Being skittish about buying real estate in today’s market is understandable. Anytime you are investing a lot of money, it is prudent to take some time to mull it over. Some might say it is extremely important to be cautious in this time of uncertainty. Yet, think about it. When has it ever NOT been a time of uncertainty? Certainty of the future is fleeting. I can’t recall any time in my life, which spans over half a century, when any economic period has ever been certain, but through it all, real estate has always continued to rise in value. It just rises faster during some economic periods than in others. Wealthy people know this. It is documented that most multi-millionaires derived a goodly portion, if not all, of their wealth through investing in real estate. It is the foundation of any capitalistic society.

But the reality is; ‘certainty’ is a myth. Once you get that desire or feeling of need for ‘certainty’ out of your brain, you can start enjoying your life. This doesn’t mean you shouldn’t be thoughtful about buying a home or condo. However, when making a decision about purchasing real estate, one must look at the long term and not the short term speed bumps in the market. In the end, unless you purchase property next to Cherinoble, your property should increase in value.

The first thing you should consider, and this is not difficult to do, is to determine if you are purchasing real estate as a speculator or a person interested in owning a retirement residence. Let’s look at both of them, because they require a different line of thinking.

The Speculator:

Speculators are interested in one thing: buying property at a lower price than what they sell it for. They generally put the property back on the market shortly after buying it in hopes of selling it at a higher price so they make a short term profit. They generally have no intention of living in the property and have no emotional ties to it. They thrive on escalating markets and have no loyalty to the market they are in. Once it begins to implode, they move on to another area with no care in the world about what economic debris they have left behind. They are a legal thief. They have no true friends, no roots on this planet, and their mother doesn’t even like them. They are the piranha of the capitalistic system and do nothing positive for the overall economy. Their gains are short term and risky. Some are savvy or just plain lucky, but many of them end up becoming penniless refuse of the system once it crashes in on them because, like any gambler, they don’t know when to quit.

The Retirement Home Purchaser:

These people have decided to retire and live out their golden years in Thailand because they like the climate, the companionship possibilities, their new, diverse friends and the relaxed lifestyle. They have emotional ties to the property they purchase and help create a stable economy. Unfortunately, some retirees currently fear the local real estate market is slow and are concerned about how it will affect their investment in a retirement home.

But consider this: If you are a retirement home purchaser, why would you care about what the market does, short term or long term? It is your retirement home. If you plan on living out the remainder of your life in Pattaya - Jomtien, it is very important for you to redirect your thinking and realize you are past the time of needing to consider your home or condo a financial investment. Now is the time in your life to invest in a lifestyle which allows you to enjoy your retirement

If you like Pattaya - Jomtien, its nightlife, the golf courses and other diverse activities, the quality of healthcare available plus you have found the condo or home you wish to purchase, why worry about the future of the real estate market? Why look at your home or condo as an investment? Who is going to benefit from it as an investment anyway, your heirs, your family, your wife or your girlfriend? Isn’t it time you started enjoying living the retirement you have always desired? Even if the market goes down, who cares if your condo is worth a bit less than you paid for it once you pass away as long as YOU enjoyed it? Now is YOUR time to reap the benefits of a comfortable retirement which you have labored all your working years to acquire.

Financial experts will tell you; the home you live in should never be viewed in your portfolio as a financial investment like stocks, bonds and other pure investments even though it generally appreciates in value and may have tax benefits. The reason, they say, is because it is rare that anyone sells their home so they can spend the money or reinvest their profit in another type investment like they would do when selling stocks, bonds or other pure investments. The thought process is not the same. Although you may reinvest money derived from the sale of your home or condo in another property offering a better rate of appreciation, you will rarely, if ever, sell or trade off your home, invest the money elsewhere, and then rent a place to live. Certainly you wouldn’t do this in your retirement years anyway.

