08.26.08
Posted in Canary Islands, For Sale, Spain at 9:11 am by admin
For most people buying, selling, letting and renting their property can be a nightmare as well as being a very expensive experience. Using a low cost fixed fee Estate Agency Network alleviates all of these fears and saves you thousands on what is usually a straightforward transaction. Bringing like minded people together on one site, keeping them in touch every step of the way and reducing their outlay is what dwood-property.com is all about. The brainchild of David Wood, a well respected Estate Agent fully conversant with all aspects of the property world, including throughout the Canary Islands and Cape Verde, it is the accumulation of the need for a good service for a fair price.
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01.02.08
Posted in Articles, Canary Islands, For Sale, Gran Canaria, Spain at 5:09 am by admin
Mentioned for the first time by Plato, Atlantis – “the legendary lost continent of antiquity” has haunted men’s minds for countless centuries”.
The Canary Islands, due to their dramatic volcanic structure, beautiful landscapes, idyllic climate and Atlantic Ocean position have been bestowed such grand names as “Atlantis”, “Hesperides Garden” and “the Elysian Fields” over the years.
Set adrift “beyond the pillars of Hercules”, just miles from the Sahara Desert, looking out towards the Caribbean, these Spanish Islands certainly do have a very romantic sounding location.
The Happy Islands
The Canaries are famous for their spectacularly diverse natural landscapes – some of the most impressive in Spain. The archipelago is home to everything from snow-capped mountain peaks and formidable cliffs to massive geological parks, Volcanoes, deserts and rainforests
Tenerife is home to Spain’s highest mountain peak – Mount Teide that stands at a staggering 3.718 metres and has a looming presence everywhere you go on the island.
The archipelago is made up of: La Palma, La Gomera, Tenerife, Lanzarote, Gran Canaria, Fuerteventura and El Hierro.
Apart from their volcanic nature, the islands don’t have a lot in common. They’re all vastly different from each other.
Fuerteventura for example, is almost a desert whereas La Gomera is a lush green paradise. Lanzarote has a weird red Martian-like landscape, that’s been the setting for many sci-fi movies including Planet of the Apes.
The scenery changes dramatically in the Canaries. Driving on any individual island you’ll pass by an impressive variety of landscapes, climate, flora and fauna in no time. On Tenerife, you can drive from a desert-like south to a lush green north in just 40 minuetes.
Canarian Climate
Another title bestowed on these paradise islands is the “Islands of Eternal Springtime”. The Canaries have arguably the “best” climate the world – certainly the most pleasant.
Temperatures hover between a cosy 24ºC in summer and a refreshing 18ºC. in winter. It really does feel like perpetual springtime, never too hot or cold – just right.
The archipelago is located 4º north of the Tropic of Cancer and they’re so close to the African mainland that they have a very similar climate subtropical climate.
The Surrounding Atlantic Ocean stays warm throughout the year, so it’s perfect for watersports, sunbathing, and swimming in winter, summer, spring and autumn. The ocean currents help to maintain the luke-warm Ocean at its corresponding latitude.
With a warm and sunny climate all year long, the Canaries are Spain’s only true winter sun destination. They’ve become a haven for sun-starved northern Europeans who come here to escape the cold and bleak winter months.
Canarian History
The first inhabitants of the Canaries were a mysterious race know as the Guanches. They were described by early European visitors as incredibly beautiful – a muscular and tall white race, many of whose members had blonde hair.
Where they came from and how they managed to arrive on the Canaries is still a bit of a mystery but most agree that they came from the same stock as the Berbers from the Atlas Mountains in Northwest Africa.
When they arrived in the Canaries (by whatever means) they already had their animals (goats, sheep, pigs and dogs) with them along with wheat and barley.
Investing in Paradise – Monte Leon (Gran Canaria)
One of the most exclusive residential areas in Gran Canaria (and the Canaries) is Monte Leon.
Located high up in the hills, above the noise and the nightclubs, Monte Leon is a haven of peace and tranquillity set amidst some of the most spectacular natural landscapes in the archipelago. The views from here are simply divine.
The villas here are regarded as some of the most exclusive on the island – home to the likes of Leonard Bernstein, the famous composer and former German Chancellor Helmut Schmidt. Try the following link to see the latest Gran Canaria Villas for sale.
