FREQUENTLY ASKED QUESTIONS.
Property "Detectives"
You say you can save us money by using your services, how is that possible?
We have negotiated with a Foreign Currency broker who guarantees to beat any currency rate you have been offered. They buy in huge quantities a lot of smaller amounts together make a large daily purchase. We have known clients to save up to £2000 on £100,000 property purchase. That is a lot to save! (see our links page for more information).
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Could you give us a breakdown of running costs on an average property, for example a 2 bedroom apartment on a complex on say the Costa Blanca?
Yes, without your consumption charges which are usually slightly less than in the UK, you should use the following as a guide:
| Water and Electricity charges | £150 | |
| Local rates and refuse collection | £180 | |
| *Community fees (include shared pool and communal garden maintenance) | £160 | |
| Insurance house and contents | £100 | |
| Fiscal Representative and property tax (needed for non residents to look after paperwork and pay for taxes) | £180 | |
| TOTAL | £770 | a year |
*the amount of community fee can depend upon the size of your apartment, therefore a smaller property would pay slightly less and a bigger one slightly more.
** This example does not include agent or management fees for letting your property, which vary from company to company. Please ask for further information.
I have heard that the payment structure for buying in Spain is different than the UK is this so?
Yes, this is why some of our clients are moving towards resales rather than new.
Firstly, with a resale it may be necessary to make a deposit of up to 10% of the purchase price once a contract for purchasing has been signed. The remainder is usually required within one month of signing the contract. If you back out of the purchase this amount is given to the vendor as compensation. Therefore it is important that you either have your funds available before you go out to look or you know that they will be there within this timescale.
It could be that you have had a Euro Mortgage in principle agreed from say our friends at the Caja Duero Building Society of up to 80% of the purchase price (see Links section).
With a new property it is likely that you will have to pay up to 50% in advance of your property completion, which can take up to two years or more. The advantage is that buying off plan sometimes results in savings for you the client, this has to be set off with the disadvantage of not be able to see your investment before it is completely finished!
This transaction is often referred to as a stage payment and depending on which builder, agent or designer you buy with, will work out something like the following on a property worth 100,000 Euros:
| Initial Deposit | 10% (travellers cheques are usually the best option) |
| 1st Interim payment | 40% (usually must be made within 30 days) |
| 2nd Interim payment | 25% (usually half way between the 1st and final payment) |
| Balance | 25% (on receipt of keys) |
If my property costs 100,000 Euros or about £61,090, how much are the “add on charges” you refer to.
This works out about the same for a new as for a resale, you should add about 10% of the property price to cover taxes and solicitors fees. With new properties there will also a charge of about £200 to include water and electricity connection.
If I want to let out my property to get an income return, can I do this?
Yes, we have links with management and service agents who can let out your property or just manage your own private rental agreements. You do need to remember to declare these earning to the tax man!
You say you are children and disability friendly, what do you mean?
If you have children and have tried to book on an inspection trip with the larger companies you will find that most companies will not allow children to accompany adults on a viewing trip. This is because these trips are designed for pressure selling with a rigid itinerary. We believe that you may not have the luxury of "nannies on tap" or actually want your children to be present during the purchase. Therefore we usually suggest shorter appointments over a longer period, such as a week's holiday, rather than a quick visit over 2 or 3 days. In this way you can mix your holiday with finding your dream home at a leisurely pace.
In relation to catering for clients with disabilities, please let us know your special needs and we will contact our agents with details of your specific requirements.
I am really interested, what do I do if I want to get some more information from you.
You can speak to one of our staff in the UK, Ethel, Julie, Renee or David. They will listen to your needs and arrange for a Director to contact our staff in Spain and then let you have some property information. We do not cold call you, we do not need to operate hard sell techniques, our service and properties do the hard work for us!! Alternatively you can email us, please go to our contact us page for details.