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Spanish Property Buying
What you need to think about if you are going to buy property in Spain...
Where, Why, How, When
Where?
Where to buy is more down to personal taste, is it the mountains, the beach, a small white Pueblo but if the reason to buy property in Spain is investment based then you have some key areas to consider.
I think that about 90 minutes is as far as anyone really wants to drive after leaving the Airport for their two week holiday with the kids. Try and stick within a 90 minute drive of the airport if your decision is investment based.
You also need to consider the availability of direct flights, as a minimum the nearest airport should have direct flights from the UK, Germany, Sweden and Holland are a bonus.
It should also have more than one low cost airline carrier. Low cost airline carriers are helping to fuel the rise in holiday home ownership but what happens if they pull the plug on the route to your nearest airport.
When you buy property in Spain for Holiday lets it needs to be close to the Beach, Bars & Restaurants, Shops and Supermarkets and if possible a Golf course.
The more of these ingredients that you have when you buy property in Spain the more successful you will be when you are trying to let the property.
Not everyone wants to drive, if the apartment or villa that you are buying is not within walking distance of any of these I think that your in big trouble, you will eliminate about half of your clients!
Why
Why buy property in Spain?
As I said on the previous page if your motivation is a mixture of holiday rental and long term investment in Spanish property market then fine. If its just another buy to let property that you won't use, I would seriously question whether its worth it, you would be better investing your money in something closer to home, something that easier to deal with, although we are part of the EU in Spain it does not always feel like that and not everything runs according to plan here
How
The market in the UK is great, interest rates are low, your house has gone up in value.
You could re-mortgage and buy an apartment or villa in southern Spain.
Sound familiar...
Please do your research on the running costs of your new holiday home, can you afford the new running costs and the extra mortgage on the home in the UK. What happens if interest rates go up by 1%?
It is so easy to get carried away when you start looking to buy property in Spain, its so easy to borrow more money here, the banks are practically throwing at you as you walk in the door!
If you do need a mortgage and you are buying on one of the Costas then the chances are that your UK bank will have a branch here. we choose Halifax Banco because you could transfer money between the UK and Spain fro free. Most banks will happily lend you 70% of the value.
We will get into mortgages and running costs a bit later but if you would me to recommend someone checkout The Mortgage Corporation.
When
Already Built or to Buy Off Plan.
Something to consider when you come to buy property in Spain, something that many of the British buyers have not done before, buying off plan.
We have a separate section on buying resale's or off plan but you do need to think about the 2 options.
If you are prepared to wait a while maybe upto 3 years then buying off plan could be for you, it could give you the chance to get some more money together, maybe the property will go up in value whilst its being built, but if want to start using your new home straight away then you had better buy something that you can see.
In Spain they are called resale's...
To buy property in Spain is straight forward, but the best bit of advice I can give...
If you are on Holiday, wait until you get home before you part with any cash, the decision to buy property in Spain may feel different, good or bad, after you get home and out of the holiday mood.
Further Information
Within this guide we also have advice and information on:
