Buying off-plan
Due to its high returns, this is the form of property investment currently preferred by the majority of investors. Buying off-plan entails putting down a deposit (usually between 25-40% of the purchasing price) on an apartment, townhouse or a villa in a carefully selected and sought-after new development , at the early stages of construction, and then selling on at an optimum time before the property in question is completed. Returns in excess of between 70-80%% have been realised with this method.

Nowadays the majority of developers have no objection to your selling the property prior to completion, i.e. assigning the rights and obligations under the contract of sale to a third party, thereby recovering any moneys you may have paid to date, including VAT, plus any potential profit you are likely to make upon assigning the contract (re-selling).

When purchasing a newly built home, the lawyer will make enquiries regarding the planning situation of the property, to ensure that the developer has obtained proper planning permission and a building permit in compliance with building regulations.

Resale investments
Bought primarily as a holiday home or full time residence, resale properties (homes that are already built) are becoming increasingly interesting, given the shortage of land in prime locations. If resales have been performing well in the past, they are expected to do even better in the future. A year-round season, with beach visitors in the summer and golfers in the winter, produces excellent rental yields.

Evidently, our first advice is to employ a solicitor who specialises in drawing conveyances, with extensive experience and knowledge of all the legal and fiscal aspects of property transactions in Spain. Your decision to employ a lawyer will provide you with peace of mind and save you considerable expense in the long run.

Once a lawyer has been chosen we will, along with the lawyer, guide you through the pre-contract enquiries and searches. In broad outline these enquiries and searches would include the following;

1. An enquiry at the Land Registry to ensure that the person or company selling you the property is the legitimate owner and is entitled to sell the property. A land charges search must also be made to reveal and adverse entries and ensure that the property is free of charges and encumbrances.


2.
Furthermore, enquiries must be made at the appropriate local authority departments (urban district council offices) to check that taxes and rates have been paid. (Residential Property Tax, which is similar to Council Tax, and refuse collection charges).

3. When purchasing a property from a previous owner, the lawyer shall ensure the vendor is up to date in payment of condominium charges (service charges for maintenance of the building or development), electricity, water, telephone bills etc.

 

 

 
 


“Over the past few years, property investments on the Costa del Sol have been well outperforming the stock markets”



Recent studies, based on mortgage inquiries, indicate that as many as 800,000 people are planning to buy a property on the Costa del Sol over the next four years.



 
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