The ultimate Property in Spain guide

Spain has become very popular as a vacation spot and as a retirement spot. Now is the time to buy property in Spain. Here is what you need to know before you decide to buy your new spanish home.

As with any real estate venture, you need to find a qualified, well-respected real-estate agent. Be sure he or is licensed and registered. Also find a qualified Spanish real-estate attorney. Sadly, there are many unscrupulous people who try to take advantage of others. This is especially true in international real estate transactions. It helps if you can speak, read and understand Spanish fluently.

While you should let an attorney handle the transaction, make sure you have a good grasp of mortgages, insurance, contracts and all other aspects of real estate. Also study the basics of tax law so you can understand how to reduce or avoid capital gains taxes if you ever have to sell your property. Be absolutely sure you understand your own financial situation to be sure you can afford the additional taxes, mortgage payments and interest rates.

While a real estate agent may recommend an attorney and vice versa, be cautious about taking their recommendations. While most agents and lawyers are sincerely interested in helping you, a very few have set up special relationships with each other that may result in a less-than-optimal outcome for you. Ask friends, neighbors and coworkers for recommendations.

Does an international real-estate purchase sound intimidating? Actually, you can find some great deals with such a purchase. Some large mortgage companies can arrange international mortgages in which you pay 30 percent down to finance the remaining 70 percent of the purchase price. This would be a second mortgage and is a good deal if you have built up equity in your home in Spain.

Take time and do a lot of research before your purchase. There are so many financing options available, it pays to be careful. Compare lenders and loan options carefully.

Importantant questions about your property purchasing decision

Planning is the essential step in an international real estate purchase. Consider what your intent is:

• Do you want to rent the home in the tourist season for extra money? How will you find tenants?
• How will you handle tenant problems if you are not in Spain?
• Will this be your retirement home or your permanent home?
• Will your property be in a major city such as Madrid, Barcelona or Seville ? Or more in the rural areas like the Costa Blanca or the Costa del Sol with its tourist spots such as Benidorm, Torrevieja or Malaga.
• Do you expect to keep the property for a long time? How will you maintain it?

Do not buy any property without knowing the answers to these questions. Buying real estate in Spain can be a very wise investment. Not only will you enjoy it, you will benefit from it for years to come. As long as you are prudent each step of the way, you will be glad you made the choice to buy your Spanish villa.