regions: Costa Brava (Northern); Costa Blanca (Central), and Costa del Sol (South). For my money, I like Costa Blanca for its moderate summer and winter temperatures and ample sunshine. In order to build a board-based level of knowledge about your future Spanish region we would recommend you do not limit your research to just one of two websites. Explore Spanish language sites by employing Google Translate if necessary. Building Your Vision about Life in Spain? Many people dream about living in Spain. However, once you settle into your new property and start living there on regular basis, you may discover the climate and sea are not enough. No familiar friends, distant relatives, no favorite watering hole like back home can be unsettling. No sense of contentment. This does not apply so much to expats who are engaged in developing their own business, but even they need some intelligence about the Spanish societal, cultural and business environment before making a final buying decision. For expats at or approaching retirement this is even more important, because their day is pretty much centered on communications with other expats. When deciding where to buy do not limit your search to just the Internet. I recommend you talk to people that have made to move already. If you have a friend or relative in the target area, give them a call. Talk and exchange visions with people who live in Spain. Open your mind, but also open your heart and make sure you see yourself in Spain as a participator and not just as observer. In fact, after you’ve selected your region, it is time for you to start building your support group of people who will make your day once in Spain. For business people, a good way to build an entry point to Spain is the national business clubs. For retired Expats social clubs or sporting clubs that appeal to your interest can be sought out. With proper keyword searches you can find links to these organizations. Envisioning your property in Spain? Once you’ve selected the region and started building some contacts within your future Spanish support group, it is time for you to develop your clear idea about the type property you want to target and the budget you plan to commit to the project. In most of the cases, buyers know their budget. The second major step is to build knowledge about the market and what type of property fits best with your budget. Property portals are readily available, but remember there is a big difference between information and knowledge. Portals only provide information – sometimes good, sometimes not so good. An experienced estate agent with knowledge of the local market, regional growth trends, crime stats, schools and transportation issues is an important person to have on your team. Selecting a Professional Estate Agent? Suffice it to say, there is no lack of estate agents in Spain. If you have done some preliminary research you’ve already noticed the many websites and countless properties advertised. Not so different than most places I have lived and worked. Here are a few important points to consider. In Spain there is no requirement for real estate professionals to be licensed. Experience and training levels vary widely. Another important difference – Spain lacks the well developed real estate platforms which have become leaders in the national market of other European countries – like immoweb.be in Belgium, or immobilienscout24.de in Germany, or daft.ie in Ireland. On these platforms, besides actual listings you may also receive information about the background of the company offering the listing. Not in Spain. Additionally, in Spain exclusive listings are not the norm. This practice can lead to unintended issues and unhealthy competition between all players. Thus, the best strategy is to look, not for a property in Spain, but for a trustworthy Agent who can guide you through the process. What does “trustworthy” mean? First of all, you need to feel that this person has time for you, that they are patient and have good listening skills. You will likely communicate with several agents before deciding whom to work with. Secondly, I recommend you work with a company that has a representative office in your home country. It is very nice to have someone to advise you before you schedule that buying trip to Spain. Also, the representative office in your country can help with the logistics linked to your travels to Spain. Planning Your Buying Trip to Spain? Think of your buying trip to Spain is a business mission. It may feel like a trip for pleasure, and you should enjoy the process, but the real pleasure comes from the successful accomplishment of your goal. How you prepare for this trip and how you execute the buying process is very important. Many years of personal enjoyment and an eventual return on investment hinge on your preparation, selection of estate agent and careful search for the right property. Plan for 3-4 days for your buying trip. Once you return home your agent and attorney will complete the legal process for you. Finally, in the case of 320 Sunny Days, we will be available to you after the sale to assist in the years going forward. In our next blog we will discuss the process of selecting a property in Spain and obtaining ownership. *Gary Gabriel is the Operations Manager for 320 Sunny Days, LLC, a real estate company based in Costa Blanca with representative offices in Belgium, Germany and Netherlands.
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