How To Buy Property In Spain - Some Traps To Avoid

Buying properties abroad in countries like Spain is one of the most exciting things you can do, and it can enhance your lifestyle in a big way. But it's absolutely essential for you to understand how to buy property in Spain in a way that actually WILL enhance your lifestyle and not leave you bankrupt!

First and foremost, you absolutely MUST get a lawyer - don't even think of trying to proceed without one. And of course, unless you speak fluent Spanish, it need to be a lawyer who speaks English, and one you can trust. Personal recommendation is probably one of the best ways to find the right lawyer, or the consulate from your own country may have a recommended list. Some UK and US legal firms have set up businesses in Spain specifically to help expats from their own country. But sadly, even some of these have been proved to be "on the take" - so don't take ANYBODY at face value.

Once you have a good lawyer, do use him (or her). Don't even think of entering into private transactions without going through the legal system, though some vendors will try to persuade you to do just that. One of the reasons for this is that sellers of property in Spain have to pay tax on the profit they make on the house. So they will try to persuade you to put a reduced price into the purchase contract and make up the difference in cash. It's actually quite a common practice in Spain.

It may be very tempting for you to do this if you believe you have found your dream property. If you refuse, the seller might well withdraw from the sale and your dream house has gone!

Your problem is, if you do this, the price in the contract is the price you have "officially" paid for the property. So when YOU come to sell the property, your capital gain will be assessed on that price, not on the real price you paid, so YOUR tax will be much bigger! Your only hope will be to try to persuade someone else to enter into a similar illegal transaction! So don't even go there!

Have you been caught out in this way, or been tempted? Do let us have your experiences. More tips in the next post on how to buy property in Spain. Meanwhile if you want to start looking for your property, come and visit http://www.bizwrite.co.uk/realestate/overseasproperty.html We definitely won't try to involve you in any illegal practices! In fact we'll help you with the legalities from Day 1.

Buying Properties Abroad - Spain

Spain is probably the most popular destination for buying properties abroad, at least as far as British people are concerned. People from UK have been buying properties in Spain for decades now - mainly as holiday homes or places to move to permanently. Unfortunately, Spain is also the place where the most "Property Horror Stories" come from!

It's not really surprising that Spain is so popular for buying properties abroad. Of course it has always had a particular magnetism for sun-starved Brits! The year-round sunshine is a big attraction.

But it's not just the weather. Spanish scenery is sensational - starting in the north with the Pyrenees, one of Europe's most magnificent mountain ranges. It has an incredible wealth of Roman and medieval remains. It has a terrific coastline with warm blue seas and many of the world's most famous beaches and resorts. And it offers a great lifestyle - visitors love the easy, relaxed pace of life and the exuberance and happiness of the Spanish people - exemplified by the fiestas in every town and village.

So yes, Spain is magical. But it is just this magical quality that you need to beware of when it comes to buying property! Buying property is a hugely expensive transaction so you need to make sure you ditch the rose-colored spectacles and keep a totally realistic and down-to-earth perspective.

In the next few posts we will look at some of the pitfalls to avoid. This is NOT to discourage you from buying property in Spain - far from it! The idea is to make sure that when you do buy, it's a good and happy experience, not a nightmare! Anyone who has any experiences to share or any tips to provide, please get in touch!

And if you would like to start your search for properties in Spain, you can do so by visiting http://www.bizwrite.co.uk/realestate/propertyabroad.html

Buying Homes In France - The Legal Bit

As we said in the previous post, there is nothing especially difficult for the foreigner about buying homes in France. However, the process is quite different from that in the USA or UK, so it helps to know what happens.

1. When you have chosen your property - whether from an estate agent or through a private arrangement with the owner - you go along with the vendor to a legal official called the Notaire or notary. There is one for every local area. You will be required to pay the Notaire a deposit of 10 percent of the purchase price.


2. You and the vendor will then need to sign a contract called compromis de vente, in the presence of the Notaire. This becomes legally binding after seven days - before this, either side may withdraw without penalty.


