Posts Tagged ‘Buying A Property’

Source: Costa del Sol property blog

If you are looking at buying a property on the Costa del Sol, please read the summary I have written. I hope that this will help you avoid many of the problems that people face and allow you to have a successful purchase. Please note this is a personal recommendation and should not substitute for professional legal and/or fiscal advice.

YOU’RE NEEDS

First and foremost you need a clear idea of what you need/want from the property. You need to think clearly about your situation and what the property is for. Is it a holiday home? Do you intend to live all year here all year round? What will you need from the property in 5/10 years?

Why do you need to ask yourself these questions? Well for example, if it’s a holiday home that you intend to only use for several weeks a year, you might want to minimise your overheads. Or maybe you want to rent while not using it? Who will be your market?

I would recommend that you make a list of your wants and present them to the agency. I have included a few potential criteria that might be of importance.

What you and your family require from the property?
Do you drive? Will younger members of the family be studying? Is any member of you family less physically mobile? This might not seem like pressing issues in the moment but you do not want to become the family taxi driver.

Why buy the property?
Over the last few years many people have primarily bought as an investment. You need to think clearly about what you want. Is it to have a home to enjoy, a by to let, etc…

Additional costs
Property on the Costa del Sol, like property anywhere does not simply take care of itself. Why costs will this property accrue. Community fees, garden/pool maintenance, etc

Is bigger better?
How big does the property need to be? Don’t by on the assumption of visiting family, focus on what you want.

What sort of property are you looking for?
Are you looking to be in an urbanisation out of town or would you rather be in the centre of town? Are you looking at an apartment, townhouse or villa? Be as specific or as open as possible to the choices. But these options will be reflect in the sales prices.

Where on the Costa del Sol?
Where do you want to be on the Costa del Sol? Do you want the lifestyle of Marbella, the quiet peace of Mijas or the hustle and bustle of Fuengirola? You might have personal reasons for choosing a specific area (family, work, etc…). If you have no preference tell us what you want and we will tell you why an area would work for you accessibility?

Do you need to be near the airport to travel back to your home country? Maybe train access is important as you don’t drive or need to commute to Madrid?

Infrastructure
Being in the centre of town, or right on the beach front will have advantages and disadvantages, as will being out in the countryside. Have a clear idea of what you want around you (schools, shops, hospital, etc…). Not only now but in the future as well.

Knowledge
Now more than ever knowledge is power. You need to know about the area you intend to buy in. That is one of the reasons for this blog; our best clients have been the informed clients who know clearly what they want.

FINANCES

If you are serious about buying a property on the Costa del Sol, then it is worth looking into your finances from the start. Being prepared, especially if you are looking at applying for a mortgage, will only cost you some time and will allow you to have a clearer idea of what you can afford. It will also allow you to shop around to find the best mortgage wherever here in Spain or in your country of origin. It will also make you a more attractive vendor as the owner will have the certainty of completion.
Leaving a mortgage to the last minute means you might land up with higher costs or dependent on exchange rate (in the case of a mortgage from the UK for example).

LEGAL COUNSEL

From the outset you should have a lawyer. If you don’t have one the agent will be able to recommend one to you. Preferably you will want them to recommend several so that you can make a more informed choice. It is this agency’s recommendation that you never you an in-house lawyer supplied by an agency. These lawyers will be beholden to the estate agent and will be more likely to side with them in the case of a dispute. Remember they are reliant on that agency for business.

In many cases a buyer will use a gestor (administrative agent) for dealing with the legal aspects of the purchase. They are generally cheaper, but are not fully trained lawyers.

It should also be relatively easy to find a lawyer that speaks your native tongue.

LOOKING FOR YOU COSTA DEL SOL PROPERTY

First and foremost, if you are currently outside of Spain it is worth travelling to Spain by yourselves and not through an ‘inspection trip’ or any other sort of subsidised travel. The agent will concentrate on showing properties that suit themselves and not you. Organise your own visit, inform us when it is convenient for you to see the properties and let the agency do its job. If we don’t offer you the service you can walk away, an option not open to you during these subsidised tours.

DECISION TIME

Of course you want the ideal property, but remember it might not exist. Look at the pros and cons of each choice and make a firm decision. Your seriousness and decisiveness will send the right sort of message to the vendor. If you follow what has been mentioned above the vendor will see you commitment and will be more likely to accept your offer.

DUE DILIGENCE

Once you have chosen the property that is right for you, certain legal checks need to be made.

First you want to see a Nota Simple (registry report). This will confirm that the person selling is in fact the owner and will reveal if there are any debts or charges (mortgage) on the property

Then there are the title deeds. This will confirm what is legal on the property. Is that loft conversion reflected in the deeds (for example)?
If it is an off-plan purchase you will want to see that all relevant permission is in place. If the property is quite recent is there a license of first occupation? If not, then it is more than likely that it is an illegal building, which can lead to a myriad of problems.

You will also want confirmation that all taxes (IBI) have been paid. Unpaid taxes are set against the property not the owner. You do not want to inherit someone else’s back taxes.

The same applies to water and electricity bills.

Again this also applies to community fees. These are costs set by the community to pay for general maintenance, gardens, pool, etc…

LEGAL FORMALITIES

On acceptance of your offer, a Reservation contract will be signed by both the buyer and the vendor. At this point a reservation deposit (between 3.000 and 6.000 euros) is set against the accepted offer. As the name implies this contract reserves the property for a set period of time, and if broken, normally means the forfeit of the deposit. Read the document carefully and add any special conditions that you see fit.

Unless the contract is to go to completion quick (less than a month) normally a private contract is written up. Normally a larger percentage of the total price is put down (example 10%). This offer protection to the vendor and the monies will be lost by the buyer if he or she pulls out. It also offers protection to the buyer as if the vendor pulls out; all monies must be refunded, plus a penalty charge.

COMPLETION

Completion takes place when both the buyer and vendor (or the lawyers) sign the public deeds in front of a notario (public notary). At this moment the vendor is paid in full and the keys are handed over. The property has now been handed over, but still needs to be registered. This will be handled by your lawyer. Prior to completion you or your lawyer will have applied for a NIE number.
Costs of the transaction

Additionally to the price of the property, there will be taxes that need to be paid. This will work out to 10% of the price of the purchase. Although it can be slightly lower or higher. This includes 7% VAT/transfer tax, stamp duty, notary fees, registry fees, lawyer fees and mortgage costs.
I hope this information has been helpful. If you have any further questions please contact us at info@arribaestates.com of visit our Arriba Estates page for further contact details.

