The buying of a property on the Costa del Sol should be the
best investment you have ever made, particularly if your intention is to let
short term whilst you are not using it. But there are a few golden rules
which I suggest you follow to make the property selection and buying process
run smoothly.
GOLDEN RULES
1. Never go on a subsedised or free viewing
trip.
2. Never feel obligated to one agent - you are the customer.
3. Have a clear idea of the area, property type, resale or development
and budget.
4. Do your research and make appointments before you go.
5. Choose your own Lawyer - never use one recommended by the agent.
6. Never pay the asking price.
Never go on a subsidised (or free) viewing trip with an
estate agent. The viewing schedule which the agent has arranged for you will
fill all the days with no free time left - this is so that you cannot go to
other agents, they also want you to feel obligated to them. Travel
independently so that you can do what you want to do, when you want to do it
- you are the customer and should be in control. If at all possible, do all
your research on the internet before you go - if you do not have internet
access go to an internet cafe or buy property magazines - a good one is sold
in WH Smith's, Costa Del Sol Property World.
Have a clear idea of the area, property type, budget and
whether you want to buy a resale (immediate occupancy) or off plan. When
setting your budget remember that the costs associated with buying in Spain
is roughly 9%.
Estate agents are on a far greater percentage in Spain then
any other European country that I know of, 5% - 10% depending on the agent
and whether it is a resale or development. Developers pay agents at the
upper scale and also offer bonus's, so even if you do not want to buy off
plan and have made that clear to the agents some will still try and convince
that it is best for you. Some of the larger agents have employed ex time
share salespersons who have tough targets to meet with the worse performer
being sacked every month.
Many agents share properties with each other which enables
them to offer and advertise literally thousands of properties to prospective
buyers but with shared properties comes shared commissions so the first ones
they offer not surprisingly are their own. These are the ones that you can
also negotiate a better deal on.
From your research make contact with the agents of the
properties selected to ensure that they are still for sale - many agents
have 1st class web sites but do not delete properties that are sold or under
offer so that when you enquiry about a particular property they can say -
"oh, I sold that last week", giving you the impression that the market is
very buoyant at that moment and that if you want to buy, act quickly
Estate agents also offer Property Management and Rental
services but on the most part this is just so that they can offer you the
full package. i.e. They say " we will look after the property whilst you are
not here and we can also get you a very good return of your investment by
renting it for you", they then proceed to come up with an occupancy rate
that is somewhat ambitious. Always remember that an agents main income is
from sales and all other services are there to help them make sales.
Never use a Lawyer recommended by the agent - find your own
but make sure that they are fluent in your language as well as of course
Spanish. You want a Lawyer that is totally on your side and not one with
split loyalties, they will also be cheaper because the agent will also take
an introductory commission from their recommended one.
The costs associated with purchasing a property are as
follows:-
1. Lawyers Fees - Usually about 1% of the purchase
price plus 16% IVA tax (VAT)
2. Notary Fees - Fixed by law and usually between
300€ - 900€
3. Registry Fees - Approximately 40% of the registry
fees.
4. Transfer Tax - Standard - 7% of the purchase
price.
Developer - 7% of the
purchase price plus .5% IVA
Plot of land - 16% of
the purchase price plus .5% IVA
Commercial - 16% of the
purchase price plus .5% IVA
5. Plus Valia - Based on the official increase
in value since the property last changed hands. It can
be considerably and you should find out
the exact amount from
the Town Hall. Who pays this tax is usually part of the
negotiation process
We offer buyers assistance and advice
on all aspects of purchasing and can also recommend good impartial lawyers
and also friendly and not pushy estate agents.
CONTACT
email
tonyddanton@aol.com
or
info@costaholidayhomes.com
0044 07976 709799
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