Properties Costa Blanca - Blog

The very first thing a beginner would need to do before investing in real estate would be to consider his reasons. The priorities he finds out will help him finding the right type of property. Also the financial condition of the investor has to be checked to ensure the right decision. You also have to consider 3 key factors: risk, reward and effort involved. Often people are too focused on the reward, so that they don’t recognize the risk and effort anymore.

In all cases, when buying property in Spain the price of acquisition is most important, as this would govern the mortgage payments as well as the overall profitability of the investment.

If investment were being made for cash at short notice, the best bargain would be to locate property, which is under the average price and get a contract for purchase. A real estate investor to whom the contract can be sold and a profit be made from the sale of the contract should then be located. This strategy would cut down both on the investment amount and the time of effort. Joining an investment club would allow access to real estate investors for selling the contract.

If the investor wants to have regular incomes, the best is to choose a cheap house and renovate it to generate a rental income, which is more than the periodical mortgage payments. Personal efforts put in for renovation would save on the costs. Location of such property may involve a bit of scouting around. Gathering information in advance about localities, which may have such properties, would come in handy. Over the years, the rental income would also increase.

If the goal is to earn a profit on the investment made at one go, it is best to get hold of property, which is profitable after receiving a face-lift. There are many people who have successfully used this strategy and earned massive profits. Proper structural repairs, good plumbing and a coat of paint can do wonders to the appearance of a house. Buying property in developing areas and holding it over a period of time to allow the price to appreciate is also one strategy that can be adopted. The property in question can be either a building or just vacant land.

One of the preferred methods of investing in real estate is flipping houses. This requires low-price property which you can renovate and then sell it for a higher price. But you have to take care that the property doesn’t need extensive structural repairs. The strategy of buying houses, renovating them and selling them afterwards is known as flipping houses. Usually it involves house wiring, water pipes, and gardening.

1. Will have to be paid 7% ITP. The assignee party will have 30 working days to pay this tax in the Bank and registry the contract in the Oficina Liquidadora at the Land Registry Office.
2. Assigned party which normally is a promoter/Builder will have to be informed about this change of purchaser. Will have to receive correctly the contract and the Taxes paid (copy). This is recommendable to do it through a reliable way in order to be irrefutable the notification.

The recent BIG TIME real estate scandal in Marbella (read more: http://news.bbc.co.uk/2/hi/europe/4864566.stm ), where bribes seemed to be the norm and construction activity didn’t care much about legislation on what soil should have which destination (http://www.buypropertyspain.info/spanish_property_guide/land_sale.aspx). The result is that houses have been build on agricultural land and even on land destined to be natural preservation parks. Considering the risk that houses will need to be torn down, absolute caution is recommended.

Buying a costa blanca villa still very popular with foreigners. At the same time, with all the stories about what can go wrong, it is recommendable to do some reading first. The information provided in www.PropertiesCostaBlanca.org is a must read =for free= for all those that consider buying a villa at the Costa Blanca”.

Investing a small amount of money, you could also consider to buy the book: “You and the Law in Spain” by David Searl, one of the most popular books on the subject (now in its 12th edition).

The increased aging of the Northern European population has led to a constant demand for “a place in the sun”. Where an apartment in London of 100 square meters would costs you 425.000 euros, 3 bedroom villas in Spain can still be obtained for 200.000 euros. Not surprisingly many brits either emigrate or take a mortgage on their house in the Uk, to finance their second home in Spain.

The real estate business in Spain (traditionally one of the engines of the Spanish economy) is slowing down a little (15% growth in 2004, against 10% in 2005) although growth for this industry is still bigger than the growth of the Spanish gross domestic production (3,7%).

During the last decade, the prices Spanish real estate prices have sky-rocketed. Between 1987 and 2004, prices have increased with 400%. In 2005 prices went up 10% and now in 2006 7,9%. Of course, this increase still beats inflation (now standing at 4.2%)

So, whilst there are enough places under the sun left in Spain, one DOES need to make sure to get professional advice prior to signing any real estate purchase.

Costa Blanca Villa: Spanish luxury villa for sale in Costa Blanca

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