Investors
Don’t miss out on this fantastic investment opportunity.
We can help you to benefit from the growth on 100% of your property value while outlaying only a fraction of that amount. This principle has allowed many investors to double their money in one year.
We guide you through the whole process, and you can select from a vast range of property throughout the Costa del Sol region.
We examine the 'Off - Plan' property process from an investors point of view, and help you to make the right choices.
Let us show you how you can:
1. Buy property 'off-plan' at a price below the market value with as little as 20% deposit.
2. Guarantee any payments you make to the developer.
3. Benefit from phased increases in property price during construction.
If you have any questions that this website does not answer please email or contact us on 345441121354
The question and answer guide below should provide much of the information you require. The next step is to put your foot on the Spanish property ladder by calling us on 0800 970 0457 or by clicking here to email us.
QUESTION & ANSWER GUIDE
Why invest in Spanish property?
Why invest 'off-plan'?
Why do prices rise during construction?
Why should clients use our service?
How much money is needed?
What property should clients buy?
What investor protection do I have?
Is an inspection trip worthwhile?
Do I have to physically go to Spain to invest?
What is the purchase process?
What areas of Spain do you cover?
Do you arrange inspection visits?
What about tax?
.Why invest in Spanish property?
The Spanish property market is booming. Capital growth has been averaging around 30% per annum for 'off plan' property during the construction stage and around 18% for existing property. Add to this the fact that letting a finished property should also cover the mortgage costs and generate a profit.
The superb weather and abundance of golf courses gives property owners all year round letting potential. Many Northern Europeans simply go to Spain to escape the harsh winter. Flights to Spain are plentiful and cheap and the flying time is only just over 2 hours from the UK.
Around 1 million more Europeans are expected to retire to Spain over the next few years as the cost of living is so cheap compared with other Countries. There is already a huge UK community is Spain.
In short, the reasons given above illustrate plenty of demand for Spanish property which should result in continued price rises.
Perhaps the most amazing aspect is that only a deposit on a property will secure you capital growth on the full property value - see 'off-plan' below.
Back
This simply means buying a property from builders plans and is a very popular form of investment. The greatest capital growth can be during the construction period (around 30% per annum currently).
'Off-plan' purchase is a successful investment because:
1. Your property is priced below today's market value. 2. Your equity is limited to only 20-30% of the purchase price while you get growth on the full value. 3. You can sell the property during construction.
As an example:
> A property is available for £100000. > Your deposit is 20% (£20000). > The remaining 80% only needs to be paid on delivery of the property - you do not need to pay this if you sell before completion. > The property value increases to £140000 during the 2 year build. > You sell for £140000 - you have made a gross profit of £40000 on an investment of £20000. (Still a huge profit even after legal fees, tax and sellers commission have been deducted.)
In Spain, the developers Bank usually provides a non-status mortgage for the balance remaining at completion should you decide to keep the property (on very good rates) - which means all you need to budget for is the deposit. Ongoing rental income should then cover costs and produce a profit.
Initially, the developer needs to sell a certain number of properties to begin construction. The price is therefore very competitive at this stage.
As more properties are sold, the developers sales requirements are met and they can increase the price of the remaining properties. This affects the value of your property.
The next significant rise is usually when construction begins. During thw build the property price will usually be brought into line with true market value which usually means regular smaller increases in value.
Therefore you are benefitting greatly from the property initally being sold below market value and then during construction participate in a buoyant market.
1. We can advise on property from all the major areas of Spain, including Costa Blanca, Costa del Sol, Costa Almeria and Costa Calida. Not many agents cover such a wide area. In fact, we have an office in each of these areas. We will advise on the best remaining units on any particular development.
2. We can advise on property from an investors perspective as well as for people looking for somewhere to live or go on holiday.
3. We can oversee the whole buying process and provide access to all other services which may be required (English-speaking Spanish lawyers, accountants, letting agencies, management services etc.)
4. Any given property costs the same regardless of which agent is used so there is no extra cost for using our service.
5. We work on a referrals basis and therefore ensure every client is satisfied with the service. We want clients to reinvest with us when they sell their properties.
