Are you thinking about buying a property in the sun? Mallorca is a popular holiday destination for Brits and thousands of people go there every year. This is why a lot of people also consider Mallorca as a viable location to invest into and secure a holiday home. There are a few points that you need to consider before buying a property in Mallorca and these are:
- Before buying a house in Mallorca, it’s important that you decide if you are buying to live in or to rent out. If you are only buying to rent out, then you need to consider who your target customer will be and then adapt your choice accordingly. You may actually want to live in for some periods of the year and then rent out when you are in the UK. In this case, you will have to make sure that you can rent out the property that you are buying. You will also need to consider travel costs if this is your plan. For example, many people who own a home abroad look towards fractional private jet ownership to save money in the long run on flights back and forth between their two homes.
- If you are buying the property to rent out, there are local laws for rentals that require some paperwork in order to register with the regional tourist authority and get a rental licence. You will also need to think about finding a local agent to manage guest change overs, maintenance and cleaning of the house. Local estate agents can also help you to find out more about the local rental market, although you can do this yourself by checking out holiday property websites to get an idea about rental rates.
- Before deciding on the property, you should also identify the areas that you like. Something important to look at would be the proximity to an airport. This is important whether you are renting or you are planning to make short weekend trips to your house in the sun. It’s advisable that you go and visit the areas of your choice, stay a few days and explore at different times of the year. Certain areas are busy in the summer months but then become ghost towns in the cold months. If you are planning on staying in your house for longer periods of time, you should start learning Spanish! The more time you spend there, the more of a ‘Spanish citizen’ you will be.
- What about your budget? How much money can you spend? When you buy a property in Mallorca, you pay what is known as property transfer tax. On top of this you will pay legal, notary and land registry costs. You should allow between 10% and 14% on top of the purchase price to cover these costs.
- If you are planning on getting a mortgage, you should consider if you want to release funds from the UK or take out a Spanish mortgage. This will also carry some extra costs including opening commissions, land registry and notary fees as well as mortgage taxes (2% to 4% of the mortgage price). Contacting an independent mortgage broker before you start viewing properties is also a smart step.
- Estate agents are not regulated in Spain and you should make sure that you choose a well-established agent that you can trust and has a good track record. Sunuti pairs trusted local agents directly with you and using their unique market specific search function allows you to find the home of your dreams for life, a year or your next holiday.