Spain is one of the top overseas destinations for British property investors: a study carried out by Savills Private Finance, the mortgage broker, showed that Spain is still a favourite for investors hoping to combine pleasure and profit. The Economist magazine reported recently that Spanish property prices had risen by three times the average for the Euro zone from 1995 to 2002, while an estimated 600,000 Britons have bought in Spain.

In its 2005 report The Royal Institution of Chartered Surveyors European housing review said that, despite predictions that the Spanish property boom was set to cool in 2004, prices were still rising by 17-per-cent annually in the third quarter of 2004.

Spain is still the most popular overseas holiday destination amongst the British – over 16 million visits were recorded in 2003. And as budget airlines open up more destinations, tourists are booking flights and accommodation independently – in the past six years the number of independent travelers has risen by 60-per-cent. This could be good news for landlords aiming at the holiday let market, but the competition is tough, so investors must think carefully about where and what to buy.

For a rental investment, Golfing properties generally offer higher rental yields due to the fact that it is generally a short-term let (either 1 week or less) being offered to a more mature & ‘refined’ clientele, combine that with the fact that a Golfing property can be let for up to 9 months of the year on a short-term weekly basis. A high quality 2bed apartment, located on a good golf course with the best facilities in the right area, can offer in excess of 10% per-annum return on your investment

New / Off-plan property
When purchasing an off-plan property from a construction company or a developer there are payment terms involved, an average purchasing process / payment plan for a property of this kind is outlined below;

• Obviously select the property within the development which satisfies your desired requirements.
  
  
• Reservation Stage. After having decided on the suitable property, a 3,000 (euro) reservation deposit is then paid, this is normally taken during your visit to Spain, either paid directly at a Developer's or at a Solicitor's office, at this stage the property is officially taken off of the market, the agreed price is then fixed. Upon paying the 3,000 (euros) an Offer and Reservation contract / receipt is completed and signed by Vendor / Purchaser, the Offer and Reservation is generally a 1-page document with details of the Purchaser / Vendor / agreed payment terms, and property details filled in.

The average construction period for a Spanish Off-plan property is 18-24 months although this varies from developer to developer.

Please note that purchasing property in Spain incurs a 7% VAT charge which is not quoted within Developers price lists, and must be paid at each phased stage payment.

• Purchase Contract Stage (generally within 28 days of point of reservation). At this stage the initial down-payment for the property will be required, the average down-payment is generally between 25-40% of the total value of the property (minus the 3,000 euros reservation deposit).
  The purchase contract includes a detailed specification of the designated property, as well as the conditions and responsibilities of Purchaser / Vendor, and is normally 5-10 pages in length. All Spanish purchase contracts should be fully translated for English-speaking Clients, either directly by the Developer, or alternatively by your Solicitor.
  
  
• With some developers there may be a 2nd phased stage payment during the construction period of your property, this will be outlined in your Purchase Contract.

COMPLETION
Contained within your Purchase Contract you will have an estimated completion date. At this point you will be expected to pay the remaining outstanding cost of your property, and to take ownership of the property. Most Clients purchasing obviously wish to visit their property before completing to ensure the quality of the construction is correct, and to agree to any 'Snags' with the property to be sorted out by the Developer.

The signing over of your Title Deeds (Escritura) takes place at a Notary's office, where 1. The Client purchasing, plus your Agent & Solicitor / The Developer / The Bank Manager (in the event that you are mortgaging a % of the cost of the property / and The Notary, all attend the final changing over of ownership. The Title Deeds (Escritura) are then signed and you take ownership of your property.

Communities
When buying an apartment or townhouse in Spain, you will most likely become part of a community, and you will be expected to make monthly contributions towards maintenance costs and others. The level of charges that you will pay depends on the size and the facilities that belong to the community.

On completion of a development a first community meeting will be arranged in which a community president is elected who will be appointed to undertake the responsibilities of managing the complex and who is to control the various maintenance works carried out. Under normal conditions, community meetings are held annually in which a new person will be chosen to fulfill the duties as community president.