10 Frequently Asked Questions And Essential Information

1.CHOOSING THE RIGHT LOCATION
You know the famous saying about the three most important things when it comes to buying a property - location, location and location! Yes, we all know it but it's extraordinary how many foreigners buying in Spain miss this fundamental point.

Carried away on a wave of sun, sangria and a pushy sales pitch from a local estate agent, too many people rush in to buying
their "dream home" only to find it's in a completely inappropriate location for their needs

2.BUYING AS AN INVESTMENT
If you're buying a Spanish property as an investment, rather than as a permanent home, you'll probably be looking for a villa or apartment with good letting potential. After all, you may as well enjoy the income from it while you sit back and watch your capital grow.

I know many owners who make a very decent living solely from letting their holiday homes. Location, as highlighted in yesterday's email, is everything especially when it comes to holiday letting. A private or communal swimming pool is essential for successful letting, as is easy access to the beach, shops and nightlife. Your holiday let will also need to be within easy reach of an international airport with regular charter flights.

3.MUST I USE AN AGENT TO HANDLE MY SPANISH PROPERTY PURCHASE?
The truthful answer is no. With all off plan purchases the developer has a written in commission. If you go alone the price remains the same and you have no-one holding your hand. All disaster stories are when corners are cut and it is always worthwhile paying for a professional service.

4.MUST I USE A LAWYER TO HANDLE MY SPANISH PROPERTY PURCHASE?
YES. Everything in Spain is in Spanish. Your lawyer will draw up an initial pre-sale contract, handle the payment of the customary 10% deposit and accompany you to the notary for the final exchange of contracts. And above all else, he or she will ensure that you end up with a property which is legally yours, which is what you thought it was and which doesn't come complete with a mountain of debts.

5.BUYING "OFF-PLAN" FROM AN AGENT OR DEVELOPER
Buying a yet-to-be-built property, either through an agent or directly from the developer, is a popular option because it often works out cheaper plus you get a say in the buildings specifications and fittings. The golden rule (and I know I keep harping on about it!!) is to get yourself a good lawyer who will make some vital checks on your behalf and draw up a cast-iron contract to protect your interests.

6.GETTING TO GRIPS WITH THE LANGUAGE
Well, it's true - you can manage to live in Spain without speaking a word of the language. But my advice to you is to at least learn the basics because you'll find the whole experience of living in Spain so much more rewarding - also, some mastery of the language could save you a lot of time, money and frustration. You don't have to be fluent - even if your language skills are more of the effluent variety, you'll still find a little goes a long way. In my experience, the Spanish are endlessly patient with foreigners who are prepared to have a bash at communicating in the local language (even if the results are fairly horrendous!).

7.RETIRING IN SPAIN
Many thousands of retired couples have successfully made a new life in Spain, enjoyed some of the happiest years of their lives here and just wished they'd made the move when they were much younger.

The mild year-round climate, in all but the most northern areas, an active outdoor lifestyle and the company of like-minded couples are among the many attractions which induce so many pensioners to retire in Spain.

Many older people have found that the climate, especially in areas such as the Costa del Sol, has worked wonders for their health and improved various ailments such as arthritis, rheumatism and asthma.

But, as usual, I have some words of caution for those of you now considering retiring to Spain. Without wishing to be always the voice of doom, I must tell you that for every couple who have made a success of life here, there seems to be another couple whose dreams have turned sour.

There are many reasons for this. The main one being a failure to discuss the proposed move in sufficient depth before taking such a dramatic step. I often talk to retired couples who came to Spain with different hopes and expectations - and very often it's the case that the wife was persuaded to make the move against her deepest feelings and better judgement.

Problems inevitably arise when children are left behind, even if they're grown up "children", and especially if there are young grandchildren. Women usually feel the wrench more than men and in many cases the homesickness is just too overwhelming for the new life in Spain to be a success.

My advice to you, if you think you may be one such couple (or even if you're both convinced that moving to Spain is the right thing to do), is to rent a villa or apartment in your chosen area for at least a few months before you buy anything.

8.BUYING WITHIN A COMMUNITY OF OWNERS
There are many advantages in buying into a community development. You'll have a ready-made community of neighbours around you, probably including many of your own nationality. Many communities have superb facilities including swimming pools, landscaped gardens, bars, restaurants, even shops.

You pay an annual fee for the maintenance of the communal areas so you don't have to worry about cleaning the pool, trimming back the hedges and mowing the lawn. Even the exterior painting of the properties is done on behalf of the owners on a regular basis in many community developments.

Great, I hear you say! What could possibly go wrong? Well, nothing much if it's a well run community, with a good committee which is truly representative of the majority of owners.

All community developments are governed by certain rules and regulations laid down under a national Spanish law.

9.COSTS OF BUYING A SPANISH PROPERTY
I'm often asked about this one and of course there's no hard and fast answer. But, as a rule of thumb, be prepared to fork out 10% of the purchase price in various fees and taxes.

It's important to bear this in mind before you even start looking for a property because it can come as a nasty shock to buyers who haven't put enough aside to pay for all the extras.

You may pay more or less than 10% depending on your lawyer's charges, the notary fees and the level of the "plus valia" (a bit like capital gains tax levied on the increase in the value of the property since it last changed ownership).

It's a common practice in Spain to under-declare the true value of the property in order to reduce the level of plus valia. Be careful on this one because the Spanish are starting to clamp down on what has previously been a quite acceptable tax dodge. Lawyers' fees vary but are usually around 1% of the sale price plus the costs of any official documentation needed. Don't just go for the cheapest lawyer to save money - he or she could cost you a fortune in the long run! Make sure your lawyer is from a reputable Spanish firm or a firm based in your own country with a strong reputation and special expertise in the Spanish property market. It's common practice in Spain to put down an initial small deposit to persuade the agent and or owner to remove it from the open market. After preliminary legal checks prove satisfactory, it's normal to pay a 10% deposit to secure the property. This has the advantage of stopping the iniquitous UK-style gazumping - you lose your deposit if you pull out of the bargain but the owner has to pay you double your deposit if he or she reneges on the deal.

10 AND FINALLY...!
Hopefully the fact that you've come this far indicates that you're still keen on the idea of venturing into the Spanish property market.
My intention has never been to deter you - solely to forearm you.

You've read about some of the many pitfalls about buying in Spain and you still want to proceed. That's great news.
Now I'm going to give you one last piece of advice to you - the all important issue of choosing the right location.

You can't go far wrong, for example, with an attractive three-bedroom villa with a swimming pool (or room for one) near one of the popular tourist resorts on the Costa del Sol. Unless there's something seriously wrong with the property or you paid an extortionate amount for it in the first place, you've got a pretty good chance of reselling it for a sizeable profit in a few years time.

Of course you should move forward with the utmost optimism, confident of making a total success of your Spanish property venture.
   
Information provided courtesy of Andalucia Real Estate