Today’s Spain is a young vibrant country barely three decades old, but no land is so diverse and enjoys such an excellent climate. It has a strong personality, is full of rich traditions, has a different culture and a proud history.
Tourism has changed the face of Spain for ever. Fishing villages have been replaced with skyscraper hotel blocks. Artificial flamenco, staged bullfights and tacky souvenirs are the entertainment for visitors. Yet only a few kilometres inland, villages, towns and cities lie untouched and retain their own distinctive way of life.
Spain has a rapidly expanding economy reaping the benefits of membership of the EU. Major international companies are investing in the country against a background of stable political government and a multilingual labour force. Yet the old links to agriculture still exist. Orange and lemon groves, flowering almond trees, thousands of acres of vines and millions of olive trees still remain.
Property is not expensive. It is quite different and the choice is great. White houses in distinctive styles are built in urbanisations or scattered on hillsides for use as holiday homes or for permanent residence. Buyers want homes to enjoy for themselves and their families. They are not property speculators.
The buying procedures are also very different. Forget the traditional approach of putting in an ‘offer’, arranging a mortgage and asking your solicitor to sort things out. Prospective buyers must carry out research and ask questions themselves, rather than assuming a solicitor will deal with these
matters. Learn about the abogado, the notary, the gestor, the contract and the escritura. It will make things so much easier. It is necessary to understand the Spanish conveyancing system from start to finish. It can trap the unwary in a country where there are many property horror stories.
A new property buyer will to a degree always remain a foreigner. A foreigner may reside in Spain but his heart will reside in his home country. He may think like a Spaniard but he will never be a Spaniard. Why? Because the history and culture of the country gives rise to different social customs and attitudes.
Some foreigners settle down and remain in Spain. Others go back home, their dream of a new life in the sun a failure. It is therefore important to understand the Spanish mentality and to adopt their way of life. Don’t dash about, learn to relax, live for today and not tomorrow.
This book is a balance. It is not for the tourist. A legal expert would wish for more detail. An estate agent would not like the exposure of his commercial terms. It is, however, a step by step guide to buying a property in Spain, introducing the reader to the country, where to buy a property, the maze of documentation, the legal process and how to enjoy life to the full. The book complements but is not a substitute for good legal advice which should always be sought and taken.
It also occupies a unique position in the market place. The managing director of a multi-national property company told me that ‘The decision to purchase a Spanish property represents a defining moment in the lives of those so motivated and a book would be a most welcome addition to the genre’.
Pedreguer, Spain
Will It Be A Good Investment?
For most middle-income people buying a Spanish property is not only affordable but also cheap. A well appointed two
bedroom apartment starts at half the price of an average UK home. Will the value of the property appreciate? As we start the new millennium the omens are good. Monetary control in Europe is tight. Interest rates are low. Inflation is down.
But care is required. In Spain the price of homes more than doubled between 1984 and 1990 largely because the supply of property could not keep pace with demand. From 1990 to 1997 price increases broadly matched inflation, but since then they have dramatically increased yet again. They are linked to the economies of other European countries, such as the United Kingdom and Germany, where in times of recession a property abroad may be one of the first things to be sacrificed. Equally a buoyant economy causes excess demand with a 12-month waiting time for new properties.
Spanish house prices may be low, but they are also volatile, appearing to appreciate in four to six year cycles.
Who Buys A Spanish Home?
A wide range of people buy a holiday home, particularly if it is near an airport, faces the sea or a golf course and the area has plenty of facilities. However, if it is a permanent retirement home then the average profile is of a couple, mid 50s and upwards, whose children have flown the nest. At least one partner will be an extrovert capable of dealing with the upheaval and change, so together they can look forward to their golden years with some enthusiasm.
It is not only northern Europeans who buy homes on the coast. Spain’s growing wealth and fast growing economy has started to be reflected in Spaniards themselves buying holiday homes, although ‘Madrid-on-Sea’ tends to feature large family sized apartments, in shared complexes, with predominantly noisy Spanish neighbours.
Most people buy their Spanish home outright. If capital is required, a loan from a bank or a re-mortgage on the main residence are popular choices. Spanish banks offer mortgages at
attractive rates. The golden rule is – if you earn in sterling, borrow in sterling and repay in sterling – but the Euro now gives greater flexibility to these traditional guidelines.