Moving to Spain - Is it Dangerous to Buy Property in Spain?

Almost everyone is now aware of Spain's reputation as somewhere that is hazardous in which to buy property. Indeed, virtually every week a headline appears in the international press highlighting yet another scandal concerning Spanish property. Again and again, stories describe the plight of people who have bought property in Spain only to find, to their horror, that their properties have potentially ruinous problems. Some of these properties are not fully legal or subject to considerable liabilities, whilst others risk the compulsory loss of part of their land or, worst of all - a possible demolition order. It is enough to make anyone thinking of moving to Spain change their mind.

So, is it really dangerous to buy property in Spain?

Well, the honest answer to this question is a qualified - no. No, if you know what you are doing and no - if you are exceptionally careful and know the 'rules of the game'.

The trouble is that most people who buy property in Spain do so carelessly whilst naively imagining that the Spanish property industry operates much the same way as in the UK. It does not. Not at all! In fact, understanding this point, in its most raw and brutal form, is essential if you are to buy a property in Spain that is a safe and sound buy - both from the point of view of legality and investment.

Of course, if you are moving to Spain permanently and intend buying a property in Spain then the stakes could not be higher. Indeed, if you make an error it may be one that will cost you your life savings, turn a dream into a nightmare and risk everything that you have worked hard for over many long years. All of which is unnecessary - if you have the right knowledge.

After seven years in Spain (including working extensively within real estate), I think I have seen, one way or another, most of the problems and scams relating to Spanish property. Unfortunately, half the property problems in Spain are caused by the very nature of the Spanish property industry and half by property buyers themselves - who are frequently taken advantage of and act like 'lambs to the slaughter'.

Of course, there are guidelines to buying Spanish property safely. Some of the most important are:

1. Know the difference between 'Urbanizado', 'Fully Urbanizado' and 'Rural'. To understand these absolutely critical Spanish property terms is not 'rocket science' - but is so fundamental that you should not even be looking at property in Spain before you know what they mean and their very serious and differing implications.

2. Every Spanish property should have a Licencia de Primera Ocupación or First Occupancy Permit (sometimes known as a 'Certificado de Habitacion' or 'Cedula'). If it does not have one - do not buy it.

3. Only buy a property that is easily re-saleable - so be prepared to compromise on what you want if it means buying a re-saleable property. Obviously(!), know (objectively) what is or is not re-saleable. Guidelines are available and they are very important...

4. Never confuse a 'bargain' price with a sound buy. The two are not necessarily the same thing! This is as true of a property crash as it is of a boom.

5. Never accept the very existence of a property in Spain as evidence of its legality - even if it has been around for a long time. The property may still be illegal, semi-legal or have huge potential liabilities.

6. Be extremely wary of buying any Spanish property that is situated within less than at least 100 metres of the highest point that could be reached by the sea in a major storm.

7. Always use a Spanish lawyer for your conveyancing who:

a. Is completely independent of the seller and any estate agent.
b. A specialist in conveyancing.
c. Completely fluent in your language.
d. Fully and properly insured.
e. Is prepared (and does!!) place all advice in writing to you.

8. Always use a properly qualified, fully insured, experienced building surveyor to survey your property - even if this means using an ex-pat surveyor. (Good Spanish surveyors specialising in house survey work are very hard to find).

9. Never pay any 'black' money for a Spanish property - i.e. cash that is not shown on the Escritura (deeds) as part of the total property purchase price.

10. Never be pressured, never rush and always double check what you are told - and obtain written proof if you have the slightest doubt about the truth of some matter.

Follow the above and you will be well on your way to buying a sound property in Spain. Break the 'rules' and act without the right knowledge and you will almost certainly regret it!

Finally, I must stress that you can move to Spain and buy property in Spain safely. We did - and our property has been a sound choice on all levels. Even now, in the midst of a massive property crash, it is easily re-saleable and has preserved the essence of its value. But then we knew what we were doing and that moving to Spain to buy a property was an undertaking requiring serious preparation and planning - if it was not to end in disaster...

What to Consider When Investing Or Buying Property Overseas

Many people just 'fall' into buying property abroad. Either they go to a show and like the look of the fancy developer photos and get sucked in by the patter of the clever salesmen (usually ex time share sales people!) or they go on holiday, meet someone in a bar, get invited to a 'free' event and with little due diligence hand over tens of thousands of pounds. Don't let this happen to YOU!

