Finance and Legal
Investing in Southern Spain
Over recent years the Costa del Sol, covering areas such as Marbella, Puerto Banus, Benahavís, La Quinta and The Golden Mile, has enjoyed a huge boom in the property sector. Fuelled by a constant flow of international prospectors the price of residential real estate increased by an average rate of 10% a year from the year 2000 to 2008.
Like all things property related, this had to come to an end, and 2008 to 2012 saw a notable slow down and a decrease in prices. The Marbella area has also received bad press following the unearthing of a number of illegally built developments due to a corruption scandal taking place in Marbella Town Hall.
So is it all doom and gloom? Should we pack our bags and go home? Definitely not! The current market conditions represent a fantastic opportunity for serious property investors. Firstly, at the present moment a number of repossessed properties in Marbella and surrounding areas are becoming available. By this we mean speculators who have overstretched themselves and need to sell properties at the price they purchased them for 10 to 20 years ago, or in some cases even less. If you are in a position to move quickly and do not need to arrange finance these opportunities represent fantastic value for money. We believe that this situation will continue for much of the next 5 years, and maybe even longer...
The scandal of illegal building permits hitting the headlines has caused the intervention from central government in Madrid to control development in the area. We have witnessed a big increase in the building of new developments over the last few years. When granted, building licenses are likely to stipulate far smaller build percentages and existing ongoing projects will be subject to some change. In short, this will create a shortfall in quality available properties to meet the growing demand from second homeowners and relocating families. This will in turn create an environment beneficial to vendors; a seller's market - which is where we are at the precise moment!
Yes there are many available properties in Marbella and the Costa del Sol in general, but many properties along the Costa del Sol are overpriced, poor quality and in the wrong location. At affinity we will source the best properties at the best price in the best locations. The main thing to consider is why the market here boomed in the first place? The Costa del Sol is a place that people will always want to live, or spend time in. The weather, the accessibility and the lifestyle dictate that there will always be a healthy flow of potential purchasers. The standards of both educational and medical facilities are some of the best in Europe and millions of Euros have been invested in the road, rail and air networks; the second runway and terminal at Malaga airport enables direct flights to almost anywhere in the world. The infrastructure here has been establishing itself for over 30 years; you are not buying in an area where this all still has to come, as with many of the emerging markets around the world.
At a time when many have been let down by pension funds, a deflated stock market and low rates of interest on saving accounts, property investors in bricks and mortar will always reap the benefits. This environment will always create a stable, sound and profitable investment, especially when we can help you source the best property at, in many cases, lower than its true market value.
Why use a Lawyer?
Real estate transactions can be daunting and confusing unless you are equipped to deal with the endless layers of details and complicated legal documents involved. This is why it is important to hire a real estate Lawyer, based LOCALLY to where you are planning to purchase. Here are 3 very good reasons why real estate lawyers are important for residential real estate.
1: Real estate lawyers ensure that you make informed decisions.
Real estate law is known as being a particularly complicated field of law because of the staggering amount of details that are involved. Details are of the upmost importance when dealing with a piece of property that is a contender for being your new home. Buying a home is the most significant investment most people will ever make in their lives, so it is extremely important that you are able to make informed decisions.
Your Lawyer will spend significant time combing through every legal document involved in the deal you are going to make. Then they will sit down with you to explain every detail to you so that you are fully aware of what is going on. Your lawyer will also give you advice to help you make the right choices as you bring your deal to a close.
2: Real estate lawyers can find problems that you can’t!
Real estate law is known for its complexity. The sheer volume of important details contained in a real estate purchase contract is overwhelming. Without a real estate attorney on your side, you don’t have a prayer of being able to navigate a deal like this successfully. You need a lawyer to scrutinize documents on your behalf and catch problems that you can’t.
What kind of problems might your Lawyer find?
Problems with the title (or deed) to your property: The title is a document that proves your ownership over the property. If there is any kind of problem with the title to your property then your right to ownership of the property may be in jeopardy.
Problems with the physical property: Sometimes properties have unanticipated problems that could end up being a deal-breaker for you. However, you alone are not equipped to sniff out and identify these problems. Your lawyer can help you here.
Problems in your purchase contract: It is unlikely that you will be able to vet your purchase contract properly by yourself. Your lawyer can protect you by making sure that all the terms of your contract are fair.
3: Real estate lawyers will give you peace of mind.
Buying real estate is the most significant investment that you will probably ever make in your life. It will be stressful. Throughout the entire process, you will interact with agents, inspectors, lenders, and others, because these people may not be working for you, they may not have your interests at heart. That is why the relationship you have with your Lawyer is so unique: your Lawyer cares about you, and you alone.
Perhaps most important, hiring a Lawyer will give you peace of mind, which is very valuable. Instead of going gray before your time stressing out over the security of your life savings, you will sleep soundly at night knowing that your lawyer has your back!.