Renovating Spanish properties
Building your own home might be the dream of millions but many have found renovating existing Spanish properties to be a more realistic option. Many people see the old disused farmhouse as their way of securing their dream rural property. Spain has many such opportunities but beware that renovating requires every bit as much courage and vision as building a new home. However, strong-performing investment property in Spain can be acquired in this way.
The term ´renovate´ is not a particularly specific one. It can be taken to mean superficial decoration or a grand plan to turn a pile of rubble into the building it once was. Most people have no experience of such a mammoth undertaking and would not attempt a similar project in their own country. Whether it is your own home or an investment property in Spain, make sure to think carefully before committing to a renovation project.
Surely there are easier ways to obtain investment property in Spain
Those who chose this option said there were several factors which convinced them renovating Spanish properties was the way forward. For example:
- Building costs are less expensive than in the UK with materials being up to two thirds cheaper.
- Labour costs are also far less and it should cost around £50 a day to hire a skilled local man.
- A disused building could be turned into a dream rural property. Spain has many such buildings and the condition sometimes means it can be bought and renovated for less than the value of a similar property in good condition.
- Embarking on such a project generates a feeling of emotional investment in your Spanish properties.
Budget for renovating Spanish properties
A rough guide to how much the work will cost you is to allow €800 to €900 per square metre. This includes planning permissions but not taxes. Councils will require up to 3% of the declared value of work done to be paid in tax.
These figures are not fixed and obviously depend on the state of repair of a Spanish property. Some have found the time and money involved in renovating Spanish properties to be twice what they budgeted. If the renovation is structural then it is likely to be more expensive than starting from scratch.
There are now lots of British tradesmen working in Spain who may be able to help. They will be more expensive to hire than locals though and this may be something to consider if you are buying as an investment property in Spain.
Planning permission to renovate Spanish properties
The ease of gaining planning permission depends largely upon which area of Spain you are in.Buying a ruin no longer gives you automatic planning permission in Andalucía for example. Areas only recently opened up to the Spanish property market are more flexible and this may be beneficial if you are looking to renovate a rural property. Spain has very area-specific legislation so in all instances it is vital to evaluate the situation with regard to local authority policy.
Planning to renovate Spanish properties requires you to familiarise yourself with laws, customs and business practices which may appear totally alien. It is worthwhile consulting with professionals to check whether or not it is feasible to convert into a new rural property. Spain has many old building but not all represent good investment property.
