People considering investing in Spanish Property should think carefully about where they are going to buy. According to HomeEspana, while it is easy to be swept away with the recent raft of discounts and finance deals in the country, you must still approach a real estate purchase with the same diligence as would be commonplace in the UK, assessing location and revenue potential.

When buying distressed properties, investors must also be prepared to deal with a process that is slightly more complicated. Although distressed properties offer incredible bargains, because they are sold by banks, each sale involves more red tape. Finding a good estate agent is also vital when buying from a bank, as they will help you navigate through regulation and pick out good stock from bad.

Kieran Byrne, managing director at HomeEspana, commented: "As in any country, there are key locations where you should buy and areas you should avoid. Unfortunately, many of the properties that were repossessed are in locations that are struggling to maintain current market values."

Before purchasing property, a visit to the location of choice is always recommended to enable investors to get a feel for the area. It is important to never underestimate the importance of research either, as this will help create a picture of rental potential, future earnings, and potential resale values.

Those who choose distressed property could be faced with a completion process of around two months, because of a large amount of paperwork and banking approval systems. This delay must be factored in to all plans to ensure buyers don't come unstuck. Making an offer also works differently when dealing with a bank and some require prospective buyers to pay a deposit to put forward their offer. This process can also take two weeks.

People should also remember that distressed properties are sold as seen, so may be in disrepair. Calculate how much it will cost to bring real estate back up to spec and be sure to get an expert in to assess whether there are any structural problems.

source: http://www.propertyshowrooms.com/spain/property/news/choose-invest-carefully-buying-property-spain_312565.html

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