The fate of the economy is still up in the air, and investors would be wise to wait and see where the market is heading before deciding to invest in Spain once more. Unless you specialize in picking up repossessed property and that means a lot of work constantly looking at the market and being ready to step in quickly, then now is not the time to buy.
However, those looking for a personal vacation property or planning to retire in Spain may still be interested in buying now, despite the sorry state of the market. These buyers will need to apply for an NIE number before taking any other steps in the process. NIE stands for “Número de identidad de extranjero,” which roughly translates to “foreigner identification number.” Foreigners need an NIE before they can purchase property, apply for a mortgage or open a Spanish bank account. Buyers can apply for an NIE through a trusted solicitor in Spain.
Homebuyers must complete an especially thorough due diligence process on any Spanish property they intend to purchase. A large number of homes were constructed illegally during the boom, and such a home could be demolished by the government with little or no reimbursement to the owner.
The Daily Mail (U.K.) told the story of one British couple who lost their Spanish retirement home because the property had been built illegally. Six years ago, the couple purchased two and a half acres in a Spanish coastal village and spent £350,000constructing their dream home. In January, a demolition team unexpectedly arrived at their door and gave them two hours to evacuate the premises. The local council had been convinced by corrupted builders to grant planning permission, but, according to the regional government of Andalucía, the home was constructed illegally.
It is extremely dangerous to invest in Spain without having adequate and independent expert legal advice because many corrupted developers and estate agents are at the bridge of bankruptcy and subsequently seized by desperation, they don’t hesitate to swindle potential individual clients and corporate investors in order to sell properties.
So if investors choose to purchase Spanish property, it is best to go into the process with both eyes open to the legal issues that could arise. A trustworthy lawyer and meticulous approach could prevent much unnecessary suffering further down the line.
For more information on Spanish property developments and executing bank guarantees, visit:
www.spanishpropertyactiongroup.com
No comments:
Post a Comment