5 bedroom Townhouse in Murcia - id SPB40086

1. Consulting

A remote consultation is the first step in the property purchase process. We need to know all your requirements and wishes for the property of "your dream" in Spain, including the type of property, location and distance from the sea, the purpose of the purchase, your budget, and so on.

Based on all this information, we will prepare and e-mail you a selection of all the objects that best suit your individual needs. And you will be able to see the properties on this list that you liked the most during the review tour that we will arrange for you when you arrive in Spain.

Until you arrive in Spain, you will probably have a lot of additional questions about the purchasing process, the registration of documents or mortgages, the moving process, and so on. By calling the hotline at the number displayed on the screen right now, you can get detailed answers to all of your questions for free.
(From 9 a.m. to 6 p.m., Monday through Friday).

2. Meeting

At this stage, we will meet you at the airport and place you in a comfortable apartment. Please note that airport transfers and property review tours are absolutely free. To schedule a meeting, all you need to do is dial the hotline number displayed on the screen and book a date and time for your arrival in Spain to view the property.

3. Viewing

During this stage, you will go around the coast with the WTG Spain manager to see the objects of your choice that we have selected and prepared for your visit.
For your convenience, we have foreseen two options: you can see one property in one day or you a 3-to-5-day viewing tour to see multiple objects and their location, including nearby beaches, parks, schools, shops and supermarkets, bars, and restaurants, and so on.

In addition, depending on your wishes, we can adjust the viewing tour scenario by excluding or adding new properties for inspection.
And after the viewing tour, you can ask the WTG Spain manager for a return visit to your favourite properties.

4. Choosing a property

So, if you find your Spanish "dream house" during the property viewing tour, you will enter into a reservation agreement with the developer (property owner), under which the object of your choice will be removed from the sale list and assigned solely to you.

Then you will pay the first instalment, which will range between three and six thousand euros (depending on the property cost).

Please note that if you change your mind about buying the selected property AFTER you have paid for the reserve, the developer can either refund the full value of the reserve or apply it to another of his properties.

5. Processing papers

At this stage, we will prepare all relevant documentation for signing a sales contract with a notary. We will assist you with obtaining an NIE (a foreigner tax identification number), opening a bank account in Spain, gathering the essential paperwork for a mortgage (if applicable), and so on.

After all of the documents are complete, you will deposit the needed sum in the presence of a notary and receive the keys to your own home in Spain!

6. After-sale service

At this stage, the WTG Spain team will gladly assist you with your move to Spain, including registering for residency, acquiring health insurance for yourself and all members of your family, locating kindergartens and schools for your children, and much more...

If you have bought the property as an investment or seasonal residence, we will help you make money by renting out your real estate profitably since Spain is one of the most popular tourist destinations in the world, and the demand for rental housing is constantly growing here.

In Spain there are two types of costs and taxes:

• Costs and taxes for the PURCHASE of real estate.
• Costs and taxes for the MAINTENANCE of the property.

1. COSTS AND TAXES FOR THE PURCHASE OF REAL ESTATE

There are 6 main types of costs:

№1: VAT (the Value Added Tax)
In Spain this tax represent 10% of the value of the property.

№2: AJD (Stamp Duty) 
This is a mandatory tax on the purchase of a new property. Basically, it depends on whether you are a resident in Spain or not. For non-residents, the amount of this tax is 1.5% of the value of the property, for the residents it's 0.1%.

№3: Lawyer services
Up to 1000 €.

The list of lawyer services includes the following:

• open a bank account;
• obtain the NIE number, that is the foreigner's tax number;
• check all the documents of the chosen property;
• prepare all the papers for signing the final purchase agreement - the deeds;
• register the property and the new owner in all necessary instances.

№4: Notary services
Up to 500 €.

№5: Registration fee
Up to 500 €.

№6: Water and electricity connection
About 300 €.

EXAMPLE:
Let's take villa for price: 200.000 €.

• 200.000€ + 20.000€ (10% VAT)= 220.000€ 
• 220.000€ + 3.000€ (1,5% Stamp Duty) = 223.000€ 
• 223.000€ + 1.000€ (Lawyer) = 224.000€ 
• 224.000€ + 500€ (Notary) + 500€ (registration fee) = 225.000€ 
• 225.000€ + 300€ (water, electricity) = 225.300€ 

For a house that is worth 200.000 €, when we add all the purchase taxes and costs, we have the final price of 225.300€. That is to say, we added another 12.6% to the value of our property.

200.000€ + 12,6% (225.300€) = 225.300€

2. TAXES AND COSTS FOR THE MAINTENANCE OF REAL ESTATE

In general, they can be divided into 4 categories.
  
№1: IBI Council tax
Alias - the annual property tax. A villa of the type that we have chosen costs around 500€ per year. 

№2: Community Fees
These fees are paid for the maintenance of a residential complex if it has common pools, gardens, etc. In our particular case, there is no community, because we are talking about a detached villa. But, in general, the average cost of this kind of fees is 60-70 euros per month.

№3: Garbage collection fee
Up to 120 € / year.

№4: Utility bills
The payments for water and electricity. They depend on your consumption (the average cost for water is 140 € per quarter, and for electricity - 60-70 € per month).
So, the monthly maintenance of your villa, considering all the fees, will cost you 200-220 €.
 

One of the main advantages of purchasing a new property in Spain is guarantees from developers, which are fully responsible to the buyer for any material damage that may occur from the completion date.

So, here are the guarantees the buyer receives from a builder:

1. A 10-year construction warranty

Within ten years, you can make any claims to the developer for any defects that affect the foundation, supports, beams, load-bearing walls, or other structural elements that threaten the mechanical strength and stability of the building. All defects will be fixed in the shortest time possible!

