Is that social media post about a lovely Spanish villa for sale for under €50,000 too good to be true? Probably, yes. Here are some of the things to be wary of if you see adverts for ‘cheap’ Spanish property.
Spain is one of the most popular destinations for Brits looking to buy either a holiday home or a permanent base in the country, as evident from the number of property websites and TV programmes dedicated to house-hunting in Spain.
While there have long been adverts targeting Brits, there are now an increasing number of social media accounts advertising ‘cheap holiday homes’, ‘cheap EU property’ or ‘cheap houses of Spain’ and ‘Spain cheap houses’ to English-speakers.
These range from entirely genuine to somewhat less so, but even if the advert itself is legit and the property really is on sale for the price advertised, there are some things you need to factor in first as costs can build up.
Property Taxes and fees
The cost of property in Spain isn’t quite as good as it first seems, there are several other costs involved with the buying process. This all adds up to around 12%-14% of the total cost of the property. So, the original €50,000 house already costs €57,000.
Renovation
Another reason for properties to be far less than normal is that they need significant renovation work. While some people enjoy the challenge of a renovation project there are several things to consider, particularly in Spain.
Almost any type of restoration work or home renovations requires planning permission in Spain, unlike in the UK where you only need planning permission for major changes like extensions. Even basic changes to your property like installing a new kitchen or knocking down a wall requires permission
Illegal properties
Unfortunately, it’s surprisingly easy in Spain to be tricked into buying an illegal property, or one with illegal extensions, as estate agencies and sellers often assure you that everything is above board and legal.
In Mallorca alone for example, it is estimated that there may be around 30,000 of these illegal homes.
But it’s not only illegal extensions or works that can be a problem, properties can also be built on what’s known as rustic or rural land – land where it’s prohibited for homes to be constructed.
Rural properties
Many of these more affordable homes are in areas known as ’empty Spain’.
These are places suffering from depopulation and have a severe lack of services, employment opportunities and infrastructure. Transport, schooling, medical services and even banking can be a concern in these areas and can often leave you feeling very isolated.
If you are looking to buy a property in Spain or Portugal and need a mortgage, email mark@vci-network.com for the latest criteria