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Your free fully comprehensive Spanish and Overseas off plan investment property guideThe purpose of this guide to off plan property in SpainThe purpose of this guide is to give you more detailed information relevant to investing in Spain. In particular, the information will be pertinent to the area of the market that IP Spain are specialists in, namely “Buying Off Plan”. We have designed the guide as a comprehensive series of answers to questions that we believe you the investor would want to know. We have included an index of the questions below which you can use to link to the answers or alternatively use the forward and back buttons on each page to review the whole guide. If you have any additional questions that have not been answered in the guide please check our FAQ page or contact us and we will be only too pleased to deal with your enquiry. The first questions that you are likely to ask are these:- Page 2 Why should I be considering this “Buying off plan”? Why should I be considering this? “Buying off plan”For the last few years in the United Kingdom making money from property has been relatively easy. Anyone, even those with little understanding of property investment, could buy a reasonable property in a reasonable location, and sit back as the value has increased almost daily. If they have been able to let the property and cover their holding costs (including the costs of finance if they have bought using a loan) they would have been almost guaranteed an increase in their wealth, on paper at least. But of course, this could not last forever. Although the long-term trend for property prices in the UK is upwards, growth is not constant. Concerns about ever higher prices keeping first time buyers out of the market, about the amount of consumer debt, and the possibility that an aggressively rising property market could result in a property crash, prompted the Bank of England to raise interest rates to cool the market. In December 2004 The Nationwide predicted: “Following the increase of around 13% in house prices during 2004 we expect price growth in the 12 months to December 2005 to be in the range of 0 to 5%. However, the likelihood is that annual price inflation will end next year towards the lower end of this range. In contrast to 2004, monthly price increases are expected to be much more uniform across the year, although we are expecting to see small price rises in some months and small falls in others.” If, as expected, the housing market is flat or stagnates during 2005, then obviously property investors will not be able to count on the UK property market with as much confidence as previous years. In contrast Spanish coastal property prices have risen by at least 15% per annum since 1997 with even greater rises in the more sought after locations. FACT: The Economist reports that house prices in the last 20 years have risen faster in Spain than anywhere else in the world. The main Spanish airports are predicting a sharp increase in traffic over the next few years as budget airlines make it even more convenient to escape for a few days or weeks in the sun and this has started to take effect already. The Spanish National Statistics Institute predicts that the immigrant population (British, German, Dutch etc) will rise to as much as 5.5 million by 2010, representing in the region 12% of its population, compared to just 5% in 2001. Many people believe that the current rate of development will not be able to keep pace with the increased demand for private and holiday accommodation. The result is? House prices in Spain are set to rise still further. The profit potential realized from our recommended investments can be in the region of 50 to 100% return on the original investment or in many cases even greater i.e. invest £20,000 now and down the line receive £30,000 to £40,000 back or possibly more! How much profit can I make on my investment with off plan property?The answer to this question depends on various factors, all of which are discussed in fuller detail throughout this guide. As the guide explains, prices of the correct profile of property in the correct location in Spain are set to rise still further. The profit potential realized from our recommended investments can be in the region of 50 to 100% or more return on your original investment i.e. Invest £20,000 now and down the line receive £30,000 to £40,000 back or in many cases even greater returns are possible. This phenomenal rate of return is made possible due to the gearing of the invested capital and it is this gearing that makes off plan investment so attractive. Gearing can be explained very simply in the following example:- Imagine an investor that has £100,000 to invest in property (NB spectacular returns can be achieved with significantly less capital than this with our recommended investments). Option 1 A suitable property is found and £100,000 is invested. Two years down the line, our investor decides to sell for £135,000 to realise a profit of £35,000. Ignoring costs for the moment, £35,000 profit within 2 years represents a great return of 17.5% profit on capital each year. Option 2 Our investor decides to invest in 3 new off plan properties each with a value of £100,000. The investment required for each property is the deposit due which is £33,000 to give a total investment of £99,000 (Approximately the same as in option 1). Two years down the line and the properties are about to be completed and our investor decides to sell each property, again for £135,000. So with this “geared” option, each property will realise a profit of the same £35,000 only this time the investor has 3 properties to sell with this level of profit and not just one. Total profit (again ignoring costs) £35,000 x 3 total £105,000 Three times the profit within the same time frame achieved with exactly the same amount of investment capital representing an amazing 52.5% profit on investment for each of the two years. What is an off plan property?Firstly buying off plan either in the UK or in Spain is not a new concept! The developer of a building project is always keen to sell