Regards
Andrew Belles
Costa del Sol property

The ideal property to own may be found in Cyprus because every apartment, villa or plot of land can be found at reasonable prices. However, the purchase process needs to be understood by every potential buyer, and guides ought to be considered, in order to buy property in this particular country. For instance, if you are interested in buying a property in Southern Cyprus, you might consider signing the so-called Reservation Deposit Agreement because this agreement will take the chosen property off the real estate market to make it a reserved one. The reservation will last for a month and the buyer will have to purchase the property within this particular period of time in order not to lose it.

Within the specified reservation period, a lawyer will carry out all the required investigations in order to make sure that the property is owned by its vendor. The lawyer has to make sure that the Cyprus property and its purchase will provide the buyer with the necessary good title to the purchased property. The reservation amount will reach almost 1% of the entire property price; the reservation deposit is likely to be subject to the main contract ant it will be non-refundable. But this reservation deposit is returnable if the searches are not profitable and successful enough to satisfy the potential buyer’s needs for a particular apartment, villa or plot of land.

The required searches must be made before exchanging the real estate contracts; the department search must be planned because this process will ensure the building permit. This permit has to exist in order to allow the buyer to build or even sell the property on a legal basis. The company search has to be detailed enough to demonstrate all the legal aspects; the developer must have the legal capacity to enter all the contracts for sale. Signing the transaction contract involves both the vendor and the purchaser and the buyer will have to pay an installment to the Cyprus property vendor within a period of 6 weeks. If the purchaser does not make this payment, the contract will become void and null.

The possession of every apartment, villa or plot of land will be completed when the property is delivered to the buyer. The purchaser will pay for all the utilities to be connected; he will also have to establish his own right in this country and all the legal aspects need to be fulfilled in order to establish things such as duty-free, residence, driving, tax and domicile rights. The transfer of the title deeds is mainly related to the existence of this title; both parties will proceed in order to transfer the property rights. During the entire process, the purchaser will be provided with legal security because the contract will be valid as soon as it is signed, registered and stamped with the country’s land registry.

There are some taxes to be paid as well; the taxes will be related to the real estate transfer and they will be paid to the country’s land registry. They are highly necessary to ensure that the freehold ownership is transferred to the purchaser’s name. The transferee will be the one to be considered responsible for the entire tax payment. Another piece of important information resides in the fact that non Cypriot citizens are likely to need permission to buy a property in this country. The Council of Ministers will give this permission, normally taking at least 8 months. In the meantime, every potential buyer who is interested in a Cyprus property can buy that property and he can also live in the apartment, villa or other property he has bought while waiting for the necessary permission. The application must be approved in order for the buyer to stay in the country.

Every potential purchaser should keep in mind that the properties that are to be found in this country are secured by a legal system that is largely based on Britain’s legal system. For instance, the Cypriot system will provide many safeguards when it comes to the rights of every person who is interested in purchasing an apartment, villa or land in this country. Therefore, all properties are likely to be sold freehold but the buyer has to pay attention to the fact that many properties are likely to be grossly overpriced. So, a personal budget needs to be established in order to decide whether you afford to own a property in this country or not.

If you see a decent Spanish property for sale at a price tag that you simply cannot resist, your general reaction would be to drop everything and run with after it as fast as you can. Until you face the problems of knowing nothing about Spain or the rules and regulations of buying a property in Spain, for example registering your property with the Spanish land registry and applying for residency in Spain. These are just a few of the things that you will face when buying a property here.

There are many pitfalls to buying a Spanish property. Seeing a Spanish property for sale within your price range does not necessarily mean that the process is going to be easy. There are many factors to consider and you must be very well prepared before you sign on the dotted line. As you are buying a property in a foreign country then you will not be familiar with the procedures in this country, therefore, it is important to be prepared.

Beginning your search in this country is much more helpful to you then starting it in Spain. Looking for a Spanish property for sale now is not the first step to take. However, arguably, this is recommended so you can keep a close eye on the Spanish property market. It is not a bad idea to get to know the price ranges for different property types. Those looking to buy a property in Spain will need to expect a very changing market as property prices are beginning to creep in certain places.

Research the market from home first. Have a look at what your choice of property is going for in your desired area to get an idea of the average price. Then you will need to look at the various procedures behind buying a property in Spain, which will include paying for solicitor’s fees, notary fees, property registry fees, stamp duty and real estate taxes. These will all need to be considered and included within your budget before you even consider buying.

When you do begin your research, you will notice that there are plenty of property agents in Spain – the real estate agents in Spain have gained a good reputation and have been renowned for the excellence in customer service. However, like all places, there will be people trying to con you so the only way to avoid this is to get some expert advice and find a real estate agent with a good record of accomplishment.

If you would like to consult a solicitor, you should ideally stick to an English-speaking solicitor or an independent solicitor who is not recommended by the agent. This way if you choose your own solicitor, you will have no problems in trusting them to handle all of your paperwork and there will be no language barrier. One key point is that you should always run all of your paperwork with your solicitor; get the all clear from him before you sign any documents.

One thing that will be essential when you do see a Spanish property for sale, is your viewing opportunity. Flying out to Spain is not as difficult as it may have been in the past. There are more airport terminals built in many parts of Spain, flight tickets are all at affordable prices and it is much simpler to book for a flight to Spain. Therefore, since the opportunity is there you should make time to spend a little time in Spain to see what it would be like to live there and arrange to view your chosen property before going ahead to buy it.

Another point to remember is that if you are looking to live in Spain, then it may be a good idea to have a base established in your homeland, so then you will have somewhere to stay when you do come back to visit. Some people may feel like they would want to come back to see friends and family, however, you will need to have stable place to come back to.

For those buying a property as an investment opportunity will need to be aware that although you will be gaining some income or cover for the mortgage payment, you will still be charged with all of the other expenses, such as your added fees.

