Are Cheap Homes for Real?
If you had asked me ten years ago if I ever planned to own a home in Spain (much less two homes), I would have looked at you like you were crazy. It wasn’t until I was on a solo trip, exploring Europe, that I decided to Google the cost of homes in the tiny town of Artena, Italy, where I was staying in an Airbnb. I was shocked. I saw homes listed for as little as thirty thousand dollars. I was a fairly new homeowner in Florida, but let’s be real … the bank owned the home and I’d be paying it off for nearly 30 years. To own a home for less than $50,000 … was that possible? To own a home for less than $50,000 in a beautiful part of the world … was that possible? I just couldn’t believe it. I thought I had found a diamond in the rough. I thought that Artena, Italy was the only place where this could be found.
Then about two days later, a lightbulb went off in my brain. What if Artena, Italy, isn’t the only beautiful place with cheap houses? From there, I couldn’t stop looking at properties. I began to find affordable houses in France, Greece, Italy, Portugal, and Spain. I also looked at homes in Colombia, Mexico, and other countries throughout south and central America. How had I lived nearly forty years of my life and never known this? Why did no one else know about this.
A photo I took of Artena, Italy
Can a Girl Dream?
From there I began dreaming about what it would be like to own properties around the world. And for anyone who doesn’t know me well, I am not a wealthy person just walking around with money to spend. In order to buy my house in Florida, just one year before, I spent some time living in very close quarters with friends who gave me a place to stay so that my rent would be cheap, and I could afford to save for a down payment.
And although I’ve never had a high paying job, I’m scrappy, and I’m willing to sacrifice in order to pursue something that I want to make a reality. If I’m being honest, I am in constant need of a new challenge. It’s just the way I’m wired. I don’t like to be bored.
However, after returning to the US and dating someone for a few months, I once again found myself bored. I was in Colorado for staff meetings at my job, when a coworker asked me, “so, what are you doing next?” I began to tell her about my desire to buy a home overseas. In reality, I didn’t think I was anywhere near this step, but as with most things on my mind, I couldn’t stop talking about it. I pulled out my phone and Googled, cheap houses in Spain.
From Dream to Reality
I clicked on one of the first links in the search results, and the very first house to show up was one that blew my mind. I couldn’t even believe it as I was showing it to her. I was like, they aren’t usually this cheap and this nice at the same time.
I couldn’t stop looking at that house. While I was chatting with her, we climbed into the back of my boss’s pickup truck, and I just kept flipping through the photos. I’m pretty sure I sent it to my dad to look at, and for the next twenty-four hours, just kept going back to that link to look at that house.
I was wondering where in Spain this house was located. When I looked on Google Maps, I couldn’t believe that it was just a ten minute drive from the town where I stayed for two weeks, about six months prior. I already knew the area. How was this possible?
My House Day One
How I Got Money for the House
Before I even reached out about the house, I wondered where in the world I was going to get $25,000, which at the time was the equivalent of €20,000. I decided to call my bank, USAA, to see if I could be approved for a personal loan. Within a phone call, I had been approved for a $25,000, five year loan with my bank. This would cost me around $500 per month, if I made the minimum payment.
Now, I’m not recommending that everyone take out personal loans to purchase homes. A personal loan has much higher interest than a loan with collateral. But this was just my way of getting creative.
Understanding More About the Price
I decided to email the agent, and was lucky enough that he was from the UK and was fluent in English. He called me not long after. I told him that I was interested in the house that was listed for €20,000. He explained that the house was on a “colorful” street, and that it wasn’t the most desirable location. After hearing that, I asked if it was safe, and he assured me it was. But he continued suggesting that he could send me some other properties to look at.
I said, well, I have €20,000.
He responded, then this is the house for you!
Real Estate Agent and Attorney
I told him that I wanted to make a full price offer on the house, and asked if he could also represent me in the purchase, since there was no conflict of interest in negotiating the price. I could tell from speaking with him that he was a trustworthy person. And honestly, what else was I going to do? I had never done anything like this before and I knew exactly one other person in Spain, who was not from Spain and had never purchased a house.
The real estate agent connected me with an attorney. This turned out to be brilliant. You may have heard me say this before, but my attorney did everything for me. I sent over a photo of my passport and some other basic information. I then made plans to head to Spain a month later and I made a $2,000 deposit on the house.
The real estate agent and attorney told me to plan to visit the house, and after that, to plan on 30 days for the closing process to be complete. And that is exactly how it went. I booked a cheap Airbnb in an apartment on the beach. I only paid $562.74 for a three bedroom apartment for an entire month.
My attorney took care of everything for me, from getting my NIE (tax identification number), helping me set up my bank account, arranging for my utility bills to be auto-debited from my account, and more. I didn’t have to do anything except show up at the bank one day, and show up for the signing of the house.
Signing the Deeds
Closing Thoughts
Everyone will have a slightly different story when buying a home overseas. For me, the takeaway is that you might not know everything when you start, but that doesn’t mean you can’t start. I learned a lot along the way, and there is nothing wrong with that.
I hope this has helped you to understand just how simple it can be to buy a home in Spain, and that it inspires you to take your first steps. I can’t wait to see where your dreams will take you!
If you need one-on-one coaching for buying a house in Spain, visit https://www.traveltomoney.com/coaching
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