Property In Spain

[LittleSteroid]

Hi guys. I'm fed up with waiting. I know houses in UK will go down, but if it's going to happen Japanese style then thank you, but no thank you. So I'm thinking about buying flat in Spain, 2 bed not to far from the sea, max 8 miles, ideally in a seaside town. Doe's anyone have any experience in Spanish Law regarding properties etc. Also, any tips for not getting ripped off, like where to buy(ebay or something). Spanish properties crashed 50% so there must be a number of flats for less than 50K, am I right? At last: what is real renting potential on a 2 bed flat in a seaside town in Spain? I am not looking to get rich by renting overseas property but it would be good to have someone to spend some time in there during the year and drop a penny or two. Please help me guys

[winkie]

Hi guys. I'm fed up with waiting. I know houses in UK will go down, but if it's going to happen Japanese style then thank you, but no thank you. So I'm thinking about buying flat in Spain, 2 bed not to far from the sea, max 8 miles, ideally in a seaside town. Doe's anyone have any experience in Spanish Law regarding properties etc. Also, any tips for not getting ripped off, like where to buy(ebay or something). Spanish properties crashed 50% so there must be a number of flats for less than 50K, am I right? At last: what is real renting potential on a 2 bed flat in a seaside town in Spain? I am not looking to get rich by renting overseas property but it would be good to have someone to spend some time in there during the year and drop a penny or two. Please help me guys

Before you do anything, speak to a good recommended English speaking Spanish solicitor in the area you are looking at that is not connected in any way to any agent helping you to find the property.

[barrabus]

Hi guys. I'm fed up with waiting. I know houses in UK will go down, but if it's going to happen Japanese style then thank you, but no thank you. So I'm thinking about buying flat in Spain, 2 bed not to far from the sea, max 8 miles, ideally in a seaside town. Doe's anyone have any experience in Spanish Law regarding properties etc. Also, any tips for not getting ripped off, like where to buy(ebay or something). Spanish properties crashed 50% so there must be a number of flats for less than 50K, am I right? At last: what is real renting potential on a 2 bed flat in a seaside town in Spain? I am not looking to get rich by renting overseas property but it would be good to have someone to spend some time in there during the year and drop a penny or two. Please help me guys

Just sold my flat in Mallorca at a cut price ,to get ahead of the curve rental market is very iffy very poor returns buying and selling cost are very high,do not expect to make any capital gains,and watch for community fees they just go higher and higher one of the main reasons i sold up ,I still love Spain but will use a hotel or a long term rental,loads available from 400 euro a month

Edited September 4, 2010 by barrabus

[miko]

Hi guys. I'm fed up with waiting. I know houses in UK will go down, but if it's going to happen Japanese style then thank you, but no thank you. So I'm thinking about buying flat in Spain, 2 bed not to far from the sea, max 8 miles, ideally in a seaside town. Doe's anyone have any experience in Spanish Law regarding properties etc. Also, any tips for not getting ripped off, like where to buy(ebay or something). Spanish properties crashed 50% so there must be a number of flats for less than 50K, am I right? At last: what is real renting potential on a 2 bed flat in a seaside town in Spain? I am not looking to get rich by renting overseas property but it would be good to have someone to spend some time in there during the year and drop a penny or two. Please help me guys

Wait

They have dropped and dropped but will drop a lot more yet. Soon the two bed flat in Spain will be cheaper than buying a mobil home over here.

Forget about any rental money , as there are so many up for rent but if it does get rented it will be a bonus.

[campervanman]

Spend some time on expat forums covering the area you are interested in. It will give you a good insight into problems other people have run into.

[juba]

Hi guys. I'm fed up with waiting. I know houses in UK will go down, but if it's going to happen Japanese style then thank you, but no thank you. So I'm thinking about buying flat in Spain, 2 bed not to far from the sea, max 8 miles, ideally in a seaside town. Doe's anyone have any experience in Spanish Law regarding properties etc. Also, any tips for not getting ripped off, like where to buy(ebay or something). Spanish properties crashed 50% so there must be a number of flats for less than 50K, am I right? At last: what is real renting potential on a 2 bed flat in a seaside town in Spain? I am not looking to get rich by renting overseas property but it would be good to have someone to spend some time in there during the year and drop a penny or two. Please help me guys

Take a look at these 2 links,you'll find them very helpful.

Although it's for the Canary Islands,I'm sure most of it is still relative.

Spanish Property Advice

Agent Gimmicks

[nohpc]

Wait

They have dropped and dropped but will drop a lot more yet. Soon the two bed flat in Spain will be cheaper than buying a mobil home over here.

Forget about any rental money , as there are so many up for rent but if it does get rented it will be a bonus.

that kind of talk happens at market bottoms.

Why would a 2 bedroom flat be so cheap? They have to at least sell for more than the cost to build them.

Actually, people might get them that cheap but it'll be millionaires/billionaires buying up whole blocks of distressed new builds which are empty for 10% of their original asking price.