3. One important difference from the US or British systems is that in France the house purchase process doesn't necessarily include an appraisal or survey. However, in most cases it's not advisable to leave this out, so during the seven-day cooling off period it would be a good idea to hire a local builder to check that the property is structurally sound. If you discover major faults AFTER the end of the seven-day period, you will still incur major penalties for pulling out!


4. During the next few weeks, the Notaire will carry out legal searches. This usually takes 2-3 months, though the Notaire won't be able to give you an exact date in advance. If you go home during this process, you should provide contact details so the Notaire can let you know when the completion date will be.


5. During this period you need to ensure that the full purchase price is in the Notaire's bank account. The easiest way to raise finance is usually by getting a mortgage with a French bank. Alternatively you can refinance your existing property or obtain a home equity loan.


6. On the completion date you and the vendor will sign the final contract called the Acte Authentique. Once this is signed - the property is yours!

All you have to do now is enjoy your French home! If you can't wait to start your search, go to http://www.bizwrite.co.uk/realestate/overseasproperty.html If you are in the USA and would like advice on refinancing your existing property, visit http://www.bizwrite.co.uk/realestate/lending.html (It's a bit easier in the UK to find mortgages for buying properties abroad.)

Buying Homes in France - How To Do It

Buying homes in France is actually easier for foreign nationals than it is in many other countries, such as Greece. There are actually no legal restrictions on non-French people buying property and I haven't heard many horror stories - if YOU have a horror story, or have heard any, please get in touch! The only problem some foreign buyers have met with is that in some areas that are very popular with overseas buyers, the local people have sometimes shown resentment at their village or town being "taken over".

Of course you can't really blame them for this, especially when the "incomers" insist on speaking English, setting up shops, cafes and restaurants selling their own type of food, etc. Half the enjoyment of buying properties abroad is in learning about other people's way of life. And the French way of life has A LOT to recommend it! (Likewise French food!) So I would suggest if you want to get the maximum pleasure from your new home, that you are prepared to learn some French, and fit in with your neighbors a bit. They may even become your friends and you will enjoy your property so much more! That's my experience anyway - let me know if you agree or disagree!

Of course, when buying homes in France, the first step is choosing your property. You can do this the same way as you would at home - by looking in the windows of estate agents (immobiliers). However, if you buy your property through estate agents they will charge you 10 percent. The other way is to drive round looking for houses with an "A Vendre" (For Sale) notice. It's very common in France to sell property privately so if you see a house you fancy, there's nothing to stop you starting negotiations with the owner. However, if you don't speak French, it's a good idea to take a French speaker with you. A lot of French people wouldn't appreciate someone turning up at their house and insisting on talking English to them, even if they do speak English themselves.

In the next post we'll look at the legal process of buying homes in France. And if you can't wait to start your search for your perfect French property, you can go to http://www.bizwrite.co.uk/realestate/propertyabroad.html for a wonderful selection!

Buying Properties Abroad - France

As we have observed before, there are many reasons for buying properties abroad. In recent months, the problems in the home property market in both the USA and the UK have become one of the foremost of these reasons. People are looking for an opportunity to invest in an area where property can still found at quite a low price, but where there is a good chance of growth in the market.

France is increasingly attracting people looking for this type of property. France is really a very seductive place to look for your home. As you drive through the French countryside, you really marvel at the absolutely magnificent scenery with its wealth of ancient castles and medieval villages. And if you stay for even a few days, you will be completely won over by the delectable food and the amazing variety of superb wines.

UK residents have been buying homes in France for many years now. Of course it's very easy for British people to get to - even before Eurostar, it was a fairly short hop across the channel. Many British folk find the lifestyle delightful and much more relaxed than living in the UK. Plus, of course, they have probably paid a lot less for their property than they would have done in Britain!

Now, the idea of buying homes in France is becoming increasingly attractive to US citizens too. It seems like an escape from the growing problems in the property market in the USA.

But how easy is buying homes in France for the US or UK resident? Well - there's one thing you can be sure of, and that is that real estate processes are very different from those in either the USA or UK - though not necessarily all that difficult. In the next post we will go through the house-buying process in France step by step. If you have any tips or experiences to share, please do! And you can find some lovely French properties at http://www.bizwrite.co.uk/realestate/propertyabroad.html or http://www.bizwrite.co.uk/realestate/overseasproperty.html

Buy Real Estate in Greece - The Process

Today we are looking at how you actually buy real estate in Greece. Make sure you have your tax number (AFM), your bank account, and your vital "pink slip"!