as many properties as early as possible in order to improve cash flow, minimize development loans from banks and to give the project some forward momentum. At this stage, prospective investors only have plans, computer simulations, models and a plot to view. Therefore a certain amount of vision is required. To compensate for this the developer sells “off plan” at extremely competitive prices, often as much as 30% below current market value. Additionally, it is standard practice in Spain for developers to re-evaluate the market value of a new project periodically throughout construction. This is dependent upon the unit rate of sale within the project together with seasonal buying patterns and translates to approximately 3 price increases during the construction period. (Clearly, maximum return on investment will be achieved if investment occurs following the projects initial release). Typically, you only have to invest 30% of the purchase price as a deposit with the remainder due at project completion. This is where the true value as an investor is contained as your potential profit will be based on the total value of the property and not just the deposit invested. For a more in depth look see our example. How long will it be before I can expect to see a return on my investment?There is no specific answer to this question as there are many variables that can affect time frames, together with the specific off plan investment strategy that best suits your requirements. All of these variables and strategies are discussed in great detail within our guide. As our guide will confirm one of the greatest attractions of this form of investment is the flexibility it can offer. Consider the following options:- If you buy very early in the development project e.g. Phase 1, it is very common to see price increases with each subsequent phase. Each of these increases could occur within 3 months of one another. So potentially a small profit could be realised within several months of the investment. The build period will obviously affect the time frame of potential price increases and project build time will vary from development to development. The largest price increases historically within this type of development in Spain occur during the build period and also during the first three years after project completion. As you can see, this type of property investment can be suitable to those looking for a short term return as well as those more interested in a long term strategy. Where should I buy an investment property?Most UK residents will be familiar with patterns that developed in the UK property market over the last 20 years or so. Different locations experienced growth at different times. Areas that were once seen as not worth considering suddenly became the fastest growing “Hotspot” in the country. Spain is no different, picking the right location is obviously vital to success. It is of no use to invest in a market that has already exhausted its potential growth and similarly you would not want to invest in an area that is perhaps a decade or so away from achieving its potential. As you will have seen from our “about IPS” page, our parent company The European Property Hub has a wealth of experience gained from marketing property across all of the regions of Spain. Having our finger on the pulse in this manner has given us unique access to the buying and price trends as they happen. Historically, the most renowned of all investment areas in Spain is the Costa del Sol, primarily the area immediately around Marbella. All available recent information suggests that this area has reached its peak. Many investors who enjoyed considerable success in the Costa del Sol are now looking at other parts of Spain and in particular the areas that are of most interest to the IP Spain investor include parts of Murcia, the coastline north from Alicante to Valencia and also include selected areas around Castellón. We are also closely monitoring some emerging developments just below the French border on the Costa Brava. Investing in these areas and in particular the Costa Blanca is the right time and right place. According to Spanish Government sources the capital growth on this coast has risen to 24% P/A, while the Costa del Sol has decreased to 18.5%. How long will it last? The Spanish government expects development along this coast to continue at the present rate for the next 10 years. Considering that they are issuing the planning permission, we can assume that they are in the best position to judge, however at IP Spain we would suggest that a conservative estimate would be in the region of 4-6 years. Why is the growth now occurring in North Costa Blanca, Southern Costa del Azahar and selected parts of Murcia? 1) The Climate, one of the best in Spain with over 300 days of sunshine and some of the best beaches in the country with the majority having blue flag status. 2) The World Health Organisation has declared the Costa Blanca one of the healthiest places in the world environmentally and climatically. The area offers an ideal environment for sufferers of Arthritis, Rheumatism, Asthma and Psoriasis due to the warm dry climate. Heart disease is among the lowest in the world which is probably due to the diet and relaxed way of life. Life expectancy is also the longest in Europe. 3) The 2007 Americas cup is being hosted by Valencia. Previous host cities have enjoyed a huge influx of funds both from the increased number of visitors combined with local government regeneration resulting in an increased demand for property. 4) Low budget airlines flying from most airports in the UK to Alicante, Valencia and Murcia (San Javier) with a new international airport under construction in Murcia and another planned at Castellon (north of Valencia). 5) Several Championship golf courses within 30 minutes of each other in Murcia and planning permission granted for another eight. 6) Fantastic infrastructure with good roads, motorways, and train services. 7) The fact that tourism remains the first ‘national industry’ in Spain. It accounts for 12% of its GDP and employs over 1.5 million people. Over 51 million tourists visited Spain in 2002, more than the actual population of 40.2 million (July 2003). You state that these areas are the most important, explain more?Some important factors that go towards making the North Costa Blanca, Southern Costa del Azahar and areas of Murcia interesting areas for investment.