The current economic climate may have many of you thinking your dream of owning a property in Portugal is slipping further from your grasp. But there is a way, even in these difficult times to achieve your Portuguese property dream without breaking your bank balance.

Renovating, restoring and modernising a run down property is a route more and more people are following, which can be financially beneficial.

Your ideal property may feature a stunning kitchen, modern bathrooms and a swimming pool, but purchasing a house completely ready to move into and enjoy, means you will have to pay full market value to a private individual or builder.

However by buying a property requiring modernisation and restoration work, which has potential, can save you money. Allowing you to add value with each stage of works. In most cases once finished renovation projects will have cost less than purchasing a property already completed.

Ruins & Restoration

Rural Cottages

Character Property

Historic Manors

The financial advantages of renovating and restoring are immediate as these types of properties often cost a great deal less to buy with reduced purchase price, costs and taxes. By spreading the cost of the repair work over a longer period of time can also be less taxing on your bank account. And by carrying out some of the work yourself, savings on labour costs can be made.

Renovating and restoring a property is not for the faint hearted though as there are many pitfalls to be avoided to create your dream property. Especially so in a foreign country where there are added complications of language barriers and different rules and regulations. But it is possible and with the minimum amount of stress.

By choosing to renovate a property you give yourself plenty of choice. Portugal is a country blessed with a wide range of properties many in varying states of disrepair, to suit all tastes from rustic cottages through to baronial mansions. Look at any estate agency website and you may be surprised at the amount available for sale from as little as 20,000€.

However the key to a successful renovation and restoration project is selecting the right property. Simply purchasing the cheapest property available is not always the most financially sensible thing to do.

Generally restoration property falls into two categories, those requiring full planning permission and those that don’t need permission but can be restored immediately as a DIY project.

“Although there are many ruined properties available in Portugal, most at really attractive prices” says Derek Harper of Chavetejo Estate Agents in Tomar. “Buying one in very bad condition without public utilities connected doesn’t always make financial sense in the long run. Getting mains water and electricity connected isn’t as simple as making a phone call and in most cases can mean a lengthy and costly planning application, delaying the start of renovation works by months and sometimes years.”

Choosing a property in a slightly better condition with utilities already connected can save you thousands in the longer term and mean renovation work can begin as soon as you have decided on the finished design.

Avoiding properties requiring planning permission also means you can save money on the renovation work, carrying out some of the less skilled jobs yourselves. However even if you choose to bring in the professionals it doesn’t have to cost the earth.

Deciding to employ a builder in Portugal doesn’t have to be financially painful. There is a wealth of skilled tradesmen available and despite the fall in the exchange rate, they charge a fraction of the cost of their UK counterparts. Reputable builders can charge as little as 10€ an hour with labourers earning around 8€ an hour.

Generally the quality of workmanship in Portugal is very high, but it is important if you do decide to employ outside help, to get at least three quotes from reputable builders as well as references from previous clients. Being able to inspect jobs they have carried out will also give you peace of mind on the quality of your finish.

Getting your lawyer to draw up a contract with the builder you decide to use is not only a good idea, but will put paid to any demands for extra money and allow a clear method of stage payments for the each section of the work as it is carried out.

Checking out local builders merchants and DIY supermarkets is a good way of ensuring you are not being over charged for goods by builders and it will help you decide on the finished specifications of your property.

Remembering not to get carried away on the renovation work is also imperative. Taking into account the possible resale value of the property, thinking carefully about what you want to achieve during your design period will help you budget accordingly. Common mistakes made during some property renovations are adding expensive features, which don’t necessary add value to the property.

If you are not going to be present in Portugal for the duration of the renovation work, but hundreds of miles away in the United Kingdom it is worth investing a little of your budget employing a project manager.

Although it may not be a cost you initially think about, it is well worth spending a little extra on a project manager who can oversee the job on a day-to-day or week-to-week basis, reporting back to you frequently to ensure works are carried out on time and to your specification. In the long run this can save you undue heartache and sleepless nights.

So if you want a home in Portugal and are willing to tackle a renovation project, now is the time to do it. Property prices in Portugal may be stable, but owners are keenly aware of the world wide economic climate and room for negotiation even on cheaper properties is more likely and you could bag your self a bargain, which you and your family can enjoy designing and renovating.

For more info on portugal

www.gekkoportugal.com

www.chavetejo.com

Buying a property in Mallorca is not precedence in most people’s minds at the instant. In fact, at present may prove be as the perfect time as any to buy property in Mallorca. If you had 300.000GBP euros to capitalize in a second home, holiday home, in a little luxurious property in Mallorca, the probability are that you still have the same amount to spend now. Those 300.000GBP have not gone away the properties in Mallorca which has been demanding for many decades now, with many Europeans who have spend vacations on the Spanish island deciding to buy a second home for holidays, a business, or for retirement.

To invest in property in Mallorca to see the value of your property progressively enhancing with time and reach the 60,000 threshold without panic within 5 to 10 years! An experienced investor off course would take the assurance of a plodding increase and buy property in Mallorca. We love Mallorca and live here. The best suggestion would be to buy a property in Mallorca where you know you can sell it.

However, property in Mallorca can still represent great value for money in contrast to prices from many European countries. One of the first things you should do is seek some good legal vendor. Ask other foreigners for advices for the best lawyers. You will require the help of a lawyer to judge that the property in Mallorca is legitimate, for negotiations and to finalize the sale of the property. You should also enlist the help for a good local estate agent. Explore before choosing property in Mallorca and, again, try to get some suggestions. Choose a real estate professional that is well established and an excellent knowledge of Mallorca property.

A good real estate firm will guide you through the buying proceedings, set up viewings and serve you with insider information. Also, a good property firm in should have a great range of Mallorca properties to opt from including basic apartments and lavish villas. Once you have selected a property in Mallorca, you will require a lawyer to carry out a number of tasks for you. These include the searching of the mandatory documents, comprising the land register, the owning documents, tax documents and issues surrounding your mortgage, if you need one. You will also require a Spanish tax number, also known as a NIE number. Your advocate can apply for one of these documents for you. Try to select a local lawyer who is confident in both Spanish and English language for easy interaction throughout the process.

