Buying a property in Marbella Spain is both exciting and a little daunting. Whether you are searching for the perfect apartment, penthouse or maybe looking for luxury villas for sale in Marbella, the realization that you could shortly be sipping Sangrias on your very own sundrenched balcony or terrace, is a thrilling prospect.
However, finding your dream home in an idyllic location is only half of the story, purchasing a property in Spain (or indeed anywhere is the world), is also a big financial commitment. To make the process run as smoothly as possible and to ensure legal compliance, there are rules that must be followed.
Even though it is not possible to pre-empt every problem, with market research, proper planning and professional help from your real estate agent and lawyer, you will be better equipped to make the right decisions should problems occur.
1. Budget – don’t forget to factor in associated buying costs
The first step to buying anything is setting a realistic budget. It is crucial to understand that when assessing the cost of buying real estate on the Costa del Sol, you need to factor in a range of associated costs. The final costs will include the price of the property, lawyers’ fees, land registry fees, title deeds, Notary, transfer tax, real estate agent’s fees and property tax which is calculate as a percentage of the purchase price.
The additional costs of depend upon the location and the level of taxation, the price of the property, whether it is a resale or new development etc. To be on the safe side, you should allow additional buying costs of up to 20 per cent of the purchase price. This means that you should take care, when providing your real estate agent with your final budget, ensuring you have allocated enough to cover the associated fees.
2. Don’t be dazzled – make a plan and stick to it
We’ve all experienced buyers’ remorse, after being dazzled by a design or discount, resulting in an expensive and unsuitable purchase. Buying a new home in Spain, requires a carefully considered plan which will take into account your family’s needs and requirements, prioritising them above personal preferences and first impressions.
Your heart might tell you to buy property in Puerto Banús, but your head is telling you to look for a more affordable and family-friendly townhouse in Nueva Andalucia, whilst still being close to the beach.
Take your time, don’t be rushed in to buying a home that is completely off-brief, off-budget and unsuitable for your need. Carefully consider how the property could work for you and your family and ask for advice from your real estate agent, to ensure you make the right decision.
3. Find the right location – research, research and more research
Whether you want to buy an apartment in Puerto Banús or a villa in Marbella, be it a holiday home, an investment property or you are relocating, buying a home is a huge commitment.
Knowledge of the current selling prices is an advantage when it comes to the final negotiations, but it is also crucial when considering the right location. A villa in Marbella on the beachfront maybe an enticing idea, but if you time the time to research the market (or ask your agent) to compare prices of comparable properties in different locations, you may find that if you trade the beachfront location, you could have a much larger house for the same price.
If you are unfamiliar with the area and property market, there is a risk of spending more than you need to and not getting as much value for your money. Although owning beachfront property in Marbella is the idyll, there is much more to be considered. You may need access to transport links, schools or medical facilities, gyms, Spa, sports etc. but don’t worry, all of this information is available…it just need a little research.
4. Spanish lawyer – up to date on local and national laws
When you are buying a property in Spain, you will need to contract a Spanish lawyer who speaks your language and is familiar with the latest property laws within your chosen region. An experienced lawyer will guide you through the entire purchasing process, making sure it runs as smoothly as possible. Your lawyer will explain the contracts to make sure you understand what you are signing to prevent any disputes in the future.
If required, your lawyer can also help with obtaining an NIE number (the Spanish fiscal identification number), that is required in order to carry out any financial transactions, including buying a house, opening a Spanish bank account and connecting to utilities.
It is also your lawyer’s job to undertake extensive due diligence to make sure everything is in order, with regards to legal ownership, check if there is a Nota Simple, the boundaries, whether it is illegally built, planning permission is in place for any extensions and make sure there are no debts or liens against the property.
5. Physical inspection – get the big picture in person
Browsing a property online is a great start when searching for the perfect beachfront property for sale in Mijas Costa or Marbella, but this should only be the first step. An experienced real estate agent like Marbella Beachfront, always strongly recommend a viewing trip so that you can physically inspect the properties you are interested in.
A personal visit allows you to get a feel for the location, amenities, development and the other properties, and of course to see the property in detail. To make sure everything is in order you can also ask your lawyer to recommend a professional to accompany you (and your agent) to inspect the property, to make sure there are no red flags, or repairs that were not initially apparent.
6. Choose the right real estate agent
There are many potential pitfalls in the road when searching for a beachfront property in Marbella, but the good news is that they can be avoided by using an experienced real estate agent in Spain who is familiar with the market. Obviously, you need to trust and have a rapport with your agent, so you will need to share a common language, to listen and provide advice. They should have a demonstrable track record of helping clients purchase property within the area and up to the minute market knowledge and negotiating skills that will help you get the best value for your money. It is not advisable to work with the seller’s agent, as this will create a clear conflict of interest.
7. Don’t forget to factor in long-term costs
As mentioned earlier, setting a budget and proper planning is essential in order get the property you want, within the budget you can afford. Next you’ll need to consider the long-term costs involved in Spanish property ownership, mainly community fees, utilities and annual taxes, and establish what you can comfortably afford in the long-term.
When you buy a property in a Spanish urbanization, you will be responsible for monthly or annual community fees. These will include the upkeep of any grounds / gardens, swimming pools, gyms, Spa, administration office and staff. Sometimes water is included in the fees, but not always. Essentially, the more facilities available to the homeowner, the higher the community fees.
Similarly, if you are buying an investment property, you may need to pay an agent for keyholding and to manage rentals, maintenance and cleaning etc. If renting a villa in Marbella to tourists, you will need to comply with all regulations in order to ascertain a tourist licence.
Your real estate agent will be able to provide details of the community fees, so you can make an informed decision and your lawyer can check the terms and conditions of the community statutes to make sure there are no hidden costs.
8. Be aware of Mortgage Loan to Value Ratios
Once you have established you budget and you have a firm plan of how to proceed, the final step is to get your finances in order. You need to be aware that there are limits to the amount of money you can borrow, mortgage lenders can only provide up to a certain percentage of the price. It is possible to source a mortgage from a Spanish mortgage broker or via Spanish banks, which offer a maximum loan-to-value ratio of 80 percent of the property value to Spanish nationals and between 60-70 percent to international clients.
If you are ready to make Marbella your home, contact Marbella Beachfront today and let us help you find your perfect beachfront property in Marbella, Check out our website www.marbellabeachfront.com or get in touch Call, WhatsApp or email.
