The real estate business is here to stay; there is nothing new about this fact. We have all known this for a while now. The competition is cut-throat, and if you are thinking of engaging yourself in a little property buying and selling, you need to act really fast. If you’re searching for international locations to invest in real estate markets, you may want to consider the Mallorca real estate market which, if handled correctly, can prove to become an exciting investment for you.
The place of Mallorca is the ideal place to relax and lead a chilled life. So, you don’t have to feel hassled about the normally harrowing experience that comes with buying or investing in a property. Try and make a holiday out of the time that you are there, settling about which property to invest in. Most importantly, if you are new in the property market of Spain, get the help of someone who has experience in the field or already owns a property there. There are several unique rules which will not be known to you. Know as much as you can from them. If not, make sure to hire a good lawyer or an estate agent to make the process both easier and enjoyable.
Be honest with yourself about your needs. If you are looking towards settling down there, spend on stuff you will need daily. Otherwise if it’s going to be an annual retreat, don’t spend on anything lavish. If it’s meant for your days after retirement, steep steps should be avoided. Make your mind about the kind of house you want, and only then start looking. Otherwise, it is very common for people to get confused after they have looked into a couple of homes.
Location matters. Premium location is of course, beside the coast but in case that is not a possibility, try buying a house which has easy access to amenities like school, shops and hospitals.
Now, time to discuss about the financing. The cost of properties in Spain, especially Mallorca is high. The rates are really steep. If you have the required amount of money stashed away, well and good. Otherwise, you can just get a mortgage. Ideally, getting a Spanish mortgage will save you loads of money since the interest rates are relatively less than the UK. If you choose to prefer otherwise, you can very easily get a mortgage from your home country and buy the property in Spain. As you wish.
If you are looking forward to making the entire payment all at once, you may want to think otherwise. Mallorca (Majorca) authorities charge an annual tax called Wealth Tax for owners of properties who are not native residents of the area. The reason for this is they hold the view that someone who is capable of buying any property for sale Majorca is investing in luxury. In case you are a non-resident, you are not directly contributing anything to the fiscal growth of the area. To be more specific, you are not paying any social security tax, income tax; you are not buying any services or goods. You are not adding anything to the regional economy if you are not staying there.
The result of all this is the Wealth Tax. Now, the amount of this tax depends on the equity based sliding scale meaning the more the equity, the larger the tax. So if you become the owner of a 700,000 euro property by paying outright, you will be paying more Wealth tax than if you owned a property double the amount with a 1,000,000 euro mortgage.
Once you have fixated your mind on a particular property, it’s time for the paperwork. Now, you need to have an agreement in principle for the mortgage before you decide to make an offer. There is the option of making a provisional offer, one that will be depending on whether your mortgage gets approved or not. Be patient, because the entire process of real estate buying and selling is very slow in Spain. However, there is steep competition in the market so if you really like something, act as fast as you can.
The process of the property getting sold starts once you pay the deposit. Wait for your lawyer to give you a thumbs-up and sign the agreement. The initial amount that you need to pay to the seller is 10 percent of the total price. The entire process comes to a halt once you sign on the title deeds. Now this last act needs to be done in front of a Spanish Notary. This is where you need to pay the rest of the money.
Go on; invest on a real estate in Mallorca. You are sure not to regret it in the years to come. The local cuisine is excellent, and words fall short while describing the coast-side view that you will be getting.