When you think about how important an investment it is to buy a house, it’s very hard to understand why so many people are willing to fork over so much money for a house that they have only seen through a picture on the Internet, without the slightest idea of just what it is they’re getting for their money.
It’s even more difficult to comprehend why there are those who are rushing to buy any property at all without following proper procedure such as the surveys of the land and hiring a good lawyer or adviser who can help them look at how the investment will turn out in the long term. Some of them don’t even to look at how convenient it will be to live in the house on a day to day level, especially if it is in a remote location where it will take hours to get to the next city. However this is what many people are doing out of the excitement to live in Spain!
First up, don’t leave your brain on the plane!
The seduction of Spain shouldn’t stop you from practicing good common sense. Yes the surroundings are breathtaking and the prices are better than you would get in your own home country, and perhaps you are hoping to have an idealistic lifestyle just like your vacation,. but you have to research and take things one step at a time, and always consult with experts. This is true for buying any property in any part of the world and just because you go on vacation doesn’t mean your brain should also take a break.
Set Budgets
Be sure to create a workable budget based on the facts you have gathered on the region you want to invest in and what kind of property you’d like. And if you find something “too cheat to be true” chances are you’re right, there has to be a hitch and you should comb the contract and consult with experts to find it. Employ the same kind of logic and common sense you’d use if you were back home.
Be Careful about Fast Talkers
You don’t have to assume the worst in everyone or be overly suspicious but at least remember that there are con artists who may want to take advantage of you. Don’t be fast-talked into making a rushed choice or scrambling for cash because it’s “now or never”. If you are confused or uncertain in any way, slow down and find information or take time to think about it.
Thinking about joining the large number of people who have purchased a second home abroad? Or are you an expatriate who wants a place ‘back home’? This is the arena of international property financing.
It’s important to get the best possible international mortgage or property finance package so that you can save what can add up to tens of thousands in interest.
Read these tips to help you find the best and simplest finance method. It’s not that hard to make the search. Some of the best loans and repayment vehicles are being offered on the Internet so you can do your research at home at any time you please.
The initial step is to survey the different kinds of f finance arrangements for international mortgages. This will five you an idea of which one is applicable to your situation and needs.
As for international mortgages, your choices will be influenced by the country you’re interested in buying property in and your own financial situation. There are probably lenders in your area that offer straight mortgages for buying property abroad. HSBC has packages for Britons interested in buying in France while Lloyds TSB has a product for Britons who would like to buy a property in Spain.
Mortgage types and repayment methods are pretty much the same at the core, whether they are for local property or property abroad, but what you will have to check is the additional criteria for buying off shore. For example they may require that you already have a home in the country before shopping for any places in another land. Sometimes they won’t cover the whole price but will only give up to seventy percent.
But if you’re trying to secure a loan from a local bank then the rule of thumb is to go to a bank that has several branches in different countries or has affiliations with another country.
For expatriates, expat mortgages help you to purchase ‘back home’ either for your own personal investment or to act as a base if you plan to visit there regularly. If you had a strong credit history this shouldn’t be a problem and there are many banks that want to lure expat business. You will probably be able to get 85% of the loan if you have proof of income. But as a rule if you’re not a resident of the United Kingdom you may have a hard time getting a non-status or self certification loan.
Spain is paradise on earth, or so believe the many thousands of Northern Europeans who have been making an exodus to the country, whether as permanent residents or as tourists looking for a regular vacation home.
Britons’ First Choice
A recent study conducted by Barclays Bank and the University of Navarra Business School, showed that sixty five percent of Brits call Spain their first choice, while another 38% say it is their only choice. The facts support this study. In early 2005, the town halls in Spain showed an increase of nearly thirty percent more British residents.
Better Buyer Protection
You may have heard of scandals where people were entangled into disastrous off plan purchases. These buyers chose to invest in properties that (as they later discovered) had planning irregularities. They tried to recover their deposits but could not negotiate for a settlement with the developer. Unfortunately the legal system in Spain is more bureaucratic than the legal system in England, but there are steps taken to return the money to the buyers.
The Spanish government has promised to make improvements in the country and to provide better protection to buyers. Recent scandals have made the issue more prominent and have helped people more conscious of the problem. The recent elections will also hopefully lead to a new era of well managed and sustainable development which in turn will improve overall quality of life.
However the buyers themselves have to be careful of scams. For example there is a common marketing toolk where people try to sell you properties with a rental guarantee, but the reality of the matter is that the “guarantee” was simply made by bloating the property rates by the level of the required guarantee. This would then be returned to the buyer within an agreed upon timeframe. Some committed a six percent guaranteed yield, but with a price increase of 12 percent! In this case people have to read the fine print and do the math.
But despite the occasional crook (and you’ll find them anywhere, even outside of Spain) Spain continues to be one of the best real estate prospects, especially with new laws and government policies that are consumer-friendly. Just be careful of being fooled by hype and exercise caution and common sense when buying a home. After all you can’t expect the law to protect you if you don’t try to protect yourself.
