1. Will it be a good investment?

No one can predict exactly what the property market is likely to do, and recent changes in the Costa del Sol market now favour buyers who want to spend holidays in their properties and hold on to them for a few years rather than investors who want to sell quickly. The market is still rising, however, so anything you buy is likely to go up in value.

2. What’s the basic process?

First of all, you need to put down a small holding deposit, refundable if subsequent checks on the property or owner throw up anything unannounced. You will need to find yourself a good English-speaking lawyer and to have researched your mortgage options, if applicable. Then you can agree on the sales price and hand over your 10% deposit when you draw up a sale and purchase contract. Finally you need to sign the official document which transfers ownership of the title deeds and register the property in the land registry.

With off-plan properties you usually exchange a private purchase contract within 30 days and then hand over your first installment, usually 15-30% of the purchase price. Your lawyer will advise you when further payments are due. On the day of completion, the balance of the purchase price is paid, and you (or more commonly, your lawyer) will sign the title deeds for the property, and the keys will be handed over. You should then allow 1-2 weeks before you can move in, in which time you can ask your lawyer to arrange for utility contracts with water and electricity companies.

3. Should I buy inland or on the coast in Spain?

The thought of buying a house in a small Spanish village or set alone on a hillside, surrounded by beautiful countryside, is incredibly appealing, but you need to think about why you are buying it. If it’s for a holiday home which you intend to visit to get away from it all, then this kind of Spanish property may be ideal. But if you are planning to spend long periods of time there, perhaps to escape the British winter, or you are planning to retire in Spain, then think about the reality of living in a remote setting where you have to drive to the nearest town for shops, bars and entertainment and where you may feel an outsider if you do not speak good Spanish.

In inland Spain, however, you can find some beautiful properties with far more space and for far lower prices than they would be on the coast. Buying inland also opens up the range of property options, such as fincas, country houses and rural townhouses, often with your own garden or land.

If you choose to buy a house on the coast in Spain, you will probably buy an apartment, unless your budget stretches to something bigger such as a villa or townhouse. Being on the coast means you are likely to be surrounded by everything you need. It’s a far more comforting option, too, if you don’t speak Spanish. Bear in mind the crowds in summer, though, and the lull in activity throughout winter, when many bars and restaurants close.

4. Should I invest off-plan or buy a resale property?

Buying a new Spanish property off-plan means that you will be the first person to live in the property, everything will be brand new, fully functioning and you won’t need to do a thing when you move in. Some people, however, may feel that what they gain in convenience they lose in character. You may feel that new properties do not have the charm, quirks or uniqueness of an existing freehold property.

A new-build property in Spain is most likely to be an apartment or townhouse on an urban development with similar - even identical - properties. You have the benefit of high quality communal facilities, so by paying a quarterly service charge you save on the hassle of maintaining your own garden and swimming pool. You also have peace of mind when you are away that the development is lived in and looked after.

But you may prefer to live in a more rural setting, whether a finca in the country or an old townhouse in a typically Spanish village, and you may want somewhere that you can renovate or improve according to your own taste. This comes with the worries of having to deal with the upkeep yourself and what happens to the place when you’re not there.

In terms of an investment, buying off-plan is no longer the quick road to riches it once was on the Costa del Sol, but it can still be a worthwhile investment if viewed over a longer period. Properties are estimated to rise by about 10% in value this year, which means you will already have improved on your initial investment by the time it’s built.

Resale properties now account for the major share of the market on the Costa del Sol where the market is predicted to rise by about 5-10% this year.

5. What can I get for my money?

Costa Blanca South offers the biggest range of properties to suit lower budgets with apartments from £60,000. Murcia is cheaper still, though the infrastructure is less developed than on the Costa Blanca. Costa Blanca North has a more mature property market and prices are higher. There are still relatively cheap houses and fincas to be found a short distance inland, as the overwhelming majority of foreign buyers still stick to the coast.

On the Costa del Sol, the average house price is £200,000 and you are unlikely to find much for less than £150,000. Villas start at around £500,000. Marbella is the most expensive place on the coast. Cheaper places can be found further east and especially once you head East of Malaga around Nerja and this region of Axarquia.

6. Can I get a mortgage?

You can get either a Euro or Sterling mortgage, though a Euro mortgage is advisable to avoid losing money as a result of exchange rate fluctuations.
Spanish banks will usually lend up to 70% of the property value to non-residents. Their choice of mortgages is more limited than that in the UK but it’s a relatively simple process to secure a mortgage, provided you have evidence of income and a letter from your bank. If you are not a Spanish resident, you may have to provide an aval, which means someone who can guarantee they will pay in the event of you being unable to.

Most mortgage products are repaid on an interest and capital basis, with a maximum length of 20 years.You now need an NIE (see below) to buy or sell a house in Spain, even if you are a non-resident.

7. Can I live and work in Spain?

EU citizens can live and work in Spain without needing any visas or work permits. As soon as you arrive in Spain you will need to apply for a tax ID number (NIE) from your local police station. You can live in Spain for up to six months a year without having to pay taxes there and without being a Spanish resident. Over that period you are officially a Spanish resident for tax purposes.