[Mugwump]

If I were you I would think very carefully indeed before buying a house or apartment in Spain. Many developments, particularly on the coast of mainland Spain, have the approval of local authorities, but are still illegal because they do not meet the requirements of regional or national authorities. Permissions to build have been granted by local politicians, or their representatives, intent on short term gain in the form of a backhander, regardless of the eventual outcome for buyers.

Be aware also that you may be liable for a tax on the property based on thedifference between the last registered resale value and what you paid. This is designed to stop the prevalent practice of payment in cash under the counter. For example, If you pick up a bargain for 150,000 Euros, and it sold previously for 250,000 Euros, then it is very probable that the local authorities will assume you are paying the 100,000 Euros difference "under the counter". They will not accept that the property has fallen in value, they will just think you are trying to avoid tax. So, you will be hit with a tax bill of about 30% on the 100,000 and a fine as well. Spain is quite corrupt. Don't do business there unless you are aware of all the pitfalls.

As another example of what can go wrong, you might be interested to know that if you buy a country property with land and the government decides to build a road through it then they can acquire your land without compensation. Worse even than that is that you may become liable for the cost of building the road through your property, in other words, they may bill you for the road.

Still want to buy in Spain? In a falling market?

[LittleSteroid]

If I were you I would think very carefully indeed before buying a house or apartment in Spain. Many developments, particularly on the coast of mainland Spain, have the approval of local authorities, but are still illegal because they do not meet the requirements of regional or national authorities. Permissions to build have been granted by local politicians, or their representatives, intent on short term gain in the form of a backhander, regardless of the eventual outcome for buyers.

Be aware also that you may be liable for a tax on the property based on thedifference between the last registered resale value and what you paid. This is designed to stop the prevalent practice of payment in cash under the counter. For example, If you pick up a bargain for 150,000 Euros, and it sold previously for 250,000 Euros, then it is very probable that the local authorities will assume you are paying the 100,000 Euros difference "under the counter". They will not accept that the property has fallen in value, they will just think you are trying to avoid tax. So, you will be hit with a tax bill of about 30% on the 100,000 and a fine as well. Spain is quite corrupt. Don't do business there unless you are aware of all the pitfalls.

As another example of what can go wrong, you might be interested to know that if you buy a country property with land and the government decides to build a road through it then they can acquire your land without compensation. Worse even than that is that you may become liable for the cost of building the road through your property, in other words, they may bill you for the road.

Still want to buy in Spain? In a falling market?

sick?

[timebandit]

Last year getting frustrated with the UK property market we decided to have three weeks in Spain.

We fell for the publicity and based ourselves near La Zenia, Cabo Roig and Villa Martin.

Found the area to be just nasty, however if you are looking for

Poor build quality, British and Irish Chavs, prostitutes, squatters, poor drainage, litter and dog mess its ideal.

[getdoon_weebobby]

Last year getting frustrated with the UK property market we decided to have three weeks in Spain.

We fell for the publicity and based ourselves near La Zenia, Cabo Roig and Villa Martin.

Found the area to be just nasty, however if you are looking for

Poor build quality, British and Irish Chavs, prostitutes, squatters, poor drainage, litter and dog mess its ideal.

my mum bought out in la zenia in 1999 , a really nice development of townhouses . then the concrete jungle built up around her. sold in about 2003 and moved inland towards aspe and la romana . take a look at the area around there , quiet , not built up and only 25 min drive from alicante airport.

[LiveAndLetBuy]

Spain is still waiting for the austerity measures to kick in. Next year they will also get rid of a mortgage repayment tax rebate, which should also help force prices down. Also the banks are still playing silly buggers: sitting on stacks of property and trying to control its supply by either not marketing it, or placing it on the market at unrealistic prices in order to make them look solvent. The Bank of Spain is threatening to crack down on this, so maybe, just maybe, there might be a flood of properties to the market next year. This, combined with the problem of being stuck with the euro, indicates that Spanish property ain't going anywhere but down for a long time. I reckon Spain will "do a Japan" and drift down for a decade or so until it becomes competitive again, but who knows.

of course if you fancy the idea of living in Spain, learning the lingo and making yourself popular with the local ladies/men then there's a lot more to the country than the ghastly med coast.

[timebandit]

my mum bought out in la zenia in 1999 , a really nice development of townhouses . then the concrete jungle built up around her. sold in about 2003 and moved inland towards aspe and la romana . take a look at the area around there , quiet , not built up and only 25 min drive from alicante airport.

Thanks we will have a look.

We are planning another trip if the UK market property fails to reach our hopes. I was surprised how much I missed the green fields.We have been doing a bit of research lately, and seem to prefer Northern Spain closer to the French or Portugal borders.

[BuyInOxford]

Why not just go out there and rent.

Ive ran an overseas agency and if it werent for the 10% commission id have recommended families to RENT instead of selling up moving the family and making returning to the same kind of lifestyle almost impossible.