When buying a new property clients need only budget for the deposit (plus VAT - which in Spain is called IVA and the current rate is 7%) plus limited other costs including lawyers fees. It is possible to get a foot on the Spanish property ladder for around £15000 on a development which only requires a 10% deposit.
We will advise investment clients at the time of enquiry on latest hot-spots etc. In general, property up to 300000 Euros will be easier to resell - and currently 2 bedroom 2 bathroom apartments are much sought after for rentals. Avoid expensive or unusual property - it will be harder to resell.
Also the phrase to remember is 'location, location, location'. Property miles inland with no facilities nearby, poor roads and transport will be very hard to sell. On the other hand, if you are within 10/15 minutes of a good beach, on or near a golf course, with use of a swimming pool, shops and restaurants nearby and good parking then you are much more likely to be onto a winner. 'Golf' property provides all-year round letting potential and this sport plays a huge part in the economies of Costa Blanca and Costa del Sol. Even non-golfers like renting property with views of the sea and a golf course.
On new property, each deposit payment is guaranteed by the developers Spanish bank, which means you get your money back if the developer walks off site or becomes insolvent.
New property in Spain now comes with a 10 year guarantee similar to NHBC in the UK.
Your Spanish lawyer will also carry out all necessary land registry searches and check the guarantees before letting you sign any contract whether you are buying a new or existing property. This ensures any payments you make will be refunded if, for example, the developer is insolvent.
Yes and no! If you are buying a property to use yourself you will definitely want to get to know the area and see where your property is.
If you are buying off-plan or for investment purposes it would be nice to see the area but often the build process will not have started so you will simply be viewing land.
More importantly, new developments sell out very quickly. If you choose a development from your armchair, then decide to arrange flights etc then the chances are you will be too late by the time you get to Spain. Off-plan investors really should be prepared to literally buy off the plans and after taking our advice. This will ensure you get in at the earliest stage when the best choice of plot is available.
Do I physically have to go to Spain to invest?
No. You can give your lawyer Power of Attorney to sign contracts and be there on completion date to go and see the Spanish notary.
1. First, select a property.
2. Reserve the property. This is usually done by paying a reservation deposit around 3000-6000 Euros and ensures the property is held for you at a fixed price. This is not refundable should you later decide to pull out. Your lawyer should now carry out all the detailed searches and checks at the Land Registry ready for the next stage.
3. Private Purchase Contract. About 30 days after reserving the property you will sign this contract. Your lawyer can do this for you given Power of Attorney. At this stage you will normally be expected to pay the balance of the deposit (including IVA).
4. Completion. You or your lawyer attends the Public Notaries office to sign the Deeds, and to make the final payment to the seller. You then receive the keys to the property. The Notary then informs the Land Registry to note you as the new owner.
Should you have sold the property before completion then your lawyer will have assigned your contract to the new buyer who will have to do step 4 themselves.
Costa Blanca, Costa Calida, Costa Almeria and Costa del Sol. We have an office in each area and in conjunction with our UK offices can provide a full service.
Yes, clients should contact us and we can then arrange a suitable itinerary. The cost may vary depending on location and times of flights etc.
We can call on our contacts in Spain to provide specialist help in this area. As in the UK, the situation can be complicated at times!
When you buy a property you wil pay either Property Transfer Tax (for resale properties) at 6% or IVA (VAT) on new properties at a rate of 7% in addition to 0.5% stamp duty.
'Plus Valia' is a tax charged when selling a property. It is a local municipal charge based on the increased value of the land between purchase and sale. This can be small when selling an apartment but expensive on a villa standing on a large plot.
Capital gains tax can also be charged when you sell a property at up to 35%. Specialist tax advice should be sought as there may be ways to reduce the CGT significantly.
When you buy off-plan and sell before completion - you will normally avoid all the above taxes apart from IVA.
In summary, buyers of property are usually responsible for IVA or Transfer Tax plus your own lawyers charges (who usually also collects and pays the Property Registration fee and Notary cost).
Sellers of property are usually responsible for Capital Gains Tax, Plus Valia and any selling agent costs.
