For many people it is a dream to own a villa or house in Lloret de Mar,in Spain. A beautiful luxury villa or lovely holiday home where you can live partly or all year. However, to buy a house in Lloret de Mar with success, it is very important to know in advance the Spanish law and regulations. In this article, I am not only going to tell you why you should buy a house in Spain, but also what you should pay attention to for the sale to run smoothly.
So read on and discover here all the ins-and-outs to buy your dream home in Lloret de Mar!
Buy a house in Spain. Why?
Let's start at the beginning, why buy your own house or villa in Lloret de Mar? For many people, the answer to this question is simple: there is a wonderful climate, the pearly white beaches and the beautiful nature! However, Spain and Lloret de Mar have so much more to offer. The relaxed lifestyle, culture and gastronomy of the Spaniards is also very attractive. After all, it is not for nothing that the Spaniards live longer on average and are even more active than we are in old age.
In addition to the wonderful living conditions, there is also a financial aspect that makes Spain more than attractive. For example, Spain is in terms of living costs, fixed costs and public transport much cheaper than the UK. You will quickly save 25-30% per month! Another important financial aspect that makes buying in Lloret de Mar very attractive are the low real estate prices!
During the crisis of 2007, the real estate market collapsed completelywhich, despite an upward trend, has still not been restored to its full glory. However, this means that the properties in Spain are still downright attractive to buy.
If you want to know more about living in Lloret de Mar, read also: Is Lloret de Mar expensive? No, cheap!
Buying a property in Lloret de Mar is an excellent investment!
As indicated above, since the 2007 crisis, the housing market in Spain is still under construction. Despite the fact that Spain has shown constant growth in recent years in terms of number of sales and increase in selling prices, there is still a buyer market! The supply is still greater than the demand! This makes buying a house in Lloret de Mar extra interesting. So you can ride on the still growing Spanish housing market and an attractive increase in the value of your Spanish home will still be realistic.
If you want to buy your home in Lloret de Mar with savings, the purchase can be even more interesting. Current savings rates are currently at 0.01% at many banks and even at 0% at some banks. Due to inflation, your money in a savings account really only gets less. This while you buy a property in Lloret de Mar right piggyback on a rising housing market.
You can also think about your newly acquired home in Lloret de Mar. it can be (partially or fully) rented out and get attractive returns! This gives you even more financial benefits when you buy a property in Lloret de Mar! Short-term rental in the summer months can quickly yield 8.0% return (ROI). Add this to the possible increase in the value of the house and you will see that buying a house in Lloret de Mar is more than profitable . Even if you have to pay for the house through a (second) mortgage.
Do you want to rent rentyourvilla in Lloret de mar? Then look here first!
Where should you pay attention when you buy a house in Spain
When purchasing a house in Lloret de Mar, it is very important that you study the Spanish laws and regulations beforehand. This is very different from what you are used to in the UK. Since for many people this is quite a tangle, they quickly put their dreams aside. Where do you start? However, find the correct handles and a reliable and thorough broker in Lloret de Mar is not difficult at all.
So in 17 steps I will give you a detailed explanation that you should all take into account when you are going to buy a house in Lloret de Mar! And also a Top 5 brokers that can help you realize your ultimate dream!
17 steps to buy your dream home in Lloret de Mar
1. Map out your financial options
The first step to buy a property in Lloret de Mar naturally starts with the financial aspect. Many people dream of buying a house in a sunny place, but of course this must also be financially feasible. If you can not pay the full purchase from savings or equity on your current home, you can View financing options for a mortgage in Spain. IIn this case it is important to know that in Spain you can never borrow more than 80% of the value of the house, and of course you must also be able to prove that you have enought income.
2. Permanent or part-time habitation
Before you buy a house in Lloret de Mar, it is important to consider whether you want to live permanently or partly in Lloret de Mar. Depending on the choice, you have to consider many crucial aspects such as: pension accrual and / or income, tax, insurance and income. So always check in advance what are the pros and cons of the choice you make here. Avoid nasty surprises afterwards!
3. Type of house and location
Once you have clear how much you can borrow or have available to buy a property in Spain, you have to choose between location and type of property. Do you want for example a nice apartment near the center or a large detached villa afterwards. Who are your neighbors and do they live there permanently or partly? Are there local facilities nearby? Are there any common costs? In addition, it is also important to ask yourself if you prefer new construction or existing construction. Taking into account that new construction homes in Spain are relatively expensive.
4. Find a reliable (purchase) broker
Finding a real estate agent in Lloret de Mar is not difficult because there are ten in a dozen. The finding of a reliable (English) broker is a bit more difficult. In any case, check whether the broker in question is affiliated with an “agent de propriedad Inmobilaria or Gestor intermediario en promociones de Edificiones”. See if there are any references or if the broker can put you in touch with satisfied customers. Below, however, for convenience, I have a top 5 Estate Agents in Lloret de Mar. for you.
5. Ask the broker before buying for the “Nota Simple”
If you have a nice house in mind, it is important to ask the broker if there is a “Nota Simple ” A real estate agent normally asks for a. before the house is offered for sale note simple at the land registry. The simple note shows whether a house or plot debt free is who the legal owner and whether there is perhaps a hidden owner somewhere and all constructional information as surfaces and layout. This document is very important for the purchase, so you avoid that you may also buy the debts of the previous owner when purchasing.
