spain investment information

Why buy in Spain?

The relatively recent scandals in Marbella, where unscrupulous developers built property without permits coupled with the worst excesses of the Valencia ‘land grab’ laws have done little to help promote the Spanish investment property market. Indeed, the Marbella property market has become over-heated and prices have eased this year.

However, it should be noted that these are localised issues and Spanish property in general still proves to be heavily sought after, and for good reason. Recent surveys still suggest that 65% of Brits would choose Spain as their number one overseas property destination whilst for over 38% it would be the only possible choice.

At little more than two hours flying time from the UK, Spain literally transports you to another world. With its exhilarating culture, friendly people, remarkably varied cuisine, beautiful countryside and a wonderfully temperate climate that benefits from the almost permanent presence of the sun, Spain certainly deserves its reputation as one of the most exciting and cosmopolitan countries in Europe.

In many regions property prices continue to grow at a steady rate and with ever increasing numbers of tourists visiting Spain each year there exists a strong opportunity for good rental demand in the right areas.

In addition, mortgages and financial services are fully developed in Spain and this allowing gearing to 80% loan to value.

A low inflation rate coupled with the low cost of living means that Spain represents great value for money. The country also benefits from private and state hospitals that offer excellent facilities and expert consultation.

More low cost flight operators are entering the market and the frequency of flights and range of departure airports is increasing all the time.

Buying Property in Spain

Once you have decided on a property and the price has been agreed with the vendor a contract will have to be drafted and you will need to make provisions for payment of a deposit, which is payable on signing the contract.

The contract will include a completion date and an assurance by the sellers that the property is free of charges, tenants and mortgages.

Once both parties have signed this contract and the deposit has been paid, you have secured the property. This is a binding contract for both sides with penalties for failing to honour its terms.

It is imperative that you are satisfied with the conditions of the contract before signing it.