Buying in Spain
If you are living in Spain or thinking of living in Spain then the chances are you will be thinking about Buying in Spain.
If you dont need a mortgage and can pay outright you should still read this post.
After living here in Spain for over 17 years now i have bought several places here and had a few mortgages on property and land here and have found a few things that could really help save you time and money.
The first tip and probably the best one is this.
All ways get a mortgage even if you dont need one.
The first property I bought was a 2 bed apartment near the beach and i was introduced to my then bank through my new accountant.
The day i went into the bank to meet with the manager about opening an account to buy a property i saw that i know the manager. He lived in my building that i was renting at the time and he lived on the top floor. It was just coincidence, We shook hands and said hi then he asked me what i needed.
I told him that i was going to buy the apartment here but didnt need a mortgage.
He told me no no its best to have a mortgage here. I asked why. He told me that it would be best if i took out a small mortgage for about 10,000 euros this way the banks need to do more research and checks on the property to make sure their investment is safe but if i buy out right the banks dont need to worry as all the risks are down to me.
I did take out a small mortgage and paid it off over 5 years. This way you know that if the banks say its ok then the chances are it is all above board.
If you buy outright you need to do and pay for searches and checks your self, also the banks have better contacts to make sure they will not loose out on their investment so you are best off going with a mortgage even if you dont really need one.
If you speak spanish you can do what i always do now and thats go to the planning office yourself and ask to see the registry book. its free and you have the right to see it. with any plot number thats on the details of the property you are interested in you can see just what is on that land, you can check that the property that you are thinking of buying has all the correct permissions and is legal.
if you dont speak spanish then pay a friend who does to go with you. it can save you a lot of money and stress.
The best Bank.
All the banks are the same really when it comes to lending money. Yes some rates are better than others and you do need to shop around but most people dont do this here in Spain.
The second property i wanted to buy here was a house and needed more money and at the time my banks terms were high and they did not seem as keen to help so i shopped around and was told by another bank that if i changed to them and paid my bills through them that they would give me the deal that i needed so i changed banks.
This does take filling in loads of paperwork and changing direct debit payments and bills but its worth it.
I have bought a few properties here now and have changed banks several times to get the deals i needed. its a hassle at times but well worth it.
The last plot of land i just bought was hard to find a bank to lend me the money as buying land here is a lot different than buying a property.
The banks need a lot more deposit down and without project designs for building is very difficult.
In the end we changed banks yet again as there was a bank offering a deal that we liked.
If you are moving to Spain then i would recommend getting a mortgage even a small one and do shop around.
Take a few weeks and make the effort to go to at least 3 or 4 banks to see what they offer.
Things change here almost weekly and you will always find one bank doing deals others don’t. Many banks told me no at first but you need to just go to several to find one that will lend you the money.
You also have to keep at them by calling every few days to make sure they haven’t forgotten you as here in Spain the banks are slow to get back to you. If you keep on at them they tend to get a move on.
Some banks are now asking for more proof of income or other conditions but there is always a bank that will lend you the money if you just keep looking.
At the moment I see that Bankia and Santandar are giving the best deals.
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