2. A 3-year warranty for finishing materials

Each developer provides its customers with a three-year guarantee for both indoor and outdoor finishing materials, as well as for all types of repair, finishing, and construction works. It can be plastering, painting, tiling work, electrical and plumbing work, and so on.

3. A 2-year warranty for all electrical appliances

Since we are talking about new property, primary market, it is natural that all electrical appliances inside are also new and have their own warranty cards for a period of up to two years, depending on the manufacturer.

4. Reputation guarantee

There is one more, unspoken, type of guarantee, the so-called "joint liability of developers to buyers and real estate agencies." The success of any developer directly depends on his reputation. Therefore, each developer values his name, because in case of any misunderstandings, he, naturally, will lose not only buyers but also intermediaries in the person of real estate agencies. Therefore, quality and timely service is a top priority for any builder in Spain.

5 pros of buying property under construction in Spain

First: favourable price.

Of course, any real estate object under construction is much cheaper.

Second: payment.

The payment method is very "flexible", which gives you time and opportunity for convenient distribution of your finances. Usually, the construction process in Spain takes about 8-10 months, so you will be able to split the payment within this period. 

Third: opportunity to choose. 

You will have the opportunity to make any changes to the planning and design of your future property, as well as choose finishing materials, furniture, appliances, and so on. Because real estate in Spain is sold really quickly, there are not so many available properties left at the end of the housing construction. Thereby, you will have to choose from what is left on the market, while at the construction stage, you can choose any object, considering the view from its window, orientation, location in the complex, and so on. 

Fourth: remote monitoring. 

During the construction process, you will be able to remotely monitor the entire process until the date of commissioning, receiving monthly photo and video reports from the construction site. 

Fifth: No "surprises"

Primary real estate naturally does not have any "surprises" from previous owners in the form of debts, mortgages or mechanical defects. Plus, you will get a 10-year warranty for your property object and a 2- or 3-year warranty for all the finishing materials and furniture. 

So, it was 5 pros of buying property under construction in Spain! Well, and now let’s take a look at 5 cons of buying property under construction in Spain. 

5 cons of buying property under construction in Spain

First (and the most vivid): terms.

You will not be able to move into your own finished home right away. You will have to wait. As we have already said, the construction process takes about 8 to10 months, so you can get the keys to your new apartment or villa after commissioning only. 

Second: visual perception. 

It will be difficult for you to imagine how a completed house will look like, seeing in front of you only an empty section or construction site only. BUT, for such cases there are show-houses in Spain. They are finished houses from the same developers, where you can assess the quality of construction and materials, as well as feel the atmosphere of the upcoming house. 

Third: neighboring structures.

It is worth paying attention to other construction processes that are already running within the radius of your facility. So that after commissioning, it didn’t turn out that the neighboring buildings blocked your view from the window. 

Fourth: reliable intermediary.

For sure, it’s hard enough to find a truly reliable real estate company that will act on your behalf throughout the whole construction process to protect your interests. 

Fifth: missed deadlines.

There is a small probability of failure to meet the deadlines due to unforeseen circumstances: floods, pandemic, and so on.

Point one. The market and its demand

Spain is one of the most popular tourist destinations in the world. Demand for rental housing in this country is constantly growing. And the reason for this growth is tourists who visit Spain all year round.

According to the National Institute of Statistics, last year, 82 million tourists visited Spain. During the season, vacationers book almost 80% of vacation rentals. In cities such as Valencia, Murcia, Villamartin, Alicante and Torrevieja.

Point two. The right choice of real estate

In order for your home to be rented well, you need to pay attention to three main factors:

• Good location: proximity to the sea, to the green zone or to famous attractions.
• Necessary infrastructure: proximity to shops, restaurants or shopping centers.
• The technical condition of the housing: the availability of amenities, necessary equipment, repairs and the condition of your property.

Point three. Legal subtleties

In case of short-term rent, in some regions of Spain a tourist license is required. Specialists from WTG Spain will help you with obtaining this permission. Also, when renting out home, you need to draw up an appropriate contract in which you must register:

• All rental conditions,
• The amount of the deposit, which is set by the owner of the property,
• Terms of termination of the contract,
• Personal data of both parties.

Fourth point. Costs and taxes when renting out home

• By law, income from housing must be declared in an annual tax return. The tax rate is 19% for EU citizens and 24% for everyone else.
• IBI - a tax from individuals on real estate, which must be paid once a year and its amount is up to 2% of the cadastral value of housing.
• Property insurance. In this case, you can choose the best tariff for you yourself.

Point Five: Your income

In general, with a competent approach, when renting out a house you can make good money, and the declared 5% per annum (of the market price of housing) is a very real figure.

For example, if you want to rent a small apartment in a coastal city, and it's market price for the current day is 100,000 euros, then you can safely count on a passive net income of 5,000 euros per year (or 600 euros per month).

If you want to avoid the process of searching and selecting a potential tenant, you can entrust your home to professionals. WTG Spain has been operating in the real estate market for over 25 years. With us, more than 500 apartments have become a source of constant income for their owners.

We will take care of the entire range of services of the entire rental process:

• Obtaining a license.
• Pre-rental preparation: major repairs or cosmetic restoration.
• Professionally prepared advertising in the form of photo and video presentations.
• Accommodation on all leading real estate rental portals and in the best print media.
• Ensuring the process of settlement and eviction of tenants.
• Cleaning and guarantee of the safety of your living quarters.
• Full legal support: payment of taxes and utilities.

We hope this article has been helpful to you. WTG Spain - Your property in Spain is waiting for you.