Buying a house on the Costa Blanca is not something that investors should necessarily be wary of. However, as with every investment you make, there are certain risks that you should learn to safeguard yourself against. It is important to educate yourself about the industry, and while there are certain pitfalls associated with buying a property on the Costa Blanca, in Spain, these are also easily avoided. In the current Spanish property market, an educated buyer places himself in a very good purchasing position. Read on below for some handy tips for when you decide to buy a house in Spain and how you can avoid the pitfalls.
1. Plan for all the Fees.
On top of the purchase price, there are numerous other fees and taxes, such as legal fees, land registry fees, notary fees, and property taxes. Set aside about 15% on top of the purchase price for your total financial allocation. Having to raise additional unplanned funds in the future could cause frustration, especially after you’ve gone through the process of negotiating for the property at the price you want.
2. Do not buy in a rush.
Ignore agents or sellers that try to rush you to make a decision. Before you make this significant financial commitment take time to get to know the property, and picture how the lifestyle will work for you. Don’t feel pressured, there is always enough time to negotiate better terms.
3. Understand every word in the contract.
Just because you have found your ideal property doesn’t mean you should agree to sign a contract that you don’t fully understand. That is probably one of the most dangerous things to do as an investor or buyer, and yet it is very common in Spain. If you do not fully understand the contract, make sure to bring in counsel who will represent your case. Make sure your chosen lawyer translates and helps you to understand the entire contract before you sign. This will not only keep you safe from fraudulent transactions but also ensure that your rights as a buyer are protected.
4. Familiarize yourself with the location of the property.
Nothing can make you regret buying a new house more than later realizing the location does not work for you or your family. Before falling in love with a potential home you need to check all aspects of the surrounding properties. Using online real estate SEO strategies can help you discover detailed online property listings and uncover essential information about the neighborhood and market trends, giving you an advantage in making a well-informed decision. What developments are planned next door or in the near vicinity? How will new construction affect your quality of life? How close are you to commercial centres, schools, facilities, etc. It’s a good idea to chat with residents in the area and hear their opinions about the pros and cons of living in the area.
5. Familiarize yourself with the area.
You may fall in love with a property that lies a few kilometers inland, like for example in Alfaz del Pi or La Nucia, which are situated on the Northern Costa Blanca. However, it’s very important to understand the pros and cons of buying a property inland versus buying a property in Albir, on the coast. Coastal properties tend to accrue in value quicker than inland properties, they are also more resilient when markets experience downturns and, on average, they resell a lot quicker than inland properties. On the other hand, you may have identified an inland area that has been earmarked for new commercial or luxury residential developments, which could have a potential knock-on effect for surrounding property values. Or perhaps there are new roads being planned that will allow much better inland access. Working with a professional agency in the area that has a good understanding about the projects which have received planning permission and also the future planned projects will allow you the advantage of making an informed decision regarding your property investment in Spain.
Make certain to research and get to know the area before you settle on one particular property. Utilizing a top real estate agent on the Costa Blanca can help you find a broader range of property listings online and give you access to valuable market insights, allowing you to make a more informed decision. It may be the difference between a dream home and just an Okay home.
