  Guide to Buying and Selling property
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The following is an extract from GoldAcre Estates full printed Guide to Buying and Selling in Gran Canaria. Details of how to obtain your personal copy can be found at the end of this article. We hope you will find the following information both useful and informative:
Peoples dream of owning a property in Gran Canaria has become far easier to achieve than most people realize, with a stable European environment, common currencies, more and easier flight availability.
However for the prospective purchaser it still can be very daunting indeed, due to a lack of understanding of the laws and regulations in a foreign country which are often very different than those we are used to at home.
It is vitally important that you have the most professional assistance available to ensure that you achieve your dream safely.
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The Canary Islands, and in particular Gran Canaria. is a fabulous place for both those who want to become full time residents or for just the occasional visitor to the Islands Of course the Canary Islands are becoming an ever increasing choice for those that want to own a holiday home or even move for a better way of life and of course those that want to retire to the sun.
The temperature and all year round sunshine make the Canary Islands the perfect choice for many Europeans for their property purchase because the Canary Islands are part of Europe from an economic and political point of view, but far enough removed from mainland Europe to enjoy the subtropical climate of Africa.
However when buying in Gran Canaria caution should always be exercised as customs and purchasing procedures are very different from those that you are used to at home.
Gold Acre Estates advice to all prospective purchasers is be cautious and always ensure that you take specialist professional advice, after all you would not buy a house at home in the pub from a total stranger would you?
At GoldAcre Estates we believe that all clients deserve the best, after all the Canary Islands and Gran Canaria offers you the very best of climate and lifestyle why should we not ensure you have the best assistance available to assist you in the pursuit of your Dream property. |
THE ESTATE AGENT |
| - Choosing the right Estate Agent |
Always select a Licensed Real Estate Agent, many agents operate without being properly licensed which means that you are putting yourselves potentially at risk.
The work of a good estate agent is far more comprehensive than that of an agent in the United Kingdom and most other European Countries, therefore the importance of the professionalism and the range of services offered by an Estate Agent cannot be over emphasized.
We at GoldAcre Estates are Independent Estate Agents offering a truly unbiased advice and a service that is hard to equal.
Our objective is not to force you to buy a property but to simply help you find your Dream Home in the sun. Our major responsibility is to present all the facts honestly and accurately to ensure you are happy in the knowledge that every precaution has been taken to ensure the safety of your purchase in Gran Canaria.
Our services extend to areas such as preparation of purchase contracts {which are always prepared in conjunction with your lawyer} arranging introductions to properly accredited legal council and fiscal advisors, assistance with opening bank accounts, assistance and advice on obtaining mortgages, insurance and a whole host of other necessary financial services.
Advice and direction towards reputable furniture and kitchen suppliers, in fact Gold Acre Estates is your complete one stop shop.
Once you are a proud owner of your property in Gran Canaria, GoldAcre Estates service is still there for advice on maintenance, gardens and pool cleaning. In fact everything you can think of relating to all aspects of your new property.
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THE PURCHASING PROCESS |
- Legal Advice |
This is one of, if not the most important point when buying Real Estate in Gran Canaria; you would not even consider buying a house at home without good legal advice so when abroad why should you throw all caution to the wind?
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- Reservation Deposit and Contract |
Once you have found your Dream Home, the purchase process begins with a reservation agreement, which takes the property off the market and freezes the purchase price. The deposit you would have to pay at this stage will be between 3,000 and 12,000 euros depending upon the purchase price of the property.
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- Formal Completion and Exchange at the Notary |
A property sale is formally completed in the Canary Islands in front of a Notary. They are the only people that can prepare and approve the final title deed {Escritura de Compreventa}
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- Who is a Notary? |
A Notary is a lawyer who has had special training and passed additional examinations to qualify them for these special duties which cover a large range of legal matters, not just property transfers. |
- Registration |
Once the title deed has been signed and has been sent to the Land Registry your lawyer will deal with the formalities of registering the title deed and will pay on your behalf all the relevant transfer taxes.
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- Purchasing a Property on a New Development |
The processes are fundamentally the same and the title deed process does not differ from that of a resale property although one or two differences in the process are worthy of note.
The first one being that your property could take up to two years to complete and your payments are staged a little differently to those of a resale. Generally you will only be required to place a 30% deposit during construction until your property is completed and ready for title.
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COSTS |
- Fees and Taxes |
There are, in principal, three fees and two taxes to pay when purchasing a property in Gran Canaria. As a general rule you should add approximately 10 -12% to any property price you see advertised anywhere to cover all the taxes, Lawyers, Notary fees etc.
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- Notary Fees |
The Notary charges according to a fixed scale which is dependant upon the official value of the property |
- The Taxes |
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- Mortgages |
Spanish banks are willing to grant mortgages to non resident purchasers of property in Gran Canaria and at GoldAcre Estates, through our specialist advisors, we are able to negotiate some excellent terms for our clients. |
- Other costs |
Other things to bear in mind when owning a property in the Canary Islands
Community fees
Local Real Estate tax
Annual Income Tax
Property wealth tax
Utility services
Insurance
Fiscal representation
Although not exhaustive this list is designed to give you an idea of some of the annual costs that need to be taken into account.
Again at Gold Acre Estates we give you an indication of the amounts that may be required before you commit to purchasing your property.
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SELLING A PROPERTY |
Capital Gains
Capital gains tax is normally due on a sale of a property.
Tax Retention
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INVESTING FOR TURNOVER |
- The Facts |
Buying property Off Plan. For selling before completion is an excellent form of Investment which can show substantial returns on your capital invested, but like all forms of investment that offer higher than normal returns there are always risks attached.
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- What are the potential Financial Benefits? |
As an investor and using a rough rule of thumb for the right development, you should see conservatively on average between 15%-20% total capital growth, which relates to some 50% return on capital invested because in general you are only investing approximately 30% of the purchase price. |
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- Timescales |
How long should you have your money invested?
On average and because you are buying at the first price release you should expect to have you money invested for anything between 18 months and two years. |
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The above information is only a guide and any examples given are only for illustration purposes and must never be taken as a guarantee. |
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The Cautionary Tail |
Like all investment opportunities, if you cannot afford to tie up your capital for a minimum of two years, DO NOT DO IT.
With all high return investments there is always an element of risk, at GoldAcre Estates we want to ensure you have your eyes wide open.
By following proper processes and choosing your agent and lawyers carefully you can be assured that the process of property purchase in Gran Canaria is both safe and enjoyable.
The information contained within GoldAcre Estates guide to buying and selling is never designed to replace sound legal and fiscal representation and whilst every effort has been made to ensure that all the information contained within this guide at the time of going to press was correct, laws, taxes and regulations change and therefore Gold Acre Estates cannot accept any responsibility for any loss or damage caused by actions taken or not as a result of reading this guide.
Please ask for a full copy of our comprehensive guide to buying and selling to be sent to you by visiting our site, www.goldacreestatesgrancanaria.com or just come into our offices and request your personal copy.
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