pain is a great place to live and be visited. The alluring country attracts millions of holiday-makers and new residents from overseas, every year. Whoever decides to make the move to Spain, either permanently or for long periods, has to consider whether to buy or rent a property there.
Ideally, you can buy and keep your property for yourself, but for many holiday makers and expats wanting to live permanently in Spain, it can seem difficult to afford. That is what Spaniards try also now, vender piso a extranjeros (in Spanish), which mean to try to sell apartments to expats. But expats should take into consideration extra expeses.
Spanish bargain hunters
Low prices appear very attractive in Spain, especially on the coast, and sub-prime properties, as investments in the cities. However, it is not all about the buying price, but also depends on whether you can get a mortgage, and what kind, and there are additional costs in the buying process (which usually comes to 10% in Spain).
There are also insurance costs and yearly expenses that include “service charges” and Council Tax (“I.B.I.”). For most of us, to buy in Spain is a question of affordability, and having the right strategy, in order to make it affordable.
Property prices keep dropping
Generally, the prices in both markets (rental and selling) are incompatible: if one of them goes up, the other falls. But at the moment, selling prices are dropping and rental prices also seem to be going down as well. This means, whether you are buying or renting, now is a good time to do move to Spain, if you are serious about Spain.
Whether to buy or to rent in Spain depends on your goals. I am sure that renting a place now will be cheaper, easier and less risky than buying. Also, if you are planning to live abroad and Spain seems to be your favourite place, I would advise, as somebody said recently in an online discussion, to travel around Spain and discover the country in depth. Do not be an impulsive buyer in the first warm place that you arrive.
Buying a property has advantages and it is true that it is becoming cheaper than ever – and it will probably be even cheaper in 2012. Also, currently, some Banks are offering good discounts and paying some expenses (such as legal fees) on behalf of buyers. On top of that, now there is a reduction of V.A.T. reduction to 4%, an offer which will apply until 31stDecember 2011. Nevertheless, there are other administrative overheads involved in buying in Spain, which are still too expensive.
Do not be an emotional buyer !!!
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