How to Buy a Holiday Home in Spain

The dream of being able to buy a holiday home in Spain may seem just that to some people, but if the process is broken down into steps it may not seem such a pie in the sky idea. Many people buy a holiday home in Spain with the idea of letting the property when not in use, which can be a great financial investment.

Difficulty: Challenging

Instructions

1. 
    

   Decide where you want to holiday. Spain is a huge country and some areas are vastly different from others, you may be more into beach life or you may like a mountainous region. Spain has all of these, usually within easy reach of each other in some parts.

2. Remember that the population may be different at various times of the year. If you are looking to buy with the idea of letting you may be better sticking to the tourist hotspots in order to be able to rent out the property all year round. Also check that there is easy access to airports in the region you are buying your holiday home in.

3. Do your research before buying. Check out property abroad magazines and books, view the various property abroad websites and go to overseas property exhibitions. The more information you have before you eventually buy, the better. All this research can be done for a nominal cost.

4. Obtain an independent legal advisor. This should be someone who fully understands the language and the legal system of Spain. The legal advisor should also be working only for you and not have any interests or links with property dealers with whom you may be investing.

5. Weigh up your finance options. You may have enough equity on your present property to buy a holiday home in Spain outright. If not you can take whatever equity you can release or borrow and apply for a mortgage. Most Spanish banks will offer mortgages of around 60 to 80 percent over a 30 year period.

6. Always shop around. If you are using a Spanish bank to obtain a mortgage in order to buy a holiday home in Spain, make sure you shop around. Spanish banks are very competitive.

7. Have all appropriate information when applying for a mortgage. You will need to show proof of income such as your last three months payslips, six month’s bank statements and a P60. All of your existing debts, loans and repayments will be taken into account and your outgoings must not exceed 35 percent of your net monthly incomings, this will include your Spanish mortgage. Spanish banks will also not take into account future income from buy to let properties.