If you’re constructing a home in Spain you can expect fees to reach 700 to 900 per square meter. Of course this is just an approximation as it is quite possible for the fees to become higher or lower than this due to the size of your house and the materials you use, not to mention the details and decorative touches that can really push up the price. It’s normal for owners to spend up to half of the amount invested on internal spaces on the immediate surroundings of the house. Furthermore, building a home in an undeveloped area like farmland will also have additional fees like site conditioning and things like service installation (drinking water and electricity. Restoring an existing building is cheaper than building a brand new home.

You will need to get an architect and/or project manager to supervise the construction and an accountant to handle the money. Contracts are usually dealt with principal contractors who will then hire subcontractors (they will usually get a commission for labor and materials). A standard cost breakdown would be as follows;

Contractor’s Labour 30
Contractor’s Materials 10
Contractor’s Specialist Materials 20
Sub-Contractor’s Labour and Materials 40

Sub Total 100

Contractor’s attendance & profit on items 3 & 4 @ 17.5% 10.50

Architect, Project Manager, Quantity surveyor, Accountant @ 9% 9.95
Grand Total 120.45

Most construction projects will take a year starting from the initial design to the actual construction and finishing. But this is assuming work doesn’t stop but in most cases there are pauses as the client reviews the construction or asks for renovations. This will definitely increase your additional costs. It is much more advisable to really make sure that the construction is done continuously and that any delays are avoided.

There are many houses in Spain just waiting for you to sign the contract and move in. They are affordable, beautiful and promise a good return on investment. But wait, there are some documents that you need to take care off before you start shopping for a new sofa. These include the deposit document, Private purchase contract document, and completion by means of Public Deed of conveyance signed before a Notary Public document.

Private Purchase Contract Document

This document is important If the parties choose to set forth new terms and conditions or revise previous ones, against payment of an amount that is typically ten percent of the value of the home. Once this paper has been signed, the reservation sum document is no longer valid and enforceable. This is also called arras.

In short ,the option to purchase is really about the duties and responsibilities of the vendor. Against a sum of money, the seller is committed to reserving the property for the buyer until an agreed upon deadline. If the buyer decides to back out of the sale, the seller gets to keep the initial amount paid. If the sale pushes through the vendor has to grant the Public-deed of conveyance. This contract is unilateral because it only obligates the vendor. The buyer, after signing, is not liable for not paying the balance. Only the premium of the option is liable, which is lost to the vendor. Conversely, the vendor is liable and can not renege on the agreement. He can only offer it to another buyer once the deal has expired, or he wil need to refund double the deposit. However the Spanish Supreme Court has stated that for this to be applicable, the document has to specifically list this in the contract so that it removes all vestige of doubt that the parties have agreed on it.

In this way the private purchase is binding for the parties, and allows either of them to sue and even claim damages. You can even create tailor made contracts to cover unique concerns and add all sorts of clauses, as long as these clauses don’t break any laws and are not confusing or ambiguous that they have misled other party. The contract should be duly notarized by a public notary after it has been written and reviewed by the respective lawyers. Any change in agreement will mean a new contract has to be drawn up.

1. What common mistake do most people make when buying a house in Spain?

Being impractical. It is certainly pleasant to daydream about getting a house in a charming Spanish village, but when money’s involved you have to be a little more realistic and practical. Hill top escapes are great for holiday homes but how fun will it be if you have business to do in the city and have to travel frequently? You may need something more accessible. Also if you plan to live there permanently you will probably want to be near shops, bars and entertainment, or have neighbors hat can speak good English.

2. Should I buy inland or coastal property?

Luckily if you go inland you will find many properties that are affordable. For your budget you can buy a place that has more space. You can also invest in fincas, country houses and rural townhouses, which let you have a beautiful garden or even a small farm.

If you choose to go to a coastal area, then you will need to get an apartment. Villas and townhouses by the sea are very expensive. However the advantage of a coastal home is that it’s a more international neighborhood as the people there are used to tourists. You don’t have to worry that your neighbors can’t speak English. But you also have to contend with lots of crowds during tourist season.

3. Should I invest off-plan or buy a resale property?

If you buy off plan you will be the first person to live in the property. Of course one advantage is that everything will be new and you don’t have to worry about costs of repair. There are some people though who feel that new properties don’t have the character of more historical houses. Another thing to think about is the newer prorties tend to have good community features, such as gyms or pools, and amenities like swimming pools. Furthermore off plan purchases can give you better value for money.