1) The climate, one of the best in Spain with over 300 days of sunshine as well as some of the best beaches in the country with the majority having blue flag status. 2) The World Health Organisation has declared the Costa Blanca to be one of the healthiest places in the world environmentally and climatically. This makes an ideal environment for sufferers of Arthritis, Rheumatism, Asthma and Psoriasis due to the warm dry climate. Heart disease is among the lowest in the world which is probably due to the diet and relaxed way of life. The average life expectancy is also the longest in Europe. 3) The 2007 Americas cup is being hosted by Valencia and work is well under way to support this. Previous host cities have enjoyed a huge influx of funds both from the increased number of visitors combined with local government regeneration resulting in an increased demand for property. 4) Low budget airlines flying from most airports in the UK to Alicante, Valencia and Murcia (San Javier) with a new international airport under construction in Murcia and another planned at Castellon (north of Valencia). 5) Several Championship golf courses within 30 minutes of each other in Murcia and planning permission granted for another eight. 6) Fantastic infrastructure with good roads, motorways, and train services. 7) The fact that tourism remains the first ‘national industry’ in Spain. It accounts for 12% of its GDP and employs over 1.5 million people. Over 51 million tourists visited Spain in 2002, more than the actual population of 40.2 million (July 2003). And 55 million are expected during 2005. What type of property should I buy?Choosing the right type of property to invest in is of paramount importance to the investor. If the intention is to retain the property for personal use then individual circumstances will influence the buying criteria. However the goal must always be to invest in property for which there will be a high demand both in terms of future resale and or rental potential. Other points worth considering (especially if interested in longer term rental) are maintenance together with running costs and management charges. The following examples examine the key criteria:- Property type - Apartment Investment - 2 bed apartment most fluid in Spain. Viewed as the most secure investment Property type - Townhouse Investment - Good Investment especially for the longer term rental market Property type - Villa Investment - Retirement property Ideal choice for buyers with good amount to spend Property type - Countryside Villa or "Finca" Investment - Not worth considering in the majority of cases You will gather from the above table that in most cases the best type of property for an off plan investment in Spain is mostly an apartment and in particular a 2 or 3 bedroom apartment. This applies whether the investor intends to sell prior to legal completion or indeed intends to keep the property as a longer term rental investment. Wherever possible priority should be given to properties with features that will influence resale potential for example properties on golf courses, close proximity to the beach, secure gated communities, corner and end units, large balconies and properties with roof terraces. How much do I need to invest?This will vary and is dependent on the purchase price of the investment property chosen and the type and projected build period of the development, but as a general rule of thumb, most developers ask for a 30% deposit, although with some developments this can be paid in stage payments over a 2 year period. The costs involved (stamp duty, IVA etc) will be applicable to the deposit only and will amount to an additional 3 to 4% approximately. There are developments however that only call for a 15% deposit initially, together with a further 15% payable over a two year period. There are always promotions and special offers being offered and updated on a regular basis so please ask. All of the relevant information relating to the pricing and payment structures of the individual developments that we promote can be found on our Property Developments page on the main website. As a rough guide you will see that the purchase price for our investment properties start from approximately £120,000 so the required deposit and fees would be in the region of £40,000. It is also worth pointing out that many of our clients have formed investment clubs, either with family members and friends, or on a more formal basis with business partners in order to fund the investment capital and increase buying power. Further information on how to fund the investment capital can also be found on the next page of this guide. Careful consideration will have to be given to the particular investment strategy that is most suitable to you, and all of the information required to help you make that decision is contained within the contents of this guide. As always, if you require additional information, or are unsure about any aspect of the investment properties or the strategies outlined please do not hesitate to contact us with your questions. To be kept up to date with current projects and special offers available please register. How can I finance my investment?There are two financial aspects to consider with this type of investment. First and foremost is the initial deposit which in the majority of cases is 30% of the overall purchase price plus costs. Many of our clients release equity from their UK property in order to fund the deposit and Investment Property Spain would be pleased to arrange this for you as we have considerable experience in this field. The potential profit from the off plan investment in the majority of cases will more than compensate for the marginal increase in interest paid on the equity release. Other options for funding the deposit include personal loans, pension lump sum, endowment or other