Buying property in one of tourist resorts in Spain like Tenerife, Ibiza, Gran Canaria, Costa Brava or Costa del Sol is a sure way of accumulating wealth. The country is regarded by both local and foreign investors as a safe haven. This is due to its economic and political stability. The good thing is that the selling price will always be higher than buying price. This means that you can buy a property in and wait for its market value to appreciate then sell it.
As a matter of fact, owning a property gives you some form of security because you can always use it to secure loans. However, the process of owning a property is not easy. This is because there is a lot of paperwork and considerations involved. A first time investor in Spain may not know where to start. Here are some tips that can give you an edge when looking to invest in a property.
Determine Why You Want to Invest
Before you pump your hard earned money into a property, you should ask yourself how you intend to use it. People buy properties for different reasons. There are those who want to buy and wait (speculation) while others buy to put up development projects. If you want to speculate, it’s recommended that you settle for a property that’s not yet prime. You are likely to find such a property in a remote area that doesn’t have reliable road network, schools and hospitals and may not be connected to the national grid.
You can buy such an asset in anticipation that the value of that area will go up in future when these social amenities become available. On the other hand, a prime property is highly recommended if want to put up rental apartments or any other big project. This is because there will be ready customers for your houses and other products.
Hire a Property Agent
Whether you are a citizen or a foreigner, hiring a property agent will make the entire process less time demanding. If you choose to go on your quest alone, you might experience hurdles probably because you don’t know your way around the market. In fact, there are property sellers that might try to take advantage of you.
The advantage of hiring a reputable property agent is that they are very familiar with the area than you. They are actually the first to know when a property is up for sale. The other advantage is that they are well connected which makes it easier for them to hook you up with a real estate attorney. You should always hire a reliable real estate agent like Calida Homes and avoid agents without a quality website and high quality office.
Don’t Buy in a Rush
You should never be in a hurry to buy any property. If the seller is rushing you into closing the deal, you need to stop and ask yourself why he wants to dispose the asset at the speed of lightening. May be the property is not genuine and he is afraid that you might find out as time goes by. You should do your homework on the ownership of the property to make sure you are not being scammed. The good thing is that an attorney can easily unmask such issues. All in all, you should never be quick in closing such deals even when there are many investors that are interested in the same property.
The fact that there are many property deals in the market means that you stand a chance of getting an asset at a discounted rate. But you may never get such a discount if you don’t compare the prices of different properties. You should start by inquiring about the worth of properties that have been sold recently in any area. This will help you in budgeting for the purchase.
Change Your Money to Local Currency
As a foreigner in Spain, you are supposed to convert your money into local currency. In fact, it’s not possible to transact before you change your cash into local currency. Your property agent can help you get the best rate in the money market. Although banks are safer than Forex bureaus, they will exploit you as much as they can. In such a case, you will pay more money simply because the conversion rate was manipulated by the bank.