Spain 2011, To Buy or Not to Buy? That Is the Question!

I am going to leave Statistics to the Statisticians and concentrate on what the statistics don´t tell you about the Spanish Property Market for 2011.

To be reading this you must have at least a passing interest in Spain and Spanish property. Why wouldn't you, it is a beautiful country steeped in history, art and culture. The food is great and the people are warm and hospitable. You can find it all. The country has everything from large cosmopolitan cities to sandy beaches and high mountain ski resorts. Yes, I am a Fan! I am going to look at whether to buy a property in Spain from the perspective of a British property buyer, basically because I am one myself.

Buying with a Mortgage

Well I think that this covers a large number of us when we look to buy a property.

In Spain right now you can obtain up to a 100% mortgage for the purchase of new build Spanish Property direct from major Spanish Banks and lending institutions. You won´t find that in the U.K., if you can let me know where! This might at first glance seem like Lunacy, on behalf of the Spanish Banks and on the part of you the potential buyer!! Surely careless lending and high loan to value mortgages were part of the cause and effect that led to the worldwide property and financial crisis!?

Yes all that is true but, and it is a big but, What needs to be observed is that:

* The Spanish Property Market has undergone a significant downward adjustment in prices and is in my opinion Property Prices are bottoming out, certainly for the better properties.

* Availability of Mortgage Finance up to 100% as the Spanish Banks look to sell their New Build Property Stocks. So what appears to be Lunacy and a lack of short term memory is in fact a pragmatic approach to the Spanish Banks problem of having to take possession from Spanish Property Developers of large numbers of developments and in turn sell them. So with UK mortgages requiring ever bigger deposits someone looking for a property investment you can enjoy for years to come Spain is a compelling proposition.

* The maxim of Location, Location, Location is to be paired with Timing, Timing, Timing! The best properties will sell first so waiting to the last minute will leave you with what is NOT WANTED

You need to consider that even if in the short term prices fell a few percentage points the opportunity that exists for you to secure that Spanish Home is at hand because as any British property buyer will tell you 100% mortgages do not exist and certainly not on new build properties. Combine this with record low interest rates and low prices a smart new Spanish home has become a realistic affordable option for you!

Buying with Cash

Cash as ever is King so no need to drum on about that, what is good to know is that if you are buying with cash you have a window of opportunity to extract a further price reduction, perhaps not the headline grabbing kind of 2010 but Banks are willing to enter sensible negotiations for serious cash buyers.

If "That" is the question What is the Answer

Spain is a definite buy for me with all it offers combined with up to 100% mortgage finance available and properties from city apartments, beach, mountain and country homes. I have been looking at coastal properties with pools and near beaches for as little as €65,000 I don´t think opportunities like these will be around forever and judging by the rate Spanish buyers are purchasing I sense the best buys will continue to sell well in 2011.

British buyers who like property as a medium to long term investment and are fed up with the British Banks and Mortgage Companies inflexibility regarding lending should take a serious look at Spain where there are many second home opportunities and rental investments. I also feel that savvy first time buyers who are saving for deposits could look to make an investment in Span taking advantage of the ability to borrow and use a Spanish property to form part of their plan to build a deposit over a 3 to 5 year period and have all the enjoyment of owning a home in Spain with easy access via low cost airlines. Renting the property out during the periods it is not in use should in my opinion contribute to the cost of the mortgage.

In conclusion 2011 is a year of opportunity for Spanish Property Buyers, I certainly will be looking to take advantage of these favourable conditions for buyers.

Written by Robert Evans, Manager Basico Homes UK a Division of Basico Homes Gestion SL Spain

http://www.basicohomes.co.uk/
robert.evans@basicohomes.com

http://blog.basicohomes.com/
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Buying Property in Spain - Understanding the Legal Documents

Congratulations on your decision to buy property in Spain and we hope you love and enjoy every moment of your purchase and stay in the Spanish coast, however, we are here to help you with some information, which is legal.

Just because you now have the services of a reputed lawyer doesn't mean the task is done, it is important that you understand the laws and the legal documents to the core, since we are talking huge financial transactions here and you wouldn't want to juggle around with such a large investment.

Please read on and keep the following terms and clauses in mind when understanding the legal documents in Spain.

The plan parcial is what the Spaniards call as the piece of land and the location where you plan to buy your property. This needs to be registered by the TOWN HALL and this means that you would know if any future urbanization projects would or wouldn't affect your property at large.

Next you would hear of the Registro del La Propiedad, especially if you are buying real estate near Costa del Sol or anywhere else in Spain. This has to be registered with the registry that registers properties and is the last paper which needs this act. It would include property details, the title owners information, the notary responsible for the escritoire and mortgage details.

Even though the property you intend on buying may have been built to perfection, one needs to check small alterations if any, permissions by the authorities need to be taken for any small or big alteration and this would reflect in the solicitud de licencia de obras which comes at a small fee.

Check for reservation contracts as well, which would have the purchaser private information, the agents private information, property type and the plot of the property, the price of the property in question(Euros only), payment method and the formula that derives it and finally, the signature and date of the buyer and seller.

The nota simple would be another legal term which means simple note. The land registry office gives it out for a small fee and would entail the registration details of the property for you to check and keep an eye on.

The all important contract would be the most needed document when you buy a house in Spain. It entails the house plan, the simple note, the contract, the signatures and the mortgage and financial dealings details.

There would also be a term called community charges on the legal papers, which entails, common facility maintenances and usage charges by all who reside where you have bought the property.

The Certificado Final de La Direccion de Obra or the Certificate of the Termination of the Building is when the document comes from the architect who completes building the house. This would be important for The Licencia de Primera Ocupacion which is responsible for occupation and the tax payments of the house in future.

Finally we hear of insurance for the house which needs no explanation and we all know why it is so important and the ESCRITURA which is the house deed, that has the name of the owner on it.

Angela Rafferty is an employee of Owners Direct Spain - an online resource for buying and selling property in Spain.

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