Purchasing a property is a substantial investment and usually requires the assistance of professionals in related fields for a smooth transaction.
With more than 28 years of experience in the inland Spanish real estate market, Images of Andalucia has strong working relationships with the best in their fields.
As a service to clients, we offer the information and introductions below:
OWNERS CREATIVE FINANCE
Owner Creative Financing is when a property seller finances the purchase directly with the person or entity seeking to buy it. This type of transaction can be advantageous for both the seller and the buyer since it eliminates the costs of a bank intermediary. Owner financing is one way to structure the purchase of a real estate property. This type of financing can offer advantages for both the buyer and the seller. If owner financing is an option in the transaction it is typically disclosed in the advertising of the property.
Owner financing is often most common in a buyer’s market. It may be utilized to help the owner find a buyer more quickly and to increase the transaction time for a sale. However, it requires the seller to take on the default risk of the buyer. In order to protect the seller’s interests, the seller may require a higher down payment than a mortgage lender would. Down payments can range from 8% to 11% with a traditional mortgage lender. In an owner financed transaction, down payments can be as much as 30% or more. These transactions can offer the seller monthly cash flows that provide a better return than fixed-income investments.
Buyers typically have the greatest advantage in an owner financed transaction. The overall terms of financing are much more negotiable. In an owner financed transaction the buyer may work with a real estate agent and deal with the seller directly on negotiating the cost and payment structure. The buyer saves on points and closing costs and makes payments directly to the seller. Buyers with high levels of cash liquidity are typically more likely to participate in an owner financed transaction.
Negotiating an Owner Financed Purchase
An owner financed deal will likely be supported by your appointed expert real estate lawyer to ensure default protection for the owner. The deal is facilitated through a promissory note. The promissory note outlines the terms of the deal including the interest rate, repayment schedule and the consequences of default. To protect from default the owner also keeps the property title until all of the payments have been made.
FRACTIONAL OWNERSHIP - AN INNOVATIVE NEW TOOL
Fractional Ownership is NOT Timeshare in reality it is very different as the parties actually own the property collectively and you are buying an interest in the Title Deed of the property. Whereas with Timeshare you are simply purchasing the right to spend a certain amount of time in it and it is usually limited to resorts.
Buying an overseas property is a substantial investment and most people will only be able to use their property for 2-3 months of the year, for a much smaller investment you will be the part owner in a possibly more expensive and luxurious property but will not have to pay the full upkeep, taxes for a full 52 weeks.
We have many properties like these that would be ideal as an investment and for Fractional Ownership, and this also works extremely well for many types of business propositions and in fact can be adapted to suit individuals, groups or investors needs.
The procedure is similar to sole purchaser except for an additional pre-signed co-ownership agreement and only one visit to the Notary is needed to establish the company and share distribution. This legal document formalises all concerns regarding rights and responsibilities for maintenance and the agreement typically gives the other owners first refusal if one of the group wishes to sell.
As a shareholder you can sell your investment at any time and you have freehold rights so your share can be truly inherited.
CURRENCIES 4 YOU - SPECIALIST COMMERCIAL FOREIGN EXCHANGE
Currencies 4 You work closely with clients, not only to attain an unbeatable exchange rate, but to provide guidance into buying currency at the best time within your specific timescale. Minimising your exposure to the market fluctuations and maximising your currency exchange is our goal. More Info...
Mortgage Direct… Spain’s leading independent broker… Mortgage Direct have been operating in Spain since 2006. During the last 10 years they have cemented their place as the leading independent broker in Spain. They offer a premium broking service to clients of all nationalities and secure the best possible deals. More Info...