Buying Property in Spain Part 2

Buying Property in Spain Part 2

The Complications of Buying Property in Spain through other less professional companies.

Costa Del Sol Property Group can help you as we have over 29,000

properties on our books and have the whole coast covered.

Because there are a lot of real estate agents in Spain it’s become common practice for these agents to share properties. Basically you can end up seeing the same property listed on more than one website and sometimes the property listing has a different price and even different information. When you call up one of those real estate agents to ask about a property you are automatically listed as a client with them to ensure that you only deal with them. Even if you never talk to the real estate agent again and never step foot in their office you will still be listed as their client in some property databases.

Why is this a Problem?

This can become a problem because there are times when agents have refused to allow someone to view a shared property because they appear to be a client with several agents and thus any sales commission would be spread apart too much. You might not know this is the situation as a buyer but it becomes frustrating for an agent. It also means that you don’t receive the service that you should. Our recommended property finder will help you avoid this problem entirely.

How we Guide you Through the Maze of Spanish Property Purchases

When you register with the Costa del Sol Property Group we make sure to connect you with a professional property finder who can help you find the right property for you. They will be your representative and ensure that you get only the highest quality of service at all parts of the purchasing process.

They have a trained and dedicated customer service team that will be able to help you find the right property and assist you in any way should an issue come up.

The following information will help you deal with some of these potential issues so that you can make the purchasing process as pain-free as possible when purchasing property in Spain.

Tips and Tricks for Purchasing Spanish Property

1.      Don’t be surprised if the first properties you are shown are bad properties or properties that are well out of your price range or don’t meet your needs. This is a common tactic employed by Spanish and foreign real estates to soften you up ready for the house they really want to sell you which will be the last property they show you that day. Work with your property finder to prepare a shortlist of properties before starting the day.

2.      Don’t believe the seller or agent when they tell you that someone else has also shown interest in the property and will be placing a deposit.

3.      Have your deposit ready to go so that you can secure a property at short notice. Having this cash deposit in hand before entering the negotiations makes it a powerful negotiation tool. It also shows the seller that you are committing to purchasing a property and are able to purchase their property. As long as you’ve also got a good lawyer this deposit is completely refundable if the property doesn’t have the right licenses and paperwork.

4.      It’s perfectly fine to sleep on the decision. The property will almost always be there waiting for you the next day no matter what the agent tells you. Making a phone call first thing in the morning and dropping of the deposit is enough to secure the place for you. Even so you need to work with your agent and communicate clearly with them.

5.      If the property has just been painted then take a look for cracks and water damage. Spanish sellers aren’t in the habit of presenting a property for sale. This fresh coat of paint is usually hiding something really bad. At least you aren’t likely to come across a piece of wallpaper hiding a huge crack.

6.      Visit the house again when you’re on your own so that you can see the property at a time the agent doesn’t specifically want you to. You might find that there’s something near the property the agent was able to work around like bad traffic or an industrial zone. It could also make you want the property more as you take a look at the beautiful sunset from the terrace of what may become your peaceful new property in the sun(set).

Buying Property in Spain – Part 1

Buying Property in Spain – Part 1

Buying the right property is key, at

Costa Del Sol Property Group we pride ourselves

on customer service

It can be a lot of trouble to buy a property in Spain. The tabloid newspapers are filled with stories from foreigners who lost their savings money investing in overseas property. Each year thousands of foreigners choose to buy property in Spain and many of them are quite happy. They just don’t get any attention in the tabloids.

This Buyers Guide will give you some insight into buying property in Spain and it also has some wise words from our experts. Let’s get started with some tips, but for an in-depth Buyers Guide you need to register with Costa Del Sol Property Group.

Agents in Spain:

There are several types of agents in Spain. The ones you’re most likely to deal with are:

·        Traditional real estate agents; these agents will often charge owners a sales fee and will have your best interests at heart

·        Buyer’s Agent : The best of this kind of agent are able to find the right property for you and where then the commission is paid for by the seller or seller’s agent.

·        Professional Property Finders: Like Costa Del Sol Property Group tell a professional property finder what you want and they will find it for you. Some of them will charge you a set fee for this service depending on price. They may also work with agents they have made agreements with to create an opaque fee structure. Some professional property finders, such as the ones we recommend, take these payments from the agents meaning that none of the cost is passed on to you.

