Good to Know
Buying property in Spain – Is it a wise choice?
Rising inflation, soaring interest rates, currency fluctuations, and geopolitical tensions in neighboring regions are all factors that may influence the decision on where to securely invest our savings. Real estate investment, coupled with capital diversification, stands as one of the most favored strategies for allocating financial resources. While properties are available in various countries like Croatia, Italy, or even Dubai, Spain emerges as a prime option considering its political stability, cultural appeal, and promising returns on investment.
Whether it’s a house or an apartment nestled along the sun-kissed coastline, such investments not only serve as stable assets but also offer opportunities for a fresh start. Whether it’s enjoying winter retreats, capitalizing on high-season rentals, or establishing a second home or primary residence, Spain offers diverse options to suit different lifestyles. The costs associated with property purchases in Spain, similar to other European cities, depend on various factors such as location, size, and amenities.
An apartment near a pristine beachfront, surrounded by vibrant tourist attractions, might seem pricey at first glance. However, such investments promise lucrative returns, making them attractive options for those seeking profitable passive income streams. Conversely, for a similar investment, one might consider a spacious villa slightly removed from the coastline but still within easy reach of amenities. These properties often boast larger living spaces, private pools, lush gardens, and panoramic vistas, offering year-round comfort and luxury living.
Comparing property prices in cities like London, Paris, or Berlin with those in Spain reveals that the Spanish market remains competitive. The prospect of exchanging an apartment in a metropolitan hub for a Mediterranean retreat presents an enticing proposition. With modern tools facilitating remote work and the growing trend of flexible lifestyles, an increasing number of Europeans are choosing Spain as their new home away from home. Moreover, the warmth and hospitality of the Spanish people create an inviting atmosphere, appealing to those seeking a welcoming community and vibrant cultural experience.
Primary Market:
Modern Equipment and Design:
Properties in the primary market are often designed according to the latest trends and standards. They are fully finished, including floors, walls, tiles, bathrooms, kitchens, all pre-installations for appliances, as well as built-in wardrobes in bedrooms and other elements. The only things that may be missing are appliances, air conditioning, and freestanding furniture (such as chairs, table, beds, etc.), which can be purchased separately or taken advantage of through the developer’s offer of a furniture package. It is worth noting that each promotion on the market is different, and in some offers, furniture, appliances, or air conditioning may already be available. These differences result from individual developer strategies and cater to various customer needs. They feature modern equipment, energy-efficient solutions, advanced security systems, and other modern features that can enhance the comfort of living.
Customization:
When purchasing a property in the primary market, there is often the possibility of customization. Buyers can influence the choice of finishes, colors, room layouts, and the selection of the best orientation and arrangement.
Guarantees and Benefits:
Developers offer warranties on newly constructed properties, such as construction warranty, equipment warranty, and installation warranty. This gives buyers the assurance that, in case of problems with the building or its elements, the developer will be responsible for repairs or replacements. The warranty conditions are 10 years for structural defects, 3 years for defects related to use, functionality, and safety, and 1 year for finishing defects.
Bank Guarantees in Spain:
Mandatory bank guarantees protect clients purchasing properties in the primary market by ensuring that, in case of bankruptcy or insolvency of the developer before completion of construction, the bank undertakes to return the deposited funds to the clients.
Convenient Payment Plan:
Typically, 70% of the total purchase price is paid on the day of signing before a Notary, after receiving your property. The construction period (usually 12-24 months) gives us time for further savings or to prepare for a mortgage. By usually paying a 30% deposit to the developer, we buy a property, known as “off-plan,” at the current market price, taking into account the possible phases of delivery of the different parts of the project. If we buy at an earlier stage, the price will be lower for the same property, which in later stages will be higher, considering the appropriate market prices and the time until the total completion of the project and the start-up of all common parts. Anyway, approximately 70% of the value of the purchased property, you only pay upon receipt, when your property is already worth between 20% and 30% more, the difference is due to the overall increase in property values
Professional Advice:
Going to the developer without an agent, purchase prices do not change, the only thing that could change is a mistaken purchase. By using our services, you do not pay any additional fees, no commissions from your side, and our advice will be invaluable in terms of choosing the most beneficial option. Developers also differ in terms of their quality, final product, we are here so that you can avoid unpleasant surprises and disappointments. As independent intermediaries and advisors, we have unlimited access to properties from the primary market. Our constant presence on the Spanish Coast allows us to monitor new investments, works, and construction progress to better advise our clients.
Secondary Market:
Fast Transaction Time:
Transactions in the secondary market are usually completed within two months, and when using a mortgage, around three months. Reserving a potential property typically requires a deposit ranging from €3000 to 10% of the purchase value.
Wide Choice of Locations:
If you are still unsure about the location of your future property, we will be happy to suggest places and districts that fit your preferences. We also know areas of future investments where the increase in property prices will be evident.
Potential Savings:
In the secondary market, there is the possibility of negotiating the price with the current owner. Presenting an official offer often benefits the buyer and speeds up the sale for the seller.
Possibility of Buying Furnished and Equipped Property:
Most properties in the secondary market are sold with furniture and appliances. Even if the furniture and appliances do not suit your tastes, it is not necessary to make additional purchases to start enjoying the property immediately.
Renovation Opportunities:
Purchasing a property in the secondary market provides the opportunity to carry out renovations or improvements according to your own tastes and needs. It is important to note that some renovations may require approval from the community of owners or the city council, and not all renovation costs are tax-deductible in case of eventual resale with profits. We recommend informing us about planned property renovations.
Renovation Services:
We provide renovation services ranging from minor improvements, such as wall painting, to complete renovations and transformations. We also prepare properties for tourist rental and install solar panels. Contact us to schedule a renovation assessment for your property.
If you want to buy your property through our agency and have found an offer on portals such as Idealista or Fotocasa, send it to us for verification at the email address office@costaiberica.com or contact us at +34644708520.