Once you agree a price for the property in Mallorca with the buyer, you will be needed to pay a reservation fee of about 10%. Once this is paid the contract, becomes binding. The owner cannot change the price or sell to someone else, while you are also indebted to see the contract through, providing everything is in order. Once funding is organized and your lawyer has checked all documents, you and the retailer must sign an agreement in the presence of a government representative. Once this is done, payment to the seller is completed and the keys are handed over to you.

House prices are sky-scraping but still you can enter the buying market. There are five good reasons you should think of buying a house.

Do you think property is an asset?  It’s simply not true. You buy a house so that you have a roof over your head. Whether the price of the property is going up or down should not affect you. As long as you like the house, you can make repayments and like the area nothing else really matters. The only way of making real money is you decide to sell the house at some stage and keep the profits or downsize and do the same. A growing proportion of people do downsize. According to a research, one in three house sales involve people selling up to move to a smaller property. Nearly 54 % of the people are selling their property because they are not able to pay mortgage amount and not because they want equity from their property as cash in hand. A further 15 % sell the property because they have split up from their partners. Some 20% are retirees over 60. They also plan to sell their property to clear all their debts. Only 12 % buy a smaller property and also have cash in hand which they often recycle it, giving their children a leg up the property ladder instead. Property is not a cash-generative machine. Even if people think it is, it will take nearly 20 years.

A house should be treated as a shelter and not as an investment , no one wants to buy a property whose worth is far less than they paid for it only a couple of years before. While buying a house you put most of the money that you have saved in your lifetime. Facts tell that property does not perform as well as shares over the long term but it does retain its value over the years. But still people purchase a home for their old age or to lead a hassle free life. The average UK property cost was £30,000 in 1983 but now the value has increased to £160,000. Your focus on buying a property should not be for a short period but look ahead at least 25 to 30 years-roughly the amount of time it takes to pay your mortgage amount.

Between 1989 and 1995 millions of people where found paying off mortgages that were greater than the value of the homes they were living in. Many people had their homes repossessed, as they were not able to pay the mortgage amount. Some borrowers would walk into lenders offices and hand over the front door keys and walk out again. It was not negative equity that led to repossessions but due to economic conditions like rise in unemployment rate, high inflation and interest rates went up to 15%. People who were able to pay home loans, negative equity never affected their life. Lenders launched mortgage products on the market that allowed borrowers keen to move to do so. A significant effect of negative equity was that prices were falling fast. The reason could be because people bought starter homes that no-one wanted, or because they lived in parts of the country that were badly affected by worsening economic conditions.

When property prices are rising people buy the property thinking that if they don’t buy now, they have to pay even more in the future. There is residential property shortage in UK, which will be resolved by next decade. Each year the number of homes built is about 20,000 less than what is needed. By 2021 there will be 2.1 million more married people in England, counterbalanced by5 million more single adults and a further 1.5 million divorced. Most of the net increases in household numbers come from one person households. The key driver for household information is the relationship between income and affordability-what a person earns, relative to prices in the market. If the multiples of income to property prices rise from 3.5 to nearer 5 times earnings, many people will not be forming households: they will live at home or in rented accommodation.

If you plan to live in a rented accommodation, you will not be able to take a decision about how the place should look like. You will yearn for something that is uniquely yours, where you can express your own personality. If you buy your own property, you will never have to put up with someone else’s good taste again.

Turkey, the Eurasian country enriched with physical beauty and some of the best places in terms of real properties, can be called as one of the most prosperous countries of the world. Due to over 300 days of sunshine, long golden beaches, an abundance of marinas and a diverse culture, it is an extremely popular choice of holiday destination. If you are looking for a property to buy then you can surely opt for property in Turkey. It is not only the place for spending Christmas but also one of the best choices for making it your permanent residence. Turkey for many years was a country only for holidaying, recently however, western influence has stepped in and with the abundance of sunshine and low property prices, property in Turkey is in great demand.

Some of the most popular areas to buy a property in Turkey include, Calis, Gocek, Fethiye, Oludeniz, Bodrum as well as the vibrant city of Istanbul. It’s always desirable that you decide why you are buying a property in Turkey, is it for holidays, permanent living or investment? You need to decide which type of property in Turkey you want to buy and what are your specific requirements. Are you willing to buy an existing property, off-plan or do you wish to renovate an older property? You must also make up your mind whether you want a Turkey property near the city center, a beach side apartment or a mountainside villa? There are also Golf properties in Turkey, if you are a lover of the sport. All you have to do is to decide which one to opt in accordance to your taste. You can search for property at every major holiday resort in Turkey. It’s not that more complicated to buy Turkey property than buying in other major countries. There are agents, brokers and many organizations that deal with the purchase and sale of properties in the region and who shall guide you through the entire process.

Properties in Turkey are quite affordable with a range to suit all pockets. There are many facilities for you to find your Turkey property online. It is easy to search some online websites to find out all you need to know about the different properties that are available. It is also best to speak with experts in this field, who will provide you with guidance and help in order to choose the best property in Turkey for you.

As we all know Turkey is famous for its unique culture and beauty and in recent times it has witnessed a great deal of development too. It is a place of relaxation and is therefore considered to be one of the best options for making a permanent home. As Turkey property is so affordable, it is fast becoming a dream destination for many property owners who purchase real estate in the region and stay here forever.

Relevant taxes and fees when buying a property in Bulgaria

Buying and owning a property in Bulgaria is associated with paying relevant taxes just like when buying a property in the UK or any other country.

When buying a property in Bulgaria, a buyer needs to be aware that they are obliged to pay taxes in relation to both the acquisition of the property (property transfer tax) and the continual ownership of the property (annual property tax, rubbish tax) as well as tax on any income derived from this property (income tax).

With signing the Notary deed – the title deed for ownership of the property – the buyer becomes the full owner of the property and assumes all related rights and obligations. By signing of the Preliminary contract the buyer has only the right to receive the ownership over the property when all the installments have been transferred to the seller, but the seller remain the owner of the property till signing of the Notary deed for transferring the ownership.

