There are a few things you need to know before purchasing a house in Lanzarote. Buying a home is a major decision, regardless matter how appealing the area’s pleasant climate, pristine waterways, and laid-back culture may seem. In closing, here are some things to consider before signing any contracts.
First, make sure you get a reliable attorney
You absolutely must retain legal counsel while buying property in Lanzarote. A qualified attorney will handle all aspects of the purchasing procedure on your behalf while protecting your rights and interests.
Secondly, Familiarize Yourself with Lanzarote Property Prices
Typically, real estate agents in Lanzarote use a standard percentage of 10% of the purchase price as their commission. Inevitably, the true prices will vary. Based on the purchase price of the home and the availability of a Spanish mortgage, the total purchase price might be as low as 8% or as high as 14%. If you want to buy a home in Spain through a limited business, you need seek professional guidance first. While there may be some upfront savings, the ongoing expenses of ownership are likely to be prohibitive. First, you should consult a tax expert. Before making any final decisions, our property staff would be happy to provide you with a simulation of purchase cots.
Determine Your Monthly Operating Expenses
Again, this varies from property to property. Electricity, water, town hall rates, garbage pickup, income tax, and community fees (where applicable) are all included.
Putting down a refundable holding deposit (often 1 percent of the purchase price)
Be certain of your purchase and familiar with the terms of the holding deposit agreement. If you need a mortgage, this provision should be written into the agreement. The best real estate agencies in Lanzarote will also add a provision providing for a return in the event of title complications. If there is a difficulty with the title or a legal situation that has a significant impact on the acquisition, Lanzarote Investments will always return the holding deposit.
Five, Make Sure There Aren’t Any Limits
Make sure you are aware of any rules or regulations that may apply to you before purchasing a condo or villa in a community of owners in Lanzarote. The inability to rent to vacationers or a stringent no-pets policy are two examples of this kind of limitation.
Know the Terms of Your Mortgage, Number 6
Some mortgages provide an introductory low-interest-rate phase. This rate might significantly increase somewhere in the second year. Always ask questions until you have a firm grasp of the total cost of interest that will accrue on your loan. More than a decade has passed since we first began helping customers get mortgages at Lanzarote Investments.
Prepare a financial plan before purchasing a fixer-upper
It’s not cheap to deal with new services, such as electrical installation, which requires the services of a licenced professional. Before completing any sales paperwork, be sure you have a price estimate. If you need any renovations done, our in-house construction crew would be more than happy to accommodate you.
Eighth, the Vacant Land Adjacent to Your House
Inquire of your attorney if the front lot has been reclassified as of late according to the planning classification system. What this means for the value of your Lanzarote home in the long run might be profound.
Nine, Don’t Take Rumors Around Town as Truth (Whether Positive or Negative)
Consult your attorney about any concerns you may have after hearing rumours. Most of the time, your worries are unfounded. But such speculation may dissuade you from buying a legal property at a fantastic price. Do as your attorney tells you.
10. Find out the direction your Lanzarote home faces.
On Lanzarote, you may find both north- and south-facing homes on the market. Your property’s orientation is a major factor in determining its future value and profitability as a rental or sale.
