Costa Blanca Property – Hints and Tips for Buyers

You have some spare cash and you are thinking of investing in a holiday home in the sun. Here is your essential guide to buying a Costa Blanca property, including setting your budget, choosing the location and property type, appointing a solicitor and signing and taking possession of your property.

1. Deciding on Your Budget – The first important decision to make when starting out to buy a Costa Blanca property is setting your budget. Buying a home in the sun should be an enjoyable experience, don’t ruin it by getting yourself into financial difficulty – choose a budget and stand by it.

2. Selecting an Area – The location of your chosen Costa Blanca property is also a very important decision that you will have to make. Familiarize yourself with some different areas and ask around – the locals who live there are the best source of information on a particular area.

3. New or Resale Property? – This is perhaps not a decision you will have to make right from the beginning as you will probably want to have a look at both new and resale properties. Most estate agents on the Costa Blanca will encourage you to look at new as they make more commission on these properties and get fewer problems. New is fine, but you will probably have to buy off-plan and your property may not be ready for 2 years or more. Resale properties are complete and normally come fully furnished and equipped, plus you get the chance to see what is going to be around the property, if there is waste ground close by, beware, it will undoubtedly be built on some time soon and the resulting construction could take away your views or sunshine.

4. Property Type – Are you looking for a beautiful detached villa on a nice big plot of land, a 3 bedroom townhouse in the suburbs of a seaside resort, or a 1 bedroom apartment in a busy town centre? Costa Blanca property comes in many guises and this is a decision you will have to make before you start. Take into account your budget and have a fairly good idea of the property type before you begin your search.

5. Choosing Your Property – You now have some rules set down for you – budget, location and property type, this is a great time to actually go out and look at some property. There is a huge variety of Costa Blanca property out there so take your time and organise a manageable schedule. Try to not look at too many properties in one day and be sure to keep detailed notes on all the properties that meet your criteria. Take lots of photographs and if possible a video as well, it is fun and rewarding to look back at the end of the day at what you have seen and then make a short list of properties that you are interested in. After you have spent a few days (or even weeks!) looking, you should have a decent short list of possibilities – go back and see them all again, if none of them are exactly what you are looking for, start again.

6. Paying the Deposit – The next step after choosing your dream Costa Blanca property is to pay a deposit and hold the property. 3,000 euros is the standard amount of the deposit when buying in Spain, and after payment of this the property should be removed from the market. If you are purchasing new (off-plan) property, you will be required to make a further payment in one months time, amounting to around 30% of the final purchase price, this could be followed by stage payments during construction, though more likely by payment of the balance on completion (this could be in 18 months to 2 years time). If you decided to buy a resale property, the balance will be paid on signing, and this can be done within one month if agreeable to both buyer and seller.

7. Appointing a Solicitor – It is important to appoint a Spanish solicitor who is well versed in Spanish property law and with a good grasp of the English language. He (or she) will be your friend and ally throughout the buying process and will make sure that there are no outstanding debts on the property. He will help you to obtain an N.I.E number which you will need for the signing. Also after the signing he will help with such things as changing electricity and water contracts into your name. You can usually also retain him to deal with your future tax returns in Spain.

8. Taxes and Costs – There are a number of taxes and costs to consider both during and after purchase, these include IVA (Transfer Tax), 6% on new property, 7% on resale, Notary fees, which can vary with area but should be around 500 euros, Land Registry fees (approx. 300 euros), Plusvalia Tax, charged on the increase in value of the land, solicitors fees and mortgage fees (if you are using a mortgage). In total these costs add up to approximately 10%-12% of the original purchase price of your Costa Blanca property and should be included in your original budget. After you take possession of your property you will be liable for SUMA (local council tax), Wealth Tax (a tax for non-residents owning property in Spain) and community fees. You will also need to have house insurance and you will need to retain a solicitor to pay your taxes.

9. Signing the Deeds – The final payment for your property and the signing of the deeds takes place at the Notary office. The property deed in Spain is known as the ‘Escritura’ and you will be given a copy of this (your solicitor can hold the original for you if you wish). For the signing you will need your original passport (yourself and anyone else who is to be on the Escritura) and your N.I.E number (foreigners identification number) which can be obtained from any national police station. If you are unable to be at the signing a common practise in Spain is to give power of attorney to your solicitor, if you do this he will sign for you and collect your property keys.

10. Taking Possession of Your Property – When you have signed the deeds to your property, you should then receive a set of keys. The first thing that I would suggest you do is get the locks replaced on main entry doors, as no matter whether the property is new or resale, various people will have had keys to the house. If the property is new you will want to draw up a "snag-list" of defects and problems (ie poorly fitting doors, plumbing leaks or badly grouted tiles) and hand this to the builder and the agent so that they can put these thing right. You will now want to put your name onto all the bills (ie water and electricity) and organise some insurance for the property and contents. You may also want to fit security grills and an alarm system.

11. Congratulations – Now is the time to pat yourself on the back, you have taken all the steps wisely and purchased your dream Costa Blanca property, relax and enjoy.

Newspaper contributor Steve Locke resides in Cabo Roig on the sunny Costa Blanca, Spain. His website is a wonderful resource for information on the Costa Blanca and surrounding areas. For details of property sales and holidays in the area look here:- Costa Blanca Property