* They are cheaper to build and hence cheaper to buy.
* Because of their high thermal insulation properties they have lower running costs.
* Because of the thermal properties of the surrounding rock they are cool in the hot summers of southern Spain and warmer in winter than conventional houses.
* Each one each is unique in design and appearance.

Because of the dry climatic conditions and the type of rock in which they are built they are dry and it is unusual to find any form of dampness within the cave rooms.

Currently, if you take a look around Spain, one would find heavy bargain on properties of all shapes and sizes. No matter what you want, be it an urban getaway with quick links via train to London or anything by the countryside, Spain has it all. What would be an out of access decision for someone, could very well be your future investment.

Costa Blanca is known to be the best haunt for its cheap bargains on property around Spain. From a price range of 40000 pounds all the way to 150000 pounds, there is a bargain price for everyone, plus the area is well known for its nightlife and party people, so that’s an added bonus for the young ones around who are looking at investing into property as an option. The quality around Costa Blanca is not that high say many sources, however the prices are extremely cheap.

If that end of the town is too noisy for your lifestyle, then you may want to move to the other end, Costa Brava. Over here you would find property deals beginning from 300000 pounds, which is for an apartment. This is an expensive uppity area and hence you would find malls, culture, shops, fine hotels et al.

Besides the two sites, there are more places across Spain where you could find the best deals and bargains. Keep a budget which is realistic in nature when seeking to the right property to invest in. talk to a financial guru or even the banks and they would be able to help you ascertain the right property you could invest in. go online and check with mortgage lenders and use the mortgage calculator to find out more if necessary.

With a clear budget set, you can now start studying the areas in Spain which are livable according to your lifestyle and standards. This would include factors such as the living costs, the daily life, the location, the stability of the area, social amenities, weather etc.

Solicitors In Spain

When selecting a solicitor to represent you on the purchase of a property be careful about taking on a recommendation from the builder. The builder may offer special incentives to use somebody he knows, like a discount on the charges, or that the deal can go through quicker etc.

Solicitors like a retaining fee of approximately 150 euros per annum and about 500 euros for the handling of a purchase or sale of a property. They also handle other jobs such as getting an NIC number (similar to our National Insurance number). The fee for this is approximately 100 euros. You need this number to buy a car, and property. Your solicitor can also get you a Residencia, but the necessity for this (benefits) are not as great now. In the past you paid a lower tax on the sale of property and got a higher interest rate at Banks. The solicitor will set the level declared as the purchase price of your villa as extras are not vatable. The amount declared is currently vat rated at 7%. On the selling of your villa the taxation is based on the profit made between the buying and selling price, if you are moving back to the UK. If you sell and buy in Spain then there is no taxation.

Council Tax

Local Municipal Authorities set their equivalent of the UK’s council tax.

There is a council tax which comes into effect with new property when the builder hands over the responsibility to the council. Prior to this a minimal charge of roughly 100 euros per year is made and when the council takes full charge then they ask for around 250 euros per year. There is a collecting agency for the council tax and you can go into their office and pay it or pay it through the bank. You are reminded of this, well in advance.

One thing to note with the council is that they are not responsible for anyone hurting themselves (by falling) outside your property. To cover yourself you need to take out an insurance which is normally part of your fees when a community is formed. I will not go into this too much, but a community is a legal requirement and presidents, vice presidents etc are required to be elected to sort out pool maintenance fees, who can and cannot build in that area (extensions etc) this fee is roughly 1000 euros per year.

So then, you should expect the basic legal costs to be a very minimum of 9,000 euros on the purchase of a property valued at 100,000 euros. This covers solicitor`s costs, VAT on purchase, first year’s council tax and first year’s insurance – all based on current rates.

Property and Wills

One important point for expats now living in Spain. Don`t assume that your will which you made in the UK is good for Spain. Laws vary from one country to the next, and it`s vital that your money and property go to whom you intend it to go upon your death.

This is why you should seek legal advice in Spain so that you save any unnecessary expensive legal procedures due to wrangles because your will isn`t accepted under Spanish law, or more likely has loopholes. All expats should ensure they have a will, and update it from time to time to take account of additional assets owned.

