European Stars And Stripes (Newspaper) - May 27, 1986, Darmstadt, Hesse                                Of came with the lieu for a Mare a pensive modal Market John s interest in becoming a Homeowner was based on lha German tax break it would give him. Though he has his own business and comes under German tax Laws he believes that americans who work Tor the . Government and pay american taxes also can Benefit. I military on a fixed housing allowance can use their rental income to pay a mortgage and the interest rates Are very Low  Home buying in Spain lots of hitches by Lee Walton in sunny Spain you can have keys in hand fora new Home with a Down payment As Low As $700.if this makes it sound As if becoming   a snap Hank again. Such Low Down payments generally apply Only to government controlled units although in Spain about 75 percent of the housing is government controlled. There s a hitch a Bank won t give you a loan tar this Type of housing i payment can 1 be ensured thai Means you have to have enough collateral to completely cover what you borrow. Ii that s impossible he Only Chance in to find a cosigner who will assume responsibility it you should default. That of course is not easy. In any Case the Standard interest on a loan for such housing is 11 percent Over 15 years with the first two or three years usually taking care of the interest charges. Altogether buying in Spain in t simple but it does t discourage some 10 percent of american military and civilians stationed in the country who buy Homes. Prices on housing not under government control generally Are higher As Are the taxes. It s important to be sure All past taxes have been paid if they Haven i you could wind up getting the Bill. Ii is very common for ownership to change hands several times while a no government controlled horns or apartment in in the construction or even blueprint stage. It is important to investigate the construction company you will be dealing with and ils reputation before signing any papers. In several cases prospective buyers have made Down payments Only to find that the company closed after a Lew sales. These buyers lost their Money and or their Homes. Watch out too for shabby construction. Sometimes construction companies attempt to keep costs Down and make a bigger profit by substituting inferior construction materials in place of what originally had been promised. When signing the Purchase agreement also a certain that it stipulates that the agreed upon Price will be respected. In some cases companies Hove used rising costs of labor and raw materials As an excuse to ask buyers for additional Money Belore. They will Complete construction. To Cul Down on the profits the constructors add to the Price some people Are entering into cooperatives with positive results. A Lew words of caution though remember that. Everyone involved Musl agree on the materials to be used and the Cost. Be sure there is in expert available Lor consultation. Due to Lack of experience some cooperatives set the construction costs Loo Low. Then As the Cost goes up members of the cooperative become disenchanted and Start backing out and the cooperative is dissolved. The result you lose the Money initially put Down. Before signing any Purchase agreement for a unit in e mull dwelling be sure. It contains the following the Date place and time of Sale the signature of the construction company notary and name of the buyer plus a detailed outline of the payment plan. Then you should have a Complete description of what you Ere buying the Type of unit. Its size in Square meters whether or not an elevator will be included the number and Square meters of any designated parking spot the same for any storage room. You also should pin Down just where your unit or apartment will be located the floor and door number names of adjacent streets the butt address. Home buyers in Spain Are assessed a six percent tax on the Purchase Price which must be paid one month from the Purchase Date. There also is Purchase agreement preparation fee which normally runs about $1,000. In conclusion when buying in Spain know who you Are dealing with and make use of Legal help. Visit your local jag office and have them look Over the contract. To ensure that the Purchase agreement is Tjarand Correct. Ask questions about any item you do not understand. If possible buy e Home that is already standing then investigate to be absolutely certain you will be getting what you Are paying for. Generally expect to pay approximately $450 per Square meter,.or about $40,000 to $45.000 for a three bedroom House. Led Walldon is Houlf Refl referral manivfir1 Al Faragoja a in Italy it s a no Rule Market by Anna Maria Espostto stall writer a americans who come to live in Italy often say i like the food i like the people i like he Laid Back at etude of the neapolitan think i la buy a House and retire  those americans May shed some of their enthusiasm however when they learn How expensive and troublesome it is to buy or have a House built in Italy.  houses and apartments Cost More than they do in the u. S. If they Are cheaper it is Only because they were probably built without a permit or bought illegally in Southern Lily entire towns have been built illegally. In callous buyers May be heavily fined if they Ere not careful from who they Are buying or what they Are buying americans also Musl prove that the Money used to buy or build a House was earned in the United Stales. A Navy chief Pelty officer who wished to remain unidentified said Lam married to an italian and i bought an apartment in a suburb Oine Ples and did t have any problems. But i am having a hard time with the company i contracted to build a House Lor us. In the states companies Tell you exactly How. Much your House is going to Cost and How Long the work will Lake to Complete. In Italy the final Cost May be twice the amount of the estimate. Beside thai work is never completed on  the Navy Legal service office at naval support activity Naples has italian lawyers available for counselling in problems that occur in buying. They Point out that each Sale is unique end there Are no general rules 10 follow. Another big advantage he has Lound in owning German real estate is the Small property tax involved. In America the property tax finances schools Etc. Here Tea Mehrer Steuer c added value sales tax takes care of that. Supporting local Community projects does t Al fall upon the properly owners  there Are other expenses however that can come As a Surprise. For example they thought they had agreed upon a Price. Then the owner upped it by telling us that we would have to pay an extra 8,000 Marks about $3,600 at 2,20 Marks to the Dollar Lor the Utility connections to he  then after they had been in the House Only two weeks they received a Bill Lor 30,000 Marks about $9,000 Lor the paving of the Street in front of the House. We had known that would come House owners in new communities Are liable for such costs but we had hoped the Bill would not arrive Lor a couple of years thesta Sand stripes Page 16