Buying property in Spain

Buying a Spanish Villa or Apartment

Hints and Tips on choosing and buying property in Spain

Introduction

Reason for Purchase

Location

New Build or Resale

Financing the Purchase

Finding Suitable Properties

Buying through an Agent or direct from the owner or builder

Viewings

The Purchase

Furnishing Your New Home

Moving In

Introduction

Buying a home can be a very traumatic experience, particularly when this is in a foreign country and you are unable to speak the language and are unfamiliar with the local practises.
There is a good choice of resale properties and new build properties, which are aggressively marketed by companies offering low cost inspection trips.
The following advice is in the form of hints and tips on all aspects of the 'Buying Process', but is not intended as a substitute for proper legal advice.
Be sure to employ a solicitor, who is recommended and independent from all other parties involved in the sales process. They should also be fluent in Spanish and English, thus avoiding any mis-understandings.
Do not be tempted to cut costs by not using a solicitor.

Reason for Purchase

Stop and consider your reasons for buying a home in Spain.


An Investment Property

Whilst many people have made substantial profits from property investments; others have lost their savings and family homes, because of bad investment decisions.
Property investment should only be considered as a long term investment strategy and not as a get rich quick plan.

A Holiday Home

A Permanent Residence

Location

Having considered carefully your reasons for buying property in Spain

New Build or Resale

New Build - Off Plan or Key Ready

Resales

Buying through an Agent or direct from the owner or builder

Agent

UK based companies, which offer low cost inspection trips to Spain plus many
Local Estate Agents ( Immobilaria )

Builder

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Private Sales

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Financing the Purchase

Do not obtain a mortgage through the builder or agent, without receiving independent quotations. The costs can be inflated and there are significant and unavoidable charges if you change mortgage providers during the period of the mortgage.
Be sure that you have funds available for all the stage payments - you can lose your home and deposit paid if you fail to come up with the payments on time.

Cash Purchase

If you planning to move permanently from the UK you may well be intending to purchase a home with the funds released from the sale of your existing home.
If you are planning to keep a home in the UK then you may be able to raise finance for your home in Spain by downsizing or re-mortgaging your home.

Mortgages

Be sure to get independent professional advice from a number of different sources

If you will require a mortgage for your Spanish property purchase, we recommend that you approach a number of lenders and obtain an agreement in principle of the amount you are able to borrow, in advance of placing any deposit on a house. This will avoid any heartaches later and with a guaranteed mortgage this will also put you in a good bargaining position with the seller.

Spanish Banks typically will only lend up to 70% of the property value and they are becoming much more conservative with their lending policies and their valuations. Each bank will have different lending rules and to obtain the most competitive solution for your personal requirements it is essential to use the services of an approved mortgage broker.

We recommend UK Mortgages Abroad , who are specialised overseas mortgage brokers based in the UK..

Finding suitable properties

Internet Searches

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Local Papers

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Local Agencies

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Drive By

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Viewings

Inspection Trips

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Viewings through Agents

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Private Viewings

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Buyer Questions

Don't fall into any traps with the following questions - have your answers prepared and tailor them to reflect what individual buyers want to hear.
* Why are you moving? Never quote negative reasons and always stress that you will be sorry to leave your home.
Good answers are family reasons, such as parents in the UK need your support and care or a new grandchild, or the desire for a larger or smaller home.
* Where are you moving to?
If it is back to the UK or Ireland, then remember to be positive about life in Spain and consider the comments above when asked why?
If you are moving to another area of Spain, talk about positive reasons for the change of area e.g friends or family live there, closer to work, closer to school etc.
* What are your neighbours like?
People want to hear that neighbours are pleasant and sociable, helpful in an emergency, but not intrusive. Be careful before saying that neighbours are rarely there; as this suggests that the neighbouring homes may become neglected or let to unruly holidaymakers.
* Why is your house dearer than one locally?
Act surprised then stress all the positive aspects of your home e.g. extras such as air conditioning, alarms, grilles, etc. , well maintained, south facing. Never make negative comments about the competition, just stress features that add to the value and desirability of your home.
* Are you prepared to consider an offer?
Always look for something in return for any price reduction, so a response like 'I have already priced the property to be competitive with other similar properties locally, but I would be prepared to accept a small reduction in the price if you are prepared to put down a deposit of 10% before the end of the week and complete the purchase within four weeks.