There are purposely less than 30 villas in Monte Leon. It was constructed this way in order to preserve its exclusivity. All properties have been carefully constructed so that they blend in and complement the surround landscape.
Monte Leon offers the best of both worlds – This secluded peaceful oasis up in the hills is just stone’s throw away from civilisation.
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Posted in Articles, Spain, Uncategorized at 4:42 am by admin
A recent survey by Kyero.com found that out of 400 Britons, “26% viewed Spain as the ideal retirement destination due to the warmer climate, sociable atmosphere and reduced taxes”.
“Britons invested £12 billion in Spanish property in 2004/05”…”this is predicted to reach £21 billion by 2009”. The average price was a reported £160,000.
Where in Spain
As with any property investment, location is perhaps the most important factor – the most sought after locations for this group were the provinces of Alicante, Granada and Malaga.
Amenities and access to them within these locations could also be a deciding factor when choosing where to buy. Shops, restaurants, bars, hospitals, pharmacies, public transport, the police station and airport came across as very important while golf local course, schools, nightclubs and churches seemed less important.
Property Types
Studio apartments were the most in demand. Two and three bedroom villas next. 73% were looking for second hand properties.
In sunny and warm Gran Canaria people are mostly looking for one-bedroom apartments with swimming pools whereas in more northerly Alicante, three bedroom apartments are in big demand. In Girona, the Brits are mostly after three bedroom villas. The average UK homebuyer is apparently willing to pay between €150,000 and €200,000 for their own piece of paradise in the sun.
Finding the Right Property
The Internet is undoubtedly one of the fastest, most efficient and cheapest ways to research and find new properties. It’s a fantastic resource. 71% of those surveyed used it. Having said that, it’s very advisable to visit the location beforehand, despite how much research you’ve done.
Click here for more information about overseas investment property
Investing in Spain
Out of the Britons surveyed, ”one in three” want to eventually retire to Spain.
And why not. Spain has everything – sun, snow, beaches, mountains, deserts, nightlife, cuisine, art, culture, tradition… But most of all, a pleasant climate, plenty of English speakers and very easy way of life.
The typical Briton looking to set up home in Spain is male between 40 and 60 years old. It’s not just the British who have fallen in love with Spain. The American, Portuguese, Canadian, Japanese, Australian, Swedish and Dutch all want a piece of sunny Spain.
Brits around the Globe
Like the Irish, the British are everywhere – in Pakistan (47,000), Dubai (55,000), Singapore (45,000), Thailand (41,000) and in China, 36,000 UK nationals.
A staggering “41 nations each have at least 10,000 permanent British residents”, according to the Institute for Public Policy Research (IPPR).
Recent figures suggest an exodus of Brits abroad, to other more “hospitable” locations, away from the crime, high prices and endless grey skies. Although France and Spain are still the most popular locations, there’s a growing trend towards the more exotic, far-flung destinations.
And as the world gets smaller and smaller, these destinations are becoming more and more accessible, largely because of the influx of budget airlines.
Developers and agents now have to adapt and continually adapt – keep changing their strategies to meet the demands of the more “globally demanding” investor.
Investors and homebuyers are thirsty for information, more so than ever, particularly for emerging markets. In order to maximize sales opportunities, agents have to provide it.
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Posted in Articles, Canary Islands, New Development, Real Estate Agents, Spain, Tenerife at 4:19 am by admin
Spain’s two vastly different island groups attract thousands of holidaymakers, homebuyers and investors every year.
The Balearic Islands located in the Mediterranean Sea are known for their legendary club scenes, pristine beaches, affluent lifestyles, fancy cars and big yachts.
The Canaries, on the other hand, are a nature lover’s paradise, with an amazingly diverse landscape made up of volcanoes, deserts, lush green forests, epic mountains and gigantic cliffs.
Along with the price of property, one of the biggest differences between the two is the climate. The Canaries, known the “Islands of Eternal Springtime” have what’s described by many as the best climate in the world. It’s warm and sunny all year long, even in the depths of winter. The Balearic have a similar climate to mainland Spain.
The Balearic Islands
The Balearic Islands comprising Mallorca, Ibiza, Menorca and Formentera are located in the Mediterranean Sea off the coast of Valencia, Eastern Spain.