investment surrender. If it is your intention to keep the property beyond legal completion then the remaining 70% (in the majority of cases) has to be financed once the build has been completed. Again IPS has considerable expertise in this field and in many cases you will have the option, if you require, of taking up a pre-arranged mortgage with the bank that is guaranteeing the building project, or we can assist in arranging a mortgage with any other high street Spanish bank. Interest rates in Spain are significantly less than in the UK and due to the fact that the Spanish interest rate is tied to the EUROBOR (interest rate agreed across all participating European countries set by the European Central Bank) the interest rate is also most likely to stay consistently low. Can you give me an example of investment return on an off plan property?Consider the following example:- An apartment purchased off plan for £100,000 with a scheduled completion date in 24 months time. NB. It is important to remember that this will be the developers “incentive price” to encourage take up of the off plan project and in all probability it would have a current value in the region of £120,000 to £130,000 were it available as a completed property. Initial deposit = £30,000 plus costs of approximately £3000 = Total £33,000 In order to predict the likely future value of the property there are 3 factors to take into consideration:- 1 The property was purchased at approximately 15 to 30% under the realistic market value 2 As the project develops over time the developers will phase in price increases 3 The historic growth rate of Spanish property values in excess of 15% per annum For the purposes of this example we will assume a very conservative growth rate of 20% per annum. Therefore the property would have a market value of:- £120,000 at the end of year one £144,000 at the end of year two So as an investment, the initial £30,000 deposit would yield a profit of:- £20,000 in year one representing a 66% profit on investment (166% ROI) Or The same £30,000 would yield a £44,000 profit in 2 years representing a 146% profit on investment (246% ROI) The construction project is completed after the 2 year period in our example and there are two options open to the investor in order to secure the return on investment. The first option is suitable for investors looking to secure a short term return and the second option is suitable for those investors looking to take a longer term view. Fully comprehensive details about the strategies that are now available to you in order to realise the profit are contained within the guide. 2 Retain Through To Legal Completion What happens if I want to redeem my investment early on?Re-Sell prior to completion This option is ideal for investors looking for short term capital growth. The concept is very simple as you have been shrewd enough and have had the vision to invest in a development project at the early stages when perhaps there were only concrete foundations to view. A fair analogy would be to state that you now have a contract in place which gives you the right to buy the property at the discounted price agreed. As the project progresses over time more of the individual units sell and also the development starts to resemble a finished property which will attract more (less visionary) customers which ultimately results in the developer increasing the purchase price of the individual units. So you are now in the enviable position of having the right to purchase a new desirable property at an under market value price having only invested a 30% deposit. Many investors choose to now sell the property for its true market value thus enjoying capital growth based on the Total Property Value whilst only having paid the initial deposit. Up to 100 % Profit on your initial investment is possible within the build period and with only 5% capital gains liability retained. One of the most attractive aspects of this form of property investment is the flexibility that is possible. Hopefully having read and digested our guide you will have settled on the strategy that best suits your individual requirements and made your choice accordingly. What happens when the property is completed?Retain Through To Legal Completion This strategy is most suitable for investors interested in longer term Investment Return. Upon completion, the investor will retain the property, and to finalise the purchase will have to fund the balance of the off plan discounted purchase price. Most investors choose to do this by arranging their own mortgage which IP Spain are happy to assist with, or accepting the pre arranged mortgage offer that comes through the developers bankers. A very important fact to bear in mind is that the majority of Spanish Banks will be happy to lend up to 70% of their valuation of the current market value (which of course will be greater than your purchase price). E.g. agreed off plan discounted purchase price is £100,000 2 Years later when the project is completed Bank valuation £144,000 In other words you owe the developer £70,000 and the bank would be willing to lend £100,800. This would allow you take the full mortgage and have the property paid for and your deposit returned or you would have the choice of taking a smaller mortgage in order to pay the developer only. This decision will be influenced by the strategy that would be most suitable for you from the following options:- Buy and Live Use and Let Buy to Let Several of the Developers that we deal with can actually offer a guaranteed rental agreement, in some cases for up to 5 years after legal completion. This can be based on letting the property full time or in some cases allowing you to use the property for certain months during the year. When and how can I resell or sell on my investment or off plan property?The answer to this question is very much dependent on the investment strategy that is best suited to your requirements. If your goal is short term capital growth then you would want to resell prior to completion or indeed at any stage during the build period when for instance the developer has introduced a price increase. If it