Once you have made the decision as to where you want to buy your property, you can now select your property and make an offer on it. You can either do this through an estate agent or directly to the owner. Once you have made the offer, the transaction has to be overseen by a public notary (symvoliographo). This person will draft a preliminary contract and ask you for your deposit of 10 percent. The notary will then start the process of checking the title of the property. If there turns out to be a problem with the title, your deposit will be refunded - it's not refundable for any other reason.

Your lawyer will also need to do some checking on the property - for instance that it really belongs to the person who is selling it and that he or she has the right to sell it. It's quite common in Greece for a property to be owned by several members of the same family. The seller could be selling it behind their backs, hoping to make a quick buck before they find out! If you buy without checking this kind of thing, you could find that you only own part of the property - and there's absolutely nothing you can do about it. You see why I said you must have a lawyer!

You also need to employ a civil engineer (politikos michanikos) to check things like zoning/planning laws - these will determine whether you can make any alterations or extensions. This official will also check whether the boundaries of the land actually correspond with what is indicated on the deeds. This is not necessarily the case!

Once all these checks have been completed, the symvoliographos will draw up the final contract and you transfer the remaining funds from your bank to the seller's account. The contract has to be signed by you and the seller, in the presence of the symvoliographos, your lawyer and the agent if you have one. And the property is yours!

The main thing to remember is, don't expect everything to work exactly as it would in the USA or UK. Spend time getting to know Greece and the Greeks and understand how things work - and it will all seem like part of the charm of the place! Believe me, once you have fallen in love with Greece, it will be a lifelong love affair! And to find some stunning properties to start your search, come to http://www.bizwrite.co.uk/realestate/overseasproperty.html or http://www.bizwrite.co.uk/realestate/propertyabroad.html

Buy Real Estate in Greece - What You Need

So you want to buy real estate in Greece. And you have decided where you want your property to be! A very difficult choice - unless you had already fallen in love with one special spot. So what do you do now?

There are some things you need to do before you start the purchase process.

• The first thing you have to do if you're a foreign national is get a tax number. This is called AFM which stands for "arithmo forologiko mitro". (As you will guess, "arithmo" means "number"!) You can get this number from any tax office. If you are from USA or UK, you have to produce your passport and fill out two tax forms, the M1 and the M7.


• You have to open a bank account in Greece. When you transfer the money to the seller it has to come directly from a Greek bank.


• Another very important requirement is that you have to account for the money you are using to buy the property. You have to satisfy the authorities that it is from a legal source. If your funds come from outside Greece, as they almost certainly will, you must transfer them in to the Greek bank account you have opened. It is absolutely essential that you keep a copy of the bank transfer and the "pink slip" issued by the bank. You have to be able to account for the full amount of what you pay for the property - if you can't, it will be assessed as "unreported income" and be liable for full tax!


• Finally, you must hire a lawyer (dikigraphos - the "d" is pronounced "th" as in "the"). Unless your Greek is very fluent, you need one who speaks English! You should be able to get a list of recommended ones from the US or British consulate.

Now you are ready to start your buying process! This where the fun begins! In the next post we will go through the process in detail. If you have been through it and have anything to add, please do - likewise if you have any questions. And if you can't wait to start your search for a gorgeous Greek property, you'll find a fantastic selection at http://www.bizwrite.co.uk/realestate/propertyabroad.html or http://www.bizwrite.co.uk/realestate/overseasproperty.html

How Do I Buy Real Estate in Greece?

If you're looking to buy real estate in Greece, the first step is to do your research. Learn about all the steps in the process and all the legal requirements. The purchase process for foreign nationals is a bit more complicated in Greece than in some countries but many, many people have done it successfully. If you feel nervous, find some people from your own country who've already been through the process. They will be only too happy to chat to you over a glass of ouzo or three! They are the best people to provide practical tips, and warn you against pitfalls you may come up against.