Before you buy or invest in a holiday type home, firstly make sure it is what you want. A £100,000 goes a long way to hiring a holiday home over the next 30 years, without the hassle of dealing with currency fluctuations, managing property from a distance, maintenance costs and complicated tax laws. Many people who buy a holiday home rarely make money, the best case to expect is to break even on your investment.

So before you hand over any cheques:-

1. Make sure your purchase delivers what you want. Cheap holidays abroad or if investing, what you want from it. If it's income - how much? If it's capital growth - how much and by when?

2. Don't be fooled by marketing brochures. They will only give you the 'good news'. What they won't tell you is what else will be built in front or behind your property, nor will they declare the finances of all the companies involved and whether they are about to go bust!

3. Just because an area has increased in price today, doesn't mean it will by the time you come to sell. Think of those who have invested on the coast in Bulgaria. Many can't even sell for half the price they bought them for!

4. Ensure the prices you are being charged are the same as a local would pay. Many places (Cape Verde for example) were hailed as the next 'Caribbean'. Properties were therefore already being sold at similar levels to ones you could buy property in the Caribbean for!

5. Don't buying anything overseas until you have visited the country, secured independent valuations from people NOT connected to the company you are looking to buy from.

6. Work out your costs from start to finish. What are the purchase fees? What will it cost you sell it? What tax will you pay? Are there different inheritance laws? What are the predictions from foreign currency experts on the exchange rate versus £ now and in the future? If you don't have time to work these out or don't know how, ask a professional or don't buy!

7. Make sure you have two solicitors - a local solicitor AND an international solicitor. That's how the professional investors buy, because they know it's a false economy not to.

8. If buying the property requires you to use the developer's legal and/or finance company run away as fast as you can, as it suggests a lack of transparency and makes it easier for disreputable companies to fleece you blind. You HAVE been warned!

9. Weigh up the risk of investing abroad versus investing at home. Force yourself to write down the pros and cons of investing abroad/the country you are looking at.

10. Make sure you work with currency specialist, never buy through your bank, it'll cost you a fortune!

Finally you need to be aware you avoid all the mistakes other investors overseas have made who have lost money in the likes of Bulgaria, Spain and many other countries, for example:-

Spain, key issues included

• People buying properties 'overlooking' the sea, then new ones were built in front and obscured the view.


• Builders took people's money and went bust - taking deposits with them.


• Properties were built on land without the proper authority and the buyers weren't given the right paperwork to make the property legal.


• People bought properties off plan in areas that were then flooded with competing properties built at the same time or coming onto the market cheaper.


• Those that wanted to sell after five or more years found the market was too competitive and the new builds brought their property's price down.

Bulgaria, key issues included

• From a coastal perspective, too many properties were built to cope with demand.


• It was often cheaper to stay in a hotel locally than to rent an apartment.


• No local demand, only overseas.

Cape Verdi, key issues included

• Island sold as 'the next Caribbean' but properties were sold at built in 'Caribbean prices' for example £60,000 for a one bed coastal flat which would buy you a three bed locals house in a village. In St Lucia, 5-10 minute drive from the coast would buy you a three bed property in a good area that could also be rented to locals or people on long holidays/working away.

Finding Property Investments

There are many property investment services in New Zealand that can help investors in finding the right property investments. They usually provide assistance in owning and buying investment properties such as Legal matters, Finance, Banking, Accounting and Property Management services.

Attaining wealth, security and financial freedom is commonly an investor's ultimate goal because millionaires can be in that situation by investing in real-estate. This ultimate can be made possible through the help of these services.

New Zealand property is very popular for their great property investments. They have attractive investment opportunities that can be enjoyed by investors, such as low battery to entry, highly favorable exchange rates and tax system. As New Zealand's population continues to increase, major cities will provide more excellent environment for increasing property value.

As the economy of New Zealand enjoys their long periods of growth and development in history, the investment property market has also attained new benchmarks during the last five years. With a range of available properties that can be invested, from office spaces to retail properties, there is truly a big opportunity to gain profit in New Zealand.

Finding investment property in New Zealand is great because it is more profitable than any other countries and its government does not force a lot of taxes to an investor. Additionally, an investor has the right to choose or claim a larger percentage of a property's depreciation in the first few years. Thus, you can really gain profit on you investment earlier.

New Zealand also has no capital gains tax; this means that once a property has been sold, the money remains with the investor. However, this condition will be carefully assessed and may be subject to tax laws.

