Spain today is awash with homes advertised as “discounted” or “reduced”, so it’s easy to see why some buyers reach for their cheque book as soon as they find a home priced less than comparable ones in the same area.
However, as a warning that not everything that is cheap is a bargain, a leading estate agent on Spain’s Costa del Sol is recommending buy-to-let purchasers ask themselves these 5 questions before snapping up what they believe is a bargain buy:
- What was the original price of the property and what is the discount?
- If they intend to use the property themselves, does it fit their personal requirements?
- Can they get a mortgage on it?
- Does the property need money investing into it?
- Will the property be easy to rent out?
One of the best investment strategies is buying below market value (BMV), as it almost guarantees instant equity. Many Spanish properties are advertised as BMV, usually due to being bank repossessions or the vendor being desperate to sell, what’s known as a distressed sale. Areas of Spain with a concentration of these types of sales include the southern Costa Blanca around Torrevieja, the Murcia region – home to the Polaris World golf resorts and parts of the Costa del Sol.
If you do purchase a discounted property, experts recommend using a currency specialist, such as Smart Currency Exchange, to transfer funds from the UK to Spain. There’s little point saving money on the purchase price only to lose money unnecessarily through poor exchange rates.
To understand the full step-by-step process to buying a property in Spain, collect The Overseas Guides Company’s ‘Spain Property Buying Guide’