28 October 2008

Ups and Downs of Real Estate in Spain

There is no better time to invest in real estate in Spain. A few years ago, the property prices in Spain were increasing exponentially. But those days are long gone. The demands for properties have been matched by the supply of available real estate. For that reason, the real estate properties have been declining at least 10% every year since 2003. Naturally, the prices would stay still and even go down. As the real estate industry is always volatile, no one knows will this scenario end. But for now, investing in real estate in Spain could never be better.

But there’s a dark side of investing in Spain. You could have a good deal for a property but the price listed is not always the price you have to pay. Of course there will be taxes and fees that you need to be aware of but what you don’t see is the broker’s fee for the transaction. Traditionally, the broker’s fee in Spain is from 3-5% but that rate is during the boom of the real estate industry in Spain. Today, you’ll just know the exact price you have to pay when you are actually ready to pay for the property.

That is why the oldest trick in the book to be assured of a great price in real estate still holds: research. Get to know more about the property, the real estate laws of the property and in this case, the broker’s fees to be assured of a great price of a piece of estate in Spain.