Buyers Guide – Costa del Sol 2019.

Buyers Guide to securing a sound investment in Marbella & the Costa del Sol 2019.

If you’re looking for a holiday home on the Costa del Sol, now could not be a better time to buy. With interest rates still extremely low and an incredible selection of new contemporary developments to suit all budgets that have attractive payment plans of 30% over 2 years and 70% on completion the International buyers arrived in the thousands in 2018 to select the best units. In some cases we sold over 50% of our exclusive developments to our own investor data base before the official public launch. Click this link and fill out the form to be added to our mailing list for future new launches.

Most investors have a good idea of what they are looking for and for what purpose the property will serve. We have customers from far and wide looking for buy to let properties with some personal use thrown in for quality of life. Marbella has been a magnet for property investors for decades due to it’s incredible microclimate and growing infrastructure. Our job is to guide the clients to a sound investment, advising customers on properties in high demand areas with a good potential for return on investment and rental income. With over 25 years of experience in real estate on the Costa del Sol, our property specialists are experts in this field and always find a property solution for even the most discerning customer. Our team has their finger on the pulse and have firsthand knowledge of what our clients are looking for.

1. The first rule of thumb in our buyers guide is to select a long standing established agency with ample experience in the region.
2. Provide your agent with a clear outline of your buying preference so they can tailor make a property inspection tour to suit your needs
3. If you’re not sure of what type of property would make the safest investment, book an appointment with our property specialists who can guide you through the various options.
4. Understand the current real estate market in Marbella and the Costa del Sol. Click on the link to download a free up to date copy of a “ Historical growth chart for all of Spain”

Popular property searches now: Clients are still looking to Spain to buy property with a good ROI. This could be a new off-plan property or a re-sale that could be refurbished and resold for a profit. The Costa del Sol currently has a selection of new off-plan properties providing an enticing option for buyers who can wait between 6 months and 2 years for completion, depending on how the building process is developing. Many come onto the market at below market prices and offer attractive payment plans for ease of cash flow. This type of property is a good option to potentially resell at a profit or rent out as long term or holiday let so they provide an excellent property investment opportunity on the Costa del Sol. The luxury end of the market also seems to be thriving with brand new villas proving popular with international clients. Many of these villas come with excellent facilities, fabulous locations and great levels of privacy and can be customized if purchased early enough in the build process.

Investor types: We understand the different types of investors with an interest in real estate on the Costa del Sol. Our exclusive developments and resale properties generated over 11,000 individual property enquiries in 2018 alone. Our specialized team are familiar with working hard to source the ideal property for either an end user or an investment group looking for a project. Our success comes in matching buyers with property on the Costa del Sol.

Off plan versus resale property: We are often asked about whether off-plan or resale property is best. It depends entirely on an individual’s circumstances, wants and needs. Understanding our clients is what we do best so whether they are looking for a beachside property or one overlooking a marina, it may be that being walking distance to amenities takes precedence over that sea view. Looking to a main residence versus a holiday home also brings up differing considerations. We have some excellent properties at affordable prices and can match buyers to the selection that suits them best when looking for property in the Costa del Sol.

One of the main benefits is that you are buying at the current price. Experience has taught us that the price difference between buying off plan compared to buying a finished property is at least 30-35%. Some people find themselves priced out of the market if they wait until a project is completed before committing themselves. For many buyers the possibility of having to pay just a reasonably low deposit when committing and having staged payments according to construction progress enables them to get that dream Costa del Sol property which they may not be able to afford when making a one off payment. Buying off plan means they are able to secure a high value asset for a low initial capital outlay. Other advantages such as having your own input into things like the interior design, type of floor tiles, kitchens and bathrooms also make off plan attractive. When buying off plan the ‘First come, first served’ policy means you get the best choice of land plots, locations and views.

