OUR 5 STEPS TO YOUR SUCCESS

SO HOW DO WE HELP YOU FIND THE RIGHT PROPERTY IN MARBELLA AND AVOID THE PITFALLS?

CA Estates simply follow a 5 step method to help clients find the perfect home by using our investors guide below. Following this method we together make sure that they don’t fall into any traps during the buying process. Here is Carin Astrup’s 5 steps to success for investors. 

STEP 1: Understand and get to know

I usually start connecting with you via the phone. When we talk, I will ask you many questions to get to know you. I try to find out what it is that you REALLY want and need in a home here in Spain. I also want to know what it is that you’re missing in your primary home and dream of having in a home here in Marbella. If you’re not in Spain when we first speak, we plan a date for you to come. This is how we start your viewing and buying process together.

I also tell you a little about Marbella and the property market here. There are different variables that you should know of before viewing homes. We’ll also talk about any family member or person that might make an impact on your life. I will ask if this person wants the same as you and if they are also a buying decision maker. That way, we can make sure everyone’s involved in the conversation early on.  I also love it when you ask me questions. It’s about us cooperating well. That way, you’ll end up with the perfect home for you.

I need to know what you want and need and can afford in the early stage of your buying process. I also need to know that you and your special people agree on what kind of property you want as a family. We could all waste a lot of our time if we don’t work on understanding everything about your needs. Buying a home is an important investment for you. There is nothing I want more than for you to be 100% happy with your new home. 

STEP 2: The Spanish Buying Process

How you buy properties in Spain is very different from other European countries. In Spain, when buying a property you use a lawyer and notary. Everything is very formal, but not difficult. We’ll help you find the very best lawyers and notaries. We also explain the housing tax system. We tell you about any fees that also come along with the house price. We’ll introduce you to both Spanish and international banks if you need a mortgage. We explain the differences between buying a new development and a resale home. Regardless of your needs, we will be with you during the whole buying process. We also care for you after your home purchase. If you need any house services, we introduce you to the most reliable and professional people in the area.

Lawyers, notaries, and banks are only open on weekdays. We want you to have time to book meetings with them. We recommend that you book at least a four-day stay during the weekdays. 

We discuss taxes and fees early in the buying process so that you know how much to account for in your total budget. If you require a mortgage we want you to know all the available mortgage options and to apply early.

STEP 3: House Budgeting

We reconfirm your desires and needs in a home. We review your budget after you’ve added all extra fees and taxes that we explained to you in Step Two. If you’re in need of a mortgage, you’ll also now know how to line up your finances. You might have a different house budget after you know all the taxes involved. 

We go through all this to make sure that we only show you properties that you can afford. We want you to feel confident when we go to view homes later. You shouldn’t have to worry that a house you are viewing may be too expensive for you.

STEP 4: Viewing Calendar

Deciding on which homes to view and head out on viewings. Now, we’re together in person. We look at all the options on the computer in the office. We will also show you different property locations on the Marbella aerial maps which we have in the office. We explain the areas which could be of interest, discuss the location, and of course, properties. We go over all the pros and cons with each  suggested home and then we decide on which to view in the first round. We take you around and show you the homes and help you make the right decision for your situation.

As agents, we know our portfolio of properties and we want to find the best home as soon as possible for you. It’s important not to waste time on homes that do not fit your core criteria.

STEP 5: Elimination and Deal closing

We’ve now viewed several homes together, and most likely been on second viewings. It is time to decide what you want. We’ll ask you a few questions to help you decide if you’re stuck between two options. But in most cases, you’ll know which is the right place for you. With the right home found, it’s time to pay the reservation fee. This you pay to secure the property and take it off the market. When you’ve paid this, the property is no longer available for viewings. We decide the completion date and you are then a property owner in Spain!

Congratulations, let’s celebrate!

We have viewed homes and done an elimination process of the properties you did not like. You’ll be very confident in your choice as we will not let you impulse buy anything you are not sure of.

Property Buying Tax and Other Costs

To have your total budget in place before you start your home search is crucial. You need to know all the costs involved with buying a home in spain. You need to know how much it will cost in total. Below I have put together in detail the costs you need to add to the final agreed property price. 

Property Transfer Tax (ITP in shortened Spanish)

This tax is payable by the buyer for the purchase of any re-sale property  (villas, apartments, land, commercial premises, garages.)

Valid between April 27. 2021- December 31st 2021

Andalucia charges a flat 7%  For all resale properties   

The property transfer tax is reduced to 2% for real estate companies or professionals that buy resale property and sell within 5 years.

VAT (IVA)

A VAT of 10% is claimed to be paid by the buying investor on all brand new properties 

A VAT of 21% is claimed to be paid by the buying investor on Parcels of land and for the first sale of brand-new commercial premises.

STAMP DUTY (AJD)

A stamp duty fee of 1,2% is added to all properties

Notary and Property Registry Fees

The cost varies and increases according to the number of pages or complexity of the title deed, and value of the property. An approximate estimation is +/- €3000

Lawyers Fee’s.
These are in the order of 1% of the selling price, more or less, depending on the lawyer and the price of the property. Many lawyers are open to negotiating the price. 

At CA Estates we have been working with few very well respected, organized and professional lawyers. I will introduce you to them. You will be in the very best hands.

Property investment cost example (Re-sale home):

 

Property investment fees

 

Agreed property cost

 

€         1 000 000

PPT

7 %

€              70 000

Stamp duty

1,2 %

€              12 000

Notary

 

€                  3 000

Lawyer

1 %

€              10 000

Total investment cost

 

€         1 095 000

 

Municipal Added Value Tax (PLUS VALÍA)

This can be as little as a few hundred Euros or as much as many thousands of Euros on a property with a lot of land that has not changed hands in many years. It is a tax by the town hall based upon the increase in the index value of a property between the year of purchase to the year of sale. This tax corresponds, by its nature, to the vendor who is responsible for its payment, unless otherwise negotiated.

Summary:
The total official costs involved in purchasing a constructed residential property should currently be around 9-10% for resale properties, and around 12% for new properties if VAT is paid on the purchase price, plus lawyer’s fees. I will also be immensely helpful to you in negotiating everything on the purchase of a property you are interested in buying. 

NOTE: Having a lawyer, NIE number (a number issued to foreigners in Spain), and a bank account opened with a spanish bank strengthens your position as a property investor when negotiating. Having everything in place early in your investment process, will make you able to put down an immediate deposit when an offer is accepted. You will be able to reserve a property and take it off the market fast.

 

 

 

Conclusion

Buying a home in Marbella is not difficult but it is a process. We are here to help you all the way. On our website you can read in more detail about the Marbella tax system. You can also read about the differences between buying a new development and a resale home. Should there be any problems encountered with a property that you decided to buy you do have rights as a buyer. By law, there are bank guarantees and we use escrow accounts to protect both buyers and sellers. It’s time for you to start realizing your dream. You should not have to worry any more about the long painful winters in your primary home area. We’re going to be your backbone in this process and show you all the possible options and how to avoid the pitfalls. You will soon be able to visit your perfect home here in Marbella, any time you want. 

Contact us for a free consultation.

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