What to Look for in a Professional in an Agent in Spain

1.      Experience – ask the agent for testimonials from previous customers and for information about their previous work

2.      Coverage – only deal with agents that have the coverage and connections to do what you need

3.      Market Knowledge – ask the agent the difficult questions about living in Spain. Drop any agent that is unable to answer these questions. A good agent may even be able to offer you a better price on the property you were after.

4.      Language – find an agent that knows Spanish so you know you are dealing with someone who can handle any problems that may arise

5.      English – it’s best to hire an English speaking bilingual agent who can talk you through the purchasing process and tell you if anything goes wrong

6.      Avoid the Hype – when an agent is using high-pressure techniques it’s often because they are under pressure to sell the property or working on commission. You are going to be spending a lot of money to purchase the property so you need to get it right the first time.

Property, Economy and Tourism All Up For Spain

 Property, Economy and Tourism All Up For Spain

Many industries tend to only focus on the positives and ignore the negatives when the time comes for them to report their news. When it comes to Spain, and especially the property industry in the country, this optimism is only fair.

Spain is the best place to live in Europe

The Spanish property market has been in a pretty bad place for the past several years but the past 24 months have been great for the industry. Spanish property prices reached their lowest point before slowly climbing back up. Mortgages were being approved more and the rates were fairer and foreign investors entered the market once more, along with a rise in domestic demand that was fuelled by the recovering job market and economy.

The past few months in particular have been great for the country as it looks like there’s nothing but good news for the real estate industry in Spain. It’s expected that property prices will continue to rise for at least the next five years. The only potential pitfall was the Brexit vote and, even though Britain voted leave, the Spanish economy, real estate industry, and especially tourism industry was barely affected.

Last week figures from the EU statistics agency Eurostat showed that Spanish property prices were on the up at a faster rate than the Eurozone average. The Economy Minister would also confirm that of the €22 billion in foreign money that was spent in Spain in 2015, a whopping one-third of it was spent on construction.

If this wasn’t good enough the Economy Minster Luis de Guindos would revise his 2016 forecast for the Spanish economy on Sunday. He is now suggesting that the Spanish GDP could rise by 2.9% this year, just above the 2.7% he originally forecast.

De Guindos put this elevated estimate down to macroeconomic projections which should be implemented before the next government institutes a full budget. He is also confident about 2017 and suggests that even if the Eurozone slows down it will not affect Spain much and that the country should still see a GDP growth of around 2.4%.

Another piece of great news for Spain came from the Institute of National Stastistics (INE). They reported over the weekend that the number of tourists visiting Andalucía over the past 12 months had increased by 18.1% year-over-year.

This increase is the highest out of all the autonomous communities in Spain and gave further proof, if any were needed, that the Costa del Sol area is in for a bumper summer this year. In May alone around one million people visited the region. This summer is expected to break the record set last year with an estimated 7 million people arriving.

While most of Europe seems to be facing the gloom of a post-Brexit EU or the doom of terrorism Spain is looking bright and cheery this summer and it’s not hard to see why with the wonderful climate and Mediterranean lifestyle and the cost of living in spain being so good. Its no wonder why so many Northern Europeans want to move to spain permanently.

Renting Property in Spain

Renting Property in Spain

What to look for in your real estate/management agency

Rental Process:

Costa Del Sol Property Group have all the answers

Every real estate in Spain offers a tenant finding service that usually costs one month’s rent unless you negotiate for a different deal.

Many agents will feel that this is all they need to do but there are others who go much further and provide:

·        A fully legal Spanish contract

·        A full inventory of everything in the house

·        A condition report about the property including any marks, dents, broken items etc.

·        Ensuring any clients are referenced including an employer reference, a previous landlord reference, accountant reference, solicitor reference and so on. They will also confirm that these references are coming from the right people.

Damage deposit

·        It’s recommended to ask for a damage deposit of two months

o   Let’s say you rent your property to Mr Winson. He gives you one month deposit and, one month before he is supposed to leave, he tells you that he won’t pay the rent and you can just use the deposit as rent money. One week later you’re left with an electricity bill without any money from the tenant to pay for it.

