The desire to buy and own a property in Spain has been realised by hundreds of thousands of ex-pats. However, all too often the dream of owning that Spanish villa turns into a nightmare. Buying a property in Spain is a major life changing decision for many people and should not be made without full and extensive research.


Basic guidelines for buying a property in Spain

Buying property in Spain doesn't have to be a difficult process. Speak to other people who have already bought a Spanish property and learn from their mistakes. Almost everyone will have made some. Try to deal with Spanish Estate agents who are approved by World One Call or Where On Earth. You will see their logos on their web sites. Buying Spanish property is a slow process. Make sure you take legal and financial advice (a good source can be found on www.ocean-finance-mortgages.com). The following guidelines apply to everyone who is considering buying a property in Spain whether it's as a retirement home, holiday home, investment property or buy to let.

1. Why are you buying a property in Spain?
The type of property you buy should be determined by your reasons for buying a property in Spain. If you are buying to let, is it the type of property people want to rent? Does it have sea views or is it close to the coast? If you are buying a Spanish property for your retirement, think ahead. Will your zimmer frame manage the steep stairs or hills? Before you start looking at brochures, visiting property exhibitions or searching the Internet, take the time to think about exactly what it is you're looking for. This may sound basic, but many people, on falling in love with a Spanish property, let their hearts rule their heads. The reason for you buying your first Spanish should be taken into consideration, when making any purchasing decision. Some people buy property purely as an investment; others want to relocate, some want a second home in the sun.

2. Choosing the location of your Spanish property
If you're looking to purchase your Spanish property for investment - you can have a look at www.whereonearthgroup.com/properties-for-sale-spain.php for example - it's important to choose a property of the type and location that will give you a maximum return. As a general rule, properties by the coast attract higher rental incomes. If you want a property for your retirement, consider buying somewhere further inland, as Spanish property is cheaper and you will get more for your money. You should also consider how far you're prepared to travel for shops and other amenities. If you plan to make a permanent move to Spain, and take up employment, you should think about properties that are close to the larger populated towns and cities.

3. Financing your Spanish property
Be aware that there are hidden, additional overheads when buying property in Spain. Allow 10% on resale Spanish property and slightly more for new and off-plan properties, on top of your purchase price, to cover taxes and legal fees. You can get a mortgage in the UK or in Spain. For the latter, most Spanish banks will advance a loan of up to 80% of the value of the property. For more information on mortgages and advice on avoiding a potential pitfall, click here: www.ocean-finance-mortgages.com.


4. Thorough research is the key to buying property in Spain.
You should have a good idea of the type of property you want to buy, where you want to buy and the maximum budget you are prepared to invest in your Spanish property. If you determine your budget prior to viewing, you should not detract from it if you fall in love with a property that exceeds your maximum ability to pay. Spend time on valuable detailed research through both published an on-line guides. Visit Spain as often as you can to view properties. You will be spoilt for choice.

5. Viewing Spanish properties
Before you make any final decision on which property to purchase, visit it as many times as possible both with and without the selling agent. Try and visit at different times of the year to see the property at its best and worst. Whilst there, invest some time exploring the immediate area, talk to local people, ask questions and find out about local amenities, shops and restaurants. See how the environment changes throughout the day and year. Are there busy times of the day when traffic noise can be a problem? Is there a noisy bar, club or neighbours nearby? Where's the nearest doctor and hospital?

6. Spanish Lawyers
Engage a Spanish Lawyer from the beginning of your property buying process. Choose one, if possible whom someone who has already bought a property in Spain has recommended. Spanish property law is complex, so make sure you have a good local lawyer to look after you interests. Spanish lawyers will usually charge 1% of the sale price of the property but this is an excellent investment for your own peace of mind. Under Spanish law, only the person named on the title deed has the right to sell the property.

For more information about the legal issues surrounding property investment in Spain, click here: www.whereonearthgroup.com/spanish-property-law.php

7. Making an offer on your Spanish property
Having chosen a suitable Spanish property, you will need to agree the price and conditions. Do not make an offer unless you have the finances in place. Either a mortgage agreed in principle or the cash. It is quite acceptable to make an offer subject to mortgage approval and, for properties that are off plan, you will need to agree a schedule of stage payments. Do not pay the whole amount up front. Mortgages are available where you can drwa money down as needed and only pay interest on the funds taken.

8. The Spanish property market
The property market in Spain is extremely buoyant and the right properties sell extremely fast. Assuming you've done your research and visited lots of properties, when you see the property you want, you will know it. Now you should be in a position and prepared to make a quick decision and put down a deposit (usually around €3,000) to secure the property. The deposit can be made in cash or by credit card through your lawyer. Cheques can take up to 10 days to clear and it is not unusual for a rival investor to step in with a cash deposit.

9. Exchanging contracts on your Spanish property
Once your offer is accepted and the deposit paid, the next stage in the buying process is to exchange private contracts, 'Contrato privado de compraventa'. This contract stipulates the agreed price and what is to be included in the sale. Contracts should usually be signed within two weeks from the offer being accepted. Now your lawyer has the responsibility to conduct property searches and making sure that there are no outstanding debts attached to the property, for which you may be liable. This is confirmed in a document called a "Nota Simple". At this point, you will now be required to pay a non-refundable deposit of around 10% of the purchase price.

10. Completion and registration of the title deed on your property in Spain
The final completion on your property in Spain takes place when the title deeds are signed before a Spanish notary and you pay the remaining balance of the purchase price. The signed deed will be lodged with the land registrar and your lawyer will take care of the remaining formalities such as payment of the relevant transfer taxes etc.