I. Upon signing this ownership document the buyer is obliged to pay property transfer tax to the amount of 2% of the value of the property to be purchased. This is a fixed tax and is always 2% calculated on the higher value between the tax valuation of the property and the sale price shown in the Notary deed. Upon signing the Notary deed the buyer is also obliged to pay Notary fee according to the prescriptions of the Notary and the Notary Activity Act. The exact amount of the notary taxes is defined in Notary Taxes Tariff as follows:

Certified material interest in BGN Notary fee in BGN

Under 100.000 15.000

From 100. 001 to 1,000.000 15.000 plus 1.5 % for the amount over 100.000

From 1,000. 001 to 10,000 28.5 plus 1 % for the amount over 1, 000

From 10,000. 001 to 50,000 118.5 plus 0.5 % for the amount over 10, 000

From 50,000. 001 to 100,000 318.5 plus 0.2 % for the amount over 50, 000

Over 100,000 418.5 plus 0.1 % for the amount over 100,000 but less than 3,000

Upon signing the Notary deed the buyer pays Land registry fee of 0.1% of the price of the property the total amount for which is roughly 1% of the price of the property. All above stated fees could be divided between the seller and the buyer if it is stipulated in the Preliminary contract or in an appendix, which shall be non separated part of the preliminary contract.

In relation to their ownership of property in Bulgaria, foreign nationals and foreign legal entities who acquire real estate in Bulgaria are obliged to register at the Registry Agency under the registration system BULSTAT for issuance of an identification number within seven days as of acquiring of the property. The application for registration is to be submitted at the Registry Office in the region where the real estate is located. In addition to that they need to register the property in the Local Municipality and the Local Tax office.

For your convenience, we are mentioning all necessary documents for the notary procedure:

1. Draft a project of the Notary deed for transfer of property

2. Documents certifying the property right

3. Declarations by the parties certifying their civil, marital and property status, certified by the translator

4. Declaration by the person who acquire the property certifying the origin of the funds, certified by the translator

5. Certificate for tax assessment and paid taxes

6. Receipt for paid local tax for acquisition of real estate

II. After the buyer is already the owner of the property by signing of the Notary deed for the title, every year the owner is obliged to pay annual property tax, including council tax and tax for the rubbish. The size of these annual taxes is determined by the tax experts each year and depends on the size and the location of the property as well as on other factors.

III. If an owner is renting their property and deriving income from it, they are obliged to pay income tax in Bulgaria which will be different depending for instance on how the property is owned – whether by a physical person or by a company.

If the buyer rent the property as physical person, they will be paying a tax calculated on a scale as per the new Law on the Income of the Physical persons, after a legal allowance of 20% of the profit is deducted. Thus the owner is paying tax according to the mentioned formula on 80% of the profit.

If the property is owned trough a company, a corporate tax of 10% will be paid. If a buyer wishes to purchase more than two properties and develop investment business in Bulgaria, we normally advise them to buy the properties trough a company as it is more tax effective to do so and they will need an active company for their business purposes.

If a buyer decides to sell their property, provided they sell one property in one tax year, they will pay no capital gains tax. After 5 years of the acquisition of the property, they may sell two or more properties without paying capital gains tax.

We hope that we have been in assistance

NYD Law

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E-mail: n.zhelyazkova@nyd-law.com; y.valova@nyd-law.com

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Getting a real estate property will be a life long dream for every one of us. But this is not a job which will happen overnight. When buying properties one needs to think, plan and then execute accordingly. Lot of paperwork and research has to be done before you go ahead for a property and then you need to match your priorities based upon the facilities available at the property. If you are thinking to buy a property from an auction, then there is a need to examine certain characteristics of the auction carefully and determine the target price that you can afford, also check the different features that is available with the property. It is better not to compromise with things which are not acceptable for you, and then regret later. It always suitable to keep up with the deadlines with the auction process once you come in terms with the bidding formalities.

The legal system used distinguishes the real estate properties into two types; they are personal properties and real properties. Personal properties are any property which can be moved from one location to another, for instance they can be goods, security, instruments and any intangible assets. Another difference is that, in personal property, the statutes of limitations or the prescribed periods are essentially limited. Real properties are basically the ownership of a property such as buildings and apartments; this will also include other legal affairs between the owners of these immovable properties – which are nothing but the real estate. The real immovable properties are necessary for any activities which require lot of fixed physical capital economics that is related to it. In the real properties, they are enforceable for a longer period and mostly they are registered under the registers of government sanctioned land.

Properties can also be separated into commercial properties and residential properties. Commercial properties include stores, garages, workshops, office premises, retrial shops, etc. Residential properties comprise properties such as blocks, flats, ground rents, mansion blocks, houses or any piece of land. Based upon the requirements, the property structures vary with the cost, transaction procedures and all other dealings. The commercial real estate industry can divided the commercial buildings into four types. They include the Class A buildings, Class B buildings, Class C buildings and Class D buildings. Class A buildings include fairly new buildings with all the modern amenities or facilities. Class B buildings are the ones which are older, most likely 10 years older or so, provided with basic services.

Class C buildings are older buildings with smaller units, but maintained well and equipped with all the basic facilities in stable areas. Class D buildings are again older, but maintained properly with few facilities. Such properties will be located in the marginal areas. Whether you are seeking for residential or commercial properties, proper assessment of the premises is always necessary and this is very important. Some properties will be deserted or redundant, and environmental contamination will further complicate the conditions. There are also contaminated properties which get ruined by toxic materials and nauseating odors. While buying a particular property at an auction, it is better to have lot of awareness as many legal systems are involved that will help you to avoid complications in future.

Mmmmmm well with a question like that I was more than willing to blurt out my entire 20 years knowledge of the overseas property market in one breath – but alas my lungs failed me.

The property market here in the UK as everyone knows has been spiraling out of control over the past 3-5 years and many first time buyers are finding it increasingly difficult to get a foot hold on the market. Many buyers have been reduced to sharing with friends in order to even buy a property whilst others remain at home with good old mam and dad.

So then – the overseas property market – what’s in it for me question. Well once we’ve taken care of the obvious questions like:

What can you afford?

Are you looking for long or short term investment?

Are you considering using the property abroad for your own benefit?

Have you considered buy to let, guaranteed rental or leaseback schemes?

