Advice & Suggestions for Investing in Spanish Real Estate
Purchasing real estate is a difficult endeavor. It might be challenging for a foreigner to completely understand each country’s unique aspects, in addition to the legal procedures and difficulties that must be taken into account during the process. We have thus included our finest advice for a simple and profitable Spanish real estate investment in one post. We will examine the seven suggestions for investing so that you are happy with your choice in the end.
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How to choose areas and properties that offer the best value for the money
Perhaps the most crucial element among all those that characterize a successful buy is its location.
A key effect of the particular location is, thus, a variation in price per square meter, which is an important metric to consider when evaluating real estate options.
The cost per square meter varies significantly between regions and autonomous communities in Spain. This is the reason this may be the initial filter you try to locate the best offer with.
The regions with the highest prices per square meter are Extremadura, la Rioja, the Canary Islands, and Catalonia; the lowest costs are found in Murcia, la Rioja, and the Basque Country.
This research could assist you in eliminating a lot of regions and narrowing down to only two or three that truly meet your needs, but how can you locate the greatest houses in any given area?
Idealista, the largest real estate marketplace on the internet in Spain, is the ideal partner for this endeavor.
You can be certain that if you use Idealista, you won’t miss any fantastic deals because the great majority of houses for sale are posted there.
All you have to do using an extremely user-friendly interface is put in your desired city or location, then apply the various filters based on your tastes (like pricing, for example).
Recognize why you are purchasing.
However, the true reason or goal for which you are purchasing the property must also weigh heavily in your selection.
You have two choices in that regard: either purchase for future rental use or purchase for personal use, such as a place to live or vacation.
What distinctions does this seem to make?
If you want to purchase the property with the intention of renting it out later, you could choose properties that are near major cities and the beach as you can charge a higher rent there; otherwise, it might be difficult to attract renters.
So, locations with easy access to public transit and close proximity to essential services (like large supermarkets, retail centers, etc.) are also essential for a successful rental in the future.
However, the quality of the structure would be even more crucial if you purchase the house for your own use.
Look around first, make the buy later
With top-notch photos and videos, a lot of real estate brokers and sellers these days provide really engaging online experiences.
You get the impression from those digital assets that you are genuinely in front of the home you want to buy, that you are prepared to make the purchase even if you are far away.
That is untrue, though.
Aside from the number of rooms in the house and the size of the kitchen, there are many other factors to take into account; the location and surrounds of the property are just a few of them.
Due to this, you should always arrive at the property’s location first. During your visit, you should take a stroll about, get a feel for the neighborhood, and pay attention to all the little things that add up and are ultimately what matter most.
Soon after, you will truly know how much the property is worth and whether buying it is the best decision for you.
Furthermore, if you choose the next legal route, as we shall show in a moment, you may accomplish the entire process with ease.
Acquire a Golden Visa.
Foreigners and real estate investors who buy property in Spain sometimes ask for the golden visa, which is a residence permit.
That’s because, as long as your home purchase is worth at more than €500,000, you will be granted a resident permit that will allow you to work and bring your family with you.
And it is true that it has a lot of benefits.
First, you can get it by traveling to the nation as a tourist. In other words, you may acquire a tourist visa, visit Spain to view a few houses you had on your “wishlist,” buy the property of your choice, and thereafter receive a golden visa for permanent residence. without at any point leaving the nation.
Once you have it, as long as you maintain the real estate investment, you will be able to maintain and extend your Spanish residency annually. And you may do so as long as you only make a yearly visit to the nation (there is no minimum stay requirement like there is with other licenses).
Possibly the most crucial aspect for numerous investors is that the necessary half-million real estate valuation does not have to originate from a single property.
For instance, you may purchase three residences in total, live in one, and rent the other two. As long as the three properties’ combined value exceeds €500k, you will be allowed to live there.
Trust a real estate professional to help you save money.
To save a little more money on your purchase, you might be thinking about eliminating the additional expenses that using an intermediary entails.
However, that might not be a suggested course of action for two key reasons.
To begin with, hiring a real estate professional may save you money. She will help you locate the greatest bargains and walk you through the entire process step by step. She is not simply someone who is familiar with the region and all the hidden features that a foreigner cannot notice.
On the other hand, you should keep in mind that in Spain, the seller often covers the cost of the real estate fee, so as a buyer, you might not have to pay for the service while still benefiting from it.
Naturally, next make an effort to locate trustworthy real estate brokers; a business with sufficient qualifications and references to provide their undivided attention to your situation.
Here at Balcells Group, we can assist you with every aspect of your real estate investment and guarantee a smooth and pleasant transaction.
Take care of any outstanding debt.
In several instances, our firm has discovered that a foreign buyer thought they were getting a great bargain and struck a price with the seller; but, later on, they discovered that the property had some unpaid debt, which increased the ultimate cost and rendered the agreement less favorable.
All property-related obligations that were not paid at the time of purchase pass to the buyer in Spanish territory.
Mortgage payments, real estate taxes, and other associated expenses are being discussed.
It is thus important that you verify those before proceeding with your investment selection and figure out the overall cost taking into account all of the expenses we will cover in the next section.