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EXPERT CONSULTATION IN PUERTO DE ANDRATX
Finanzkontor SL offers Tax Advice for Non-Residents in Spain
Tuesday: With emphasis on "Rentals".
Wednesday: Property evaluations by an real estate assessor
Thursday: Mortgage Advice
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Written by Marianne Gutenbach
Many people still dream about a home in the Mediterranean region, despite the fact that many summer residences are hardly affordable anymore - and in some regions home owners are threatened with a complete price collapse. But there are attractive exceptions, experts claim.
"This is a growing business", says Christoph Albeck, managing partner at Finanzkontor, S.L. in Palma de Mallorca. For the dream of the "40plus generation" of living in a Mediterranean country lures especially independent entrepreneurs, professionals and self-employed persons to Spain's coasts, where they look for a summer residence with a sea view. And where they also look for a professional purchase and financing consultancy, which rounds off the property purchase.
Construction companies, estate agents whose only "place of business" is their mobile phone, and all types of people who messed up their lives at home offer new as well as old summer residences, apartment blocks and homes for the elderly which are often built in the second or third row, removed from the sea. However, purchasing a house in such a location is economically risky: Outside the top locations about 1.5 million appartments in Spain are already vacant at this stage - and on average Spain's tourism is stagnating. In the case of old properties there are often problems with the register because they have been built illegally or have only partially been entered into the register. Furthermore, there is the problem of only part of the property's value being stated in the purchase document: Above all, the sellers want a high amount of "B", that is to say black money.
"Many people want to make quick money with real property in Spain", says Manuel Romera, lecturer at the Instituto de Empresa, a business school in Madrid; about a million Germans already own real property abroad, among them many in Spain. "They will be surprised not to find anyone who wants to buy their home if need be.
Today houses and appartment are already much harder to sell than a year or two ago. "It used to take a month to find a buyer. Today this can take years, if one is not willing to lower the price" says Albeck.
All the more important it is to think about reselling already at purchase.
Exactly for this reason Finanzkonto S.L. has launched PropertySearch. This aims at giving the client unbiased advice on whether their desired property investment meets the three most important investment requirements: location, scarceness of the resource and realiability of the seller.
What matters first and foremost in case of property investments is the location. As Donald Trump said, this is the most important aspect of any investment in property. In the case of summer residences this means that the property has to be easily accessible and to offer diverse leisure activities. In particular this means:
Scarceness means that it is not possible to keep on building indefinitely in the region, e.g. because the geographic position precludes further development. Exclusiveness of the offer is also an indication of scarceness.
This is much harder to gauge. In the case of off-plan projects the following checks should be made: Is there a conclusive building licence? Are payments secured (by a bank guarantee) against bankruptcy on the property developer? Is it possible to finance part of the purchase price? The attractiveness of off-plan is obvious: Before the purchase price has even been fully paid, the property's value has already increased by 10% to 15%. This is the award for buying something one cannot even see yet. All the more important it is to be able to rely on a reputable partner. In the case of second hand properties it is necessary to check whether there are any severe construction defects or financial burdens on the property which you have not been informed about.
Once the ideal investment has been found, a professional handling completes the investment process: A lawyer or a bank's consultant offer unbiased information about existing usages and payment methods and prepare the purchase contract. After the appointment at the public notary they make sure that your proprietory rights are entered into the register.
We work for the buyer!
We are bankers and independent financial and fiscal adivsers.
We see many things from a different angle than a real estate agent. We listen to what the buyer wants and don't just sell what we happen to have on offer at the time.
We advise you on what better not to buy.
We find even properties which are not offered by any estate agent.
We offer special expertise and prepare a reliable legal appraisal.
You profit from our experience in the market to get the best price, even if you have already found the home of your dreams!
You get a property which you would never have been offered without having special contacts!
You don't waste money on bad investments: a property with hidden financial burdens, with legal problems, or without a definite financing offer by a bank!