Popular Mistakes When Buying Real Estate in Spain

Do you dream of clear blue skies, warm sunshine, and endless white sand beaches? Frankly speaking, who wouldn't want to escape from the cold and sometimes hostile climate and bathe in the sea almost all year round?

But Spain has much more to offer than the sun and sea: interesting history, culture, gastronomy, and the company of friendly people. Foreign investors who choose to buy a villa in Calpe are often followed by the above-mentioned allurements.

But in pursuit of profitable real estate in convenient locations, they make certain mistakes. Let`s have a look at the most popular mistakes made by potential homeowners in Calpe.

The Desire to Buy Property in Calpe on The Seafront

No doubt, real estate on the seafront has its advantages as well as disadvantages. Among the most vivid benefits we can highlight the following:

• a beautiful view from the windows;
• the perfect option to rent out during the hot season;
• proximity to the beach.

However, the picture is not so bright if we consider the drawbacks:

• if it's cold, strong sea winds with sand and salt spray are possible;
• in winter it is not always comfortable to live in it;
• crowds of tourists in the hot season.

Therefore, in Calpe, it is much better to buy a property, let alone a few kilometres from the sea, but certainly with a beautiful view from the window and a pool, which you can dive into in any weather. The proximity of housing to the beach in Calpe has never been in the first place. Rather, proximity to parkland, where in the shade of trees you can escape the heat, is considered prestigious.

Striving To Buy Unreasonable Large Housing

The purchasing of real estate in Spain must be performed due to some reason. The reason will determine the necessary characteristics of a villa or an apartment. If you have a desire to buy rental property to get passive income, purchasing an unreasonably large option is not rational.

As a rule, tenants prefer to live in a quite comfortable apartment with 3 rooms and a common living room in an area of 50-60 square meters. If you buy a villa for a permanent stay, remember that a huge property requires bigger maintenance and utility payments.

Therefore, before you buy property in Spain, be sure to clearly define what you intend to do with it in the future.

The real estate market in Calpe provides multiple outstanding offers to foreign buyers with different aims. A major aggregator Spain-Real.Estate represents an exclusive collection of real estate to any taste and need. Apartments and villas from trusted developers in sunny Calpe will become a responsible investment for any buyer.  

The Desire to Take a Mortgage for The Minimum Term

If you have decided to purchase a property in Spain with a mortgage, it is better to take it for the maximum possible term.

As a rule, the best term is until the age of 65 of the borrower. The explanation is quite simple. The longer the term, the lower the monthly payments and the annual bank interest of 3.9-4.5% is not as significant for foreigners compared to those in their home country.

Finally, any mortgage in Spain can be terminated prematurely, paying a penalty of 1% of the remaining principal amount. Plus the notarization of early termination of a mortgage pregnancy costs about €1000.

Buying Real Estate Solely for The Sake of a Residence Permit

The residence permit in Calpe will be granted if the object is worth at least €500,000. In Spain, it is much easier to get a residence permit on other grounds than the purchase of housing. And, by the way, it is much easier to do than in most EU countries.

For example, if you can prove that you have a fixed annual income, independent of your stay in Spain, you can safely get a residence permit without the right to work. Keep in mind that getting a residence permit is only a tiny advantage from the whole pack of what the area can offer.

Aspiration To Buy Real Estate in Calpe Without Realtors

Some buyers are trying to buy real estate in Spain without intermediaries, not attracting realtors to the process of the sale. The desire to save on the transaction of 2-3%, at times, is so great that they forget about basic safety.

Here is a list of possible issues that may appear in the process of a deal:

• lack of information on how to get an NIE (foreigner identification number);
• difficulties in opening a bank account;
• inadequate terms of the preliminary contract;
• obligatory negotiating with the bank to remove the mortgage from the purchased property or transfer it to the new owner;
• checking the transfer of utility bills to the new owner or the bank statement.

A buyer should understand that real estate agents offer their help not only to make money but to provide qualified help. This is their job. Trusted real estate agencies have years of experience and know all the hidden issues and successful ways of dealing with them. Do not try to save money on these specialists. Evidence shows that otherwise, you will have to pay twice.

Real estate in Spain continues to occupy a leading position in the list of the most popular investment destinations. Purchase and sale of residential and commercial real estate as well as long-term and short-term rentals are in steady demand among Spanish and foreign investors.

It is worth noting that today the purchasing of real estate in Spain is considered one of the most profitable options for long-term investment of free assets that can bring profits from the rental due to the price increase after the end of the economic crisis.

When buying real estate in Spain, several common mistakes can impact both local and international buyers, from close-to-home London to far-flung countries such as Brazil. One significant oversight is neglecting to conduct thorough due diligence on the property's legal status and potential liabilities, which can lead to unexpected legal disputes or financial burdens.

Additionally, overlooking the importance of pest control inspections, especially in Mediterranean climates like Spain's, can result in costly treatments for issues like termites or rodents after the purchase.

International buyers may also underestimate the complexities of currency exchange rates and tax implications, which can affect the overall cost and feasibility of their investment. To avoid these pitfalls, it's crucial to work with reputable local agents and legal advisors who understand the nuances of the Spanish real estate market and can guide buyers through a smooth and informed purchasing process.

Before buying it is advisable to gather as much information as possible to get an in-depth understanding of the whole process of purchase.

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