Essential Guide to Buying Costa Blanca Property
Dreaming of owning your own holiday home in the sun? This guide will teach you everything you need to know to make the correct choices and the right moves throughout the entire process of buying a Costa Blanca property.
1. Set Your Budget – One of the most important, if not the most important decisions you will have to make when buying a Costa Blanca property is your budget. Set yourself an affordable budget and be sure to include an allowance of at least 10% on top to cover taxes and expenses. Once set stick to your budget.
2. Choosing a Location - Picking the ideal area for your Costa Blanca property is another important decision you will have to make. In the Costa Blanca as with anywhere, there are good and bad areas, take your time and have a good look at the various locations available, when it comes to re-selling later it will help if you have chosen well.
3. New or resale? - Many Costa Blanca estate agents will try to point you in the direction of new property, mostly because this is the area where they get the least hassle and the most commission. That’s fine, if you want to purchase a new property, then go ahead, there are many advantages to taking this path but also be aware that there is a huge choice of resale property available on the Costa Blanca and there are plenty of bargains to be found. Most resale properties are sold fully-furnished and equipped – this can save you a lot of hassle and a lot of money. Most new property is sold off-plan, so you may have to wait 18 months to 2 years before you get your keys. Knowing what is going to be built around you is also important – it can be hard to visualize when you are staring at an empty field! Also that large apartment block may be blocking the sea view of your new villa, be careful!
4. Property Type – Are you looking for a beautiful detached villa on a nice big plot of land, a 3 bedroom townhouse in the suburbs of a seaside resort, or a 1 bedroom apartment in a busy town centre? Costa Blanca property comes in many guises and this is a decision you will have to make before you start. Take into account your budget and have a fairly good idea of the property type before you begin your search.
5. Choosing Your Property – You now have some rules set down for you – budget, location and property type, this is a great time to actually go out and look at some property. There is a huge variety of Costa Blanca property out there so take your time and organise a manageable schedule. Try to not look at too many properties in one day and be sure to keep detailed notes on all the properties that meet your criteria. Take lots of photographs and if possible a video as well, it is fun and rewarding to look back at the end of the day at what you have seen and then make a short list of properties that you are interested in. After you have spent a few days (or even weeks!) looking, you should have a decent short list of possibilities – go back and see them all again, if none of them are exactly what you are looking for, start again.
6. Paying a Deposit – When you have made your decision and chosen your dream Costa Blanca property the next step will be to pay a deposit. The standard deposit in Spain is 3,000 euros, after payment of which, the property will be taken off the market. The next step will depend on whether you are buying a new property or a resale property. If it is new then in around 30 days you will be required to pay perhaps 30% of the final price, followed possibly by stage payments during building, but more likely payment of the balance on completion. If you are buying resale property then it should be just the deposit, with the final balance due on completion (signing at the Notary).
7. Choosing a Solicitor – If you are buying your Costa Blanca property through an agents office, they will probably have their own retained solicitor who you can use for the purchase if you wish, if not you will need to find your own. Make sure you find a solicitor who speaks good English and understands the language well. Your solicitor will be your friend and ally during the entire process of buying and will deal with the sellers solicitor to make sure there are no outstanding debts on the property. If you need to know anything at all, ask, he is there to help you. Your solicitor will be there with you at the signing to ensure everything goes smoothly and he will also help you afterwards with such tasks as changing names on bills and contracts (ie electricity and water). You can normally retain your solicitor afterwards to file your tax returns in Spain.
8. Taxes and Costs – These amount in total to about 10%-12% of the purchase price of your chosen Costa Blanca property, be sure to allow for this in your budget. These costs include IVA (property Transfer Tax) which comes to 6% on new property puchase and 7% if you are buying a resale property, Plusvalia Tax, which is normally paid by the buyer and represents the appreciative value of the land that the property stands on, solicitors fees, Notary fees and mortgage fees (if you need a mortgage to buy the property). After signing and taking possession of your property you will become liable to pay Wealth Tax (non-residents), SUMA (local council tax for collecting rubbish, cleaning roads etc), community charges and solicitors fees for dealing with your tax affairs in Spain.
9. Signing the Deeds – Known as the Escritura in Spain, the property deeds are signed for at the Public Notary (the Notary is an official representative of the Spanish government). Yourself and anyone else who is to be named on the Escritura will be present at the Notary office, together with your solicitor. You will need your original passport and an N.I.E number (foreigners identification number), speak to your solicitor beforehand about obtaining one of these, you will need to go to a national police station. If you are unable to attend the signing for any reason you can give power of attorney to your solicitor and he will sign on your behalf.
10. Taking Possession of the Property – Once you have signed for the property you will receive a set of keys, if you have purchased a new property you will want to go over it thoroughly to check for any problems. Write out a snagging list of defects and hand this to your agent and builder, pester them until everything is to your satisfaction. A good security measure is to change the locks on the front and the back door – you don’t know who has previously had keys. If the property doesn’t have alarms and security grills, get these fitted as soon as you can. Change electricity and water bills over into your name and get some decent house insurance. If the property is in an urbanization you may find it useful to make yourself known to the president of the community.
11. Congratulations - You are now the proud owner of a property in Spain, may the sun shine on you and the value of your property rise, that tiny one bedroom apartment may one day turn into a seafront villa! – Relax and enjoy.