The next step is - decide where you want to buy your property! If you've been to Greece a few times, you'll know what an immense and varied area it covers. Dozens of islands, all very different (for instance the Ionian islands are very different from the Dodecanese islands near to Turkey). The mainland - north or south, mountain or coast. Beautiful towns and cities or tiny sleepy villages. It's highly advisable to get to know Greece before you start - unless you have totally fallen in love with a particular spot. Getting to know the country won't be an arduous task! It can only be sheer delight!

When you are deciding where to buy your property, there's one thing you have to bear in mind. If you are from the USA or another country outside the European Union, you need special permission to purchase in certain areas of Greece. These are areas that are on the outer fringes of the country. They include islands close to Turkey such as Rhodes and Kos; Crete to the south; and the northern parts of the country. This approval isn't usually difficult to obtain - you get it from the local prefecture and your agent, if you are using one, will help you.

If YOU have found it easy or difficult to buy real estate in Greece, please share your experience - it would be really helpful. And if you're interested in buying properties abroad, in Greece or anywhere else, you'll find a gorgeous selection at http://www.bizwrite.co.uk/realestate/propertyabroad.html or http://www.bizwrite.co.uk/realestate/overseasproperty.html

Buying Properties Abroad - Real Estate in Greece

If you're interested in buying properties abroad, you could start your search in Greece!

So why would you want to buy real estate in Greece?

Well, I have to confess to a special interest here - because I have loved Greece all my life! To me it's one of the most magical places on earth. For a start it's the cradle of European civilization. Everywhere you go there are reminders of our history, back to Homer, the Trojan War and beyond. There are mighty mountains wrapped in ancient myths and legends. There are white bougainvillea-covered houses tumbling down steep hillsides to an azure sea. There are islands bathed in eternal sunshine....

But of course there are much more down-to-earth reasons for wanting to buy real estate in Greece. The property market in Greece shows all the signs of being on the up. Greece's entry to the EU, followed by the Athens Olympics, provided a major jump-start to the real estate market and this upswing shows no sign of slowing down. If you want your property as an investment, you can look forward to handsome rental returns, especially in holiday hotspots like Crete, Rhodes, Zakynthos/Zante and Corfu. AND you can expect a virtually certain steep appreciation in value.

But how easy is it to buy real estate in Greece? Well, it's not the easiest place, but lots of people from other countries including UK and USA have done it successfully. You just need to understand the process and we will look at this in the next couple of posts.

If YOU are wondering whether to buy real estate in Greece, or if you've already done so and have tips to pass on, or good or bad experiences to report, please let us know. Meanwhile you'll find some gorgeous Greek properties at http://www.bizwrite.co.uk/realestate/propertyabroad.html or http://www.bizwrite.co.uk/realestate/overseasproperty.html

Buying Properties Abroad: The Day Of Reckoning!

There's only one real downside about buying properties abroad - that is, they have to be paid for!

In the UK there are a number of mortgage companies who will provide finance for buying properties abroad - mostly within Europe - though since the credit crunch started, this type of finance is getting harder to find. In the USA there are VERY few such lenders. Lenders have this strange idea that they need to be able to seize your property if you default on a mortgage! And of course this is a lot more difficult - or even impossible - if the property is in a different country.

So if you're buying property abroad, what are your options for financing?

Obviously, the easiest option, if it's available to you, is to buy with cash. Given the attractive prices of many overseas properties, this is not as outrageous as it might sound. But even if you haven't got that sort of money lying around in your bank account, you may well have it in your home. There are two ways you can get hold of this money - either by seeking a home equity loan (http://www.bizwrite.co.uk/realestate/homequity.html ) or through refinance funding (http://www.bizwrite.co.uk/realestate/lending.html) .

However, if you do need a loan, you can often use a bank in the country in which you are buying the property. This is usually a lot simpler and involves less hassle than trying to persuade a bank in your own country to lend to you. In future postings about specific countries we will look at the countries where it is reasonably easy for foreign nationals to get a mortgage.

If YOU have had experience of buying property abroad using other financing options, we'd love to hear from you! Meanwhile, for some gorgeous properties, many at amazing prices, have a look at http://www.bizwrite.co.uk/realestate/propertyabroad.html or http://www.bizwrite.co.uk/realestate/overseasproperty.html

Buying Properties Abroad - To Live In!

