|
1. Who
is the Almeria Coast Homes service aimed at?
2. Why should I
purchase an overseas property through Almeria Coast Homes? Why not
go direct to the agents?
3. How can your
service be free? Where's the catch?
4. Why use your
service, why not just search the Internet in my preferred country
to seek local estate agents?
5. What do you
mean by Partner?
6. Can I arrange
an inspection trip to view property?
7. Do you arrange
mortgages?
8. Can I have a
brochure?
9. I am looking
to buy in a few years time; can you supply information on properties?
10. How do I go
about buying Spanish property?
11. If I am purchasing
a property from a developer, what happens if the developer disappears
or goes bankrupt before completion?
12. Does the buying
process differ if I decide to buy a resale property?
13. Should I buy
a new-build property, or something a little older?
14. I've been
hearing reports of buyers 'doubling their money' within a couple
of years by when investing in Spanish property in and around Marbella.
How can this be true when prices are rising at 20% per year?
15. How much should
I allow on top of the purchase price for costs/expenses?
16. I keep hearing
about 'Community Fees'. What are they?
17. Will my property
be freehold?
18. How long does
it take to transfer money to Spain and at what will be the cost.
 |
Q.
Who is the Almeria Coast Homes service aimed at?
A. If you:
- Have decided on the area you would like to purchase.
- Are in a position to proceed financially.
- If you want a service that takes away the time and inconvenience
of trying to source a reputable agent, without having to travel
around the many agents in a foreign country.
Visiting overseas estate agents can often be a frustrating and
stressful situation, we provide peace of mind and hassle free service
and offer a service acting as an intermediary and 'safety net'.
Many of our clients are restricted with free time and want to be
put in contact with reputable professionals.
Q. Why should
I purchase an overseas property through Almeria Coast Homes? Why
not go direct to the agents?
A. We can refer you to the best
and most reputable agents in your chosen area, agents with proven
track records and market leaders in the industry. We offer a FREE
service to progress your enquiry and ensure you get the best assistance
from our partners.
Q. How can your
service be free? Where's the catch?
A. There is no catch at all, our
service is completely free. The properties sold by our partners
remain at the standard market price. We are able to offer this service
as our partners pay our fees, in return we offer effective marketing
for them. We qualify both our partners and clients - our task is
to put serious purchasers in contact with the best agents.
Q. Why use your service,
why not just search the Internet in my preferred country to seek
local estate agents?
A. We are in Spain and we have
a good working relationship with our partners and checks to ensure
they provide a professional service have been implemented - not
all estate agents are what they make themselves out to be! Furthermore,
we continually check with all parties to ensure that your enquiry
is being handled correctly - many estate agents will simply send
out a brochure and then forget you. We ensure that our clients are
contacted and supplied with the information they require; this can
save you a great deal of time and effort!
Q. What do you
mean by Partner?
A. An Estate Agent, or Property Developer
that we have qualified and have a business relationship with. We
spend time to find companies within the overseas property business
with a professional approach and the necessary experience and/or
qualifications.
Q. Can I arrange
an inspection trip to view property?
A. We can arrange viewings and may
also help with flights, transfers, accommodation etc. We will provide
all the information you require.
Q. Do you arrange
mortgages?
A. We get the best mortgages and
finance. We are specialits.
Q. Can I have
a brochure?
A. We operate primarily an online
company, so this website is our brochure. However, once you have
been referred to our partners, they will be happy to provide details
of their services and available properties via email, telephone,
post or referring you to their dedicated website. We will check
regularly to ensure your are receiving all of the information you
require.
Q. I am looking
to buy in a few years time; can you supply information on properties?
A. Our service is aimed at people
who have or will be in a position to make a purchase in the very
near future. When in a position to do so, please do not hesitate
to contact us.
Q. How do I
go about buying Spanish property?
A. Firstly, consult a reputable agent
in the desired area. Most agents share a property portfolio, so
time can be saved by building a relationship with just one, rather
than several. When you find your dream property, a small deposit
(usually €6.000) is required by a developer to reserve the
property. A reservation document is drawn up which means that the
property is taken off the market, and the purchase price is fixed.
This reservation sum is fully refundable if the developers do not
have their paperwork in order. Also, if the developers fail to acquire
a building licence for the development, the funds paid will be returned.
Normally at this stage our clients are introduced to our lawyer
who will advise them on the entire purchasing process, in addition
to arranging for the transfer of the monies required for the signing
of the purchase contract.