The now famous distressed sale market grew and virtually disappeared quite quickly as this excess was soaked up by those who had previously wanted to buy in the luxury areas but the price was slightly out of their range. As distressed sales appeared and were comparatively cheap they dragged the market down with them of course. Now they are largely gone the anchor on the market has gone too of course.

Not that you are suggesting price rises but with low interest rates in all of Europe, where many of the luxury property buyers come from, and the fact that those counties are slowly coming out of recession, many people now looking to buy in Spain at good prices. It is unlikely that in this particular sector at least there will be any further price falls. As there are limits on the number of luxury Spanish properties on sale the scarcity principle should come into play and maintain prices long and medium term.

So where are the luxury properties? Spain has many areas that are havens for the super rich, the obvious candidates are Marbella, Andratx in Mallorca, Catalunya, sprawling city centre pads in Madrid and Barcelona, the more exclusive golf resorts dotted around the country and the Canary Islands noted for their weather all year round are also popular in this field.

Malaga airport has now become International attracting even more visitors from all over the world, with an increasing boom in the economy. With realistic prices literally property is being snapped up before the adverts hit the windows.

Investment purchase or personal, there are now huge rental returns on properties – Spain is showing in the yearly record of destinations to be one of the highest tourist locations in the world today! Fantastic news for buyers as the euro interest rates are extremely low with competitive mortgages at the moment capped at 4%, 100% finance is also now achievable for foreigners.

Flying out to Malaga is simple with a short journey of only two and a half hours,

Hot Info: New train is being built from Malaga. Once arrived in Malaga there will be a new high-speed train which will run locally from Malaga to Estepona. By the end of this Year it will be running from Malaga to Madrid.

It has also been confirmed that Disney has purchased land and will be coming to Marbella! Property prices are also reported to double with the amount of visitors from around the world tripling with the new international airport.

Perhaps the most popular traditional Spain villas can be found in Andalucia, southern Spain. The warmth and quintessence of Andalucia combines intimate mountainous regions with charming coastal resorts, providing a wealth of destination choices. The southern area of Spain is generally the warmest part of the country throughout the year. Feast upon sumptuous local cuisine and take in the Christmas community spirit.

The special corner of Catalunya houses the wonderful Christmas vacation rentals resort of Barcelona.
The combination of a visit to Barcelona is as enchanting as it gets. Relax on stunning golden beaches, or enjoy a raucous night in the Las Ramblas quarter – there is something for everybody. Catalunya is also bordered to the north by the Pyrenees where Spain villas can be rented to experience the spectacular scenery and awe-inspiring mountain region. Christmas is naturally the ideal time to enjoy a winter-ski holiday or a breathtaking walking adventure.

Nevertheless, holidaymakers must not rule out the possibility of a Christmas vacation rental in the capital city of Madrid. A great selection of villas offer charming self-catering facilities within walking distance of the main attractions, Christmas could be the perfect time to enjoy a city break.

The glorious sunshine region of Spain can provide the perfect backdrop for a Christmas golfing vacation rental. With a number of Spain villas dedicated to providing the best rental accommodation and golfing experiences, it is easy to see why golfers visit again and again. The Costa Del Sol is regarded as one of the world’s leading golfing vacation destinations.

You are spoilt for choice when searching for a Christmas vacation rental break in Spain villas.

Now within the Cajas or Bancos, there are various products on offer when it comes to taking a loan out on a property. For the sake of example, let’s take a first time buyer on a starter home. Perhaps one of the main differences in any type of loan from a financial entity is the type of interest paid. It’s extremely common in Spain for an interest rate to be applied to your loan sum on an annual basis, with a revision each calendar year, around the same date as you sign your mortgage. This means that although interest rates may fluctuate, as they tend to do, then if you happen to sign your mortgage in the “highest peak” of interest, then you will pay that amount of interest for the entire year – even if interest rates go down. This has the advantage of always knowing your monthly budget of spending, but the converse is true in that if you coincide with a peak which then drops dramatically, you’re stuck with the same rate for the rest of the year. Mortgage “trackers” working on a month to moth basis, known across the world, are unknown in Spain.

