Spanish Costa Properties Newsletter April 2003

Spanish Costa Properties
Newsletter
April 2003

In this issue

1. RAISING CAPITAL FOR YOUR INVESTMENT - MORTGAGES
2. BUYING DIRECT FROM THE BUILDER
3. SPECIAL OFFERS
4. WEB SITE UPDATES - NEW DEVELOPMENTS
5. DO IT YOURSELF INSPECTION TRIPS
6. ABOUT SPANISH COSTA PROPERTIES

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1. RAISING CAPITAL FOR YOUR INVESTMENT - MORTGAGES
Buying property in Spain may not be as difficult as you think.
In most cases it is probably easier than buying in the UK.
You can choose to apply for a mortgage in Spain or from the UK.
Mortgage rates in Spain tend to be lower than those in the UK.
You know the price of the property in Euros but you will not know
the actual cost until you buy all of the currency to pay for it.
This means that the property could either cost you more than you
had planned (if the Euro strengthens) or the property could
become cheaper (if Sterling strengthens).

Mortgages are readily available from Spanish banks and there are
generally two levels of mortgage offered, one for residents and
one for non-residents. For non-residents the mortgage offered is
generally around 60% of the declared value, for residents it is
usually around 80% of the declared value of the property although
in some cases it is possible for non-residents to be offered up
to 80%.

Applying for a mortgage in Spain is a straightforward process, as
in the UK. You will need to prove that you have an income or
sufficient funds to pay the mortgage. The level of mortgage
offered is directly dependent on your financial status and also
the declared value of the property you wish to purchase. The main
criteria is income. You will normally need to prove your monthly
income and outgoings. Interest rates are around 4.5%. 90% of
Spanish mortgages are variable rate, (intres variable), rather
than fixed interest rate, (intreres fijio). Interest rates have
traditionally been set at 1 or 2% above the base rate, (Madrid
inter bank rate or MIBOR).

A number of documents must be furnished to the Spanish bank in
order to accommodate a smooth transaction. Please note that
originals of everything will need to be shown and copies will be
taken at the bank.
Passports, driving licenses
If employed: last three months payslips, latest P60's.
If self employed: last three years audited accounts, tax returns
and accountants reference.
Our partners in Spain will be happy to assist you in opening
a bank account, finding a Spanish mortgage and finding a fiscal
advisor/solicitor.

Local banks that we normally use include La Caixa, BBVA, and
Bankinter.

If you wish to transfer money to a Spanish bank we can recommend
Currency Direct who can give you commercial exchange rates.
http://www.currenciesdirect.com/

2. BUYING DIRECT FROM THE BUILDER
Some people have asked me "Why can't I buy direct from the
builder and get a discount?"
Well, I say, you can buy from the builders but you won't get a
discount and you probably won't get as many extras as you would
buying through an agent.
The prices of new properties are non-negotiable, unless you buy
say five or more, in which case some builders may offer a modest
discount.
It is important to appreciate that using an agent does not mean
you will pay more for a new property. Put another way, by
circumventing the agent and going direct to the builder, you will
not pay a lower price.
Builders rely on agents for 95% of their business. Agents do
almost all the advertising and promotional work and spend time
and money attracting clients from the UK and other countries,
and more time and money escorting them around the building sites.
Builders benefit from this and the relationship between builders
and agents is therefore a strong one. So, while builders do not
turn away clients who approach them direct, they keep faith with
agents by offering no discounts off their standard price lists.
Agents may also throw in a few extras to clinch the deal as
well has provide help with banks, mortgages, solicitors etc.

3. SPECIAL OFFERS
As mentioned above we are not able to give you price reductions
but we can throw in a few extras. So if you book an inspection
trip with us before 15th May 2003 and purchase property on your
trip our local agent will offer you one or more of following
extras. TV, DVD, Kitchen Appliances, Air Conditioning, Security
System.

4. WEB SITE UPDATES - NEW DEVELOPMENTS
We are constantly updating our web site with new developments so
if you haven't visited lately have a browse through our property
pages. Over the last few weeks we have added properties available
at Torre Pacheco - Murcia. 3 bedroom villas and townhouses from
Ł106,000. http://www.spanishcosta.co.uk/pacheco.html.
We have also created a resale property list page which lists
over 300 resale properties.
http://www.spanishcosta.co.uk/resalelist.html
There are also featured resale pages at
http://www.spanishcosta.co.uk/resales.html up to 160,000 euros
http://www.spanishcosta.co.uk/resales2.html over 160,000 euros
As our resale properties are normally priced in euros we have
added a currency converter to our web site. This appears on
every page on the left hand side.

5. DO IT YOURSELF INSPECTION TRIPS
Some of our clients prefer to view properties in their own time
and do not wish to go on an organised inspection trip. Inspection
trips may have got themselves a bit of a bad name because some of
the larger companies tend to operate on a large scale by driving
prospective buyers around in coaches and then giving them a high
pressure sales pitch, a bit like time share sales. You will see
these coaches and mini buses driving round the building sites in
Spain.
So some people would recommend you do it yourself. This is
possible but if you don't know the area if can take a few weeks
to find the right property and it is possible you could miss your
ideal home altogether.
Smaller independent agencies like Spanish Costa Properties,
operate in a far different way, we are much more customer focused
and conduct personalised inspection trips for a maximum of two
people. You only see the type of properties that you are
interested in, and that are in your price range. Our local
partners are property owners who have lived and worked in the
area for a number of years so they know the area very well and
know the builders and estate agents too! If you would still like
to visit the area at your own pace you are still welcome to
contact our partners in Spain and ask any questions or to arrange
a viewing.
Let us know if you are visiting on your own and we will give you
details of a local representative.

6. ABOUT SPANISH COSTA PROPERTIES
Spanish Costa Properties provide you with a totally personalised
and flexible property consultancy service. Together with our
Spanish partners we use a number of reputable developers and
estate agents thus offering you an unrivalled selection of
properties to suit all budgets.

All the Best
Roger Weavers
Spanish Costa Properties
www.SpanishCosta.co.uk