is your intention to retain the property as a longer term investment either as a buy to let, buy to live or a combination of the two then you would obviously be able to resell the investment property whenever you require. In both of the above scenarios Investment Property Spain would be pleased to organize the sale for you. We regularly receive enquiries from investors that are interested in properties with a shorter lead time to completion, but in addition we can also market your property through our parent company The European Property Hub which is an Estate Agency network system covering the whole of Spain and dealing predominantly with resale property marketing through a UK network of Estate Agents. If I wanted to rent out the property when it is completed how much rent can I expect and can I still use it myself?This has proven to be a very popular option with many of our clients as it provides an appreciating capital asset, which is predominantly paid for by someone else whilst also allowing you use of the property. In short, the more use of the property you require, the less the rental yield will be. There are developments which are ideally suitable for this strategy and there are even developers that will give a guaranteed yield based on a sliding scale against how much annual use you require. The following tables will give an idea as to the potential rental income from apartments at various times of year. The figures quoted are for one week rental:- Key to seasons High - June, July, August and Easter Mid - March, April, May, September and Christmas Low - January Febuary, October, November and December Standard Apartment 1 Bedroom - Low £ 70 P/W - Mid £110 P/W - High £140 P/W Luxury Apartment 2 Bedroom - Low £180 to £215 P/W - Mid £230 to £265 P/W - High £250 to £285 P/W Long term letting Rather than letting their investment Property as holiday accommodation, many investors prefer to let on a more long term basis for 6, or possibly 12 months at a time. Rental income will vary depending on location but as an approximate guide a standard 2 bedroom apartment would yield £400 minimum per calendar month, where as a luxury apartment would achieve £650. N.B. Please note that this information is to be used as a general guide only and must not be construed as a guarantee of rental income. How can I develop an Investment Portfolio of Property with minimum capital outlay?This has to be one of the most exciting and tangible aspects of this form of investment. Let us consider our earlier example. An apartment purchased off plan for £100,000 with a scheduled completion date in 24 months time. NB. It is important to remember that this will be the developers “incentive price” to encourage take up of the off plan project and in all probability the property would have a current value in the region of £120,000 to £130,000. Initial deposit = £30,000 Assuming a very conservative annual increase in value of 20% (combining the historic growth of 15%+ together with the “off plan” discount) the property will have a market value of approximately:- £144,000 at the end of year two The goal is now to keep the property and arrange for a mortgage which in the majority of cases will be based on 70% Loan to Value (Banks will lend 70% of their current valuation). Remember that the value of the property has risen to approximately £144,000 and not £100,000 so the bank would be willing to lend:- 70% of £144,000 = £100,800 You have at this stage invested £30,000 and the balance owed to the developer is £70,000. Total purchase price including your deposit = £100,000 The Bank will lend £100,800 In other words you have now had your original deposit returned to you and you are now the owner of a property with a mortgage that can be let whereby the rental income from the property would more than cover the mortgage payments. The original £30,000 can now be used as a deposit for a second property and the exercise repeated, resulting in an additional property being added to your portfolio every 2 years with the majority of the investment being self financed from the initial deposit invested. What costs are involved in purchasing an off plan investment property?Overall Purchase Costs Transfer Tax (ITP) Land Registry Fees Notary Charges Legal Fees The majority of companies operating within the investment property market charge between 1.25 and 1.5% of the purchase price for Legal Fees. What you will find however is that the “true legal fees” are on a fixed cost basis and the excess will be used to pay an extra commission to the agent for introducing the solicitor to the client. In our view this does not offer the client the level of service that they deserve. Buying Process Initial reservation deposit secures the property. Balance of deposit required within 30 days together with signing of private purchase contract. Taxation on Profit To make sure that the tax was paid, Spanish Tax law was amended to five per cent of the total purchase price being paid directly to the tax agency when the seller is a non-resident. This means that only 95 per cent of the price is paid to the seller’s account. The other five per cent goes directly to the tax man as payment of capital gains tax liability. Can you explain the Spanish legal system relevant to purchasing Spanish investment property?Legal Protection When considering the purchase of a Spanish property from a developer, many people are a little nervous because of “horror stories” that they have seen or heard. Such stories have included:- 1 Builders without adequate insurance becoming insolvent before completing the property. 2 Defective or non-existent planning documentation. 