Mallorca, a very popular holiday destination – particularly with British and German visitors – has a thriving nightlife and large expat community.
Its beaches range from quaint isolated coves to huge stretches of sand that get packed with holiday makers from all over the globe. The north is arguably the most beautiful part of the island, with its unmatched rugged charm.
Palma de Mallorca, the capital of the Balearic Islands was recently voted the “best place in Spain to live”.
Ibiza shot to fame during the late nineties when dance music and ecstasy were all the rage. It became the “club capital of Europe” with some of the world’s top DJ’s playing in the island’s mega clubs. Places like Manumission, Café del Mar, Pacha, Es Paradis and Space became household names even outside of the dance community.
Nowadays, Ibiza is a popular festival location with a thriving gay community. During the quieter winter months it can be a deserted paradise – the perfect getaway.
Menorca is a much more relaxed and conservative island – perfect for families with kids. It’s famous for Mayonnaise!, of all things. The island’s capital “Maó” is where it comes from. If you go there, try the gin, bitter lemon. A traditional local drink, it packs quite a punch.
Formentera is where you’ll find the best beaches in the Balearics and some of the finest in Spain. Its pristine white sands and crystal clear waters have been the setting for many advertising commercials. Most of the beaches are nudist and it’s a popular hippy hangout.
The Canary Islands
The Canaries are the only genuine winter sun destination in Europe – a major selling point used by both tour operators and real estate agents.
Average air temperatures stay warm and consistent all year long at between 18ºC and 24º C. Whereas, the mainland and Balearics can get very chilly during the winter months.
They’re a Mecca for watersports fans, windsurfing in particular, with average ocean temperatures of 22ºC in summer and 19º C in winter. You never even have to wear a wetsuit! although if you’re scuba diving, it’s probably a good idea.
The Canary Islands are renowned for their wonderfully diverse landscapes and beautiful natural scenery. Throughout the archipelago, you’ll find massive cliffs, imposing mountain peaks, lush green forests, volcanic craters, volcanoes, deserts and sand dunes. Tenerife is home to Mount Teide – Spain’s highest mountain peak.
Property Prices On The Islands
The two archipelagos are considerably different when it comes property, the Canaries being a lot cheaper.
If you’re looking for an apartment in Menorca, expect to pay at least €200,000 according to timesonline.co.uk (www.timesonline.co.uk). In Ibiza and Mallorca, minimum prices for apartments are around €300,000 and for a villa you’re talking at the very least €400,000.
The Canary Islands are a different story. For a basic apartment, average prices start at just €90,000 and you could get a small detached property for around €240,000.
Tenerife, one of the most popular islands for both investors and homebuyers, offers a great quality of life and some shrewd investment opportunities due to the affordable properties and guaranteed rental yields. Click here for the latest Tenerife New Developments.
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Posted in Articles, Canary Islands, Spain, Tenerife at 3:40 am by admin
Although intended to give you a well earned break from your busy working lives, holidays often end up being more stressful and exhausting than staying at home. Everyone knows the feeling of needing a holiday after THAT holiday.
Recent research from the NatWest Bank points out that, of the growing numbers of Brits investing overseas, a quarter of them are doing so in an attempt to escape the stress and strain of the “annual family holiday”.
“A third of current and potential overseas homeowners believe that owning a holiday home will make family breaks more affordable and a quarter feel it would reduce the sheer stress of arranging holidays” – homesworldwide.co.uk
Holiday Headaches
Mike Freer, Head of Business Development at NatWest, comments that holidays can be “hugely traumatic”. And rightly so, the hassle and expense of organising the whole thing along with the inevitable family squabbling can genuinely be more tiring than if you’d just stayed in the office.
There are a million different things to consider – from location and climate to accommodation, airfares, car rental, packing, taking the kids and (nowadays) airline luggage weight restrictions. If the accommodation is bad, the holiday can instantly be ruined.
Investing in a Holiday Home
Since most people go to the same holiday destination every year, it makes sense to invest there. As well as cutting out a lot of the stress, a holiday home, if researched properly, should literally pay for itself.