Newspaper contributor Steve Locke resides in Cabo Roig on the sunny Costa Blanca, Spain. His website is a wonderful resource for information on the Costa Blanca and surrounding areas. For details of property sales and holidays in the area look here:- Costa Blanca Property
1. Set Your Budget – One of the most important, if not the most important decisions you will have to make when buying a Costa Blanca property is your budget. Set yourself an affordable budget and be sure to include an allowance of at least 10% on top to cover taxes and expenses. Once set stick to your budget.
2. Choosing a Location - Picking the ideal area for your Costa Blanca property is another important decision you will have to make. In the Costa Blanca as with anywhere, there are good and bad areas, take your time and have a good look at the various locations available, when it comes to re-selling later it will help if you have chosen well.
3. New or resale? - Many Costa Blanca estate agents will try to point you in the direction of new property, mostly because this is the area where they get the least hassle and the most commission. That’s fine, if you want to purchase a new property, then go ahead, there are many advantages to taking this path but also be aware that there is a huge choice of resale property available on the Costa Blanca and there are plenty of bargains to be found. Most resale properties are sold fully-furnished and equipped – this can save you a lot of hassle and a lot of money. Most new property is sold off-plan, so you may have to wait 18 months to 2 years before you get your keys. Knowing what is going to be built around you is also important – it can be hard to visualize when you are staring at an empty field! Also that large apartment block may be blocking the sea view of your new villa, be careful!
4. Property Type – Are you looking for a beautiful detached villa on a nice big plot of land, a 3 bedroom townhouse in the suburbs of a seaside resort, or a 1 bedroom apartment in a busy town centre? Costa Blanca property comes in many guises and this is a decision you will have to make before you start. Take into account your budget and have a fairly good idea of the property type before you begin your search.
5. Choosing Your Property – You now have some rules set down for you – budget, location and property type, this is a great time to actually go out and look at some property. There is a huge variety of Costa Blanca property out there so take your time and organise a manageable schedule. Try to not look at too many properties in one day and be sure to keep detailed notes on all the properties that meet your criteria. Take lots of photographs and if possible a video as well, it is fun and rewarding to look back at the end of the day at what you have seen and then make a short list of properties that you are interested in. After you have spent a few days (or even weeks!) looking, you should have a decent short list of possibilities – go back and see them all again, if none of them are exactly what you are looking for, start again.
6. Paying a Deposit – When you have made your decision and chosen your dream Costa Blanca property the next step will be to pay a deposit. The standard deposit in Spain is 3,000 euros, after payment of which, the property will be taken off the market. The next step will depend on whether you are buying a new property or a resale property. If it is new then in around 30 days you will be required to pay perhaps 30% of the final price, followed possibly by stage payments during building, but more likely payment of the balance on completion. If you are buying resale property then it should be just the deposit, with the final balance due on completion (signing at the Notary).
7. Choosing a Solicitor – If you are buying your Costa Blanca property through an agents office, they will probably have their own retained solicitor who you can use for the purchase if you wish, if not you will need to find your own. Make sure you find a solicitor who speaks good English and understands the language well. Your solicitor will be your friend and ally during the entire process of buying and will deal with the sellers solicitor to make sure there are no outstanding debts on the property. If you need to know anything at all, ask, he is there to help you. Your solicitor will be there with you at the signing to ensure everything goes smoothly and he will also help you afterwards with such tasks as changing names on bills and contracts (ie electricity and water). You can normally retain your solicitor afterwards to file your tax returns in Spain.
8. Taxes and Costs – These amount in total to about 10%-12% of the purchase price of your chosen Costa Blanca property, be sure to allow for this in your budget. These costs include IVA (property Transfer Tax) which comes to 6% on new property puchase and 7% if you are buying a resale property, Plusvalia Tax, which is normally paid by the buyer and represents the appreciative value of the land that the property stands on, solicitors fees, Notary fees and mortgage fees (if you need a mortgage to buy the property). After signing and taking possession of your property you will become liable to pay Wealth Tax (non-residents), SUMA (local council tax for collecting rubbish, cleaning roads etc), community charges and solicitors fees for dealing with your tax affairs in Spain.
9. Signing the Deeds – Known as the Escritura in Spain, the property deeds are signed for at the Public Notary (the Notary is an official representative of the Spanish government). Yourself and anyone else who is to be named on the Escritura will be present at the Notary office, together with your solicitor. You will need your original passport and an N.I.E number (foreigners identification number), speak to your solicitor beforehand about obtaining one of these, you will need to go to a national police station. If you are unable to attend the signing for any reason you can give power of attorney to your solicitor and he will sign on your behalf.
10. Taking Possession of the Property – Once you have signed for the property you will receive a set of keys, if you have purchased a new property you will want to go over it thoroughly to check for any problems. Write out a snagging list of defects and hand this to your agent and builder, pester them until everything is to your satisfaction. A good security measure is to change the locks on the front and the back door – you don’t know who has previously had keys. If the property doesn’t have alarms and security grills, get these fitted as soon as you can. Change electricity and water bills over into your name and get some decent house insurance. If the property is in an urbanization you may find it useful to make yourself known to the president of the community.
11. Congratulations - You are now the proud owner of a property in Spain, may the sun shine on you and the value of your property rise, that tiny one bedroom apartment may one day turn into a seafront villa! – Relax and enjoy.
Newspaper contributor Steve Locke resides in Cabo Roig on the sunny Costa Blanca, Spain. His website is a wonderful resource for information on the Costa Blanca and surrounding areas. For details of property sales and holidays in the area look here:- Costa Blanca Property
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Source: http://www.articlealley.com/article_129701_33.html
Source: http://www.articlealley.com/article_129701_33.html
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