Top tips for finding the perfect property in Mallorca
We’ve put together a quick guide with top tips for finding the perfect property in Majorca. Please note that this article isn’t intended as legal or financial advice.
Decide when to buy: how has the pandemic affected property in Spain?
The COVID-19 pandemic has undoubtedly had an impact on the property market in Spain. But, BBVA reportedly predicted that the industry won’t take the same severe hit that it did in the 2008 recession.
Current research also shows sales haven’t been affected as much as you might think. According to the Spanish Notary Council, sales were down overall in Q1 and Q2 but, by Q3, sales in many areas of the country had begun to recoup.
Mallorca still has a little way to go in terms of sales recovery. But, as a popular destination, Mallorca’s house prices grew by 31% over the last five years showing its potential once the current crisis settles.
The Spanish Notary Council’s latest report also shows a year-on-year, per-metre-squared price decrease of 5.7% across Spain for the month of November. Although prices have fluctuated recently, for the savvy investor, it might be good news. For more information on the current market in Majorca specifically, have a look at our finance news.
Define your budget
Defining a budget from the get-go helps buyers to focus their search. It’s a good idea to decide exactly how much wiggle room your budget has for the right property too, to avoid disappointment.
It’s important to include taxes and fees within this budget. Some experts suggest budgeting for 10 to 15% on top of the house price to cover things like transfer tax or VAT, stamp duty, notary fees, and legal fees. To find out more about the types of taxes and fees you might incur, have a look at our guide.
Research where you want to be
Buyers in Mallorca are spoilt for choice. With gorgeous coastline, a bustling capital, pretty villages, lively ports, and vast mountain countryside, deciding where to focus your search is tough.
To help, we’ve created a comprehensive area guide to Mallorca, with details about local attractions and what to expect from daily life.
Think carefully about what your property will be used for
Are you looking for a family home, a holiday hideaway, or a rental investment property? When buying abroad, different considerations need to be taken into account. For example, in Mallorca, the largest gardens are usually attached to fincas in the beautiful countryside, which might be perfect for a family home but less accessible for a holiday retreat.
Likewise, tourism is a booming industry in Mallorca and rental investment properties are a popular choice. But, short-term tourist lets are only permitted with a license. This license isn’t granted to all properties, which means you may need to narrow your focus. For more information about buying rent investment properties, have a look at our guide.
Choose what type of property you want
First, are you looking for a villa, townhouse, penthouse/apartment, or finca (country house)? If you’re not sure, why not browse a selection and see what catches your eye? You might be surprised by what different types of properties have to offer.
Do you want a modern, chic property or a traditional Mallorcan feel? In Mallorca, you can even find the best of both worlds with newly renovated traditional Mallorcan townhouses, villas, and fincas. Once you’ve decided this, you might need to consider how much work you want to do. You can find everything from stunning empty front-line plots, to exciting renovation opportunities, to move-in perfect properties.
If you start to feel overwhelmed, it can help to make a list of ‘must-haves’. For instance, maybe the view is more important than the style, or perhaps finding the perfect internal décor and ambience are top of your list.
Visit properties the right way – in person or online
Arranging property viewings is exciting and full of potential. But, it’s easy to get overwhelmed by choice or stuck on minute details in an otherwise perfect property. The best estate agents can present a selection of properties that fulfil your criteria, so you can concentrate on visiting and choosing a home or investment opportunity that you love.
Your estate agent can answer any questions you may have, settle concerns, and advise on the local area. If you can’t visit in person, they should be able to arrange a virtual viewing from the comfort of your own home.
Explore property management options
When viewing properties, take a moment to consider how much upkeep they might need. Do they have a vast garden? Has the property had recent renovations? Will you be in your property all year round?
If you plan on being away from your property for long periods, you might need property maintenance or management assistance. At Balearic Properties, we offer a range of packages to suit various needs, including our Gold Package of full property management services, which includes check-in and 24/7 assistance.
Consider professional advice
Finding a good, independent lawyer is extremely helpful. It’s better not to leave this until the last minute, as lawyers play an important part in the house buying process in Mallorca. Some buyers also liaise with local accountants throughout the transaction.
In order to buy a property in Mallorca, you also have to obtain an NIE number (foreign ID number). For this, you will need to present specific documents which vary depending on your country of origin and residency status. See our NIE guide for more details.
At Balearic Properties, we have over 20 years’ experience in the Mallorcan property market. As the exclusive associate of Savills on the island, we have an eclectic portfolio of stunning properties. If you know what you’re looking for or you’d like to talk about your options, please get in touch.