The Easy Guide to Buying a Property in Spain

When embarking on purchasing a property abroad there are various points to remember and steps you can take to ensure that your money is in safe hands.

Choose the right agent.
Everyone in Spain thinks they are an “estate agent” and many vendors give their keys to friends to “sell” their home. Showing someone round a property is the easy part. But what happens next? This is where expertise is really required. A true estate agent will immediately ensure that a lawyer has been appointed and that thorough searches are conducted, to ascertain whether the property has any outstanding debt. If it does, and this is not paid before completion of the sale, then you, the purchaser, will inherit the debt. Of course the first thing to find out is if the person selling the property is really the owner, or has power of attorney to do so!

There have been recent horror stories in the British press where prospective buyers have contacted someone in the newspaper and not only had their money taken, but have tragically been killed. This of course is the extreme case, but there are many con men, preying on the vulnerable buyer, who will be more than happy to alleviate you of your nest egg. So, only deal with a reputable agent who works from an established office.

Buying a Re-sale Property
There are many re-sale properties available and it is important to be as specific as possible when describing your requirements. The more you can tell us, the easier it will be for us to pinpoint the best property, to suit your budget and preferences. The steps to buying a re-sale property are as follows:

1. Identify the property and pay 3000€ to remove it from the market.
2. In approximately 7-14 days the “Compra/Venta” contract will be signed and you must pay 10% of the purchase price (minus the 3000€ already paid)
3. The two parties must then decide on a completion date (once your lawyer has conducted all the necessary searches) and you pay the balance then.

Off Plan Developments
Any visitors to Spain will undoubtedly have seen the new buildings constantly appearing along the coast. Buying off-plan (before the property is built) is an excellent way to invest a lesser sum of money and, at a later date, sell at a profit. We have seen properties make double the initial investment in less than 3 months after down payment. AND HAVE THE PAPERWORK TO PROVE IT!

Alternatively, you can take possession of the property on completion and enjoy a wonderful, brand new home, built to the highest specification and with excellent rental potential. In general terms, this is how it works;

1. Once you have identified the property 6000€ will reserve it for you.
2. In 4 –6 weeks a “compra/venta” contract will be signed and at this point you pay 30% of the sales price, plus 7% tax.
3. On completion you either pay the balance of 70% plus tax, or take up the mortgage offer.

Many investors choose to sell-on their property (with a profit) before completion. It is important to ensure that there is not a clause in the contract preventing this. A reputable agent will be able to confirm this for you.

There are many new developments springing up all over the coast, but which one should you buy? At Hamiltons we investigate all new developments and only recommend those, which have the following qualities:

• Good Location
• Excellent Standard of construction and finish
• Good re-sale potential
• Good rental potential
• Bank guarantee (Aval)

Why not buy directly from the developer?
This is always an option. The price will be the same, as developers do not give a discount to private buyers. But who will chase them up and act as your representative if there are any problems? - YOUR ESTATE AGENT WILL!

Think of what the return on your money would be if you left it in the bank. Why has buying property abroad become a lucrative business? Because there is money to be made!

Country Properties & Fincas
Not everyone wants to live on the coast and would prefer to be in the beautiful Andalucian countryside. We have an office in Alhaurin el Grande, just 20 minutes from the coast and within easy driving distance to Malaga airport. We have a wide portfolio of country properties, smallholdings, plots of land, village houses and ruins to renovate. Tell us what you want and we will find it for you.

NIE Number
All foreigners in Spain must have an NIE number (Numero de Identificacion Extranjero) to make any purchase. We can assist you with this. It is a simple process, but without it you will not be able to complete your purchase.

Perhaps once you have made your purchase you will return to your country of origin. It is important that you have someone in Spain to follow progress on your purchase. At Hamiltons we liase with your lawyer and ensure that progress is being made.

Nowhere to stay?
Above our office, situated in the centre of La Cala, we have studios and 1-bedroom apartments available to prospective buyers. You can fly in for a weekend or a few days in the knowledge that you have somewhere central to stay. The cost of the rental will be reimbursed if you purchase a property through us.

Hamiltons Property
We are a small, family run business with one office in La Cala de Mijas (in between Fuengirola and Calahonda) and another office in Alhaurin el Grande (20 minutes inland). All of our clientele come from walk-in enquiries or recommendations. We do not advertise because we do not need to. Advertising is expensive and the cost has to be reflected somewhere, usually in the asking price of the property!
We prefer to offer a personal service, with good advice and will help you from the start to the completion of the sale.
We have an enormous number of re-sale properties and new developments and will be happy to take you around to see them. Let us do the work and together we will find your dream home!
 
Information provided courtesy of Andalucia Real Estate