1. How do I buy a property in Murcia?

If you are looking to buy a property in Murcia, firstly choose a reputable agent. Good real estate agents will help your search to buy a property in Spain by helping to shortlist suitable properties based upon your chosen criteria.

Secondly, arrange a visit to look at property in Murcia. If you see something that you like and decide to purchase, you will need to pay a reservation deposit. This places the property OFF the market and FIXES the price. This is crucial in the rising Murcia property market.

We always advise you to seek the help of an English speaking lawyer in Spain. The lawyer will guide you through the process in two ways. Firstly, before signing contracts for your property in Murcia, the lawyer will ensure that the property you intend to buy is free of any debt and that the property (or land on which the property will be built) is legally owned by the vendor. Secondly, the lawyer will check that you purchase the actual property that was described in your contract. This removes any doubt or confusion at the time of completion.

During the buying process, you will be advised by your lawyer to send funds to pay for the purchase of your property in Murcia. With off-plan purchases, the payments may be spread over many months.

2. I want to buy a property in Murcia. Will my money be safe?

When you buy a property in Spain, we advise you to send your funds through to the lawyer´s client account. By doing this, you are giving an element of control to the lawyer, but also allowing him/her to thoroughly check all the paperwork before handing over any of your hard-earned cash to a developer or vendor. Only when you and the lawyer are entirely happy to proceed with the purchase of your property in Murcia, will the funds be transferred.

When you buy off-plan property in Spain, your lawyer will need to check that the developer has bank guarantees in place. Although this is now a legal requirement in Spain, you still need to check. Effectively, the bank guarantee is an insurance policy so that in the event of the developer going bankrupt or disappearing with your funds, you have a legal remedy to recover those funds plus interest.

Med Coast Exclusives only showcases Murcia property of those developers with bank guarantees in place.

3. Do I need to use a lawyer to buy a property in Murcia?

Yes. Some buyers insist on trying to manage their own conveyancing. This can be difficult enough in your home country, but when buying property in Spain, we really wouldn´t advise it.

Some buyers of property in Murcia choose to use a firm of lawyers based in their home country. We have found that this can be expensive, especially if that lawyer is simply going to ask for the help of a lawyer in Spain to do the work. In effect, you could end up paying twice for the same service.

We can provide you with a list of local English speaking lawyers in Spain that have helped many clients in the past. They are independent of agents and developers, and you are welcome to use the lawyer of your choice.

Lawyers in Spain operate in a completely different judicial system to the one that you are probably familiar with at home. This doesn´t mean that it is any better or any worse....it´s just different.

The lawyers can check all of the paperwork before sending your funds to a developer or vendor, they can negotiate critical elements of a Murcia property purchase and alert you to any problems or matters that need urgent attention.

4. I need to transfer my funds in Euros to pay for my Spanish property. How do I do this?

When you buy a property in Murcia, you will need to pay for the purchase in euros. If you are transferring money from a sterling account, it is obviously in your interests to try and obtain the very best conversion rate possible. Many people believe that they can obtain the best rate from their banks, but the most competitive rate often lies elsewhere, for example with a specialist foreign currency provider. Cloud Nine can provide you with details and put you in touch with these companies, and the process is therefater relatively straightforward.

You will need to provide details of how much money you are looking to transfer to Spain for your Spanish property purchase, the details of the destination account, and you will then be given the best rate available and asked to transfer the sterling equivalent to the exchange company. You may even be able to specify a rate that you are looking for, and instruct the exchnage company to deal only once that rate is reached. In addition, you can order currency for future payments at a pre-determined rate, thereby safeguarding against any future exchange rate fluctuations.

5. Can you explain the meaning of buying property off-plan in Spain?

Buying property off-plan in Spain simply means that you secure your property purchase before it is actually built. There are several advantages to buying Spanish property in this way:

In a rising market like the Murcia property market, it normally means that you pay a cheaper price than somebody who buys a similar property in Murcia on the day of completion.

In popular areas of Spain, there is often a rush to secure the best units on the best developments, so by buying off-plan you can normally secure the properties with the best locations, views etc.

When you choose to buy property off-plan in Murcia, you can spread your payments. Rather than having to find all of the purchase price in one instalment, the price of the property can be paid in staged payments during the course of construction.

The property will be brand new when it is completed, ready for you to enjoy.

6. I have heard of people making a fortune by buying and selling property off-plan in Spain. Is this really possible?

Yes it is, but you need to tread very carefully. Many people in the past have made large sums (over 100% return within 2 years) by buying Spanish property off-plan and then re-selling prior to completion. This is done by paying a small percentage of the purchase price prior to completion, but benefitting from the rise in the ENTIRE price of the property during construction. Many of the costs of completion are also avoided.

