Time is Right For Spanish Real Estate
/Property in Spain
First Published Date: Oct 1, 2010
Due to financial troubles in the country, property prices in Spain have fallen to their lowest levels in recent memory. Many North Americans and Europeans are now looking at possibly getting a second home in Spain to take advantage of the nice weather, beautiful landscape and friendly people. Unlike buying property in third-world countries and developing nations, when you buy in Spain you are moving to a country that is a world leader. So, if you are going to buy property in Spain, what do you need to know as a foreigner?
Spain does not have limitations like other countries in foreigners buying homes, so it is actually quote easy to buy a home there. The first thing you need to think of is where you want to live in Spain. Spain has a huge amount of space, and there are many different regions. Do you want to live near the beach, or do you want to live near the mountains? Do you want to live in a city, or a small rural village? Find out where you want to live, before you start looking for property to buy.
When you know where you want to live, contact an independent legal advisor in that region. They will have a clear understanding of the legal system of Spain and they will know the language better than you in most cases. Make sure your advisor is working for you and not tied to any property dealer who you are going through because that could be a conflict of interest that just costs you more money.
Even though prices of homes in Spain are very low, that does not mean you shouldn’t look at what you can afford. Having enough equity to buy a home will help you a lot, but if you need to get a mortgage, most Spanish banks will offer you a mortgage of 60 to 80 percent of the home price. That means you have to come up with 20 to 40 percent of the home price as a down payment. That can be a lot of money for higher end homes but luckily with record low prices, your down payment will be low as well. The more you have, the more you can get and the less of a mortgage you will be saddled with. Just like you would anywhere else, do your research and shop around with Spanish banks for the best rate. You want to pay as little as possible in interest.
Lastly, you need to have proof of income with your last three pay-slips, six months of bank statements, and a credit report will help when getting a mortgage. Your debt load cannot exceed 35 percent of your total monthly income if you are going to get a Spanish mortgage. It is important to not that that debt load includes your possible Spanish mortgage.
Spain is a beautiful country, so why not take advantage of the low prices now and move there where you can enjoy the scenery, friendly people and amazing food and culture.
