They say patience is a virtue and in these strange times it is proving to be true!
Here at LCPSpain we are still receiving enquiries regarding properties to buy on the Costa Del Sol, but due to so many changing restrictions, buyers are unable to travel.
In many cases a buyer wants to get ‘The feeling’ in a property that it is the one for them. Totally understandable, unless of course you are buying as a rental property. In this case, you really just need the facts.
Is the location a good option for rental ?
Does the propety have, or can it get a Holiday Rental Licence ( VFT)?
What will it cost to get the property up and running ?
If you are not going to use the property so much yourself, does anything else really matter ? An investment purchase does not need to fill the emotional attachment that a buyer for a private property searches for. That elusive feeling!
So, for the sake of this exercise, we are going to presume that you are looking to buy a property on the Costa Del Sol as an investment. Emotionally or otherwise!
While the Covis pandemic has not killed the property market here on the Costa Del Sol, it has certainly slowed things down. Good news if you are not looking for ‘The Feeling’
Investors are taking advantage of buying now, while others wait for an emotional connection with the bricks and mortar. Prices may not be dropping quite as low, or as fast, as the media might have you believe, and Brexit has not dumped a glut of property on the FOR SALE pages. There are more nationalities than the British on the Costa Del Sol!
What is happening is that buyers, who want to buy for investment, are buying. Sellers who want to sell quickly are accepting a deal they may not have entertained when more buyers are on the ground.
Each case is different and sellers who are not in a hurry are more than happy to wait for Covid restrictions to ease.
During these days when all you can do is browse the websites and dream of actually walking into your holiday home, get your ducks in a row.
When anyone wants to buy a property they will need an NIE number.
This can be applied for even if you are not in Spain.
If you need a mortgage, get the application in NOW.
Many buyers wait until they have found the perfect place before applying for a mortgage. This is a risk that is not worth taking. Sellers may not be prepared to wait and after all that searching, you can have your hard found home in paradise pulled from your grasp and all because you were not ready.
Take the time now to get your application completed. You will need 6 months bank statements for all applicants. While a printout from the web will do in the beginning, you will need it on official bank stationery for the actual application. Credit checks will need to be carried out and depending on your nationality, salary or pension status and age, the process can take weeks.
Not the thing a seller wants to hear.
I’m sure you have heard the term that Cash buyers have the advantage. It’s true. BUT it also applies to those with a mortgage offer in place.
Each mortgage is looked at based on the property it relates to, but having all your details in place before you find that property means that mortgage approval is much faster. Weeks if not months can be reduced to the amount of time it takes for the bank to send a valuer to the property.
For those of you who are buying in cash, you will need to prove where the funds came from. Money laundering laws are taken very seriously here in Spain.
You may want to get a POWER OF ATTORNEY in place to save time, and the risk of not being able to attend the notary on any given day.
We regularly get buyers asking for 100% mortgages. Banks are only giving these in very exceptional circumstances and when I see an advertisement for such a deal I read it as bait. Something to get you visiting a site to see a property that is no longer for sale ( and probably never was! )
Banks will give up to 70% to non residents. Maybe more if your credit rating is A+, but the days of banks loaning enough to buy a property, including the purchase costs, are long gone.
So, if you are browsing the web and dreaming of buying on the Costa Del Sol, let's talk.
The team here at LCPSpain will tell you the facts. We will assist you with your search for the property that suits your needs. Be it a 6 bedroom villa with it’s own pool just for you and your family or a Studio apartment to rent all year round to generate income.
It’s not in our interest to sell you the wrong thing.
Take the first step now, and remember, browsing the web pages is only a part of it.
Get your finances in place
Arrange your NIE
Do you need a Power of Attorney
Must it be rented to pay its way?
Is it an investment or a private property?
If you would like to speak to one of our team to discuss your exact needs, just call or send a whatsapp, with your name, to +34 711034176 and we will call you back, no obligation, to answer any questions you have.
Here to help you.