A lot of investors would prefer New Zealand as a place where they can probably find a good profitable property investment. New Zealand is a safe place, has a high standard of living, good economy, and a place where people can easily adjust.

The good news is that property prices in New Zealand are decreasing in a sharp rate so lucky for those people who are finding property investment in New Zealand

Free Foreclosure Lists - Best Way to Find Properties

Great deals are available in almost every city today because of the economic downturn. Up to 5% of homes across the nation are in default. Over a million properties are subject to pending public auctions. With this glut of homes available, finding dozens of great prospects is easier today than during anytime in U.S. history. Finding these properties does require investigation, evaluation, and a sharp eye to identify great deals.

Free foreclosure listings are available, without obligation or risk, from the best research firms in the country. Do not waste time on incomplete or out of date lists. The best lists contain all information needed to preview, qualify, and select great prospects almost instantly. These lists are available, without cost, because all reputable firms know that you must feel comfortable with their products before purchasing. They offer free trial offers for up to a week.

When you sign up for a free trial offer, you will gain access to a wide assortment of data for each foreclosure listings source. You may search each source by any criteria you choose. You can eliminate poor quality homes quickly. This necessity is easy using provided search functions. Search options include net value estimates, tax valuations, outstanding liens and total lien balances. You may mix and match your searches similar to sorting popular spreadsheets.

The best way to find properties is to limit your searches to a local area. In this way, when you find your first dozen interesting prospects, you can drive by for a curbside inspection. Many databases include photographs. As useful as photographs are, they cannot reveal all details you will notice in a physical inspection. You may want to talk to surrounding neighbors, and perhaps discover why the home is in foreclosure.

Try several different services and databases before subscribing. The best list is the one that produces bidding opportunities efficiently. Your time is valuable. Use it wisely, and you may be bidding in a few days, free of all cost and obligation.

Foreclosure Listings For Free - Easy Way to Find Properties That Are Too Good to Pass Up

Finding a foreclosed property doesn't have to be as hard you might think. There are reputable ways that anybody can find foreclosed properties in their area and save a ton of money in the process. If you're thinking about investing in a property that is in foreclosure but just don't know how to go about it, there are some great methods to try out.

One of the best resources is online. Tons of websites and companies offer up to the hour foreclosure listing all over the country. These services will usually charge you by the month, but almost all of them offer a trial session for a couple of dollars. Join the service for the trial session and do all of your research before the trial is up. Once you have a couple of properties that perfect for you, cancel the membership. Most people will get it in their heads that they're missing out on something. The fact of the matter is that you might be, but you have some great listings for free or next to nothing.

Another way to get free listings of homes or property in foreclosure is through the city's public records office. Notices of foreclosures are a matter of public record. This means that anybody can sift through the records department and get the information they need. Search for the Notice Of Default when you are looking through these records and you will definitely find what you need.

One of the best resources that you can have in finding properties that are in default is you local newspaper. As a matter of public notice, all properties going into foreclosure must be published in the newspaper as a Notice Of Sale.

If you're looking for a foreclosed home or property as an investment or a new home for your family, use these resources to gain the information that is crucial to getting there first. Time is the biggest factor when it comes to foreclosures; so don't let it affect a future purchase. Check out the public records offices every week to see if there are new notices or check your local newspaper to get properties in the default phase. If you would like to have the most up to date listings, invest in a foreclosure listings website or join for the trail period. With any of these methods, you're sure to find the home or property you need.

By the way, by researching and comparing the best free foreclosure listings services in the market, you will be able to determine the one that meets your specific requirements, plus the free or cheaper options.

Real Estate Agents Can Assist Finding Property Records

if you are searching for property records you can call a title company, as these types of companies usually issue you with free property profiles. You can obtain certified copies of the mortgages and deeds. Some of these companies will extend their search in order to find out if the seller has any judgments against their name.

Unfortunately if the seller has a common last name, you may not be able to obtain the information needed, and won't be able to define which one of the names is the seller. Real estate agents come in useful, as these agents are able to locate and obtain far more information. Many of these Estate agents subscribe to agencies that provide them with property search data in different formats.

If you have chosen to go through an Estate agent, ask them to give you a full history on the property in question. You can find out whether a property has been withdrawn from the market as well as if it has been relisted. Always check to see if the agents you are dealing with are not the same agents that sold the property in the first instance to the seller, and are now representing the seller once again.

The Estate agent can find out how long the said property has been on the market, as this affects the pricing. By looking up the property records you can determine the original sale price and determine if the price was reduced or if the property has fallen out of escrow. You can also check to see whether the seller switched agents or cancelled the listing.

