Retirement to Malaga buying property

I live in Marbella and would not go back (home???)

Finding the Right Property

Online Real Estate Platforms: Websites like Idealista, Fotocasa, and Kyero offer extensive listings of residential properties across Spain. These platforms allow investors to search for properties based on location, price range, and other criteria.

Review Spanish housing market update reports from the above platforms to get the best cash-on-cash returns or returns on investment.

Real Estate Agents: Working with a knowledgeable real estate agent can streamline the property search process. Agents have access to exclusive listings, market insights, and negotiation expertise, helping investors find the best deals.

The General Council of Real Estate Agents of Spain (CGCOAPI) is a good source to find a licensed agent.

Securing Financing

Traditional Lenders: Banks and credit unions in Spain offer mortgage loans for residential real estate investments. Prospective investors can apply for conventional mortgages, depending on their eligibility and preferences.

Private Lenders: Private lending firms and individual investors provide alternative financing options, such as hard money loans or private mortgages. These loans typically have higher interest rates but may offer faster approval and more flexible terms.

Understanding the Costs

Purchase Price: The cost of buying a residential property varies widely depending on factors such as location, size, condition, and market demand. Investors should conduct thorough market research and property inspections to determine a fair purchase price.

Closing Costs: Closing costs typically range from 10% to 12% of the property's purchase price and include fees for notary services, registration, taxes, and legal services.

Property Taxes: Property taxes (IBI) are assessed annually by local governments and vary depending on the property's assessed value and tax rate in the respective jurisdiction.

Homeowners Association (HOA) Fees: If the property is located within a managed community or condominium, investors may be required to pay HOA fees to cover maintenance, amenities, and community services.

Legal Process of Buying a Residential Property

Offer and Negotiation: Once investors identify a suitable property, they submit an offer to the seller through their real estate agent. Negotiations may ensue until both parties agree on the terms of the sale, including the purchase price, contingencies, and closing timeline.

Contract and Due Diligence: Upon mutual acceptance of the offer, a purchase contract is drafted outlining the agreed-upon terms. Investors then conduct due diligence, which may include property inspections, title searches, and appraisal assessments.

I was thinking of renting for a few months whilst I search for the right property. Also I will not have the income required of 30000 euros per year required for residency but will have capital. Am thinking keep my money in the bank until I get my residency then purchase an apartment. Is this a good idea do you think ?

It does make sense to rent before buying so you understand the area you wish to live in whilst saving up. Buying a house in Spain is rather expensive at 10% to 12% of the property price so you will want to make the right decision.

Wanting to take 2 months or so renting in Malaga Centro before a long term lease. Any suggestions for streets or locations.

Larry

Malaga is another big dirty city. It's brutal in summer. Humidity.

Look up in Torre del Mar if you are set on that area. Much cheaper. Very beautiful. An expat community for you to fit in to. Restaurants catering for expats with menus in English etc.

@Spaztik

Good luck with your search, I love Malaga. Beautiful place with plenty to see and do plus within easy reach of other places for day trips etc.

@Wendy Clark

Malaga real estate is somewhat overpriced and overvalued right now--have read it is currently not a great investment. That being said--you will need to renew the NLV after first year and again 2 years after that. When you renew, you will need to show enough passive income or savings to cover you for the subsequent 2 years--so double the amount of the first year. You will need to retain enough savings for each of the 2-year visa renewals unless you will be receiving enough monthly pension/SS income to cover the financial requirement. Yes, renting is a good idea. We live in a town just to the west of Malaga city. We thought we really wanted to be on the water and rented on the beach for a while--but discovered we were surrounded by tourists and holiday rentals--and were somewhat isolated from Spanish life--the tourist population in the summer is overwhelming as well. Ended up moving into town near shops and restaurants in a Spanish neighborhood and it is much better quality of life. Thought the view was most important, but after three years--no longer cared about the view as we wanted to assimilate - and do not want a car.

@electra777

Similar experience here, as we went a bit inland to UNESCO-listed Elche, instead of looking at the beaches or downtown Alicante. We're 15km from some very nice Costa Blanca beaches and 20km from Alicante-Elche Airport (and just under 25km to central Alicante and its awesome Santa Barbara castle. Elche is a lovely, traditional Spanish city, with a pretty historical centre. It's big enough to have all amenities, but no tourist crowds. As a (big) bonus, property prices were (and are) substantially less than Alicante city, or beach-adjacent locations. We've really enjoyed living here, and pleased that we decided to go a bit off the beaten track.