I choose the word need carefully for it is more urgent than the alternative want and adds more strength to the issues discussed. For most readers though the need word will apply, perhaps not in all cases, but certainly in some and I would stress an understanding of how the issues impact you.

1) Purchase. It goes without saying that a significant percentage of people buying here cannot purchase outright for cash. For whatever reason, they do not have access to the necessary capital and therefore, irrespective of age, they will need assistance in funding.

Now there are various types of purchasers
i) The investor or speculator. They will want the cheapest, most economical route to acquiring property so, with mortgage finance available even to non-residents up to 80% and perhaps more, they will not need to use their own capital and the lender will help carry some of the risk.

ii) Holiday Homes. A lot of would be retirees sample the country by buying a property here whilst retaining their main home as well as their jobs back in the UK or otherwise. With easy access to mortgages back in their own country it is tempting to borrow against the main home but I would question the danger that goes with that. Better to put the finance for an investment property on the same.

iii) Retirees. This is self explanatory and most people in this category would look to buy for cash. But why would you do that when you have a risk for Inheritance Tax, currency exchange and the potential to earn a greater return on your capital than borrowing in euros. More on these points to follow.

2) Inheritance Tax (IHT). It is dangerous to blow this issue out of perspective but is perhaps more dangerous to ignore it without understanding the current risk that all purchasers should be addressing.

What is certain is that for property purchasers here, the issues of IHT and the necessity of a Will should be a critical part of the initial planning. Having said that, time is normally on your side but, if you have a property here and have no idea how best to structure a defence against inheritance laws and tax in Spain, then best you do something about it sooner rather than later.

Inheritance laws in Spain are dramatically different than say, in the UK. Many people assume that European states are similar in this respect. Wrong! In fact, the UK is somewhat unusual in offering attractive allowances whereas the same is not said elsewhere and certainly not in Spain. There is no spouse exemption on the main home and personal allowances are small and fall to the beneficiary rather than the deceased. So there is a real need to understand and plan or you (or more to the point your beneficiaries) could get a nasty surprise.

3) Low Euro interest rates. The current average euro mortgage pay rate is little more than 3% whilst, at least for , returns on capital are in excess of 5% without taking any investment risk at all. Now, if we take an example of a purchase here for say Euro 200,000 (130,000) the difference EVERY YEAR is at least 4,000 euros or 2,700. So, if you utilise the Interest Only tool and defer the repayment of the mortgage capital for say, 20 years, that amounts to a massive 80,000 or 54,000! Wow!

4) Foreign Currency Exchange rate risk. Now there is the threat of exchange rates moving against you in the above example, but the same can also be said if you purchase your asset (your property) with no liability (your mortgage) to mitigate an exchange rate risk, especially if your capital base and income is in another currency (). Investors worldwide (and I am talking multi national conglomerates) use the offset mechanism all the time rather than running complex and risky financial exchange rate products such as Foreign Currency Futures and Options. These cost money with potentially a nil return. You can do it simply by reducing your own capital and borrowing via a mortgage.

5) Equity Release or Eventual inheritance. My experience in working in the Financial Services markets for the last 15 years has led to an odd conclusion; far too many people, parents in fact, pay far too much attention to their detriment in trying to create an eventual inheritance for their children.

( Read full information… )

Buying property in Spain can be a difficult process, if you aren’t aware of certain factors. The fact is that purchasing property in a foreign land means educating yourself about the different legal and tax laws that need to be followed. However, if you do it right, buying property Spain is one of the best investment you can make.

In Spain, many purchases are made “off the plan”. This refers to buying property that is not yet built. In Spain, you usually work with developers who have scaled models, or drawn plans to show you a property that will be available to purchase.

In fact, they may even have a show home made available to give you an idea of what it will look like.

Upon the completion of the sale, the sales consultant and the estate agency will get a commission on the property sale value. This makes a very advantageous to purchase “off the plan”, because you can save a lot of money.

In addition, Spain is a wonderful opportunity to invest in property developments. A property development usually consist of several different properties and designs such as pools, gardens and other facilities. Here, the option is to pool your money with other investors, and purchase a piece of property within the area of development.

Some benefits of buying property and Spain include the option of saving by buying “off the plan”, and taking advantage of the tourist season. You can rent out your properties to tourists for six months of the year, and use that money to live the rest of the year in France for free!

The main drawback with buying property in Spain is that you often face a hard sell. There are so many different real estate agencies out there who are competing for your business, and will use high-pressure salesman techniques.

Search on the Internet and you will come across the names of many lawyers and law firms who can represent you or your company on matters related to real estate, land disputes or property claims. In fact, you will also find that many firms offer free consultation. This gives you ample opportunity to study your options carefully before settling for a lawyer who can do justice to your cases.

You will come across many trained and competent lawyers, but their skill will vary. When buying property, you may feel that a real estate agent is good enough, but a real estate lawyer can provide you services that go beyond purchasing decisions. This is especially true when there is a property dispute. Considering the amount of the investment involved, you will need the services of an extremely competent person to review the facts and understand clearly where you stand. According to the laws of the state, he will build a watertight case, handle the paperwork, court procedures and work for the best possible settlement. There is a lot of investment involved in real estate, and you need to ensure the right person for the job. Don’t just settle for any lawyer that your friend suggests. The lawyer may be nice and well meaning, but you need to focus on the persons track record and reputation. You must ensure that the lawyer has specific skills dealing with real estate cases.

Also, keep in mind that an expensive office and a flashy car is no guarantee that the lawyer is competent. Your lawyer should have the patience to listen to you, provide personalized services, have a thorough knowledge of the law, and effective communication skills to put his or her point across.

Atlanta real estate lawyers can be found through a referral service provided by Georgia State Bar Association, the county bar association and other professional law associations. Information is also available in the yellow pages or through search engines like Google and Yahoo on the Internet. You can check advertisements of law firms in magazines and newspapers. Friends and family members are also excellent sources of information.

Purchasing Phuket real estate may appeal to any foreigner looking for an investment, whether for investment or for business purposes. In fact, the option to purchase Thai property has increased in popularity amongst European and American alike in recent months as a result of higher yields compared to elsewhere in the world. Phuket is a desirable country as a result of its hospitality and laid back lifestyle, but if you do want to purchase Phuket real estate then you will require proper legal assistance and guidance.

Legal Restrictions

There are many legal restrictions associated with Thai real estate. They largely depend on the type of property you want to purchase:

Land ??? Legally, no foreigner is allowed to purchase land. They are restricted to owning the physical structures only. The law however does make provisions if you wish to purchase land for development. You could either purchase the leasehold for 30 years with an option of renewal or purchase the land in the name of your existing company. It would have to be a Thai Limited Company though and the funding would have to come directly from the company???s provable income and not you.

House ??? Purchasing a house is slightly easier than purchasing land even though the same rule applies for this form of Thai property as for land. You are not able to hold the land???s freehold at all as it has to be leasehold. If you have a Thai spouse then he or she can own the freehold but in his/her name only as long as he/she can prove that the money used to purchase it was not yours.

( Read full information… )