If you have been looking for an opportunity to invest in property in Marbella, now is the time to consider it seriously. Over the last 7 years real estate prices saw a dramatic decrease but are now on the move up especially in high demand areas such as Marbella and other locations on the Costa Dels Sol. Couple this with favorable exchange rate it definitely feels like a this next 12 month is the time to make the move.
However buying a home abroad can seem very daunting because of the size of the investment you have to make. Therefore if you are thinking about buying a property in the Marbella area to live or use as holiday home we wanted to outline the pros and cons of this decision against renting a property.
Buying a Property the Pro
The big one here is of course that you own it and can use it whenever you want. Also if you buy at the right time in the right location you could benefit from the increase in value of your property as the market continues to increase.
Buying a property the con
Owning a property outright brings with it a lot of costs. First off as a potential buyer, you need to keep in perspective the fact that the asking price provided to you by an agent or on a website is just the price of the property alone. There are other costs involved in acquiring property in Marbella and you need to be prepared to spend an additional 10% of the stated cost to cover these expenses. This is often overlooked by people when they are putting their property budget together.
Other costs at the point of sale include
· Legal charges
· Brokerage for searching out suitable property
· Registration charges
· Notary fees
Once you own the property you are then faced with running costs which would include the following:
· Local Council Taxation charges
· Garbage Disposal charges
· Community bills
· Insurance coverage
· Power bills
· Water bills
This may look like a lot of extra charges but as long as you are aware and have budgeted for the total cost of buying and owning a property in Spain they won’t come as a surprise.
The main issue here is that if you want to buy a property and not have it become a burden to need to figure out all the potential costs and then decide if you are comfortable with the numbers presented.
There is still a big opportunity to buy good quality property at a good value price but only if you know where to look. If achieve this then owning a property here becomes a very attractive offer because there is only one way the market here is heading and that is up.
If you want some no obligation advice about buying a property in Marbella or interested in property on the site please get in touch with our team.
The Rental Option
As with property prices, rental fees took a big hit in the economic crisis but are now on the rise as Marbella and the Costa Del Sol becomes ever more popular for looking to relocate into this area. in the current situation, especially in high footfall areas such as Costa del Sol, Marbella, and Ibiza. Some Real estate agents have been coming up with at least five or six potential tenants for property that is being entered into the market.
Even existing tenants are having a hard time renewing contracts as the price they started with as owners have caught wind of the opportunity and demanded higher rents.
However in some areas there is still an opportunity to get a good deal on rental property but with demand going up at a steady rate and it may become increasingly difficult to get good rental rates over a period of time.
Renting a Property Con
That last point really highlights the big con of renting which is insecurity. You may have found a home you are happy with and want to stay but there could be complications renewing contracts if the owner circumstances change or they want to charge you more money which you not be able to justify.
Renting a Property the Pro
Renting a property gives you flexibility and freedom. In the scenario where you are not sure about the potential for development in the locality or are uncomfortable with an outright buy, you can always opt for taking a property on rent as it still makes good economic sense.
When you take property on rental for a shorter time span such as three to six months, you gain the chance to understand the location and make a decision on whether the area serves your priorities. You also have the time to reflect on the long term consequences of your investment, which is essential to ensure that you don’t end up paying for property you don’t really need with money you worked for.
Secondly you have freedom to move whenever you want if circumstances change or if you experience a change of heart and decide that it’s just not for you. Buying property means having a tie to a place that needs attention whether it be managing it or trying to find a buyer.When you rent, you can still get the opportunity to gain some exposure to the Spanish lifestyle without the burden of owning property.
There are even offers from development companies and builders of rent to buy schemes. What this means is that you can rent a home with a long term intention of buying the property and make a purchase offer at future date.
Make the Decision Now
Regardless of whether your decision is to rent or buy property in Marbella, now is the time to take action as the current situation provides a golden opportunity to find your dream home in the sun.
We have both properties for sale and long term rental so whatever you decide we can help. Contact us today and let us help you make the right decision.