What
Once you have checked out 1-10 of our tips you will be able to work out how much equity you can comfortably raise and you will know your budget.
Rental potential: Bigger is better the more bedrooms the more income. A 1 bed apartment probably has 1000s of competitors in the rental market where as a 5 bed villa with pool wont have much competition and will earn a lot more every week.
Cost: Once you have investigated all 10 ways to buy 4 nothing pick one that you are comfortable with and stick to a property in the budget it generates. If you feel you can put a little extra in each month and your job is secure increase the budget. When you think you have found the ideal property compare it with other similar property to make sure you aren't paying over the odds (this is another reason for us).
We are going to be telling you that by renting out your property each week it will cover your mortgage so pick somewhere that's easy to rent out that appeals to everyone not just a minority.
Financing the property: Most buyers of foreign property put a minimum of 10% deposit on a property. But beware many countries have much higher purchase tax (stamp duty) than the UK. Don’t get caught out with a shortfall after you have bought when the taxes are due.
In many countries the costs involved can be 10% extra (even more in some). Foreign valuers have peculiar systems to work out the value (in many cases a property will be valued by the banks at more than the property is for sale for ) which means that its possible to buy with out a deposit
Contact us for help in obtaining a local mortgage and a rough guide to extra costs.
Buying costs: round trip costs
These can be:
- Estate agency fees (most countries are included in the price but some aren’t) this tends to be paid by the vendor
- Notary Fees
- Purchase tax on the house (in some countries you are exempt from the tax if you buy the house as a company locally)
- Lawyers charges
- Search fees
- Mortgage arrangement fee (added to the mortgage by some lenders)
- Furniture
A lot of homes can be bought fully furnished (apart from the owners personal possessions). If you do not buy furnished remember to allow for equipping your new home. Investigate the cost of moving furniture from the UK by container if necessary or buy locally.
Do not forget when searching on google.co.uk say for "spanish houses for sale", go to www.google.es and search the same, find the words in spanish for houses and for sale: casas se vende, you will find lots more sites aimed at the spanish people where the prices are always cheaper in spanish areas. The pictures and prices are the same in any language you might meed to use a currency converter but that is all.
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