One of the major concerns for many people is that, when buying off plan, there is nothing to see. You are depending on the ‘Artist impressions’ and other marketing material that the developer has created in order to help you to decide that what you are going to buy is the right choice. However these days with refined technology most development’s renderings have been drawn up using a real time aerial image of the plot taken by a drone, we can also provide vantage point views fspecific units and in some cases 3-dimensional tours through specific unit types. The latest technology has grown the off plan market to new heights and these new contemporary properties are particularly popular with British, Dutch and Scandinavian buyers. Buying off plan has never been quite so real.

When you buy a resale property on the Costa del Sol it is already completed so you can actually see what you are buying therefore there is no risk of it not being what you expected. The surroundings are also completed and gardening is already in place and you know what your views are. In addition to the above, you get immediate benefit of your purchase by being able use the property immediately whether to live in the property yourself or by it being able to generate immediate rental returns.

The disadvantage is that you could pay a premium for a completed property as opposed to the discounted pre-construction price. You would need to obtain a mortgage to pay for the property if you do not have cash. However, we do have a collection of resale properties in high demand areas in and around Marbella and the Costa del Sol that have excellent potential to reform leading to a ROI. Some highly popular beachside resorts are full of older properties receiving full restoration projects and seemingly leading to highly profitable returns. Reports from 2018 show that newly completed contemporary apartments and villas are currently popular with British, Scandinavian and Dutch clients and yet scarce in the current market making demand exceed supply. To receive a list of Villas and apartments suitable for restoration, please enquire on this link.

It is all about speculating carefully and taking into consideration all the elements which might affect your investment in the future. The more you do so the greater the chances are of you making the right decision. Buying off plan is a good idea with clear benefits but you have to be careful where you are buying and who you are buying from. As mentioned above, this is where the assistance of a reputable agent is vital.

Legal advice regarding Brexit: This a super-hot topic right now whether it is a deal or no deal Brexit, yet anyone who is looking to buy property in Spain needs to know that for over 10 years we have been selling property on the
Costa del Sol to non-EU nationals without a hitch, and we will continue to do so. Keep abreast of what is going on and take any advice that you need. We will be updating our website blog page continuously throughout the brexit process. We have a team of lawyers willing to provide any legal information required prior to searching for a property. To have a lawyer contact you with legal advice on buying a property on the Costa del sol, please enquire here by clicking on the bold text.

Due diligence: Once the deposit has been paid on a property, also known as the reservation fee, we will notify the vendors lawyer of our clients legal representation who will request from them the necessary documentation in order to carry out the appropriate due diligence in which they will verify all relevant aspects related to the property.

This due diligence work could take a few weeks and always takes place between the reservation deposit and the signing of the private purchase contract.

The due diligence works are different depending on the property purchase: New build or Resale. Here are the main points that will be checked by your lawyer:

• Legal due diligence checklist for a Resale property in Spain
• The legal identity of the owner/the seller of the property you intend to buy
• The land registry extract with boundaries and square metres of your land.
• Check if details match: ownership, features of the property,…
• Is there a mortgage or a debt linked to the property?
• Any legal proceeding linked to the building?
• Check that the property has been granted the corresponding municipal building permit and habitation license by the Town Hall in question, and respects local urban planning rules.
• The license “Cedula de habitabilidad” (or “Licencia de ocupación”) provided by the town hall
• That the property is free from charges
• All utility invoices paid by the previous owner
• All community charges paid by the previous owner
• All previous annual real estate taxes paid by the previous owner
• Get the energy efficiency certificate from the previous owner
• Check the history of ownership of the property

Buying costs 2019: The buying costs in Spain vary from 10% to 13.5% of the purchase price, broken down as follows:

• 10% IVA (VAT) on NEW properties, 8% to 10% IVA (VAT) on re-sales depending on price category
• 1% Notary fee ( Notarization of property cost)
• 1% Legal fees ( a fee charged by your selected lawyer to conduct the * Due diligence
• 1.5% Stamp Duty Tax ( A tax charged to make all documents legally effective)
• If you should require a mortgage, you should calculate an average of 1- 1.5% cost for the set up fee of a mortgage with a local Spanish bank

For further assistance on buying a property in Spain please contact us directly.