Welex, your conveyancing law firm in Marbella, Málaga, Spain, knows that buying a property in Spain is an important decision, one that must be made only after careful thought, and not be guided by impulses, especially if you want to be successful in the investment made.
For that reason, we want to give you some tips that you have to take into account before purchasing a property.
Tips for buying a property in Spain
It is important to take into account the evaluation of the property you wish to acquire, especially if you will buy the property as an investment—that is, if you want to rent it out either permanently or as a holiday rental (link post vacation rental).
Therefore, it is important that an expert advisor in buying and selling real estate in Spain guide you in making the correct decisions, always keeping in mind what is most beneficial for your equity in the short, medium and long term.
Ideally, you should make a broad market study and, if necessary, a study of the loans you need, so that you can keep in mind all the options that you have at your disposal for the purchase of the property in question.
It is important to ensure, if you are going to ask for a mortgage, that the fixed amount of the loan does not exceed 30% of your monthly net income, so you will have the solvency to deal with the instalments without problems or fears.
If you do not need the property urgently and directly to live in, you can study the option of purchasing a house in which you have to carry out some renovations, provided that these renovations are not structural, as, in these cases, the final price can be negotiated in your favour.
On the other hand, if the property is perfectly finished and you can live in it immediately, the fixed price is usually less flexible. The best situation for you depends on your immediate needs.
It is very important that you always take into account one indispensable factor: the location of the house you wish to buy, whether you want it to get a profitable rental out of it or as an investment for the future.
When we talk about location, we mean not only the general region, but also the services you can find in the area, such as schools, supermarkets, restaurants, transportation options, sports facilities, whether the Wi-Fi coverage has fibre-optics, etc.
At first, some of the these details may seem silly, but, in the long run, all these factors can effect whether you can ask for a higher rental price from tenants, or, when you put the property up for sale, for a higher price from buyers, than in another area that does not have those benefits.
Speaking of intentions for rental property, if this is your main reason for purchasing the property, it is advisable that the property is located near the area of your usual residence. We are not saying that this is an indispensable factor, but this set up can be more comfortable. For example, if the tenant has a problem, and you have to take care of the repair, you will not have an extra cost to verify that, in fact, the damage is certain and the repair is necessary.
What if there is a change of tenant? You will have to go there to give them the keys, sign a contract, welcome them to the property, etc.
Another point that you should consider is the fixed costs of the property you want to buy—for example, investigate whether the community fees are high or not. It is important to consider all the ‘hidden’ costs, so that you can take these expenses into account along with the mortgage you have agreed to with the bank.
If you are going to rent the house, consider how you will negotiate with the tenant—if he or she is going to pay the community fee or whether you want to include it directly in the rental sum you are asking
And finally, our last advice when purchasing houses in Spain is that you must not be in a hurry. We pointed this out in the beginning of the article, and we want to insist on it.
It is important to know the market and to study different options with an advisor. Do not feel rushed by a sense that you are letting opportunities go by or that the process is dragging out. Give yourself space and time to find the right opportunity at the right time.