Although the upfront cost of buying a second home can be huge, the long-term benefits should make up for it. Firstly there’s the obvious savings in holiday accommodation. By renting the property to tourists while you’re not using it you can earn substantial rental yields. If it’s a good quality property in a popular location, it should accumulate good property appreciation.
So where to invest…
“Spain continues to top the tables as the most popular overseas hotspot”, according to Mike Freer.
Top European Destinations – Spain & The Canaries
Spain’s warm, sunny climate, excellent beaches, friendly locals and relaxed pace of life has attracted more immigrants than any other country in Europe. It has a huge expat community of British people who consider it a “home away from home”.
Every year more and more UK nationals are relocating to Spain. Most fall in love with the place, set up home and never look back.
According to homesworldwide.co.uk, “Foreign residents now comprise almost ten per cent of the total population, adding up to 4.48 million out of a total of 14.12 million people”. There are now more foreign residents living in Spain than Germany or Britain.
Why Spain?
Spain has everything – beaches, nightlife, mountains, snow, culture, art, music, good healthcare and education, cheap property (in some parts), a low cost of living and a high standard of life. The emergence of low-cost flights has made traveling to Spain easier and cheaper than ever before.
Spain has a consistently improving economy and the influx of newcomers has also contributed greatly to this. They now account for 4.5% of the country’s GDP.
Retirees contribute to the economy by employing local builders etc and younger expats often contribute by setting upon their own business, creating competition and employing local staff.
Investing in Spain & the Canaries
Despite the recent property slump, Spain still has excellent long term potential provided you choose the right location and property. While overbuilt areas like the Costa de Sol have been hit the worst, lesser-known coastlines like the Costa de la Luz still offer excellent opportunities.
The Canary Islands, with their year round sunshine and warmth can provide significant rental yields all year long. Tenerife is one of the most popular Canary Islands. Click here for more information on Tenerife Property.
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10.31.07
Posted in Articles, Canary Islands, Spain, Uncategorized at 2:31 am by admin
“Recent reports suggest that most holiday rentals in Spain are illegal without a licence, and can incur fines of €30,000 for unsuspecting owners.”
A recent article by Mark Stucklin (Sunday Times Home Section, 16 September 2007), looks at one of the latest issues facing Spanish property owners and investors – whether or not you need a licence to rent.
Bad news travels fast, especially over the Internet. As speculation, confusion, half-truths and plain wrong information spreads, many owners are now scared of being denounced by disgruntled neighbours and stung for a whopping €30,000.
The truth however, is that most property owners are unaffected. In reality, you’ll only need a licence in certain parts of Spain.
So, where do you need a license?
In the Balearic and Canary Islands for a start. According to Isabel Loeffler, (head of Loeffler Legal Centre, on Mallorca) “In the Balearics, you cannot rent out private residential apartments,” …“The only kind of residential property you can rent out is a detached villa, but only if you have a licence.”
Palma’s tourism department confirms this. They also go on to say that in Mallorca, you can’t even get licences to rent out detached properties anymore. Strangely, they’ll still grant you a licence if you’re in Minorca – typically Spanish.
It’s the same story in the Canary Islands. The authorities there want to promote hotel occupancy over private rentals.
One exception is “apartamentos turisticos”. These are purpose built properties – specifically for renting out. Perhaps suitable for big developers, they’re not really suitable for an ordinary homebuyer who’ll want to spend time in the property. Plus, they carry a whole load of restrictions and potential extra costs.
Renting out your property on the mainland appears to less of a problem. Lee Jones, head of OPI Property Management and Lettings, categorically states “you don’t need a licence to rent out a private apartment or villa to holidaymakers on mainland Spain”.
They had their specialist lawyers check out and confirm this and with “3,500 holiday rentals this season”, they have to be certain they won’t be liable for fines.
Enforcement of the Law (in Spain)
“With so many “illegal” holiday rentals going on, the law and the reality on the ground are oceans apart, which is not unusual in Spain.”
If you look on the Internet you’ll come across literally thousands of private properties for rent throughout Spain and the Canary and Balearic Islands. A lot of these are owned by Britons who have no idea whatsoever that they are breaking the law.
Those who are aware of the licence situation don’t really seem to have a clear idea of how the rules are interpreted and enforced. Undeniably it’s a bit of a grey area – as is often the case when it comes to Spanish laws.
