In real terms, there are advantages and disadvantages to living either inland or on the coast and in the final analysis only you can decide what you want to do. It really is a case of swings and roundabouts or six of one and half a dozen of the other.
During the peak summer months, the coastal regions can be grid locked with hire cars driven by the millions of holidaymaker's who visit Spain each year. Restaurants are full, bars are full and prices soar. Inland this does not happen. In fact, inland prices are considerably lower than those found on the coast. A cup of coffee in Córdoba is cheaper than that in Torrevieja,day to day ongoing costs are very much cheaper and of course the low prices of properties inland is the main attraction. The sea has a lot to answer for!
Although many have spent most of their time in Spain on the coast and may have never envisaged a move inland, the thought is not at all off putting, infact we have found that in the year 2003 to 2004, rural tourism had risen from 18% to 28 %, and sales and enquiries for inland properties have increased since the autumn of 2002.
As with some parts of the coast, inland Spain can be quite beautiful and offer a quality to life that the coast, even with its sea breezes may find difficult to compete with. Large open spaces -ideal for dogs, walks in the mountains, horse related ventures, the vast variety of Iberian wildlife, and a significantly lower cost of living are all things to be considered.
Rural Estates s.l., can advise and help you throughout the process of acquiring an inland property in the Guadalquiver Valley, Cordoba and the Guadalhorce Valley, Malaga.
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| How do I buy a property in Spain ? |
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Buying a property in Spain is very similar to buying a property in your country.
With the help of a good agent, and once you have chosen the desired property, a contract can be drawn which obligates both parties to complete on the agreed deal. At this stage a deposit is paid, and the deal is later completed, when the balance has to be paid.
During this time, you, your agent or solicitor will ensure that the property is free of charges, and also that it is registered with the land registry. The whole process is simple and much quicker than you would expect in your own country.
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| Should I buy a new-build property, or something a little older? |
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This is really your decision. However, there are pros and cons to both, and it is our job to try to find the most suitable property for your personal lifestyle and/or investment requirements.
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| How much should I allow on top of the purchase price for costs/expenses? |
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As a rule of thumb, allow for between 10% and 12% of the purchase price as costs. These are as follows:
IVA (or transfer tax) 7%
Payable with each staged payment
Stamp Duty 1%
Payable on completion
Notary & Land Registry Fees, approx. 2 to 3%
Payable on completion
Legal Fees 1%
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| I keep hearing about Community Fees. What are they? |
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Community fees are payable to the Community of Owners, usually by direct debit on a quarterly basis.
They usually cover all costs relating to the external fabric and upkeep of communal areas, e.g. pools, gardens, paths, staircases, external painting, security etc. Exact budgets are discussed and agreed at AGMs, chaired by an elected president. Attendance is not compulsory, as votes can be registered by proxy.
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| How easy is it to obtain a mortgage on my Spanish property? |
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Firstly, banks in Spain will usually lend up to 70% of valuation to non-residents, and 80 % for residents.
The mortgage market is not as sophisticated as the UK (in terms of product choice) but the application process tends to be very simple. Paperwork required includes evidence of income and a letter from your bank.
Most mortgage products are repaid on an interest and capital basis, with a maximum length of 20 years.
Some lenders are introducing products such as interest-only mortgages, but these are not easily found.
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| Can non residents buy property in Spain...? |
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Non residents have been buying property in Spain for at least the last 20 years, Spain is part of the EEC and they actively encourage people to purchase property for holiday homes or to live there, as with the tourist industry it brings a large amount of money and work into the country.
Literally hundreds of non Spanish people buy property in Spain every week. The low cost of living and the pleasant climate being the main reason, the relatively low cost of property pricing being another.
Buying property in Spain is just as easy as in the UK once you adapt to the no rush way of doing things.
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| What if I decide to buy...? |
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If you decide on your visit to purchase a property, your agent or solicitor will explain the buying process and what the charges will be.
You will need to open a bank account. We recommend using a bank that has Internet or phone banking, as standing orders will need to be set up for water, electricity, rates and community charges, using the Internet makes it easy to keep track of your account from home.
You will have to sign a contract with the builder, vendor or estate agent of your new property. At the time of signing you will have to pay a non-refundable deposit and agree at what dates the builder, vendor or estate agent will require further funds from yourself.
On a new property this is a good time to make any changes you require such as different tiles, additional sockets, outside lights etc. The normal electricity supply is 3.8kw this needs to be upgraded to 5.5kw if you intend to install air conditioning when the property is built, or at a later date, again you should be able to organise this when you sign the contracts. You also need to keep your upgrade certificate, as the air conditioning installer requires this.
You will be expected to visit a Notary during the buying process, you will always be taken to the Notaries by your agent or solicitor.
The Notary function is to oversee all legal proceedings. You will always see a Notary when exchanging contracts for the purchase of your property, to register wills, or give power of attorney to your agent or solicitor to allow him to purchase a property on your behalf
It is worth remembering you will need a number of passport sized photographs for various documents.
Del Numero de Identificacion de Extranjeros, (NIE) numbers are required, these are a legal requirement, they are your non-resident numbers, again your agent or solicitor will organise these for you. Passport photographs are required.
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| How do I open a Bank account in Spain? |
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We can help here too.
We usually arrange this between yourself and your agent or local solicitor.
It is a very straightforward process.
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| Do I personally need to be present to sign the title deeds on completion? |
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The notarial system in Spain means that completion is never the exact science that exists in other countries.
We always advise clients to arrange for Power of Attorney so that your agent or solicitor can sign on your behalf. This saves the frustration of sitting around an office for hours on end, waiting for things to get moving!
Only once deeds are signed and the keys are effectively handed over to you can your agent or solicitor arrange for the utility contracts with water and electricity companies.
Therefore, physical possession of the property normally takes 1-2 weeks once deeds are signed.
Again, we always advise clients not to book their flights until they receive the OK from the agent or solicitor
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| Will my property be freehold? |
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Yes, all properties that we deal with are freehold properties.
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