Fri 8 January 2021
Spain Guides | Is It Worth Buying a House in Spain? What You Need to Know!
Is It Worth Buying a House in Spain? What You Need to Know!
The worth of buying a house in Spain mainly depends on the circumstances and the objective that the buyer has in mind. As Spanish property experts over numerous years, we know how important it is that personal circumstances are taken into account.
This article will take you through the various perspectives concerned with buying a house in Spain..
It is worth buying a house in Spain for a retirement home, a renovation project, or an investment. Location is important, and ensure you understand the total costs for the purchase. House prices in Spain are still in high demand and the quality of life in Spain is rated as very high.
So yes, buying a property in Spain is worth it for the right people.
For individuals, a straight yes or no answer to this question can be misleading.
But to start with, the housing industry in Spain is very welcoming, and you’ll mostly find arguments in favor of buying a house in Spain in the media but there are always two sides to any story.
We’re not going to tell you it’s all daydreams and rainbows, but as long as you’re aware of the potential pitfalls, then we can help you navigate the right course.
There are many happy buyers out there, and to avoid being one of them you need to take a number of factors into account.
This is why it’s important to make an informed decision rather than rushing through such a big
decision and we think the following steps will help you in making the right choice.
Since buying a property in Spain will have different implications for different types of buyers, let’s look from each perspective separately. Starting with the residency aspect...
Permanent residency in Spain
In the event you’re looking for a place to permanently relocate, a house in Spain is one of your best options.
The quality of life in Spain is considered very high ...and the rich culture of Spain makes it even more
attractive for people to live there - be it after retirement or at any other stage.
Here’s how numbeo.com summarizes the relevant quality of life in Spain
Spain is such a great place to have a home because it has something to offer to everyone. It is a perfect location to live no matter if you have small children or if you’re an older couple just wanting to have a relaxing time.
As well as the picturesque views of mountains and beaches, there are good schools and parks just making the living even better.
Living in Spain provides the desired stability in life where one can study, work and live ...not
just in Spain ...but with easy access to opportunities in other areas of Europe.
Not just that, there’s so much variety in the housing market that you can choose from.
Add to this Spain’s generous Golden Visa Program, foreigners can enjoy Spanish citizenship by buying a property worth more than €500,000. The golden visa program also includes a work permit and family benefits.
However, if you only want a second passport or have limited resources, then buying a property for a residence may not be the best fit because it will later require maintenance and time.
In such a case, a place perfect to live permanently may not be worth buying for you and you should look for a holiday house or a place with even better investment prospects.
Holiday home in Spain
You might be one of those people who enjoy spending (or indeed need to spend) some time away from everything once or twice a year.
So then you may have considered buying a place where you can just retreat to from time to time simply to just enjoy and relax.
No doubt, having your own holiday home makes it that little bit better - by not restricting you to follow any specific schedules and allowing you to truly enjoy the vacation in your own way.
Location of your Spanish holiday home
In short, Spain is an amazing destination to buy a holiday home, however...
Before you start searching for your dream home, It’s very important that you choose the location very wisely.
Buying a house right in the center of a bustling city when you’re looking to relax may not ultimately serve your purpose.
You really don’t want to risk buying a property only to regret the location.
Another thing that you should keep in mind before buying a holiday house in Spain is that it requires commitment and time... and maintenance.
Maintaining a house when you’re not there can seem like a big responsibility. But there are simple solutions available. You can either self-manage it or give the job to someone else.
Self-managing requires a lot of time and can be really impractical. It would obviously be difficult to manage if you live at a distance in some other city or country.
On the other hand, hiring a manager is going to add to the cost. But we can help you understand more about your options for this aspect.
For Investment Purpose
Spain’s housing industry has been growing and is an exciting market for investors.
The market is booming with newly built properties that you can almost just buy off the page and rent out on a short-term basis.
Otherwise, you can take on a renovation project - buy an old house, refurbish it and make good money by selling at a price higher than the original. Here’s a great renovation property example - a home that’s perfect for renovation.
Property prices in Spain have experienced a steady rise since 2016. Although many feared that there will be a negative impact of Brexit and other global macroeconomic issues, there continues to be an increase in the sales of property.
Spain is also considered very appropriate for first-time buyers - mainly because of the reasonable prices and good returns.
Similarly, Spain is equally good for someone looking for a steady rental income instead of a
one-time resale return.
As you may already know, Spain is a popular tourist destination which is why a short-term rental property is always in high demand.
Naturally, you need to take account of potential taxes and other charges appropriate when investing in some property in Spain.
Most of the time buyers do not realize that the total investment will be more than just the price of the house and therefore, the taxes or other hidden charges come as a surprise to them.
For example, on the purchase of a newly built house, you will need to pay value-added tax as well as stamp duty. Whereas, on the resale side, the buyer will have to pay the property transfer tax.
When looking at it from an investment perspective, remember that the profit made on the sale of a house is also taxed in the form of capital gains tax which ranges from 21% to 27%.
Therefore, when estimating the return on your Spanish property investment, make sure you account for taxes before deciding whether you should make such investment or not.
Now it’s over to you...
We hope this guide has been useful. Purchasing Spanish property is a great experience - as well as a great investment. The process can sometimes be slow, but it can run so much more smoothly with the right people in place.
Search through the thousands of properties that fit your needs, and then contact us - by phone or email, and we can walk you through getting further details on the property you chose ...and the right people to contact.
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