I live in Marbella and would not go back (home???)
Finding the Right Property
Online Real Estate Platforms: Websites like Idealista, Fotocasa, and Kyero offer extensive listings of residential properties across Spain. These platforms allow investors to search for properties based on location, price range, and other criteria.
Review Spanish housing market update reports from the above platforms to get the best cash-on-cash returns or returns on investment.
Real Estate Agents: Working with a knowledgeable real estate agent can streamline the property search process. Agents have access to exclusive listings, market insights, and negotiation expertise, helping investors find the best deals.
The General Council of Real Estate Agents of Spain (CGCOAPI) is a good source to find a licensed agent.
Securing Financing
Traditional Lenders: Banks and credit unions in Spain offer mortgage loans for residential real estate investments. Prospective investors can apply for conventional mortgages, depending on their eligibility and preferences.
Private Lenders: Private lending firms and individual investors provide alternative financing options, such as hard money loans or private mortgages. These loans typically have higher interest rates but may offer faster approval and more flexible terms.
Understanding the Costs
Purchase Price: The cost of buying a residential property varies widely depending on factors such as location, size, condition, and market demand. Investors should conduct thorough market research and property inspections to determine a fair purchase price.
Closing Costs: Closing costs typically range from 10% to 12% of the property's purchase price and include fees for notary services, registration, taxes, and legal services.
Property Taxes: Property taxes (IBI) are assessed annually by local governments and vary depending on the property's assessed value and tax rate in the respective jurisdiction.
Homeowners Association (HOA) Fees: If the property is located within a managed community or condominium, investors may be required to pay HOA fees to cover maintenance, amenities, and community services.
Legal Process of Buying a Residential Property
Offer and Negotiation: Once investors identify a suitable property, they submit an offer to the seller through their real estate agent. Negotiations may ensue until both parties agree on the terms of the sale, including the purchase price, contingencies, and closing timeline.
Contract and Due Diligence: Upon mutual acceptance of the offer, a purchase contract is drafted outlining the agreed-upon terms. Investors then conduct due diligence, which may include property inspections, title searches, and appraisal assessments.