Everyone entering the real estate market should know about the pros and cons of buying property in Spain. Many foreigners follow their dream to own a home in the sun. The lure is too much to ignore. But like everything we endeavour to do, buyers must gain a balanced point of view, not only to find their dream property but also to manage the house in the coming years and make a wise real estate investment at the same time. Whether you choose to live in Spain full time, or use your new property for holidays, being well-informed stands you on good ground for up-and-coming years. So, let’s look first at the pros of buying a home. Next, we discuss the cons and commitments of owning property in Spain.
Pros and Cons of Buying Property in Spain
1: Beachside Lifestyle in Spain
Many foreigners buying real estate in Spain end up in one of the Costas. Costas translates to the coastline, which refers to many miles of gorgeous sandy beaches. Whether just visiting Spain on holiday or buying real estate here, most foreigners gravitate towards the east and south coasts, in Costa Blanca, Costa Del Sol, and Costa Brava. All offer beachside vibes found nowhere else in the world. (More about the Spanish coasts.)
2: Tourism Let Income
Those owning holiday homes by the beach can make money from tourism holiday rents. Spain, one of the world’s top tourist destinations, makes billions from foreigners seeking sun, sea, and sand, hence ranks highly for buy to let investors because of high rental yields and prices.
3: Ideal Long-Term Spanish Investment
Local real estate markets revolve around domestic and foreign interests in most areas. This increases property liquidity if you ever want to convert your bricks and mortar into cash. Additionally, if investors look at mid to long-term investment and do their local place research carefully, many areas present superior returns.
4: Easy Property Buying Process
Some countries make buying real estate hard for foreigners. The extra fees amount to hefty cash, and the drawn-out procedure is full of red tape. In Spain, the property procedure is smooth and streamlined. But, of course, in our job as estate agents, we walk all our clients through the process and keep them fully informed, so rest assured of a stress-free buying experience. Read – 5 things you need when buying a house in Spain.
5: Gorgeous Weather – A Strong Advantage
Most foreigners purchase property in Spain’s southern part simply because the area offers more days of sunshine, hot summers, and mild winters. Averaging roughly 300 days of sunshine annually, gorgeous weather impacts our lifestyles in more ways than we realise. Sunshine encourages us to get outdoors and get active, simply strolling along the promenade or swimming in the beautiful Mediterranean. We also enjoy waking up to the sun rising rather than cold, dark mornings and enjoy al fresco rooftop dining. In addition, doctors say the sun is good for us because of copious amounts of Vitamin D.
6: Best of Spanish Culture
Who does not love everything Spanish? From great food and quality wine to the Flamenco dance to quaint Spanish villages tucked away in hillside locations. Of course, Spain’s history always has an exciting tale to tell. In big cities like Madrid and Barcelona, one can embark on an exciting exploration of Spanish architecture, arts, and fashion. Finally, don’t get us started on regional Spanish language accents that sit so easy on the ear.
7: Impressive Property Portfolio
In most areas of Spain, the real estate market is ever-evolving and presents many apartments, penthouses, and villas for sale. Get an idea of what is currently on the market by browsing our property portfolio for sale in Spain. Each listing contains everything to know, including price, location, home features, and contact details to find out more via email, chat with us or arrange viewings.
8: Extra Buying and Maintenance Costs
One common mistake many house purchasers in Spain make is that they do not factor in extra buying fees of property like solicitors and taxes. Additionally, consider yearly maintenance fees, including annual property taxes, utilities, condominium charges. When clients buy real estate in Spain through us, we give detailed payment plans outlining necessary costs, what to pay and when. Additionally, we also advise on yearly property maintenance and how to pay bills. (Speak with an agent about the costs of buying property.)
9: Rental Laws, Management, and Marketing
Another common mistake is to assume you can buy Spanish property, rent it out and make a passive income. There are laws and regulations involving markets and income taxes to pay like any other country. Additionally, landlords need to market the property and be able to manage the cleans, welcome packs, information, deposit policy, and repairs. When buying a rental property, always research areas to determine how much competition there is and the expected yields.
10: Higher Mortgages Rates for Buying
One disadvantage is that while most people seek financing in their home country, some choose to get a mortgage in Spain. Banks in Spain will give mortgages to foreigners who want to buy a home, but in most cases, the interest rates are higher than those offered to residents. Additionally, banks lend less money to non-residents, and this typically tops out at around 60%, which means you still need to find 40%.
11: Tips for Buying
Local Property Research: Many buyers think of Spain overall when finding a location that ideally suits their idea of life in Spain. Yet, the Spanish culture, weather, food, and traditions vary from region to region. Therefore, rather than researching countrywide, start delving into local research to find the ideal town, city, or village. To do this, our article about regions in Spain will help.
Good Solicitor: Although the buying process is relatively smooth and streamlined, pick a good solicitor who knows what they are doing, their responsibilities and legal obligations. We cannot overstress to choose a good solicitor with a proven record of accomplishment who answers your property questions and queries in a timely, informative manner.
Building Condition: While traditional Spanish cottages that sell are a big lure, homebuyers should invest carefully with this type of property build. Often, they entail much renovation work, which means dealing with red-tape and construction workers who always adhere to the Spanish manana saying. Likewise, with any property scrutinise the build for any defects.
Also about Spain
Moving to Spain: We have discussed the pros and cons of buying property in Spain, but if you have any questions, call us today and speak with a property agent. For those looking at the country to eventually live here, you might like to read this article about the different pros and cons of living in Spain.
(Note – Property shown in pictures is a luxury penthouse in Marbella.)