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Benidorm For A Perfect Vacation Spot |
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Submitted by Inge Razo
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Property in the Alicante region have become extremely popular in recent years. It is no wonder, since the city is close to the most popular areas of the Costa Blanca, and travel in and out of Alicante airport is very convenient. There are flights to many destinations from the Alicante airport, so visitors and homeowners can travel to this city easily.
There has been a surge of holiday home purchases by northern Europeans. It is a great place to own a vacation home, since travel there is so easy, people can hop a flight and take a short vacation; there are many discount airlines operating flights, so the rates can be very reasonable.
Alicante, the second largest city in Valencia Province has been undergoing a resurgence due to this holiday home buying. The beautiful homes being built have made Alicante a status destination and the real estate market is now extremely hot.
Property values have been increasing, so lucky buyers who already bought there can pride themselves on having their vacations pay for themselves. The expectation is for this trend to continue, so a property in Alicante continues to be an interesting investment.
It is not difficult for a foreigner to buy property and secure a mortgage in Spain. The first thing one must do is to obtain a NIE, which is a registration number all foreigner must have in order to sign any legal documents in the country. The Spanish Consulate in one's home country can assist with obtaining this number.
A great number of vacation home owners pay for their home by renting it out during the periods that they are not using it. This great tourist destination is lovely to visit during the entire year. Though summer is the high season, and rents reflect that, anyone who owns a vacation home can probably rent it out during other periods, just not at the same rental rates. Or, if you want to earn the maximum from your property, you can rent out during the high season and take your vacation in the spring or fall.Of course, you must be realistic and make sure you can afford the mortgage in the first place. If you are relying totally on rental income and you have an empty period, you will find yourself financially strapped.
The first step (after finding your dream property, of course), is to hire an attorney. He will review your contract, make sure the deed is legitimate and has no liens, etc. It is better to find your own attorney than use one recommended by the real estate agent. You want one who is solely representing your interests.
Be aware, however that you will be hit with a very large capital gains tax on your profit when you sell. Spain has a capital gains rate of 35% for non-residents. If you plan on using the property both for vacation and rentals for a number of years, this high rate will amortize over a longer period, but if you plan to or have to sell quickly, it can be quite expensive. Make sure you take this factor into account when you are getting ready to buy a property. You want to make sure you have all contingencies covered so you will not end up losing money.
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