In terms of licenses, the law appears to vary from place to place. For example, in Murcia province (Eastern Spain) if you want to rent out your private property to tourists you’ll have to first register with the department of tourism, although hardly anyone does. In most other parts of the country, you just have to inform the local government about your plans to rent.
The real concern is most likely just wanting to keep tabs on who is earning the money, in order to make sure as much taxes as possible are received.
Long-Term Rentals
Curiously, there’s seems to be no restrictions on long term rentals, if you want to rent your place out for the whore summer or winter, for example.
Renting out for longer periods can have a number of advantages and disadvantages. Although, you’ll get lower weekly income, you’ll have a steady income for a longer period of time. There’ll be fewer empty periods and probably a lot less wear and tear.
Be careful though. If you own a property in Spain and rent it out to a tenant for a period of a year or more, they’ll acquire all sorts of rights that could make your life a nightmare.
Advice
It’s Spain. Nothing makes sense. The only real advise is to speak to a local lawyer who knows the specific licence situation in your particular part of Spain.
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10.30.07
Posted in Articles, Spain at 12:21 pm by admin
Choosing a good agent is the key to a safe and happy investment. You need one that you can trust. In Spain real estate agents vary quite considerably in terms of competence and ethical standards from one agent to the next.
Like anyplace, you’ll get both good and bad. Over the years, real estate agents in Spain have developed quite a reputation – you’ll hear all sorts of horror stories – many of them true.
In 2000, the Spanish authorities deregulated the property market. Before this you had to be a member of the one of the two professional real estate associations – API and GIPE, to facilitate Spanish property transactions.
Since deregulation, almost anyone can set themselves up as a real estate agent, regardless of professional qualifications or affiliations.
Although there’s some that should certainly be avoided, the majority are highly trained, multilingual, competent with high ethical standards. Finding a good real estate agent in Spain is rarely a problem.
Types of Estate Agents
There’s various types to choose from. Some are more suitable than others depending on your situation.
Spanish Estate Agents
A lot of the Spanish agents don’t speak English – especially in the rural areas. UK buyers generally tend to use foreign estate agents because of this – it’s just easier. This is changing though. Nowadays you’ll find an increasing number of Spanish agents with English-speaking staff in Spain’s many popular tourist resorts.
A lot of the Spanish agents are affiliated with the API or GIPE, membership of which indicates a high level of training and professionalism. The only thing you have to check is that they genuinely are a member. These titles are often abused by agents.
Normally average size Spanish agents just focus on the surrounding property market. The larger ones can often have nationwide chains and networks throughout the whole of the country, extending to the Balearic and Canary Islands.
Foreign Estate Agents
Spain has hundreds of foreign estate agents operating throughout the mainland and on the Canary and Balearic Islands.
Normally these estate agents will focus on buyers and sellers from their home countries. The English try and sell to the English, Germans to the Germans etc. It makes sense. People want to purchase from someone they feel familiar – someone who speaks their own language.
Unfortunately though, over the years there have been numerous cases of incompetent and unscrupulous behavior carried out by some of these foreign agents. They involve everything from charging excessive commissions to aggressive sales tactics and blatant dishonesty – anything to close a quick sale.
Watch out for these kind of operators. You’ll find them mainly in popular resort areas like the Costa del Sol, Costa de Almeria, Costa Calida and Costa Blanca.
Inter-Agency Networks
An inter-agency network is collaboration between various estate agencies whereby they share clients, properties and commissions. One agent might have a property but not a buyer while the other agent might have a buyer looking for the other agent’s property etc. It’s mutually beneficial for both parties.
It should also be ideal for the buyer – he’ll have a much wider choice of properties to choose from. What often happens though, is that as well as splitting the commissions, the agents will also increase the commissions, seeing as they’re not getting as much as they normally would. So in the end the buyer pays more – and for something that’s of little extra value really.
Corredores
The traditional rural method. A corredor is a local broker who works in rural, often remote areas. He or she (but normally he) knows all the locals and is in the “know” about who’s looking to get rid of their dwelling and go onto purchase better (or other) things.
If you’re looking for a property in an area, not covered by the larger agents, this is often the best option. It’s also the cheapest. (Most Corredores don’t speak English, by the way.)
