Bright Tips For Buying In Sunny Spain

Sparkling seas. Warm and gentle sunshine. Wine and tapas and sparkling cava. Spain is a wonderful country to settle in, and there are countless things that set this place apart and make it special. More and more, holiday goers and investors alike are flocking to sunny and beautiful Spain. A Spanish real estate rush that started years ago with UK residents retiring in Southern Spain is now catching on in the U.S. and the rest of the world: Spain is a hot place to invest, both literally and figuratively.

However, it's never a good idea to jump into any investment without doing the research first-- and in this case, a lot of it. Because as appealing as the idea of a sun-soaked southern villa may sound, the steps involved in getting there are many and complicated. Here are some bright tips that will help you avoid the many pitfalls in shopping for real estate in Spain.

Find a good estate agent and attorney. There are thousands of estate agents (inmobiliarias) in Spain, and not all of them are good ones. It's important to do a little research before choosing one, and to choose wisely. The first estate agency you come across might not be the right one-- and may not even be qualified to help you in your search.

When you do find a good estate agent, he or she may recommend that you don't bother hiring an attorney. This isn't the best advice to follow. It's important to have the services of an attorney with a thorough understanding of Spanish real estate law. Buying real estate in Spain is a complex business, and it's easier than you might imagine to lose your entire investment. Have an attorney look over every element of a deal, especially planning regulations. If something is amiss with the title of the land or the legality of the building location, the property may be demolished, leaving you with nothing.

Consider budget and profitability. This is one of those important, seemingly obvious considerations that many real estate investors in Spain lose track of. Why? Because it's easy to fall in love with a property and commit yourself before considering all angles. Before buying, it's important to evaluate whether or not a particular purchase will be truly profitable. Take time to compare property values across the city or town in which you're considering investing. Planning on renting the property out during your absence? Make sure that the rental amount you will require is reasonable and sustainable in the area in which you purchase.

Another important consideration in making a profitable investment is sticking to your budget. When you fall in love with a particular property, perhaps a villa with wide-open windows, trees rustling in the breeze, and a tinkling fountain in the courtyard, all reason tends to go out those wide windows. Don't allow yourself to be seduced. Know your budget, and know that you'll have to factor in plenty of taxes (7% for new and 6% for used homes) and other fees on top of that already over-budget sticker price.

Survey your surroundings. Do this both literally and figuratively. First, talk to people in your own country to get an idea of what it's like owning property in Spain. Talking to fellow Spain investors will give you the best idea of the process, the pitfalls, and the positives of buying real estate in Spain from your country. So visit online forums, search for articles written by investors in your country, and ask as many people as you can. The more personal stories you hear, the more you know what to do right-- and what to avoid.

Next, when you decide where in Spain to invest, try to develop a thorough and objective idea of the location. Get a rental car and a hotel room, and spend time surveying the area before you visit even one property. In a large city? Get a feel for public transport. In a small town? Know the area, the amenities, the closest airport (if it closes down, will you be in trouble?), etc. In short, take time getting to know an area --and deciding whether or not you like it-- before deciding to look at properties there.

Robert Griggs writes for PGM Property World who are an estate agent based in Spain. PGM specialise in property in Spain and its many regions including the Costa del Sol, Costa Blanca, Costa Calida and Costa de La Luz.