Regardless of whether you agree with the experts or not, the truth of the matter is; Pattaya-Jomtien area property will be worth more five, ten, fifteen years and beyond. Although some real estate markets spike up temporarily, as has happened locally, real estate is generally a long term, slow growth investment. Most of us expats will not be around to worry about how good the market is ten, twenty or thirty years from now. What is important is our quality of our lives today and for the remainder of our years.

Therefore, if you find Thailand, and more specifically the Pattaya - Jomtien area, to your liking and wish to retire here, why not purchase a home or condo that will allow you that peace of mind only found when you live in your own place. Granted, Thai real estate law doesn’t allow you to outright purchase real estate in fee simple or freehold, but there are legal ways to obtain the quiet enjoyment of your own property.

See a Thai lawyer that specializes in real estate law and get the facts on 30 year leases and other legal options that allow you to control your property rather than rent. Once you have selected the method of ownership that suits you, you will find a fine selection of quality properties for sale in all price ranges. I am confident you will find a home or condo that will satisfy your vision of the perfect retirement.

For honest and reliable information about Pattaya property contact Pattaya Beach Property

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Murcia is one of the most up-and-coming areas in Spain and amongst the top-performing regions for property growth. Healthy inward investment and expanding infrastructure, including the new Corvera Airport, which opens in 2009, makes Murcia an excellent place for investors, and house prices are still more affordable than in the UK.

Lush golf courses, exquisite landscaping and properties of all kinds are yours to be enjoyed, but before you even think of buying in Murcia, be aware of the legal and financial nuts and bolts that tie the whole process together, both before and after you buy.

Find good advisers

1. Estate agents in Spain can be a good source of advice, but make sure they’re officially registered and hold a licence.

2. A good Spanish lawyer is essential and will not only handle the conveyancing process, but can keep you informed about the various rules and regulations, taxes and costs, and can also help you make a Spanish will – something that is prudent for owners of Spanish property.

3. UK agents for Murcia property developers are also good sources of information, and you have the added benefit of being able to speak to someone from the UK who knows the Murcia region inside out.

Take account of tax

It’s a good idea to open a bank account in Murcia if you’re buying property. It’s also a very good idea to find a fiscal representative who can help you negotiate and pay the various taxes due once you own a property in Murcia. These include:

1. IBI (Impuesto sobre Bienes Inmuebles) – a local property tax paid annually and based on the rateable value of the property.

2. Income tax (Impuesto sobre la Renta) – an annual tax whereby 2% of your property’s ratable value is subject to 25% tax.

3. Wealth tax (Impuesto sobre el Patrimonio) – a sliding-scale tax based on the property’s value.

4. Capital Gains Tax – 35% of your capital gain (less allowances) when you sell the property.

There may also be other regional or local taxes to consider and so it’s essential to do your homework.

Pay attention to the detail

1. Mortgages are pretty straightforward in Spain. When asked for your ID, make sure you have original documents available.

2. Before you sign on the dotted line to take ownership of a property, double-check that there are no debts outstanding on the property, otherwise you could be liable for them!

3. Use a Spanish ‘gestor’ to do all the legal form-filling and to help you negotiate all the permits, licences and other bureaucratic processes that kick in if you plan to live in Spain.

4. Take note of other household bills, too, such as community fees, rubbish collections, water rates and utilities.

Once you’re fully prepared, buying a property in Murcia should be a smooth, stress-free – and enjoyable – process. Existing investors have seen substantial gains on their investments over the years, and with Murcia’s unique growth patterns within the Spanish market, you can expect to see positive growth in years to come, too!

Laura Cheshire is a frequent visitor to Murcia, Spain in her role as an overseas property consultant. She would never advise her clients to buy in an area she hasn’t experienced herself. She believes before investing in overseas property you should have a good understanding of the region, its people, their traditions and especially its food and drink. For more information about this fascinating region of Spain and how you could live the dream of owning a house there, please visit her website specialising in Murcia property.

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