Iznajar Property
Iznajar is excellently located. It is an hour from Granada's international airport and close (but not too close) to the A92 motorway which links Granada to Malaga and Seville. The town is close to several national parks and there is excellent fishing in the lake and surrounding waterways. Iznajar now offers the perfect setting for anyone wanting to live in inland Spain but still retain a 'sea' view.
There is a wide range of property on offer in Iznajar. There are large villas which have been renovated by the Spanish and Northern European visitors and interest in the area has meant that there are also a range of new builds on offer. These are usually not well advertised on the Internet as they are often snapped up by the Spanish before the rest of us know anything about it. There is one development taking place in prime lakeside location and prices are good - to find out more follow this link. There are a range of renovated town houses and fairly new apartments on offer to. For those with the DIY itch there are plenty of properties which need some or total reform.
Prices and Estate Agents
There is more good news, as the town is 1 hour inland, property is good value.
The prices in the town themselves are higher than in the villages and towns
nearby
however this reflects the fact that it is such a special place and is the only
town/village on the entire lake side. Despite being the premier location
around the lake prices are still good and the opening up of Granada airport
means this area should offer a good investment. For more information on
prices review the Kyero website
(Iznajar is in the Cordoba Province).
There is some stunning property in the town and surrounding areas including properties for reform. This region does appear to be protecting the natural environment and you will NOT find the 'villa splat' which has spoilt so many areas of Andalucia. This does mean that planning permission is not handed out easily, therefore do not take on reform projects or buy land to build on unless you are sure that you will be allowed to build. Do not believe the seller always get independent verification.
If you are looking to rent property in Iznajar or even to buy Iznajar Property, there are many estate agents you can use. Most have websites allowing you to get a feel for what is on offer and set up viewings before you turn up, it is also worth walking through the town when you are there and talking to a few more agents.
Be aware that in Spain it is usual for homes to be sold with more than one agent, as a result prices may vary depending on the agent, so shop around. This also means that agents may not know for sure if a property is still on the market or what the current price is - always get them to specifically confirm this information before you travel to see any property you have set your heart on. Agents fees do differ and can be very high. Ask what they are and make sure that they are included in the sales price (this is the normal practice). Some Spanish sellers will set an unrealistic price which bears no relation the market and they will not accept offers, however most will so do try to bargain.
Mortgages, Valuations and Declared Values
If you are buying for cash then lucky you! A popular way of funding a
Spanish purchase can be to re-mortgage in England and use the money released to
buy in cash in Spain. If you do not have piles of ready cash then you have
to try and
arrange a mortgage.
Several British banks do offer mortgages on properties abroad, they tend to be for a maximum of 70% of the value though. The benefits here are that you will be dealing with a trusted English speaking company and will in most cases pay your monthly amount in Sterling. However you should always get a quote from a large reputable Spanish bank too. They normally offer a maximum 80% on the value of the property (unless the property is a coastal new build) and you will have to pay the monthly amount in Euros - however these mortgages are very cheap and if you go into a coastal branch you are likely to be dealing with someone who's English is good.
One
heavily marketed option is to get a broker to negotiate a Spanish mortgage on
your behalf. Before approaching a Spanish bank direct we tried several of
these, in our experience they are not that good for rural properties and they
are expensive, adding 1 - 2% to your total costs. In our experience Spanish
banks prove to be more helpful and in most cases they will not charge you
anything until the sale has successfully completed.
When arranging a mortgage in Spain the property valuation is much more important than it is in the UK. In the UK the banks tend to take the valuation as market price, whereas in Spain this is not the case. The legally declared value in Spain is often not what you actually pay. This is a widespread tax fiddle - the seller has to pay a type of capital gain on the sale price so they want the official taxable value to be low. The official recorded value of homes is therefore normally lower than the actual cost and as mortgage valuations are partially based on the declared value of recent sales this can be lower than market price. If you have agreed a mortgage valuation of 50% you will only get 50% of the valuation irrespective of market price.
The declared value in Spain should be bargained with in addition to the sales
price and should be agreed clearly up front. The seller will want to
minimise it - the risk to you is that when you sell the property, if you can not
agree on a reduced declared value with the person buying from you, you
will have to pay tax on the
difference between the sales price and the declared value when you bought it,
rather than the amount you actually paid. The good news is that lowering
the declared value reduces the cost of the initial purchase. In addition to the
capital gains tax the seller pays, you the buyer also have to pay 7% (more for a
new build) tax on the declared value - if this is lowered your costs go
down too.
On the day of purchase you transfer the 'declared value' by bank transfer or cheque and have to pay the balance in cash semi-secretly! Although, the notary know it happens they should not see it!
Although property in Spain is good value compared to the UK the process is more expensive, you will see estimates of 10% of sale price which may rise to 12% if you arrange a mortgage. Plan for costs of around 10% but these estimates are at the top end - if you have the confidence and time to shop around you can make some savings and total costs of 8% of your property price are feasible.