Online property databases allow you to download deeds as well as search for sales and mortgage histories of any property which dates back as far as twenty years or more. You can also obtain quitclaim deeds as well as inter-spousal deeds from one spouse to another depicting a possible divorce. In addition many people searching for records subscribe to a tax record database that will disclose a complete set of records retained at the tax offices.

These property records can include the age of the property, the number of rooms, how many garages and virtually everything there is to know about the property can be obtained. If there is a discrepancy in the square footage, there could have been home improvements done without a permit. If you are a buyer you can obtain verification at the city planning department.

Find Property to Rent - 15 Ways for Tenants to Spot a Fake Landlord!

Recent news reports of unscrupulous people taking over someone's home and renting it out to either one or more tenants means that if you are a homeowner, a landlord or a tenant, you need to take precautions to avoid being scammed!

If you are a prospective tenant hunting for a property, then it's vital to follow our top 15 ways to spot a fake landlord BEFORE you hand over any money!

To avoid having to ask these questions altogether, only rent from an ARLA or NALS registered letting agent that is also ideally a member of The Property Ombudsman Scheme. They are responsible for agents that have joined their organisations to abide by strict codes of conduct and this means that they are more likely to ensure a property is let legally, including ensuring the landlord owns the property and has, if required, the lender's permission to rent it.

Avoid a Fake Landlord BEFORE you view a property:-

1. Check where the advert is from. If it's from sites where landlord's can advertise for free, or for less than 50, find out how the website vets the properties and landlords. If they do NO vetting be very cautious!

2. Ask for the landlord's full name and address and ideally a land line phone number. Be suspicious if they don't give these details and only give an email address/mobile.

3. Ask if the landlord is a member of any accreditation schemes eg NLA, RLA and/or a local authority scheme, check they are members.

4. Confirm your appointment with them ideally on the land line number.

5. For a small fee (around 4) check on-line at Land Registry that the landlord does own the property. Download the Title Register details which says who owns the property.

How to SPOT a Fake Landlord when viewing a property:-

6. Ask the landlord if you can see the Energy Performance Certificate. This is a document that tells you how much your utility bills will be (very important!) and is a legal requirement for most rental properties (except properties that aren't let on a 'self contained basis', such as licensed HMOs and renting a room).

7. When looking around the home ask what's happened to the previous tenants and if you can have a reference from them.

8. Ask to see the existing gas and any electrical safety certificates. If the previous tenants have just moved out, then the certificates should still be in date, or if they are just out of date, confirm with the gas/electricity company that they did the work for your landlord.

9. Ask the landlord how much deposit they take, how it will be paid (eg cash/cheque/BACs) and which Tenancy Deposit Scheme it will be held in. It should be held in one of three schemes: My Deposits (custodial and safest scheme); Tenancy Dispute Service or My Deposits.

(These are insurance schemes, so if your landlord/agent goes bust, runs off with the money as long as you have evidence it was paid to them you can get your money back.)

Check on-line that they are a member of the scheme they say they are!

10. Ask for a copy of the contract that you will need to sign on move in day, so you can get it checked beforehand.

If the landlord can't supply all or any of the paperwork mentioned above - DO NOT RENT FROM THEM!

Avoid a Fake Landlord on Check in Day:-

1. Never hand over any cash or wire the money until you have received the keys.

2. Unless you are letting through a high street letting agent that is a member of NALS or ARLA (and the Property Ombudsman), don't hand over your deposit unless you have actually gained access to the property.

3. Make sure the landlord has done a full inventory. This is a document that lists all the things that are in the property and describes the quality of the decor. For example it might say 'stain on the living room carpet, near the fireplace' and ideally this statement would be backed up by a photograph. If there is no inventory, be very wary of renting the property without doing one yourself and taking lots of photos. If you don't when it comes to asking for your deposit back, there might be a dispute as the landlord might take money off for a new carpet in the living room because of a stain that was there before you moved in!

4. If there is no contract to sign and this contract has no mention of a tenancy deposit scheme where your deposit will be protected, do not sign! Check it with a specialist lettings legal company first.

5. Check that the gas and electrical safety certificates are real and up to date.

However much you 'fall in love' with a property, or however desperate you are to rent one, don't cut the corners described above. If you do try to rent too quickly, you might miss that the place is freezing cold, despite having all the radiators on, a fake landlord might put you under pressure to secure the property via a deposit.