Should I buy or should I rent a flat in Spain?
This is a question that our clients and registered visitors have asked us over the last few months: should I buy or rent a flat in Spain?
Spain is a great place to live and be visited. The alluring country attracts millions of holiday-makers and new residents from overseas, every year. Whoever decides to make the move to Spain, either permanently or for long periods, has to consider whether to buy or rent a property there.
Ideally, you can buy and keep your property for yourself, but for many holiday makers and expats wanting to live permanently in Spain, it can seem difficult to afford. You will have always Spanish property owners willing to vender casa en el extranjero as it is said in Spanish
Low prices appear very attractive in Spain, especially on the coast, and sub-prime properties, as investments in the cities. However, it is not all about the buying price, but also depends on whether you can get a mortgage, and what kind, and there are additional costs in the buying process (which usually comes to 10% in Spain).
There are also insurance costs and yearly expenses that include “service charges” and Council Tax (“I.B.I.”). For most of us, to buy in Spain is a question of affordability, and having the right strategy, in order to make it affordable.
Property prices keep dropping
Generally, the prices in both markets (rental and selling) are incompatible: if one of them goes up, the other falls. But at the moment, selling prices are dropping and rental prices also seem to be going down as well. This means, whether you are buying or renting, now is a good time to do move to Spain, if you are serious about Spain.
Do not be an emotional buyer !!!
If you are planning to buy, nothing should stop you finding the place that suits your needs? But do not rush because the HOUSE OF YOUR DREAMS does not exist, or should not exist. There are enough options without becoming besotted with one house. THIS IS THE PROBLEM THAT MANY BRITONS have had in past years. When you become too emotional about a property, there is a high risk in avoiding to look at the details, and then getting stung, especially in Spain during a bubble market where suddenly everybody has become a developer or estate agent. GET A LAWYER – it is a must. If at this stage, a home buyer does not get a reliable lawyer, it means that he has not learnt anything.
So have a look around, make a selection and enjoy the process of choosing your property. Be ready for bargaining and set a very low buying price. I would say 40% below the asking price as a starting point for second residences on the coasts, which also happens to be the profile for retirement homes....
Read the full article about Spanish Property