Practical recommendations for homebuyers in Spain
More and more foreign investors and end-users are becoming interested in houses for sale in Barcelona and other Spanish cities. Living in this magnificent Mediterranean country is a dream come true for many people. Let’s look some practical recommendations for homebuyers in Spain.
What to do before acquiring real estate in Spain?
Acquiring a home in Spain is an easy process. However, there are a few things a potential purchaser can do to simplify and shorten it even more:
Decide on the purpose of the purchase
“Why do I need a house in Spain?” This question defines the essence of consumer motivation, which should correspond to the purpose of using a housing facility. Perhaps the goal is to make capital gains, acquire a place to stay with family, or generate a consistent rental income.
Real estate is an investment type that requires a properly thought-out plan and a relatively large budget. Buyers invest financial savings accumulated over the years, time, and dreams into the selected unit. Thus, it is important to precisely define the purpose of the investment to achieve maximum efficiency and satisfaction from a closed transaction.
Figure out your own needs and desires
Then, the buyer must understand what exactly he wants to get from the property. This will help him decide on the features of his future home.
Many experts advise preparing a wish list. Thanks to this list, they will not waste their time and other resources on unsuitable options. The wish list should include the number of rooms, available amenities (a swimming pool, a playground, a garage, etc.), location, and other factors of paramount importance to the buyer.
You can also add columns with a few more factors to the list. This will help the buyer figure out what he wants in the future. For example, he may ask himself questions like:
1. “Is there enough space in the garden for an additional swimming pool or outdoor sports ground?”.
2. “Is it possible to install a greenhouse in the garden?”.
3. “Will it be possible to build an additional garage in the future?”.
4. “Can this property be turned into an office for my business?”
The wish list will allow us to visualize the changes that new homeowners may want to make to their chosen properties in the long term.
Set a budget
A property buyer needs to be informed about the limits of their budget. He should draw a line that defines the maximum value of a residential unit that he can afford. In deciding on that matter, it is better not to forget the additional costs associated with the purchase, for example, taxes and the services of lawyers. As a result, it will be easier for the buyer to handle any difficulties and unexpected situations on his way.
Determine funding sources
The lack of a full amount to cover the cost of a dream home is not a problem. Some construction companies provide buyers with the opportunity to pay for a residential unit in installments and offer several options for flexible payment schedules.
It is also possible to apply for a mortgage loan. Spanish banks issue loans up to 70% of the actual real estate value.
What is the purchase process?
The process of buying Spanish property usually consists of nine steps:
1. Obtaining an NIE. The NIE is a unique taxpayer identifier number for non-Spanish citizens. You should apply for an NIE before you start house hunting. You can obtain the identifier number in person or through a third party (on the country’s territory or at the Spanish Consulate General in the home country).
2. Hiring a Spanish-speaking lawyer who speaks the buyer’s native language. The next step is to find a reliable, independent attorney specializing in Spanish land and property laws. If the buyer does not speak fluent Spanish, he needs to hire a specialist who knows his native language.
3. Opening a bank account. Buyers with taxpayer identifier numbers who have provided the required list of documents to the bank will be able to open an account quickly.
4. Receiving a mortgage loan. If the buyer plans to conclude a real estate transaction with a mortgage, he can get a loan right after opening an account.
5. Signing the “Contrato de Reserva” contract. This contract expresses the buyer’s intention to buy real estate. This is a reservation agreement. As a rule, he needs to pay a commission of €3,000 to €6,000. Funds are kept in escrow for 14-21 days. During this period, the buyer can check the condition of the selected unit.
6. Checking the condition of the selected unit. Next, you need to check the unit according to the following parameters: the presence of a valid permit for the construction of the facility, the absence of unpaid debts, matching the description provided by the seller, and structural integrity.
7. Receiving the mortgage commitment. If the chosen home meets all the necessary criteria, the buyer should receive confirmation from the bank that a mortgage loan has been issued.
8. Signing the “Contrato de Arras” contract. This is a deposit agreement. After signing it, the buyer will have ten days to pay a 10% deposit of the property value.
9. Signing a purchase and sale agreement. At the final stage, all parties involved in the transaction should be present at the notary’s office to sign the contract. These are the buyer or his legal representative, the lawyer, the mortgage provider, and the seller or legal representative. Before signing, the buyer should ensure that he fully understands all expenses connected to the acquisition of real estate and that he has enough funds to cover payments, fees, and taxes.
Assistance with purchasing property in Spain
To simplify the transaction as much as possible, the buyer can contact highly qualified Spain-Real.Estate specialists to get help selecting the best option and receive support at all stages of the transaction. Visit the official website of the aggregator and check out the best offers in the Spanish real estate market right now.
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