Incredibly Useful Tips For Expats Who Can’t Decide… Rent, Buy or Rent to Buy?

from March 2023 Costa Link Magazine

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Buying a property in Spain as an expat is fairly straightforward, however, like most things can get complicated with poor advice or different processes from region to region. Here in the Costa del Sol, there are over 1,920 real estate agents, most offering services that include rentals and sales. Undoubtedly, a good Real Estate Agent will understand all the nuances and will guide you through the process to make it as hassle and stress free as possible.

Born and raised in the North east of England, Mike Smith moved to Spain in 2002 looking for a new challenge. He found it in the Costa del Sol, where he saw an opportunity and started First Choice Spain.

Since its inception, Mike and his business has seen the roller coaster of change and challenges in the Costa del Sol property market, and he is proud that First Choice Spain is better prepared than ever and also able to meet the new and exciting challenges ahead in the Spanish property sector.

This month, we highlight a Real Estate agent who has 21 years of experience here in the Costa del Sol and can share with you some advice and guidance whether you are seeking to rent, buy or let or sell.

Meet Mike Smith, owner of First Choice Spain.

It has been mentioned by numerous fellow agents alike that Mike’s knowledge of property on the Costa del Sol is verging on encyclopedic, and he enjoys sharing his experience and guidance with his colleagues, clients and friends.

First Choice Spain has helped thousands of Expat clients from all over the world to buy, rent or sell property in Spain, and has consequently become one of the most established and most trusted real estate brands, along the length and breadth of the Costa del Sol.

As a company, they have learned to understand the best areas for each client, advise about the pitfalls to watch out for, and whether you’re a buyer, seller or renter, Mike’s goal is to get you the best deal.

Give Mike and his team at First Choice Spain a call, whether advice, recommendations, Renting, Buying or Selling

Renting as a Tenant

Renting a property in Spain is fairly similar to renting anywhere else in Europe. Spanish law requires the tenant to pay the landlord a minimum of one month’s rent in advance when signing a contract. If the property is furnished a landlord may ask for two months’ rent to cover the potential cost of damaged furniture. When your contract is up the landlord will carry out an inspection before refunding your deposit. In order to set up a rental agreement you as the tenant will need to have a Spanish bank account and a passport or NIE number.

Renting as a Landlord

For property owners looking to rent their properties, it’s highly recommended to seek out a fully integrated rentals and property management service. This means the Management agency will take care of sourcing tenants and carrying out background checks, as well as drawing up the necessary contracts and conditions, collecting deposits and rent payments. They can also be responsible for taking care of any domestic emergencies, and should provide on-going property maintenance on your behalf.

Renting to Buying

One of the big advantages of rent-to-buy contracts is your rent paid in advance is then discounted from the agreed purchase price. This may be useful if you actually wish to stay in your rental home permanently and buy it. Further, you can agree that during the time of use of the property, the selling landlord cannot offer the property to the market, effectively reserving an exclusive option of purchase for you, for the whole duration of the contract.

However, if you have decided to finish renting and buy somewhere else, before searching for a new home or investment property you should give some thought to what kind of property you are looking for and its reason. This means understanding the ideal size of the property, the area, necessary nearby amenities and most importantly the budget available. When you have settled on these factors it is time to speak to a local agent who knows the area. An invaluable partner and ally, your appointed agent will be able to assess your needs and help you to find a property that best matches your requirements and preferences.

Your agent can then set up viewings on potential properties. When you have found a property you like it is important to hold a second viewing at a different time of day. Your agent will advise how much to offer but this is ultimately a decision for you to make. If the offer is accepted, you will be asked to pay a deposit to secure the property and to sign a sale agreement. It is at this point that both parties will agree on a completion day, generally between 6 to 8 weeks from the point of signing the sale agreement.

Costs

If you are buying property in Spain you should bear in mind that there are additional costs on top of the property price. Additional costs are generally between 10 to 11% of the purchase price. The biggest expense you will face when buying a notary and land registry fees.

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BORDERING THE BEACHES OF THE MEDITERRANEAN but still close to town, the Costalita area of Estepona offers residents the best of Costa del Sol living, with apartments and penthouses to suit all budgets

If you are thinking of renting, selling or buying in Costalita then make us your first port of call Costalita Properties are the current residential leader in this area!

Masterplanned by the well-respected Costa del Sol architectural firm of Melvin Villaroel, the Costalita area of Estepona is located on the beach side of the coastal road, to the east of the town and between the Arroyo Taraje and Saladillo-Benamara, conveniently close both the centre of Estepona, as well as to Marbella and Puerto Banús.

Developed by Urbis as a series of private communities centered around landscaped gardens and luxurious pools, the traditionally inspired, whitewashed Andalusian design of Costalita houses both apartments, ranging in size from one-bedroom units up to three- and four-bedroom duplex penthouses with private rooftop pools.

Costalita is home to the four-start Iberostar Costa del Sol hotel and two popular beachfront restaurants, La Antigua and Pepe Beach Restaurant.

The wonderful front line beach 5 star Villa Padierna Hotel Beach Club and water sports centre. Villacana Pony Club within a few minutes walk, one of the few stables that still do early morning beach riding. For the sports enthusiasts there is the Villa Padierna Paddle & Tennis Club. El Paraiso Golf, Los Flamingo Golf, Guadalmina & Atalaya Golf are all very local. Costalita offers the ideal combination of quiet, secure surroundings with easy access to the vast array of local services found along the N340 strip.

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