6. Building permit
In the simple note you can also find the architectural information of the house. How large is the plot area, but also what layout and area does the house have. If this is different than indicated on the simple note, be very alert. In Spain, in the 90s, there were many houses built or renovated without planning permission. If you buy a home where this is the case, you can obtain the deed of sale (de escritura) run into major problems at the notary. In the worst case, it may be that the entire house has to be demolished because construction is not approved, so you loose your money.
7. Municipal zoning plans
Before you buy a house in Lloret de Mar and surroundings it is important to inquire after any zoning plans. For example, it may be that there are future plans, for example, to change the infrastructure around the house you want to buy in Lloret de Mar, or that a new apartment is built that takes away your beautiful view. In this case, too, the broker must be aware of the zoning plans of the municipality. You can also do one yourself visit the city hall (ayuntamiento) and ask about the zoning plans.
8. Request a viewing
Of course it is of great importance to see the house yourself, for any commitment. Take photos, check dimensions, check the state of installations: gas and water pipes, electricity, drainage, ventilation, maintenance, appliances, energy label, etc. It can also be important to take a look in the neighborhood and have a chat with the neighbors.
9. Renovation or new construction
Between 2008 and 2014, many construction companies in Spain went bankrupt as a result of the crisis. As a result, many projects have not been totally completed. So it is important to ask a reliable construction company to do business. After all, you don't want to be left with a partial-finished house, or a house where facilities such as a road network, electricity and water are not arranged. However, a good real estate agent generally knows the state of affairs at the construction companies in the vicinity and can provide you with excellent information. Cheap is usually expensive here too!
10. Bank guarantee for new construction
In Spain, there is also a bank guarantee in the case of new-build homes. In the unlikely event that construction stops, you will receive a refund with this guarantee. In Spain, the building contractor is obliged to bank guarantee and show you the necessary papers in this regard.
11. NIE Number and Spanish bank account
To buy a property in Spain you need to have a NIE Number and a Spanish bank account. The NIE number is an Identification number for Foreigners or a Número de Identificación de Extranjeros (NIE). It is a unique, personal and exclusive number that the Directorate General of the Police assigns to foreigners.
The NIE may in Spain itself or in the country of origin through the Spanish Embassy or to apply for the corresponding Spanish Consulate. However, if you are going to stay in Spain for more than three months, you are obliged to stay in Spain as resident of the EU .
12. Habitability declaration
In the case of new construction, the construction company must provide a certificate for the first occupancy of the house (a licencia de primera ocupación). This document indicates that the house was built according to the building permit granted. So a confirmation that you are buying a legal home. Without this document (valid for 10 years), the house will not be connected to the water supply network and the electricity network.
A similar document is also required when buying an existing home in Lloret de Mar. We are talking about a declaration of habitability (a licencia de segunda ocupación). This is an administrative document confirming that a home meets the minimum conditions for habitability as laid down in the Housing Act. If this document is provided, it means that the house is suitable for habitation.
13. Sign purchase contract
If you have arranged and selected all of the above, you can proceed to sign the purchase contract. However, it is always recommended to hire an independent lawyer to have everything checked just to be sure! When you sign a purchase contract in Spain, it generally becomes a deposit desired. This depends on the purchase price, however is approximately 10%. You thereby assume all rights and responsibilities of a buyer. If you later decide not to proceed with the transaction, you will lose this deposit, but if the seller cancels the sale, they will have to refund this deposit to you.
If you buy a new-build home, you submit, just like in the UK to many stages of construction with follow up payments to do. Here, too, it is very important that you include in the purchase contract the period of completion or the period in which the house must be finished (and the penalty provisions for the building contractor if this agreed duration of construction is not met).
14. The title deed
Just as in the NUK, this part of the purchasing process takes place at the notary, both the buyer and seller have to be present. This deed should accurately describe the property, any mortgage or cost of the property, the final sale price agreed, how it will be paid, in addition to the taxes and costs associated with the sale. Now is a good time to check that all documents are present and correctsuch as the energy label, any insurance and bills for the latest tax and community fees payments.
15. Transaction costs and taxes.
The main costs that you have to pay when you buy a property in Lloret de Mar are: the ITP transfer & VAT tax, capital gains tax, notary fees, registration in the property register and possibly. costs related to the mortgage.
16. Inform utility companies
Energy companies (gas, water, light) and other service providers must be informed as soon as you are the new owner and pay the bills from that moment on. Keep in mind that you will be closed fairly quickly in Spain with no or slightly late payment!
17. Maintenance and emergencies
If you buy a house in Lloret de Mar but do not live permanently, it is also important to look after a maintenance or Rental possibility. It is also important that you can turn to someone in case of calamities. In Lloret de Mar you can hire an agency to do all these things for you! This way you can be sure that even when you are not there, your house in Lloret de Mar is in excellent hands!
Buy your home in Lloret from a solid broker
As you have read above, a big aspect when buying a property in Lloret de Mar lies with the real estate agent. It is therefore very important that you realize the purchase of your dream home with a reliable and thorough broker. To make this search a little easier you will find below a Top 5 real estate agents in Lloret de Mar:
Top 5 Estate Agents in Lloret de Mar.
You are now ready to buy your dream home in Lloret de Mar! However, if you want to know more about Lloret de Mar, Lloret de Mar sights and Lloret vacation, take a look at:
22 Top activities in Lloret de Mar. & Top 10: Going out in Lloret de Mar.
Look here for the Top 10 villas to rent in Lloret de Mar with private pool!