Normally within 30 days, private purchase contracts are exchanged.
At this stage your legal representatives will be required to hand
over your first instalment of funds, usually anything from 20% to
50% of the purchase price.
During construction, some developers' payment terms require further
payments to be made. Again, our lawyer will advise when these instalments
are due.
On the day of completion, the balance of the purchase price is
paid, and you (or more commonly, our lawyer) will sign the title
deeds for the property, and the keys will be handed over.
Q. If I am purchasing
a property from a developer, what happens if the developer disappears
or goes bankrupt before completion?
A. This is now extremely rare, and the
government have actually tightened up the process in this area quite
considerably.
When signing private purchase contracts, the developer must now
produce evidence that he has in place a bank guarantee or an insurance
policy.
Following this, if the developer runs into difficulties, such as
bankruptcy, the purchaser's lawyer will arrange for the return of
all monies paid to date, plus interest at 6%.
Q. Does the
buying process differ if I decide to buy a resale property?
A. For resale properties, the process
is similar. A reservation deposit is required to formalise any offer
to purchase.
Normally within 30 days, a sum of 10% is usually required in order
to exchange contracts.
A completion date is then set to suit both the buyer and the vendor,
and the remaining balance is paid at the notary on completion.
Q. Should I
buy a new-build property, or something a little older?
A. This is really your decision.
However, there are pros and cons to both, and it is our job to try
to find the most suitable property for your personal lifestyle and/or
investment requirements.
For instance, if you require a property to be ready for use within
a very short space of time, obviously a resale property makes sense.
However, we would always advise to be careful to ensure that build
quality is acceptable, and that the vendor is not going to make
the sale problematic.
Most of our investors prefer to buy new or nearly new properties.
To secure properties on some of the coast's top developments, clients
need to reserve off-plan and wait for 12-24 months for delivery.
This ensures that they can secure exactly their preferred unit,
at the keenest prices.
Some of those clients then use the property as an investment vehicle,
rather than a simple holiday home in the sun.
Q. I've been
hearing reports of buyers 'doubling their money' within a couple
of years by when investing in some Spanish properties. How can this
be true when prices are rising at 20% per year?
A. Some clients decide to reserve units,
and then re-sell the properties prior to completion. So, in simple
terms, a client can 'buy' a property for €250,000 (approx £165,000)
secure payment terms of 30% on signing the purchase contract, followed
by the balance of 70% on completion, say in 2 years time.
So the client pays €75,000 (30%), and sits back, waiting for
the market to rise at its historical level of 20%.
When the time approaches to complete the purchase, the client is
'sitting on' a property worth €410,000 (assuming 20% growth
p.a.). It is possible to then sell the property to a second buyer
for the market value at that time. The 'new' buyer simply pays back
to our client the monies that have already been paid and arranges
to pay the 70% balance directly to the developer. Crucially, the
'new' buyer will also pay to our client the profit on the purchase
price of the property, in this case €160,000. Even with projected
growth of 10% per annum, this could still generate gross profit
for our client of €52,500 (a gross return of 70% on initial
investment). Buyers should bear in mind that there are some purchasing
and selling costs that are incurred. Personal illustrations can
be provided. There are also certain tax advantages to this scenario
which can be explained during personal consultation.
Q. How much
should I allow on top of the purchase price for costs/expenses?
A. As a rule of thumb, allow for
between 10% and 11% of the purchase price as costs. These are as
follows:
IVA (or transfer tax) 7%
Payable with each staged payment
Stamp Duty 1%
Payable on completion
Notary & Land Registry Fees, approx 2%
Payable on completion
Legal Fees 1%
Half payable at start, half payable on completion
Q. I keep hearing
about 'Community Fees'. What are they?
A. Community fees are payable to
the Community of Owners, usually by direct debit on a quarterly
basis.
They usually cover all costs relating to the external fabric and
upkeep of communal areas, e.g. pools, gardens, paths, staircases,
external painting, security etc. Exact budgets are discussed and
agreed at AGMs, chaired by an elected president. Attendance is not
compulsory, as votes can be registered by proxy.
Q. Will my property
be freehold?
A. Yes, all properties that we deal
with are freehold properties.
Q. How long
does it take to transfer money to Spain and at what will be the
cost.
A. The time it takes to move money
is in the hands of the banks both in the UK and Spain but will normally
take 2 – 3 days but can take up to 10 days in extreme situations.
The cost depends on who is sending the money but normally it will
cost £15 - £50 per transaction.
|