A third major reason for buying properties abroad is the biggest step of all. You're planning to sell up in your home country and to move into your new home permanently.

As I mentioned a few days ago, this is something Brits have been doing for several decades now. Most of them have made the move for their retirement, but an increasing number find it possible to live in France and commute to Britain, or else carry on working from their home or set up businesses in their new country. The largest number probably move to Spain, but lots also find homes in France, Italy, Greece, Bulgaria and other European countries, Turkey, and even further afield in countries like Thailand.

Now it seems that more and more people in the USA are having the same idea. The most common reason for British people is probably the British climate! They fancy the idea of moving to the sun. The main reason why it has increasingly been catching on in the USA in the past 12 months is probably the problems in the property market. You can often get more house for your money in many of these countries. But many people are also becoming more and more attracted to a more relaxed and less pressured lifestyle.

For those buying properties abroad to live in permanently, there are a number of things to look out for. It's really not a good idea to spot a property in a place where you have enjoyed a couple of weeks' vacation, and decide this is where you want to live.

First and foremost, you need to be hard-headed about the decision. Go home, get out of your holiday frame of mind, and make a list of the pros and cons.

You must get to know the area before you can decide if it's a place where you want to live. You can manage without good shopping facilities for a couple of weeks, but would the shops meet your needs on a permanent basis? Visit at different times of year to see if you can handle the climate in the off-peak season. Can you get along easily without speaking the language? If not, is it an easy language to learn?

Are you sociable people? Are you happy with your own company or do you need to have friends around? If you need folks around, are there plenty of congenial people in the neighborhood whom you know you can get along with? If not, you could get very lonesome and start missing life back home - this happens to many people but they only realize when it's too late. If you have hobbies, are there the facilities there for carrying on your hobby?

And DO check out tax, pension and health care arrangements. Many people have been caught out by finding out too late that their pension is not payable in full in another country. Find out what medical facilities are available and how much medical care costs, especially if you have a medical condition.

Many, many people find a happy, fulfilling life in another country - but they are the ones who have considered it carefully beforehand. Don't be one of the ones who live to regret it! Take lots of advice and make sure it's the right decision for YOU. And when you've made your decision, find your property at http://www.bizwrite.co.uk/realestate/propertyabroad.html or http://www.bizwrite.co.uk/realestate/overseasproperty.html

Buying Properties Abroad - Holiday/Vacation Homes

Another very common reason for buying properties abroad is to use as a vacation or holiday home. This could be primarily for yourself, perhaps just letting it out occasionally or allowing family and friends to use it. Or it might be with the intention of setting up a vacation rental business - in which case you may well have a number of properties.


If people are buying properties abroad for holiday/vacation use, the factors to consider in choosing a locality are different from those for investment properties. They include:

• Ease of travel. This applies whether it's for yourself or for rental, or both. You may be choosing the area because it's near an airport, but make sure there are flights there from an airport that's convenient for you. Suppose those flights were discontinued - would there be a reasonable alternative?


• Is it a place where people WANT to go on holiday? If it's just for yourself, it doesn't matter too much if it's in a fairly unknown area - in fact that might be a plus. But if you're setting up a business, you need to be certain you would have enough rentals to make it pay.


• For the same reason, check local competition. Even if it's a fabulously popular location, you would struggle to break into the market if there's already an established rental culture.


• And check the length of the rental season too. Can you only count on letting it out in a fairly brief peak season, or is there a pleasant year-round climate which might mean you could count on letting it out for most of the year?


• Whether it's for yourself or for rental, DO be thorough about looking into local planning/zoning laws. It has been known for purchasers to have their property demolished by the authorities because the land was developed without the correct permission.


• And while doing this, check whether there are any developments planned in the immediate neighborhood of the property. You may have fallen in love with it because of its stunning sea view, but arriving the next year to find a huge apartment block between you and the sea might rather spoil your enjoyment!

This isn't meant to be gloom and doom! If you're expending the money on an overseas property, it makes sense to avoid the pitfalls. Buying properties abroad should mean excitement, pleasure and fun! So make sure you avoid risks that could ruin your experience!