3 Mortgage loans secured on the land being developed and sold, remaining unpaid after completion of the site. Many of these cases are still the subject of very costly court cases but could have been avoided with appropriate care at the outset. There are in fact substantial safeguards embodied in Spanish legislation protecting the property purchaser. Against Builder Insolvency Contractual Matters Planning Matters New Building Law With appropriate advice and guidance, it is possible to take full advantage of the protection given to both buyers and sellers of property in Spain, thereby avoiding the difficulties which some buyers may have experienced in the past. At IP Spain we are extremely vigilant to ensure that all necessary insurance and consumer protection is in place to ensure that buying property in Spain from a developer is easier and safer than buying from a private seller. How secure is my investment?The answer to that question is extremely secure! As is the case with all forms of investment there is an element of risk involved but close examination will reveal that the risks involved are minimal. Investment Property Spain will not collaborate with any developer where the necessary consumer legislation with regards to planning permissions and licenses are not in place. We have our solicitors vet all of our developers and developments to be entirely sure that all legal requirements are met and bank guarantees are in place, as well as thoroughly previewing all contracts on our client’s behalf. As property investors ourselves together with the vast experience we have gained through operating our parent company we are extremely confident about our knowledge of the Spanish property marketplace and its underlying trends. The following facts established within our report are very worthy of consideration when evaluating the risks involved:- The historic growth in the marketplace and why this is likely to be perpetuated Buying within the early stages of a development guarantees greater value. Therefore in the very unlikely event that the market does slow down or stagnate, a smaller profit, or, in the very worst of scenarios, a break even situation is the likeliest of outcomes. OK I am interested in off plan property investment what do I do next?Your Next Step. In our experience, unsuccessful property investors:- As the old saying goes “knowledge is power” and it is our goal to empower you with the information contained within our website. Hopefully by now you will have read and digested our “Buying Guide” and reviewed the Frequently Asked Questions” page. Having done so, it should be apparent that at Investment Property Spain we are able to offer you:- • The correct strategy We would advise that you review your goals so that you are entirely clear as to the outcome you are aiming for from your Spanish property investments. Initially you will need to consider the deposit you can afford to invest. Then carefully consider again which strategy, or mix of strategies, will most suit the achievement of your goals. Buy and Live - retain through to completion and use as a full time home. Use and Let - retain through to completion and use the property yourself for as much or as little time as you require during the year. The property can then be let out during the times that you do not require it. Buy to Let - retain through to completion with the intention of letting the property on a full time basis. Buy to Sell - The goal is to sell the property prior to completion for capital appreciation. With this in mind you can then start to put together a detailed plan of how to implement those strategies. Depending on the strategy that best suits your circumstances, other questions for you to consider are:- • Your Target rate of capital appreciation If, before you start buying, you give careful consideration to each of the above points, you will already be head and shoulders above the average investor. Having done so, you will now be in a position to narrow down the various developments on offer to the ones that best suit your goals and strategy. The next stage is to visit the developments usually on an Inspection Trip. Visiting the developments - the inspection tripAs always at Investment Property Spain our company ethos of transparency, clarity and honesty for our clients will be our priority. We will of course be pleased to arrange your inspection trip for you, or be happy to offer help and advice in arranging your own, but feel that you the customer will be more empowered if we have not financially motivated you to make the arrangements. Inspection visits can have a bad name (well deserved in some cases). There are many companies operating all over Spain that will offer a free or heavily subsidised Inspection Trip. The motivation for this is quite simply that their customers will feel more obliged to buy and also that their “salespeople” will feel justified in applying high pressure sales techniques. You will always be afforded the time and opportunity to have detailed viewings and discussion of your requirements in a strictly “No Pressure” environment. Once you feel you are ready, you should consider visiting your chosen developments and surrounding areas. In order to make your visit as productive as possible your consultant will help to pinpoint your preferences and acquire all the information you need. Prior to your arrival in Spain, you should make sure that you have at your disposal sufficient funds to cover the reservation fee; the majority of clients elect to use their credit card for this purpose. Your consultant will advise as to how much this is for the properties you will be viewing; it is usually in the region of 2% of the purchase price. At this stage we advise you to open a Spanish bank account and if appropriate transfer sufficient funds to cover the deposit. If required we can assist with arranging the banking facilities whilst you are in Spain. If you are successful and have found the perfect investment property, Investment Property Spain will introduce you to an independent bilingual solicitor who will advise and act on your behalf to complete the sale or if you prefer you can appoint your own solicitor. However, it is perfectly acceptable for you to return to the UK and make that decision in the comfort of your own home, although you may need to return to Spain to complete the purchase (this can be avoided by arranging power of attorney with the solicitor while you are here). We hope that you have found this guide both interesting and informative and look forward to welcoming you in Spain when you visit the developments. |
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