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A Buyers Guide
The important questions
Our guide answers the most important and commonly asked
questions when considering purchasing a property in Spain.
1) WHAT IS THE REAL COST OF BUYING A HOME IN SPAIN
When you purchase a home in Spain, as in the UK, you have several costs which you must factor in to your total budget. Property purchase taxes, notary fees and other costs are unavoidable in Spain and you must allow up to 8% on top of the value of your purchase to cover your purchase costs, or, 10% if you intend to arrange a mortgage in Spain to fund your purchase.
For example a villa with a purchase price of €300,000 will
cost approximately €330,000 euros in total if you wish to arrange a Spanish
mortgage to fund the purchase. (For a full breakdown and explanation of these
costs please contact us)
2) DO I PAY ANYTHING TO YOU, THE ESTATE AGENT?
Our service to you the buyer is completely free of
charge. All our fees are covered by the
commission we make when we sell a vendor´s property on their behalf. Our
services which includes mortgage advice/arrangement, expert rental advice and
as much of our time as you require viewing properties, is provided at no charge
to the buyer.
We also offer tailor made trips from the UK to view
properties. Should you purchase a
property we will refund all your travel costs.
These are not subsidised high pressure sales trips, you can
stay as long as you like and we do not expect you to buy.
Frequently your accommodation whilst here will be provided
by our rental division.
3) WHAT SIZE OF DEPOSIT DO I REQUIRE?
If you see a property you wish to purchase you first need to make an offer
which must be relayed and hopefully accepted by the vendor. You must then lodge
a €3,000 reservation fee with Renvida which is payable to the owner, this does
not obligate you to buy the property but allows us to take the property off the
market whilst the private purchase agreement is arranged and surveys and
mortgages performed if necessary. (N.B. This deposit is non-refundable and kept
by the vendor should you later pull out of the sale.)
Later, at the time of signing the Purchase Contract (usually within 2 to 3
weeks of paying the reservation fee) a 10% deposit must be made and a
completion date contractually agreed, the €3,000 euro reservation fee is
deducted from the 10% deposit required.
4) DO I NEED A
SOLICITOR TO PURCHASE A PROPERTY?
We can assist you with finding a good, reputable solicitor to handle the legal
aspects of the purchase process. We will also assist you in finding a surveyor
for a full structural survey if this is required. Legal fees for the purchase
of a property are very reasonable in Spain and range from €500 to €1500 euros.
5) CAN Renvida ASSIST IN THE MANAGEMENT OF MY PROPERTY?
In your absence you may wish your house to be managed. We offer a complete service
that includes, key holding services, pool cleaning, gardening, maintenance,
cleaning and linen services and regular property checks if required.
6) WHAT ARE THE PROSPECTS FOR CAPITAL GROWTH ON THE COSTA BLANCA?
The towns of Moraira and Javea now offer an attractive alternative for
sophisticated customers looking for quality beaches, restaurants, shops and
infrastructure at a lower price than the Costa Del Sol, Mallorca and other more
established expensive parts of Spain.
Property prices in Moraira and Javea are still low in comparison to their more
established couterparts and this bodes very well for continuing future property
price rises that buck current the national trend of stagnant or declining
values.
This is particularly true at the higher end of the market.
7) IF I SELL MY PROPERTY WILL I PAY CAPITAL GAINS TAX?
The simple answer is yes, if the price rises the tax equates to 18% of the gain
you have made, this equates to approximately 3% to 4% of the value of your
property at the time of sale. Please ask us for further details about Capital
Gains tax and how it can be reduced or avoided.
8) WHY SHOULD I CHOOSE Renvida?
We believe we are the best alternative for an investor looking for a Spanish
rental investment or for someone considering purchasing a permanent move or
holiday home on the Costa Blanca. We offer the widest selection of properties
and outstanding personal service before, during and after your purchase.
We look forward to meeting you!