What level of deposit do you have?

and many others

we can get down to the nitty gritty of whats really out there for the young property buyer. What can you afford? Buying a property overseas can often work out costing more in fees than here in the UK with average costing coming in between 10-12% of the purchase price. This will include things like notaries, solicitors, land registry fees, taxes etc – so be prepared.

Depending on where you are thinking of buying can determine whether or not you can get a mortgage. You need to consider the mortgage rates, the likes of Spain has a low interest rate compared to England yet Cyprus is running ahead of the UK interest rates at about 6.2% so it pays to consider this especially when you are looking at a long term loan.

Are you looking for long or short term investment? Are you hoping to jump in and back out fairly quickly to create a profit that you can then sink into a UK property or are you interested in long term investment? Consider the benefits and pitfalls of both. If you pull out on a short term investment and then the overseas market erupts you’ll be kicking yourself. Then again if the UK market rises in toll with the overseas (not impossible so bare it in mind) you may be still as far away as when you started.

Are you considering using the property abroad for your own benefit? If you are wanting to use the property for your own benefit as well as investment purposes then you need to take into account things like: How easy is it for you to get to your property (cheap flights etc)? Will you be using the property during peak months which could potentially cost you money?

Have you considered buy to let, guaranteed rental or leaseback schemes? There are many schemes out there to help improve your investment like buy to let, guaranteed rental and leaseback all of which offer some piece of mind when buying property for investment purposes.

Buy to let – this is where a buyer buys a property with the intention of letting it out on a commercial basis. There are usually mortgages specific to this type of purchase known as Buy to Let mortgages.

Guaranteed Rental – is normally defined as a specified rental amount guaranteed for a particular period of time on a particular property or development. This is normally guaranteed by the developer. One thing to consider is where the guaranteed rental is coming from. Is it actual rentals ie someone living in your property or an overpriced property that has the rental amounts built into your price?

Leaseback Property – a popular way of renting your property out especially in France where it has been popular for over 40 years. Basically you buy a property (if brand new you can claim the vat back) and lease it back to a property management company who guarantee to give you a % return on your property for periods of upto 15 years. Typical yields can be anything upto 6.5% and more.

What level of deposit do you have? The level of deposit you have can have a great impact on what mortgage facilities are available to you as well as any additional discounts etc. Obviously the more deposit that you have available means that you will be in a better position to take advantages of such incentives if they are on offer.

Once we have taken care of the above then its more or less down to where you are wanting to buy a property or home abroad. With over 50,000 properties for sale on our website in more than 46 countries abroad we are well placed to offer new and old buyers the best choice of overseas property for sale on the internet.

Wherever you are thinking of buying a property overseas whether it be the UK, Europe or indeed anywhere in the world you need to visit our website and see for yourself the sheer amount of information and guides that we have available for the overseas property buyers.

Buying a house in order to sell for a profit has become quite popular thanks to the plethora of property shows on British TV. Is it really as easy as they make it seem?

If you’re lucky you can make a profit on almost any property if you are willing to sit it out and wait for the market to rise around you. However if you’re after a quicker profit you need to be a little more cunning.

Buying a property to sell for a profit is quite achievable if you’re willing to put some time and effort into it. Firstly you will need to buy a property that sits at a price far below the average for the surrounding area. This will usually be a home in need of modernisation and this can vary from property that needs major structural repair to homes that simply need bringing up to date with new décor, fixtures and fittings. You should avoid the former if you intend to make a profit as this type of property can consume a budget surprisingly quickly.

You may find making use of a home improvements company cost effective on large scale projects, especially if you intend to manage the project whilst maintaining a full time job.

To make the process a little easier I’ve split it into 4 sections which will target the key areas of renovating a property for profit.

1. Finding a property to develop

Firstly you will need to find the property, you should pick a target area in which to search for property or you can simply look in the area surrounding your own home. If you can spot an area on the up in terms of popularity you may be able to take advantage of the ensuing rise in property prices.

A good way to pick up a bargain is to purchase the property at auction. You should be careful to at least view the property from the outside if possible before bidding to ensure you are not buying a major renovation project.

The best type of property to pick up is one that is simply in need of some modernisation and it can be quite easy to find homes that have been left with their original 60’s or 70’s décor (beware the dreaded artex plaster that can seemingly adorn every surface of these properties). You will usually need to replace the bathroom and kitchen fittings and bring the décor up to a more modern standard. You may find the layout slightly unusually in properties of this age and a small amount of rearranging may be required to increase functionality.

2. Planning

Once you have found and purchased the property you will need to put into place a plan of action before you start anything. If the project is a little more large scale you should employ an architect as you will usually find this service more than pays for itself.

You should always set aside a contingency fund as you never know what unexpected costs may arise.

You should set a budget for all areas of the renovation including; building works and materials, kitchen and bathrooms, decoration, carpets and flooring (an area many forget), garden (if applicable) and mortgage and solicitors costs.

Before deciding this you should work out how much you can sell the property for once completed and factor this into your estimations. How much profit you make depends on how much work you are willing to put into the property yourself.

Remember if you can add an extra bedroom or bathroom to a property you will usually increase the value of the property quite significantly. It is best to look at similar property in the area with these additions to see how much extra they are selling for before you make a decision. Adding a loft conversion can add up to 30% but can be almost as costly in some cases.

You may wish to enlist an advanced property solutions company to achieve a high quality of workmanship in key areas such as the kitchen and bathroom. Paying a little extra in the beginning may be quite cost effective in the long run if it helps to achieve that all important sale.

3. Keeping it simple

A key element of property developing is to keep it simple, you should never apply your own taste in décor to the property and it is important to remember not to get too emotionally attached to the property. This has been the downfall of many a new property developer. Remember, you want the property to appeal to a wide market so the décor should remain neutral but smart to allow the viewer to mentally place their own stamp upon it.

Decorating a room in a colour or style that you are fond of is certainly the wrong way to go. You may like it but will everyone else? It is best to keep reminding yourself that this is not your home. Be careful not to get carried away buying gadgets that you’ve always wanted like that multi-room sound system, you might think it’s brilliant but will it really add that much onto the properties price tag? The answer is usually no. You need to think of your potential purchaser, is the property ideal for a first time buyer, would it suit a young professional person or is it a large family property? You should tailor your décor and fittings to the correct market. What use will a 3 bedroom house with only a shower be to a family with three children? You need to keep your potential buyer in mind at all times.

