Although Valencia’s property prices are less expensive than those in Madrid and Barcelona, they are no longer cheap in terms of the rental market. There isn’t much to be had for less than 700 euros, and the rental market fluctuates between an average monthly cost of 800 and 1500 euros. It makes sense that more locals and expats are buying homes given that renting in Valencia City currently costs proportionally more than buying.
Valencia should be thought of as a location for wise investment. With its laid-back lifestyle, abundance of cultural, economic, and professional opportunities, and still a good price-quality performance compared to other European cities of the same size and characteristics, Valencia, the third-largest Spanish city by the Mediterranean Sea, has emerged as a very appealing location for investment. The average price of real estate is anticipated to rise as Valencia’s population, economy, and appeal continue to grow.
Is there a chance of another recession?
There will likely be another recession in the next few years because economic cycles do experience ups and downs. Valencia has nearly returned to its pre-recession levels, new construction has resumed, and the market is heating up. Nobody can accurately predict when the economy will enter a recession or what form it will take this time, but that is one more incentive to make wise choices when making a purchase. The right location and the property itself will be the determining factors in whether or not your property value will be affected by a potential recession.
We’ll go over the important things to keep in mind as you get ready to buy a home in Valencia, but we won’t get into the specifics of different neighborhoods or talk about purchase prices because that would require a different post with a more in-depth analysis.
Preparation
Before beginning the process, there are a number of crucial questions to think about when planning to buy a property in Valencia:
One of them is a bank account in Spain. You must have enough money in your Spanish bank account because when you sign the purchase agreement in front of the notary, the payment is made by turning in bank checks made out in the seller’s name. There are many banks that provide good non-resident bank account options, so you do not need the NIE number or resident permit to open a bank account. If you intend to transfer money from abroad, you should be particularly aware of the transfer reception fees (transfers within the EU are typically free of charge, but the majority of Spanish banks charge high fees for receiving wire transfers from abroad; these fees are typically calculated as a percentage of the transfer amount and start at a minimum of 18 euros per transfer). Therefore, it is a good idea to do some research on the best bank account option to save on fees if you plan to wire funds directly from a non-EU account. Some accounts have monthly fees that are quite reasonable and offer free international transfer reception.
Given the likelihood that you will be transferring money from abroad, there are a number of options to consider in order to possibly reduce costs by obtaining better exchange rates and reducing international transfer fees. Foreign exchange brokers and global payment service providers, such as CurrenciesDirect, can be of great assistance in tracking exchange rates, providing timing recommendations, and completing transfers at rates that are more affordable than those provided by traditional banks. This specific UK-based business has been operating since 1996 and has a location in Valencia where customers can receive more individualized assistance. There are many more exchange brokers and money transfer services available online, but Transferwise is probably the most well-known to expats. Please keep in mind that some banks may have daily transfer restrictions, so keep that in mind when choosing the purchase date.
You might still want to think about applying for a mortgage from a Spanish bank even if your income is earned abroad and you don’t have a resident permit or any plans to obtain one soon. Several banks do approve mortgages for non-residents, though not all banks work with non-residents. The bank’s decision may be influenced by the country in which you currently reside, the currency in which your income is expressed, and other significant factors, among other things. Of course, your income must be supported by presenting appropriate documents, such as tax returns, etc. You can speak with banks directly or check your options through a broker, such as Valencia-based Mortgage Direct.
The foreigner identification number, or NIE number (in Spanish, Nombre de Identidad de Extranjero), is one of the factors you shouldn’t overlook because failing to obtain the NIE number in a timely manner may result in uncomfortable and stressful circumstances. To obtain an NIE number in Valencia, you must schedule an appointment at the office on Calle Bailen 9. Currently, the wait time can last up to a month. If no appointments are available, do not panic; you just need to keep checking until you do. The procedure is fairly simple for EU citizens once you have an appointment. If you are a non-EU citizen, you will be required to provide more documentation to support your need for the NIE, such as a notarized declaration of your intent to buy a property, a power of attorney with the property’s information, or something similar. If you are unable to obtain the NIE while in Valencia, POA can be used, or you can visit the nearest Spanish Consulate in your country of residence.
Purchase process steps
The process of looking for a home is one of the most exciting aspects of buying a home, but it can also be very stressful due to poor communication, inaccurate information about the procedure, costs to anticipate, unfamiliarity with the city and the characteristics of various neighborhoods, and other nuances of Valencia’s real estate market.
Here are the steps:
- Initial inspection of the property
- Offering a price
- Earlier Agreement
- property evaluator
- Closing the deal
Contact us to buy or sell a property in Valencia Spain.