I'm sure there must be other points to note. If you've had personal experience, good or bad, please share it. Also if you have a question, please ask - if I can't answer it, perhaps someone else can. And if you are looking for a property, there's a gorgeous selection at http://www.bizwrite.co.uk/realestate/propertyabroad.html or http://www.bizwrite.co.uk/realestate/overseasproperty.html

Buying Properties Abroad - A Great Investment

Yesterday we looked at different reasons for buying properties abroad. One of these was buying as an investment. This could be a way of investing money you have inherited or received as a bonus.

If buying properties abroad is seen as an investment, rather than as a holiday home, obviously the first consideration will be the extent to which a property is not only going to hold its value, but appreciate in value. So if this is your intention, the first thing you need to do is investigate the market.

Now this is where things get a bit complicated. You don't have a crystal ball - so you can't predict precisely whether a property is going to hold and increase its value. Just the fact that a property is cheap doesn't necessarily mean it's going to go up. Quite a lot of people have bought property overseas because the salesman assured them the market would take off - only to find that this never happened.

Some people say you should buy in countries with a proven track record, such as Spain and France. Others say that these are saturated and you should look further afield. In actual fact there are still some remarkably low-priced properties to be found in France so you could possibly find a good investment here. If buying in Spain you need to be VERY careful - many people have got their fingers burnt through not checking the legalities thoroughly enough.

Some of the things you should check include:

• Is inward investment in the country on the increase? For instance, countries which have just joined the EU, such as Bulgaria, could be a good prospect.


• Is the government making major efforts to improve the infrastructure? There are good reasons for believing that Egypt and Turkey, where properties are quite low-priced at the moment, will prove a profitable market. In Egypt because the government want more people to come to the country, and in Turkey because they are desperate to join the EU.


• What are the prospects for political stability in the country? Most EU countries are relatively stable. If there is the prospect of political upheaval in a country, obviously a property bought there might not be a good investment.


• Are there problems with the climate? Many people buy properties based on the fact that they enjoyed a holiday in that country - but that would have been in the peak holiday season. In places like the Caribbean where there is a risk of hurricanes and tornados at certain times of the year, a property might not be a good investment.


• Take expert advice on the economic outlook of a country where you are considering buying investment property. Economic conditions have a powerful effect on the property market and therefore on the chances of your property proving a good investment.

These are certainly not all the factors to consider, but they are some of the main ones. Buying properties abroad, and all types of investment, always carry some degree of risk but you can make sure you keep the risks to a minimum. I would love to hear your views or experiences - have you made a good or bad investment in property abroad? Have you got any tips or warnings for people considering taking this step? If you want to find a fantastic selection of properties go to http://www.bizwrite.co.uk/realestate/propertyabroad.html

Buying Properties Abroad - Why?

Welcome to our Bizwrite blog on Buying Properties Abroad. I'm starting this blog because the more involved I get in this activity, the more excited I get and I want you to share in this excitement!

This blog is to share my experience of buying properties abroad and hopefully to share the experience of lots of other people too. Apart from big-time investors, not many people have more than one overseas property, and everybody's experience will be different! Plus the buying process differs from one country to another and there are lots of tips to pass on. Most people's experience will be fantastic, but some will have tales of woe. We'll pass these on too, so as to provide a warning about pitfalls to avoid.

So why do people get into buying properties abroad - or want to get into it?

Well, there are several different reasons. These include:

• As an investment or as part of your pension plan. This could be either for reselling at a profit, or for a rental income.
• As a holiday/vacation home - to use for yourself and your family, or to rent out, or both.
• To go and live in permanently. British people have been doing this for quite a few decades now - perhaps to escape the British weather?! Now with the problems in the US property market, more and more Americans are looking at the idea.

People need to be clear about their reasons for buying properties abroad. Think it through - don't just do it because you fancy the idea, though no doubt you do! Your reason will largely determine where you buy the property. In the next few posts we will look in detail at each of these reasons. Meanwhile have a look at http://www.bizwrite.co.uk/realestate/propertyabroad.html for more ideas.