Just to make things more complicated, there are then two different types of indexes your bank or building society can chose to employ regarding your policy. The Euribor is the European Interest rate, although it’s worth noting that within the Eurobor, there is a separate (always higher) Euribor Mortgage rate.

The second Interest rate that may be applied is the more stable IRPH, which takes an average of the previous 4 months Euribor and then calculates the rate this way. Any loan from a bank or building society will charge the client (that’s you) one of these two rates, plus anywhere between 1-3%, depending on the risk, size of the property, available guarantors, etc. (remember, my example here is for first time buyers).

Any loan from either entity usually has a 1% opening fee on the net price, and the same for any cancellation before the time of the loan expires – loans are typically given for 30 years, although in recent years, certain banks have given loans of up to 50 years, or those which will be inherited by next of kin/offspring. This means that swapping and changing mortgages over banks is almost impossible in Spain, given the costs involved. A 1% cancellation fee in one bank followed by a 1% opening fee in the second (even if this is waived) means that there needs to be a considerable saving on the general conditions offered by another entity for it to be worthwhile considering. It almost becomes a stock market game, playing the possibilities of the possible rise in inflation – something that few people saw coming in the latter part of 2008, for example.

In many instances, foreign nationals are buying real estate in Spain that they can utilize for their own travel and holiday purposes during part of the year and which they can rent to other individuals seeking a vacation spot at other times during the course of a given year. Thus, these men and women are buying property in Spain for a dual purpose: holiday travel and income generation.

The tax and related laws in Spain make this kind of dual property ownership a profitable enterprise for most overseas buyers. Indeed, it is expected that more and more foreign nationals will invest in vacation real estate for this dual purpose well into the coming decade. They suggest that the growth of the European Union will spur on this type of real estate investment in Spain and in some other countries that comprise the EU at this time.

Specific steps to buying real estate property in Spain

At the present time, there are no significant restrictions to a foreign national purchasing and owning real estate in Spain. Indeed, foreign nationals are able to purchase and invest in nearly any type of property to be found for sale within that country — commercial, residential or other types of investment real estate.

When it comes to making the purchase of property in Spain, many experts maintain that a person is well served is he or she takes the time (and spends the money) to hire a lawyer to assist in managing and overseeing the legal affairs associated with the successful purchase of real estate in Spain.

Once a person identifies a piece of real estate that he or she is interested in purchasing, the first step in the purchase process (after an oral offer to purchase has been made by the buyer and accepted by the seller) is the creation of a preliminary or initial contract for sale. In Spain, it is highly recommended that a person makes absolutely certain that the ownership of the property and any encumbrances on the property are clearly identified before this agreement is signed.

In most instances, a preliminary contract is a fairly substantial and a firm legal agreement. Along with the agreement itself, a buyer will need to put down a deposit of at least 10% of the total purchase price. Under the real estate laws of Spain, the buyer has a more significant burden than is found in some other countries to ensure that the title to the real estate has a title that can be conveyed to the buyer at the conclusion of the sale (clean title). Thus, there are instances in which a title proves to be imperfect, in which the ultimate transfer of ownership cannot occur, and in which the buyer may lose out on the deposit he or she paid because they simply did not carry out the correct checks at the outset.

Many people who have experience in dealing with the buying and selling of property in Spain suggest that foreign nationals should retain the assistance of a capable lawyer at this juncture. While Spanish real estate laws are not particular confusing or difficult to understand, a person seeking to buy a property in Spain bears a greater due diligence responsibility early on in the real estate buying and selling process than do buyers in some other nations.

During the period following the signing of the preliminary or initial contract, the buyer has the opportunity to obtain financing and a mortgage loan to consummate the sale and actually purchase the real estate.

Again, as referenced earlier, the buyer of real estate in Spain has a bit of a stiffer burden to make certain that the title to real estate in Spain is clear before he or she makes a purchase. Additionally, a buyer bears a greater burden than buyers do in other countries when it comes to making certain that there are no mortgages or liens from other lenders on a particular piece of property. While in most other countries the world over, the burden for “clearing title” generally rests nearly exclusively with the seller, such is not the absolute case in Spain.

Unlike in some other countries the world over, the laws governing the buying and selling real estate in Spain generally are uniform across the country. There really are no regional or local differences.