August 31, 2009
Good Advice when Purchasing Property in Spain
Many Europeans now embrace the concept of buying a home in a different country. Because these properties offer a good level of capital growth, lower airfares and low European interest rates have made buying in countries like Spain more attractive. The country of Spain provides the advantage of brief air travel, plentiful sunshine and a thriving economy. purchasing in Spain may have gotten some bad press recently, but it can be safe if you follow some underlying rules. Here is your underlying buyers guide for purchasing real estate in Spain:
- Get your finances together before you do anything else.
Consider using a Spanish mortgage expert to guide you through the process. - Seek out legal advice before signing any documents.
- Take care not to reach beyond your financial limits.
- Be prepared for time deadlines to be extended.
- Wait until you have the funding in place before committing yourself to a private purchase contract.
- Be aware that the procedure for buying in Spain has its own idiosyncrasies and don’t assume that it will be the same as it is in other markets.
- Make sure you completely comprehend how taxes are incurred depending on the type of ownership status you select If you don?t seek expertadvice
Before making any purchases in Spain, it would be advisable to first approach your lawyer with a series of questions to be answered. There have been a lot of situations where buyers from abroad do not get the results they seek because they either asked the wrong questions or did not ask questions at all before hand. Before you sign a contract, you need to think about the next few questions, and others that you may have:
- Is the site where the property is located listed as urban or rustic? What might happen when purchasing rustic land?
- What costs will need to be taken into account, such as typical attorney’s fees and taxes?
- Are licenses already in place, for instance property contracts or first liens of residency?
- If the property is under a decade old, does it include a 10 year building warranty?
- Did you purchase this product directly or was it a cessation of contract?
- Will there be any under declaration in this purchase?
- Be sure to ask what extra costs you might be liable for, such as taxes on capital gains, inheritance taxes or income tax.
- Do you need to pay any extra deposits? At which stage of the transaction are they deemed nonrefundable?
- Are there any additional legal costs or fees to be paid?
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