Kaarsberg Estates Winter 2021 22

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PREPARED
TO INVEST
IN SPAIN
by Alberto Bertazzi
We are in a special historical moment for
many reasons, it’s a different environment
that is not comparable to what we have
experienced so far: COVID has changed and will
continue to change our economy and the way we
live and and relate.
At this current moment, investing in real estate;
particularly in homes for rent, continues to be the
safest and most profitable, especially in Spain and
more so in our Costa del Sol: the demand for both
purchase and rentals is high and is constantly
growing, making the value to rise at a reasonable
and constant pace.
The best tool to buy, and lower the cost of the
investment, is still the mortgage loan: the new
Spanish Mortgage Law, 5/19, entered into force 2
years ago, on June 16, 2019, has radically changed
the regulations, adapting it to European guidelines,
enhancing legal security and transparency, in favor
and protection of the consumer.
In addition, the costs of the operation are significantly
reduced: now it is the Bank that pays the AJD tax on
the mortgage, as well as the Notary, the Registry
and Management; While the client only has the
cost of the appraisal (an average saving of approx.
2,500-3.00 €)
The Spanish banking market today is made up of
more than 30 Financial Institutions and Banks,
which are offering specific financing and mortgage
products for the acquisition of properties: the offer
is varied and complies with the rules and limits
determined by the EU regulations.
The most important thing to bear in mind is that
interest rates have never been as low as they are
now: the 12-month Euribor remains negative
below -0.40% and close to -0.50%, and This allows
to offer to the consumer, within a standard
mortgage, both at a fixed and variable rate, to be
the lowest in history: we are talking about the 1%
interest rate conditions for mortgages for a primary
home and 2-2.5% for mortgages for holyday or
vacational homes .
This means that, today, investment in rental
housing, financing the highest possible % of the
acquisition price, is the most profitable in the last
30 years: for this reason, many foreign investors are
coming to Spain, especially from the Euro zone,
with the possibility of combining a good investment
with the privileged surroundings of sun and sea that
our Coasts offer, and especially the area of Malaga
and Marbella.
From FCG, a mortgage broker, with more than 18
years of experience, we offer the prequalification
process free of charge to all our clients: It’s the first
-step when you are thinking of buying a home
using a mortgage loan: the pre-approval process
helps you determine exactly how much money you
are qualified to borrow, as well as the terms you
can be offered. And, while your pre-approval is not
a binding agreement, it allows you the means to
make an informed offer on a home.
The process of obtaining a mortgage is long, and has
loops after the pre-approval: today the average is 6
weeks, since the terms have been lengthened to
guarantee more information and transparency to the
consumer: for example before On 5/19 you only
went to a Notary Public once, now you have to go 2
times, and within a minimum period of 10 days.
The best thing is to be prepared, well organized,
and advised by professionals.
Alberto Bertazzi
Director
FCG - Mortgage Specialists
(+34) 657 111 073
financeconsultingroup.com