Both the buyer and seller are charged just 1% commission each. Buying from a foreign or modern Spanish agent you could pay up to 35%!
Finding a corredor can be tricky. They don’t normally work from commercial premises so you’ll have to ask around, maybe spend some time relaxing in the village. Eventually, you should find one – if the village has one!
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10.15.07
Posted in Articles, Buyer's guide, Canary Islands, Spain at 12:42 pm by admin
Buying off-plan is a very popular investment option with numerous advantages for the developer, the estate agent and you (the buyer).
For developers, it’s a way of financing part of their project with someone else’s money. It reduces their risk.
For estate agents, selling off-plan means earning juicy commissions from the developer. It’s also easier for them to just take the commissions and run. They don’t have to worry about any complaints or hassles from the buyer who take possession later on.
Estate agents love to sell off-plan. Apart from the generous commissions, it’s an easy sale. The ideal candidate is your typical naive amateur speculator. All the agent has to do is mention “guaranteed high-returns” and the rest is history.
So what’s in it for you?
Money, basically.
A significant proportion of foreigners looking for a holiday home in Spain will buy off plan. Most are amateur speculators looking for a risk free, high return investment.
Advantages
The main advantage of buying off plan is the price. You should earn a discount of around 10 – 30% off the current market price.
The reason off-plan developers charge less is because they have to compensate the buyer for the risks they are taking – handing over hundreds of thousands of euros for something that hasn’t been finished, possibly even started, invariably involves a form of risk.
They also compensate the buyer for providing them with the capital they need to help finance the development.
Quality is also a major advantage. When you buy off plan, you get a property made with the latest building materials using the most up to date techniques.
In Spain, brand new properties should be the best in the market. They’ve been constantly improving building regulations here over the past few years. That said, it does of course depend on the specifications offered by the developer.
When you buy off-plan you’re also entitled to a number of guarantees from the developer. Under Spanish law, you’re covered for different types of build defects for different periods. Off-plan properties are guaranteed against the most serious structural defects for 10 years. You should get the same advantage if you were to buy a property from a developer that’s just been finished.
Unlike buying a new property or a resale property, when you buy off plan, you can (sometimes) have an input into the style of the property (colours, floorings, certain fixtures etc.). Buying off plan can be tremendously flexible in this respect and the degree of flexibility varies enormously from developer to developer.
If you at any stage you decide that you don’t want to continue with the purchase – if you change your mind about the development or the area – you might be able to sell on the purchase contract to a third party, making a (potentially large) profit in the process. All this could be done without the expense of completing on the property.
This has been the case in the past but nowadays, with the market being more saturated; it’s becoming more and more difficult to sell on properties before completion.
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Posted in Articles, Buyer's guide, Canary Islands, Spain at 12:30 pm by admin
A recent article by Mark Stucklin (Spanish Property Insight), strongly recommends using an independent Spanish lawyer as opposed to one appointed by the agent or developer. “It is true that you can buy a property in Spain without using a Spanish lawyer but it would be very unwise on your part.”
Buying a property in Spain
Buying or selling a property in Spain, just like back home, can be a detailed and often complicated process. Unexpected issues and costs often pop up unannounced.
In Spain and the Canaries, you run the same kinds of risks when you buy or sell as you do in the UK – meaning a good lawyer is essential. What you need is a Spanish lawyer, who speaks English and is independent from both the estate agent and the developer. You need one that can give you impartial advice and look solely after your interests.
Buying from a Developer
You’ll need a lawyer if you’re planning on buying off-plan. He or she should make sure the contract you’re about to sign gives exact details of what kind of property the developer is going to produce, with all the correct licences and guarantees and, as much as possible, within the specified time frame.
Otherwise, you are completely unprotected and you could end up with…well, anything, really. What’s written down in the contract is paramount; it’s your only genuine security.
New development projects often take more time than the developers predict. A Spanish lawyer can make sure the contract suits you but at the same time is reasonable and realistic.
Buying a Second Hand Property
For resale properties, the lawyer needs to make sure that the person selling the property is the legal owner and that there are no outstanding debts on the property. In Spain, debts stay with the property not the owner, so if not properly checked you could end up inheriting all kinds of hassle.
Your lawyer will also check that the physical characteristics (size, number of bedrooms etc.) of the property fully correspond to the details in the title deeds.
