|February 17, 2016||No Comments|
The world is now more connected than ever before. Location independent working and owning property in foreign countries is not unusual. People can jet set across the world or make another home abroad.
This lifestyle is certainly fun and an excellent way to learn about other cultures and religions, but it can have serious ramifications if you are unsure of local laws when purchasing property in other countries.
On this occasion, throwing caution to the wind is not recommended and extensive research is a top priority. If you are looking at buying property in Spain, here are five tips that you should follow.
Every country has professional real estate agents and developers. If you are buying a property for business, a developer is an essential asset. When you enlist the help of an agent or developer, the risk of your property purchase going wrong is dramatically reduced.
You should however be like an annoying 3-year old and ask for answers to every question that stems from your own research. The ownership to understand the aspect of property purchases in Spain still lies with you because you are the buyer.
Questions should also be targeted towards the potential agent. You need to ensure their services will benefit you and their fees are within your budget. A good agent and their customer are simply like a hand and glove that fit together.
As well as researching property laws in Spain, research the company that you plan to use. Assess whether their track record and details match up to what they have told you.
Any good agent will tell you what services are included in their fee and what comes under extra charges. Do not agree to be represented by them until you get a written Term of Business.
An independent lawyer can help make the property transaction as smooth as possible. They will represent you and no-one else, especially other parties involved in the property process. They do not represent your real estate agent, your developer or an investment group.
The lawyer will research and inform you about any risk or dangers associated with making a purchase. Confirmation at all steps of the buying process will be given.
Set your budget before viewing properties. If you are borrowing money from a mortgage lender, this budget should include the provisional mortgage offer. Do not buy a property that is more than you can logically afford.
When you borrow money, you should also take into consideration that borrowing criteria can change over the years. Before you borrow, discuss fixed long term repayment plans with your financial specialist.
Some people buy property overseas for investment, in which case they should assess whether or not the reward is greater than the risk. For instance, if you are buying more property than you can afford on the assumption that you will make more money if you sell it at a later date, you can be setting yourself up for financial disaster. Objectively look at the risk compared to the rewards. In most cases, big returns require significant risk. You have to figure out if the big return is worth the hassle.
A small change in rate can affect you and the value of your property. If the Euro drops 10% in value, the property you were looking at can become too expensive for you to afford.
You can control this a little by talking to specialists in your desired overseas area to secure your rate exchange. The cost of mortgages is also affected by rate fluctuations. Take to a foreign exchange specialist to help you lesson your risk.