There are no guarantees that you will be able to re-sell your property in Murcia, so you will need to choose your investment location very carefully. Once you have done this you will need good advice on which unit(s) to purchase (i.e. to be able to re-sell). A number of factors will need to be considered, such as position, orientation, number of bedrooms etc. You should also be looking to invest at the lowest possible price point on a particular development and you should also be looking for the very best payment terms available. These financial factors should provide you with sufficient margin to offer flexibility when it comes to determining the price when you choose to re-sell your property in Murcia.

This site will alert you to any potential investment opportunities for buying property in Spain. Simply register on the homepage to receive our investment alerts.

7. My property in Murcia is due for completion. Is it ok to turn up on the day of completion?

Feel free to turn up, but it´s highly unlikely that you will be able to stay in your property in Murcia at that stage. The day of completion is that day on which you legally become the owner of the property by signing the title deeds. However, the water and electricity supply has to be connected, and this can only be requested once you have your title deeds. Therefore, there is very often a short delay before your property in Murcia becomes properly habitable. Wait for your lawyer to give you the go-ahead.

You do not have to appear in person to sign the title deeds for your Murcia property at the Notary´s office. You can arange for your lawyer to do this on your behalf by arranging a power of attorney from your home country. This is often a blessing in disguise, as completions rarely take place at the exact time appointed. In fact, some can even be delayed by a day or two!

8. I keep hearing about Community Fees relating to property in Murcia. What are they?

If you buy a property in Murcia that forms part of a community of owners (i.e. if you buy a villa or apartment within a development with communal areas, such as pools, gardens, pathways etc) you will need to pay community fees.

The cost of running and maintaining everything within the community (but outside of your own property) is shared between the owners on a proportionate basis. So if you own a 3 bed penthouse with 200m2, you will pay twice as much as me if I own a property with 100m2.

Charges vary, depending upon expensive items such as security and the number of properties sharing the cost. The community fees for an owner on a development with 30 apartments employing 24 hour security guards is going to be substantially higher than an owner on a development of 250 apartments with no guards and no pools.

Developers of property in Murcia hand over a community to the new owners and then the owners have a meeting to determine the following years budget. Everything is done democratically, a president and vice-president are elected, and everyone has a right to vote on the issues, either in person or by proxy.

9. How do I arrange the electricity and water contracts, open a bank account and arrange property insurance for my Spanish property?

Don´t worry too much about this. Often these matters can sound daunting when you are hundreds of miles away. Normally, your lawyer will be able to do all of this on your behalf. Direct debits can be arranged for the utility contracts and insurance for your property in Murcia, and bills can be sent to your home address.

10. I am buying a property in Murcia. Do I need to make a will in Spain?

We always recommend that you draw up a Spanish will, as this will offer you and your loved ones protection of your Spanish assets in the event of death. Your lawyer should be able to help with this for a reasonable fee.

Your homeland will should cover global assets, but the process will be far faster and less contentious if you also have a will in place for your property in Murcia.

11. I am thinking about buying a property in Murcia. Is it easy to arrange mortgages in Spain?

It is relatively straightforward to arrange a Spanish mortgage. Currently, mortgage interest rates in Spain are very low, although there are certain costs that should be taken into account when you take out a mortgage in Spain, such as stamp duty and notary fees for the mortgage itself, as this requires a separate deed.

The mortgage market in Spain was relatively unsophisticated until recently. The competition for business has seen the introduction of a number of new Spanish mortgage products such as interest only, fixed term, self-cert etc which are proving very popular with investors. Take a look at the mortgage calculator on this site for illustrations of capital and interest repayment mortgages.

For non-residents looking to buy property in Murcia, most lenders in Spain will advance between 70% and 75% of the VALUATION of the property at completion. In a rising market, and by buying off-plan property in Murcia, buyers can sometimes effectively secure close to 100% financing at completion due to the rise in value of the property during construction.

If you require a personalised quote, or would like detailed information on Spanish mortgages or equity release in the UK, simply drop us an email, and we will be back in touch with you.

12. How much should I allow on top of the purchase price of my property in Murcia for costs/expenses?

As a rule of thumb, allow for between 10% and 11% of the purchase price of your property in Murcia as costs. These are as follows:

IVA - 7% - payable with each staged payment
Stamp Duty - 1% - payable on completion
Notary & Land Registry Fees - 2% - approximate, payable on completion
Legal Fees - 1% - Half payable with first staged payment, and half due on completion

There are additional fees if you require a mortgage in Spain. Please enquire for details.

13. Is my property in Murcia likely to increase in value during the next couple of years?

When the company chose to establish a presence in a region of Spain, Murcia was the natural choice. The area is showing the fastest economic growth in Spain, there is massive investment already made in the region´s infrastructure, most of the major low-cost airlines now fly to the local airport of San Javier, a new airport at Corvera is planned for 2007, and Alicante airport is only a 45 minute drive away.

Add to that the mix of superb beaches, glorious weather, year-round activities and the cosmopolitan feel, and it´s easy to see why the Murcia area should grow in popularity. Several experts are predicting growth in Murcia property of around 20% year on year, potentially replicating the effect that we have seen in the Costa del Sol during the last decade.

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