·        If you take two month’s deposit then even if the scenario above happens to you then you’ve still got a month’s worth of money to pay for any bills or damage left behind

Management

·        Good agents will also offer you a Complete Rental Management Service for rental tenancy, though they will charge for this

·        Agents collect rent each month for you and ensure that the bills get paid. They also check the property on a regular basis and let you know if any problems arise such as if a boiler breaks or the electricity goes down

·        When you deal with a good agent you can get back the agency management fee through the savings you make from them. You can make savings by reducing the cost of the electricity, working with the town hall, and using different third party companies

·        One of the best aspects of the management service is that rental tenancy is managed. It’s a simple matter but an effective one. They monitor the property and manage it so that tenants know they are helping

The right management agents work hard to make rental tenancy as hassle free for both the tenant and the property owner.

Where to Live in Spain; Malaga and the Costal del Sol

Where to Live in Spain; Malaga and the Costal del Sol

If you’re thinking about moving to Spain then you might be considering the Málaga, area. If so then you should be aware that there’s far more to Malaga, than just the Costa del Sol.

There are so many fantastic places to live in the Costa del Sol

If you don’t know a lot about the area that you’re considering a move to then you need to do your research about it, especially if you’re taking children with you. That’s when we come in to help. We’re not going to be trying to sell the dream of living in the areas for you. Instead we’ll be telling you what the residents of Malaga, told us so you know what it’s really like on the inside.

Málaga is found on the southern coast of Spain, in the Autonomous community of Andalusia. Málaga is bordered by the provinces of Cádiz, Sevilla, Córdoba and Granada and to the south you’ll find the Mediterranean Sea.

The province is then divided up into the comaracas of Atequera, Axarquia, Malaga, Guadalhorce Valley, Serriana of Ronda and the Costa del Sol. There are 101 municipalities between all of these comarcas. A comarca is basically a “-shire” but without the administrative role.

Most of the population of the area could be found in the fishing villages and the “white” villages in the mountains that run down to the coast. The area has been developed quite a bit since the 50s to accommodate international tourism and has become a popular spot for foreign tourists as well as people looking to buy a new place in the sun.

The Costa del Sol (the coastal area of the Málaga, province) is between two other Costas that are a little less-known. They are the Costa de la Luz and the Costa Tropical. Costa del Sol encompasses the coastal towns and communities that fill up the Mediterranean coastline of the Málaga province. It stretches from the cliffs at Maro in the East to the Punto Chullera in the west.

The Costa del Sol Occidental is made up of the municipalities of Málaga, Torremolinos, Benalmádena, Fuengirola, Mijas, Marbella, San Pedro de Alcántara, Estepona, Manilva and Casares on the west and Rincon de la Victoria, Vélez-Málaga, Nerja, Frigiliana and Torrox to the east.

The Costa del Sol is where most foreigners who move to Malaga, find themselves. It offers an incredibly rich variety. The Costa del Sol has just about everything from luxury marinas and top quality villas to rural inland village houses and rustic fincas. There is also ample opportunity to rent and buy holiday properties in the region.

How to Recover Lost Deposits on Spanish Property Investments

How to Recover Lost Deposits on Spanish Property Investments

Roughly 20,000 Irish investors could be able to claim a refund from an unfinished property development following the Spanish Supreme court ruling that banks are liable to repay these missing deposits.

The court chose on December 21, 2015 to uphold an earlier finding that investors who put money in unfinished off-plan developments were entitled to have their money protected through a Spanish bank guarantee. As such it was decided by the judges that it was up to the developers and financial institutions to return the lost investments.

Investors are able to make use of this guarantee even if they didn’t ask for one or the developer didn’t provide one. If they had an agreement in writing that was never finished then they could also be entitled to interest on their reimbursement. Spanish financial institutions attempted to overturn the ruling but failed.

It’s estimated that thousands of people could demand these reimbursements on lost investments so you need to contact Costa Del Sol Property Group today. 

The Supreme Court ruled that banks had a duty of care when the investments were made and that they should have issued guarantees at the time.

The court said that when people put money into an account with a bank they expect the bank to protect the money. The money wasn’t supposed to be accessed unless the developer provided customers with a deed of sale to sign ownership of the property over. Instead banks failed to do both of those things and they failed to ensure people got these.

Buyers in Spain usually pay a deposit of up to 50% of the value of the property. For a buyer to take a case they have to have a legal document that proves the funds were transferred between themselves and the developer. Investments made in the past 15 years are covered by this court ruling and it’s expected that a case could take up to 18 months to end.

If you’re interested in taking on such a case then count on us to provide Spanish legal representation for you. Our Spanish lawyers will accept a splitting arrangement with you where you pay them a percentage of the money you recover rather than paying a fee no matter the outcome of the case on a NO WIN NO FEE basis.