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Not for nothing
do the Spanish claim to have “Everything Under The Sun!” When buying a
home in Spain you aren’t simply buying a home but a lifestyle, and as a
location for a holiday, retirement or permanent home, Spain has few equals,
particularly if you’re seeking year-round sunshine.
The Costa Blanca and Costa del Sol have the highest percentage of retired persons in the world, when both Spaniards and foreigners are included. If you’re seeking a second home, will it be mainly used for long weekends or for lengthier stays? Do you plan to rent all or a portion of it to offset mortgage and operations costs? If so, how important is the property income? Are you primarily looking for a sound investment? Do you plan to work or start a business in Spain? These are questions that need answers no matter where you purchase, but especially in Spain because of the variety of choices Spain has to offer. Often buyers have a variety of reasons for buying a home in Spain. For example, many people buy a holiday home with an idea of living there permanently or semi-permanently after they retire. If this is the case, there are many more factors to take into account than if you were simply buying a holiday home that you will occupy for just a few weeks a year. If, on the other hand, you plan to work or start a business in Spain, you will be faced with a whole different set of criteria. You may be thinking of buying a home in Spain and commuting to another European country to work. Many people are doing just that because Spain has a lot to offer.
There’s A Stable Property Market In Most Of Spain Property values
in Spain generally increase at an average of less than 5 per cent a year
or in line with inflation (with no increase in real terms), although in
some fashionable resorts and developments prices rise faster than average,
which is usually reflected in much higher purchase prices. For example,
prices increased by up to 25 per cent in some parts of the Costa del Sol
in the last few years. There’s a stable property market in most of Spain,
barring recessions, and this may act as a discouragement to speculators
wishing to make a fast buck. This may be particularly important when you
consider that capital gains tax can wipe out much of the profit made on
the sale of a home, especially a second home. You also need to recover
the costs associated with buying a home in Spain when you sell. You shouldn’t
expect to make a quick profit when buying property in Spain, but should
look upon it as an investment in your family’s future happiness, rather
than merely in financial terms.
There’s good value for your money, and Spain is easy and inexpensive to get to, at least for most western Europeans. There are great rental possibilities and good local tradesmen and services. There are fine foods and wines at reasonable prices and a relatively low cost of living. There’s the slow, relaxed pace of life; the friendliness and warmth of the Spanish people; the dramatic, rugged beauty of Spain on your doorstep; and, last but not least, a superb quality of life. A Few Disadvantages Naturally, there are also a few disadvantages, not the least of which are the relatively high purchase costs associated with buying property. There could also be unexpected renovation and restoration costs if you don’t do your homework. Check with local officials to see if there’s a high rate of burglary and housebreaking that are present in some areas. Be prepared for overcrowding in popular tourist areas during the peak summer season and traffic congestion and pollution in many towns and cities. Beware also of a number of admittedly small taxes for non-resident homeowners. The phrase, “In Spain, the rain falls mainly on the plane,” can be all too true when occasional draughts cause severe water shortages in some regions, particularly during the summer. Finally, don’t overlook the expense of getting to and from Spain if you own a holiday home, and you don’t live in a nearby country or a country with good air connections. Get Familiar with the Area Unless you know exactly what you’re looking for and where, it’s advisable to rent a property for a period until you’re more familiar with an area. As when making all major financial decisions, it’s never advisable to be too hasty. Many people make expensive (even catastrophic) errors when buying homes in Spain, usually because they do insufficient research and are in too much of a hurry, often setting themselves ridiculous deadlines such as buying a home during a long weekend break or a week’s holiday. Not surprisingly, most people wouldn’t dream of acting so rashly when buying a property in their home country! It isn’t uncommon for buyers to regret their decision after some time and wish they had purchased a different property in a different region. Do your Research Before deciding
to buy a home in Spain, it’s advisable to do extensive research on buying.
Two good resources are, Buying a Home in Spain and Living and Working in
Spain, both written by the author of this article and published by Survival
Books. It also helps to study specialist property magazines and to visit
overseas property exhibitions. Bear in mind that the cost of investing
in a few books or magazines is tiny compared to the expense of making a
big mistake.
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