Buying a Property In Ibiza: Property Sales Ibiza

The following information will be useful when you are buying a property in Ibiza. It clears up many aspects of the purchase process and will help you decide how, when and where you wish to go about things.

Buying resale or off plan property

• Off plan is purchasing a property which has yet to be built, just as in the UK where you would purchase a new house on an estate being developed.

• Resale is the term used in Spain for what we in the UK would consider to be a traditional house purchase of an existing property.

The route that you choose will depend upon a number of factors:-

Resale Properties

• Immediately available, you will not have to wait for your property to be built.
  

• You can see exactly what you are getting for your money.
  

• Properties will tend to be older, with perhaps fewer facilities. (Pool, Air Conditioning)
  

• There may be no guarantee.
  

• Prices will be higher
  

• You will have to find the full payment at once (or mortgage)

Off-Plan Properties

• You will have to wait for your property to be built / completed.
  

• You will not be able to see exactly what you are going to buy; although like the UK there will probably be a show home available for you to view.
  

• There will be a 10-year guarantee in place; this is now compulsory in Spain.
  

• You will normally be able to spread your payments over a period of time.
  

• You will get more for your money than re-sale.

Banks and Mortgages in Ibiza

It is becoming more and more frequent for people wishing to acquire a property in Ibiza to consider taking out a mortgage, whether it be to finance a large portion of the house or just a top up amount to get a better property. Currently, all banks offer up to 60% of the total purchase price including the VAT of a property but some will give a higher percentage if the bank's appraiser gives the property a higher value.

Many real estate agents will say that the bank will offer a higher percentage although they do not state that the percentage is on the sales price (without VAT or Notary costs) not the full price (with VAT and Notary costs) after taxes have been included. In the case of new properties, the bank will only value a house once it has been built, whilst the builder expects 50% of the price of the house to be paid before completion. So if you are thinking of getting a mortgage to buy a new property, make sure you have at least 50% of the asking price.

In the case of resale properties, the appraiser could give you a valuation and you would know how much you could get.

Please remember that only the bank can say how much money they are willing to lend and not the builder nor a real estate agent.

We have an excellent working relationship with Deutsche Bank, Bancaja, Sol Bank (NatWest), Cam Bank which have always given our clients favourable conditions with excellent service which has always reassured us when we put our clients in their hands.

Price and Quality

An important point to make when buying a property in Ibiza is that the price reflects quality, size and location. No other indicator gives as much accurate information about the quality of the property as the price. It will indicate which is the best property suited to your needs and to your budget, whether it be a holiday home, residential or solely for investment purposes.

Visiting the Area and viewing

Unlike larger real estate groups, Paramount Properties offers a one to one service when showing properties and also properties built by smaller, experienced builders who include a higher degree of materials and quality, often shunned by the big companies because it is not a suitable product for large inspection visits.

After Sales Service

One of the most important parts of any sale is to make sure that the estate agent selling you the property has a professional and qualified after sales team. This is the most essential part of any reliable and qualified property company. Our excellent after sales department can offer you legal, fiscal and financial advice and services so you don't have to worry about a thing. All our staff are bilingual and multilingual so you will have no trouble communicating any queries you may have.

To conclude, we would like to add that this is just a general informative description of how the sales process works in Ibiza. Every situation is different and this is something that Paramount Properties knows well as we have experienced every single one.

We take pride in being discrete but at the same time well known within the building and real estate sector. There is no secret to this, just dedication and know how of what and how we are selling. All of our staff has had ample experience in the Spanish property market as well in London. Add to this a comprehensive understanding of Spanish property law, design and finances and you will find that Activa International has one of the most professional and qualified team on the Island of Ibiza.

If you have any questions about buying property in Ibiza or anything else relating to this information, do not hesitate to get in touch with us.