4. Kitchens and bathrooms

The kitchen and bathrooms are a key selling point in any property, you can have the best finish possible but if you add a poorly fitted kitchen you will lose your potential buyer as soon as they’ve walked into the room.

The kitchen is the hub of most family homes; you should seek a professional finish with practicality being of the utmost importance. You don’t have to spend a lot of money to achieve a good finish, as long as your kitchen units and work surface are modern and neutral you should be fine.

You may find it more cost effective to bring in kitchen fitters to achieve the professional look. In the long run it can work out to your advantage and they will able to help you make the best use of the space you have.

This is also true of the bathroom; this room can make or break a sale if the buyer does not like the style or fittings. You should always try to keep the bathrooms in a property modern and neutral; any way of creating a sense of more space is always a good thing. An addition such as a separate shower unit can give the room that extra usability and appeal without compromising on too much space but should only be installed if the bathroom can easily accommodate it.

As a good rule of thumb you should have at least one bathroom for every three bedrooms in a property. If you can add an on-suite or cloaks room this will increase the price you can ask for the property but should not cause any rooms to become small and impractical.

If you follow the above advice you should find the process of renovating a property a little easier. Above all remember to keep things simple and maintain a neutral and modern décor to appeal to a wider range of buyers.

Monte Carlo has appealed to Europe’s wealthy – and since the advent of jet travel from further afield since the 1880′s, but recently British money in particular has been finding its way to Monte Carlo at record levels.

Signs of the British in Monte Carlo are everywhere to be seen. Each apartment building has a good number of British owners, and the harbour is full of yachts flying the English ensign – some estimates put the figure as high as fifty per cent.

Previously a relatively small group of Monaco residents, the number of British people living in Monte Carlo has doubled in the last two years since 2005, with some 3000 now claiming residency.

Attaining residency in Monte Carlo, the most popular part of Monaco,necessarily means renting or buying an apartment. The lowest priced property on the market at the moment is a 30m2 studio with a 7m2 balcony in the Fontvieille district at 720,000 Euros. With closing costs this rises to over 800,000 Euros. As well as buying a property, to gain residency in Monaco a bank account needs to be opened in the Principality, with account opening deposits varying between 100,000 and 500,000 Euros.

Mid range is a 210m2 3 bedroom 2 bathroom apartment in Monte Carlo, close to Casino Square, at 4,200,000 Euros. And at the top end is a three floor penthouse apartment in the well known Eden Star development at 25,000,000 Euros, equivalent to around 16 million Sterling.

At the opening of Monaco’s new consulate in London recently, Prince Albert of Monaco acknowledged the important contribution British people are making to his country, and said he would like to see more in the Principality. Prince Albert is particularly keen to see British entrepreneurs move to Monaco, but one travel guide for the country doesn’t think Prince Albert has fully thought through his ideal scenario.

‘Prince Albert said recently that he welcomes British entrepreneurs moving to Monaco, but that he wouldn’t be distributing leaflets on London’s streets to get more to do so. But he is missing the point. The costs involved in moving to Monaco are prohibitively high, even compared to London standards, and if he is serious about British talent moving to Monaco while we don’t expect Monaco to remove the financial barriers he could move to lower the bar a bit at least.’

A well respected US magazine recently claimed Monaco has the most overpriced real estate in the world, claiming the rental returns as part of their figures meant the tax haven’s property costs were unduly high.

In response a Monaco internet site says the American magazine are wrong, and have forgotten why Monaco’s property prices are high in the first place.

‘The error they made was comparing Monaco with places like Rome, Warsaw, Los Angeles and Vancouver, and they also overestimated closing costs. While admittedly high in Monaco at around 11 per cent, it’s not common to be 20 per cent that their research was based on.’

The comparison of 50 financial centres assumed the property was not a main residence and looked at rental returns – another error when calculating Monaco’s property prices according to the Monaco internet guide.

‘By law in Monaco rentals are a minimum of one year, so it’s obvious that rental returns are going to be less than places where weekly and six monthly rentals are possible. To gain residency in Monaco via renting the residency office needs evidence of a twelve month contract, so Monaco is in a unique position when compared to other leading financial centres.’

‘There is a shortage of available property in Monaco and high demand that shows no sign of slowing down – given all these factors we just think the US magazine’s analysis of the Monaco real estate scene has been done without taking local factors into consideration.’

Given the love affair Britain’s elite seems to have with Monte Carlo, the real estate and finance sectors are probably in for a reasonable time in the years to come, with or without a world recession.

Property prices in Andorra, second only to Monaco in popularity among Europe’s tax havens, have risen consistently over the last decade by an average of ten per cent a year, and in the last two years by over fifteen per cent.

But a lack of snow and tourists in December and January has stopped the rise in its tracks, according to Andorra property specialists.

‘We normally seen an influx of buyers from the first week of December through to mid April who want to buy ski apartments, but it has been very slow this year,’ they comment, adding ‘It’s been an unusual ski season as there was next to no snow between December and mid January. A lot of tourists, some of whom end up buying a property in Andorra, have delayed their visit or gone elsewhere. We anticipated February and March to be a busier sales period but it didn’t really happen.’

Andorra has unusually high demand for property as there are three streams of buyers:

An active local market, international buyers looking for residency in a tax haven that offers residents a zero rated tax rate, and second home buyers looking for a ski property in the Pyrenees.

And it is the second home buyers, mainly for ski properties, that has seen the Andorra property market stopped in its tracks – for the first part of 2007 at least.

One of the highest rises in recent years was the 19 per cent increase in property values in 2005, with the 2006 increase not far behind at around 15 per cent.

Andorra Residency

As well as being a top ski destination, Andorra is also a tax haven, with many people moving to the country to benefit from her income tax free status.

Buying a property in Andorra is often seen as a route to residency, which entitles people to live in Andorra and benefit from her tax haven status.

To obtain residency in Andorra, applications need to be submitted in Catalan. A notarised copy of the applicants passport, birth certificate and a certificate of good conduct from the home country are submitted at the same time. According to a local travel guide residency normally takes between three and six months to be approved.

