If you’re considering buying property in Spain, there’s plenty to think about on the financial front beyond the headline price of the home that’s caught your eye. That perfect Málaga apartment or property for sale in Estepona old town comes with additional costs that you’ll need to factor in.
That’s where this guide comes in. We break down some top tips to help you balance your budget and enjoy a seamless purchase process.
1. Know your areas
Different areas offer unique benefits and varying purchase prices, so doing your homework about where you can buy based on your budget is essential. Property for sale in Mallorca, for example, tends to cost more than property for sale in parts of mainland Spain. And even within the mainland, there are significant regional price variations. Malaga property for sale is likely to command a higher price than an Alicante apartment, for example, even if the two homes are of a similar size. Researching which areas deliver the value you need to stay within your budget is therefore crucial.
2. Be organised
Multiple trips overseas can quickly eat into your budget, so ensure you organise your property viewing trip carefully. Once you’ve decided which area you like, line up viewings of multiple properties at the start of your viewing trip. Remember that if you buy direct from a developer, such as Taylor Wimpey Spain, the sales team will be happy to show you around multiple developments within your chosen area.
The important point here is to leave time within your trip for second viewings. The decision to buy property in Spain is a significant financial commitment, so you’ll likely want to view the property more than once before you decide to buy. Being organised enough to fit this second viewing into your original viewing trip can save you the time and expense of travelling back again.
3. Think about furniture
If you’re buying a primary residence, you’ll likely be bringing plenty of furniture with you when you move in, but if you’re buying a second home, you may need to furnish it almost entirely but there are solutions available that can help you budget for the expense. If you’re buying a new build property, speak to the developer about furniture packs – they may be able to recommend solutions that are both cost-effective and hassle-free. You may also have the option to buy a ready-furnished show home if you’re snapping up one of the last properties for sale at a specific development, so ask about that possibility too.
4. Use a foreign exchange (FX) specialist
If you’re buying in a different currency, using a specialist FX broker rather than a high street bank can help you avoid paying higher currency exchange fees. A broker is also likely to help you time your currency transfers strategically, so that you can benefit from rate movements to make further savings. These can be significant, given the amounts involved.
5. Buy off plan to lock in your price
Looking at new apartments for sale in Spain opens up the possibility of buying off plan. When you do so, you agree a price with the developer at the time you buy. This means the value of the home could go up by the time it’s built; your capital can appreciate while construction is underway.
6. Shop around for mortgages
Mortgage rates differ significantly between countries. Spain, for example, is currently offering better mortgage rates than the UK, making a property in Spain that’s financed locally another way to potentially keep within budget
7. Factor in the full cost of buying
In addition to any mortgage costs, you’ll need to budget for local taxes, legal fees and other buying costs. These can add up to 10-15% of the purchase price when buying property in Spain, so be sure to include these in your budget from the outset. A full breakdown of what to budget for when buying is provided here.
To ensure you balance your budget, get multiple quotes for legal, mortgage, valuation, and insurance services before committing to a particular firm. If you’re buying from a developer, they should be happy to make introductions to suitable local experts, from whom you can obtain quotes.
Keep all of the above in mind when searching for properties for sale in Spain and you should be able not only to set a realistic budget but to stick to it.
For more information, please contact Taylor Wimpey España on 08000 121 020 or visit https://www.taylorwimpeyspain.com/. If you reside outside of the UK, you will need to call 00 34 971 706 972.