Information for Buyers

The following queries may crop up in conversation or may be useful selling aids.
Costs of electricity, gas, water, SUMA ( council charges), Cable TV, community charges etc.
Locations of beaches, swimming pool, golf courses, shops, medical centre, banks, supermarkets and restaurants.
Bus or taxi service - availability & costs
UK TV channels - availability & costs

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Viewings through Agents

* Do not accept short notice appointments - you need time to prepare your home properly. Serious buyers and professional agents understand this.
* Be sure to get the names of the buyers - it helps to build a rapport with the buyers. Exchange phone numbers and email addresses - you may need to check progress directly with the buyer.
* Find out their buying reasons - ask questions and be a good listener - remember everything you say must support the selling process
* Is your property a good match for their requirements - or is the agent using your property to pad out the day
* Beware of the agent's motives - they may show resales only to emphasise the benefits of buying a new build home
* Let the agent handle the selling process - only if you are confident in their ability and knowledge
* Be prepared to take control - if you feel that the agent is just showing rather than 'selling' your home; you must get involved. You won't get a second chance with these potential buyers - don't waste the opportunity

Private Viewings

The process is very similar to viewings through agents, but you have to do the "selling"
* Avoid viewings where buyers knock on the door or ring you and ask if it convenient to look round then - be polite and flexible, but arrange a time later that day or another day, allowing yourself time to prepare properly.
* Before you start exchange names, phone numbers and email addresses - write them down and keep the paper with you, nothing is worse than forgetting their names during the viewing
* Find out their buying reasons - ask questions and be a good listener - remember everything you say must support the selling process
* Involve everyone - adults and children - they will all be involved in the decision on what property to buy. Parents can be swayed for or against a property by the reaction of the children
* Ask considered questions, before making comments - some buyers are looking for a peaceful retreat and others may be looking for pubs and clubs.
* Match your property to their requirements - talk about how it meets their needs.

The Purchase

When you find a property that you want to purchase, you need to negotiate a price and timescale for completion and sign a contract, which will be drawn up by the seller's solicitor.

Furnishing Your New Home

Once you have completed on your property you will have the opportunity to furnish it to your hearts desire and if you are moving to Spain, you may want to spend time looking in various stores and choosing furniture, light fittings and furnishings, etc. and there is no shortage of furniture suppliers in Spain ( Muebles ). You may also be bringing some of the furniture from your previous home.

If, however, you have bought your property as an investment to rent out, you will struggle to find both the time and inclination on your visits to Spain.
Choosing the furniture, arranging for delvery and installation can be very stressful, time consuming and expensive especially when you start paying for alternative accommodation, car hire, taking time off work and of course the hassle of buying tools etc.

There is an easier way - the most cost effective solution and convenient way is to use a furniture package company.

We recommend villapac due to their quality furniture, reasonable pricing, you can pick and choose a package (they are not fixed), excellent customer service, supply to all areas of Spain and Portugal and best of all... They have 2 showrooms in the UK!
One in Bolton and the other in Milton Keynes No more hunting around furniture shops in your precious holiday time in Spain. villapac gives you the option of choosing the furniture for your Spanish property on a rainy Saturday back home, or any day of the week. Choose it in UK and leave it up to them to kit your property out so that it's all ready for when you next arrive in Spain.
villapac also has showrooms in Fuengirola, Spain and Vilamoura, Portugal.

villapac provides furniture packages containing everything you are going to need for your new home, from the chopping board to the bed linen to all the furniture and they also deliver and install everything for you, so you don't have to lift a finger - what a way to enjoy your new home and all at unbeatable prices! Prices range from 4499 for a standard package right through to a 3 bedroom deluxe package for under 10,000.
Each package is available in a number of distinctive finishes and can be arranged in a variety of different settings. We give you a detailed floor plan so you can visualise the layout of your new home before you move in.

To find out more about villapac Funiture Packages and obtain a free quotation on a furniture package please click on the link below below and one of villapacs' helpful staff will contact you



Moving In

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The Sale

If the buyer has indicated that he wants to go ahead, you need to agree a price and timescale for completion and get a contract drawn up by your solicitor and signed by the buyer within days.

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