These are two fundamental checks that the lawyer needs to make. There are countless others, depending on the property type, location and circumstances – everything from water rights to community fees.
Using an Independent Spanish Lawyer
Most people use the lawyer appointed by the agent or developer because they assume it’s the easiest and safest option. In some cases, like on an inspection visit, they simply won’t have time to look around for an independent lawyer.
“63% of British buyers end up using the lawyer recommended to them by their estate agent. Of these 20% report being very dissatisfied with the legal service they receive.”
Normally, the agents just want to close the sale as quickly as possible. In a lot of cases, the staff get paid on a commission-only basis, so of course they’ll recommend any lawyer who’ll facilitate the quickest easiest sale for them – often their in-house lawyer.
You can never be too sure about the kind relationship that exists between the agent and the lawyer. There could be all kinds of deals going on. This is why you need a lawyer who you can be certain is working for you and you alone.
It’s best to find one before you begin the purchase process. Ideally you should have found a lawyer before you contact an agent. That way, you won’t be pressurised into using the agent’s lawyer.
Locating an Independent Spanish Lawyer
There are plenty of English speaking Spanish lawyers in Spain and on the Canary Islands. The easiest way to find a good one is normally just through recommendations from friends and acquaintances. The British Consulate can supply you with a list of English-speaking lawyers in your region. You’ll find a list of all the British consulates in Spain at the following link – British consulates in Spain.
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Posted in Articles, Spain at 2:27 am by admin
Most people dream of having their own holiday home – a place in the sun, where they can jet off to at any stage of the year, by themselves or with family and friends.
Getting approved for a second mortgage however, is often more difficult than for primary mortgages, so it’s a good idea to weigh up the advantages and disadvantages before you invest.
Benefits of owning a holiday home
Provided the market remains prosperous, you should be gaining equity on the property every year. You can also rent it out during the periods you are not using it and help to pay off the mortgage.
Going on holidays will be a much more pleasurable experience, knowing that the place your staying in will be equipped with your favourite foods, clothing and recreational items. You’ll have a lot less stuff to pack.
Your vacation home can become a retirement retreat, if you decide that you’d eventually like to live there full time. Once you’re ready to move, you can always sell the main property and invest the money in the holiday property – your new home.
Financial Considerations
It’s often looked at as a luxury available solely to the wealthy and to some extents this is largely true. Approvals for second mortgages are more difficult to obtain and higher down payments are often required, as lenders feel borrowers are generally more prone to missing payments on their holiday homes.
So, even for those in a position to be afforded a second mortgage, there are still a number of financial considerations to take into account…
One of your main considerations will be cost.
Even though you won’t be living there the whole year, you’ll still have to pay all the traditional costs that apply to your primary residence, like property taxes, and utility bills etc. Renting your holiday home out can sometimes mean that you’re no longer eligible for certain tax exemptions or that you’re liable for more tax payments.
Another thing to consider is whether or not you want to spend all your holidays in the same location. Staying in a hotel can be expensive (especially with a large family) and the thought of having your own holiday home is a nice idea but if you’re someone who prefers to travel to different places every year, maybe you should consider other options.
Is the holiday home suitable for winter and summer vacations? If not, you might end up spending additional money on hotels and other services that the holiday home should negate. Also, the burdens of meeting the bills that come with a second home might actually limit your ability to take a second vacation.
Guidelines
Make sure you research both the area and the property extensively before you sign on the dotted line. Spend some time in the location before taking the plunge.
Look at the different properties types available. Less expensive timeshares, for example, can make you feel just as at home but could save you substantial amounts on property taxes, fees etc.
Know the tax laws. What you’re planning on doing with the property can greatly affect the amount you’ll be taxed or allowed to deduct. Find out exactly what you can and can’t do with the property and how certain things like renting it out will affect your tax situation. There are numerous English-speaking tax professionals in both Spain and the Canary Islands who can help you with this.
Turning dreams into reality
Maybe you’re not yet in a position to buy a holiday home but some years down the line you might be. Consult a financial planner or advisor, tell him about your plans and he should be able to come up with realistic targets that can help you reach your financial goals. If you stay disciplined and start far enough in advance (i.e. now) you should be able to turn your dreams of owning place in the sun into reality.
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