Once residency is granted, residents are supposed to spend six months a year in Andorra, but this isn’t policed.

One of the drawbacks for those looking to become a resident in a tax haven when considering Andorra has been that the country has no airport of its own, and is unlikely to have ine future given that it is located in the Pyrenees. The nearest airports are Barcelona and Toulouse.

Recent improvements in the road from Barcelona to Andorra though have cut the travelling time by some thirty minutes to two hours fifteen minutes.

‘Given the tax advantages Andorra has’, note the travel guide, ‘A two and a quarter hour trip to the nearest international airport could be viewed as a small price to pay for those who will be saving substantial amounts of money in tax. Especially when you consider that their properties could be rising in value quite significantly in the years to come, and for those who like skiing it’s a holiday and tax paradise in one!’

Apartments and chalet prices in Andorra, second only to Monaco in popularity among Europe’s tax havens, have risen consistently over the last decade by an average of ten per cent a year, and in the last two years by over fifteen per cent.

But a lack of snow and tourists in December and January has stopped the rise in its tracks, according to Andorra property companies.

‘We normally seen an influx of buyers from the first week of December through to mid April who want to buy ski apartments, but it has been very slow this year,’ they comment, adding ‘It’s been an unusual ski season as there was next to no snow between December and mid January. A lot of tourists, some of whom end up buying a property in Andorra, delayed their visit or went elsewhere.’

Andorra has unusually high demand for property as there are three streams of buyers:

An active local market, international buyers looking for residency in a tax haven that offers residents a zero rated tax rate, and second home buyers looking for a ski property in the Pyrenees.

And it is the second home buyers, mainly for ski properties, that has seen the Andorra property market stopped in its tracks – for six weeks at least.

One of the highest rises in recent years was the 19 per cent increase in property values in 2005, with the 2006 increase expected to be not far behind at around 15 per cent.

Andorra Property

As well as being a top ski destination, Andorra is also a tax haven, with many people moving to the country to benefit from her income tax free status.

Buying a property in Andorra is often seen as a route to residency, which entitles people to live in Andorra and benefit from her tax haven status.

To obtain residency in Andorra, applications need to be submitted in Catalan. A notarised copy of the applicants passport, birth certificate and a certificate of good conduct from the home country are submitted at the same time. According to a local travel guide residency normally takes between three and six months to be approved.

Once residency is granted, residents are supposed to spend six months a year in Andorra, but this isn’t policed.

One of the drawbacks for those looking to become a resident in a tax haven when considering Andorra has been that the country has no airport of its own, and is unlikely to have ine future given that it is located in the Pyrenees. The nearest airports are Barcelona and Toulouse.

Recent improvements in the road from Barcelona to Andorra though have cut the travelling time by some thirty minutes to two hours fifteen minutes.

‘Given the tax advantages Andorra has’, note the Andorra guide, ‘A two and a quarter hour trip to the nearest international airport could be viewed as a small price to pay for those who will be saving substantial amounts of money in tax. Especially when you consider that their properties could be rising in value quite significantly in the years to come.’

When I initially purchased my first property I was shocked at how complex and time consuming the process is.  It wasn\’t a particularly pleasant experience as I felt that much of what the people I dealt with assumed I knew, I actually didn\’t! With hindsight I\’ve found that most first time buyers feel the same. Therefore I decided to produce a list of easy to understand \’steps / tips\’ which I feel will help first time buyers and also remind myself in the event of me purchasing further properties! Without further intro, here goes:-

·         Contact a mortgage advisor (e.g. maybe go  through Bairstow Eves, Bradford & Bingely or  another Estate Agents) and arrange for a consultation. This is free and non-committal. This will give you a good indication of HOW MUCH YOU CAN BORROW, PAYMENTS and FEES INVOLVED. At this stage the advisor may be able to provide you with a Mortgage Certificate which indicates how much you can borrow. These are usually valid for 3 months.

·         Contact a solicitor and inform them you are presently searching for properties. Ask them to act on your behalf once you find a property. Solicitor total fees usually average around £750. This includes land registry searches etc.

·         Once a property has been found, viewed and deemed suitable you can make an offer. This is usually via the Estate Agent although you can directly make an offer to the house owner. I suggest you start with an offer of at least 20% below the asking price (if the property has no chain and the owner requires a quick sale offer lower). Once you’ve made an offer you should visit the mortgage advisor again. He/she should give you more \’concrete\’ (no pun intended!)  information and can arrange a mortgage in principle (this involves no commitment, but allows a definite borrowing figure to be given). If you can find better mortgage deals elsewhere they are worth looking into – although the mortgage advisors can often gain you access to higher borrowing amounts.

·         Once an offer is accepted you will provide the estate agent with your solicitor details. You will receive a letter confirming the acceptance. At this point no commitment is invoked on either the buyer or seller, although there should be a moral code of practice in place.

·         It is now time to decide on a mortgage, either via a mortgage advisor or directly. Once you have decided on the best mortgage deal you will need to provide the lender with:- 1) Passport* 2) Driving Licence* 3)  P60  4) Last three wage slips 5) A bank statement. They will take photocopies of these for their files to protect against fraud etc. At this point you will also pay for the property survey to be done. On any property less than 10 years old a HOMEBUYERS SURVEY is probably sufficient. This costs in the region of £250-300. A more in depth survey is also available for around £400-500. (check with estate agent whether property is Leasehold or Freehold – If Leasehold you pay a small annual ground rent fee).

·         Once the survey is complete, and if satisfactory, the mortgage lender should send you an agreement to lend you the money. This usually happens within three weeks of paying for the survey. The survey results will have been viewed by your solicitor giving them the green light to carry out the land registry etc. checks. The solicitor should also draw up a list of fixtures and fittings which are included with the property.

·         Providing the owner is still willing to sell at this point, you are now in a position to sign contracts. This is subject to the seller’s chain, but as first time buyers we are in a good position in this area of negotiations. You can sign contracts and agree on a date when you move into the property or move in immediately if no chains are involved.

·         The whole process usually takes between 6 and 10 weeks from a suitable property being found and contracts being exchanged.

You will no doubt encounter problems along the way, but be reassured the high majority of them get sorted out with time.