Rent you will get to know the area and more importantly see if it is for you, RENT for a year or 2 then you can move about if need be, holidaying and living in the same place are 2 completely different things.

Ive been away for 10 years and it isnt really for me, many if not most think the same.

To rent is the best free advice you'll get this afternoon.

[spanman]

Why not just go out there and rent.

Ive ran an overseas agency and if it werent for the 10% commission id have recommended families to RENT instead of selling up moving the family and making returning to the same kind of lifestyle almost impossible.

Rent you will get to know the area and more importantly see if it is for you, RENT for a year or 2 then you can move about if need be, holidaying and living in the same place are 2 completely different things.

Ive been away for 10 years and it isnt really for me, many if not most think the same.

To rent is the best free advice you'll get this afternoon.

+1.

I've been renting out here for 10 years - freedom to move whenever you want - a real bonus if you get crap neighbours. Currently in a 4 bed villa with private pool and all mod cons 800 euro/month

[Tankus]

Why not just go out there and rent.

+2

[Nautorius]

Do not buy yet! I am in the area and have been waiting to buy for 2 years. I am in rented and will not buy yet. There is too much turmoil and although the worst apartments/townhouses are available for what seems a cheap price it is because they are cheap housing.

Much better to wait and get some quality housing at a better price. Rent for now,

N

[Bruce Banner]

We're in Marbella for a couple of weeks. Renting a nice little one bedroom apartment for €450 for the fortnight, not much profit for the owner there .

[Trampa501]

Some bargains starting to appear. For example this 3 bedroom flat in the south of Spain - £81,000 (= 95,000 Euros)

flat se vende

Of course the reason for the cheap price is it's 35 minutes from the coast. If you want a sea view you'll still pay a lot more. And property prices in places like Madrid and Barcelona are still very high. But in the countryside things are changing fast...

[sesim]

Some bargains starting to appear.

But in the countryside things are changing fast...

Not 'arf. Check this out - Guardian Article

"Reports on Spain's ailing housing market show sales volumes are down almost 50% since the summer and prices may suffer further falls of up to 30%"

"Discounts of 20% are way too little. Few sellers have the guts to advertise an asking price close to what they actually take, so buyers have to wade through masses of property with daft asking prices."

"..of 60,000 property sector companies, some 23,600 have gone bust, owing €137bn to banks."

Renting out there is no-brainer.. no point buying for a couple of years at least. And by then, you can save up more, and the peseta might be back and you might be getting a 30% devaluation discount on already collapsing prices.

Alimento para los osos. Nom Nom.

[sesim]

We're in Marbella for a couple of weeks. Renting a nice little one bedroom apartment for €450 for the fortnight, not much profit for the owner there .

Nice, but I raise. I rented a 2 bed flat in Pego earlier this year (between Alicante and Valencia) for 400 a month + bills, total 475 pm.

For a 3 month contract - I asked especially for a short termer, and via an agent who charged me no fees. Normally that rate would be for a year's tenancy.

The flats were on sale for 180K in 2007, and earlier this year were selling for 90-95K.

When going out there to look, get 3 month contracts for lettings to explore an area, as for durations any longer than that, the contract has to be a long term contract, which favours the tenant much more. (Or so I was told). So it's better for everyone. Then just move on if you don't like it.

[Peter Hun]

Some bargains starting to appear. For example this 3 bedroom flat in the south of Spain - £81,000 (= 95,000 Euros)

flat se vende

Of course the reason for the cheap price is it's 35 minutes from the coast. If you want a sea view you'll still pay a lot more. And property prices in places like Madrid and Barcelona are still very high. But in the countryside things are changing fast...

Hot in summer and cold in the winter, no jobs. The Spanish would not buy somewhere so far from the coast, neither should anyone else. If you are retired and living in the middle of nowhere healthcare is an issue. If you want to rent it out who is going to be interested?

At 95K I'd say its not a bargain even compared to current high prices and its only potential value is an occasional holiday home. Properties like this should go down to 40K and probably will.

"Reports on Spain's ailing housing market show sales volumes are down almost 50% since the summer and prices may suffer further falls of up to 30%"

Sales to foreign buyers are down over 90% since peak. Sales to the Spanish are down 75% in the same period. It takes an average of eight years to sell in Marbela, over five years in many other areas.

[spangles]

Sorry to butt in, but I have a question you may be able to answer. I am trying to find out if there are a lot of British people who have bought French or Spanish property, with the idea of renting it out (or part of it) to holidaymakers, and using the profits to fund lifestyle choices, but who are finding it increasingly difficult to find clients for their holiday homes - does anyone know if this a widespread problem? I am using this information for personal research only. Many thanks in advance for any views or comments.

[Nautorius]

Sorry to butt in, but I have a question you may be able to answer. I am trying to find out if there are a lot of British people who have bought French or Spanish property, with the idea of renting it out (or part of it) to holidaymakers, and using the profits to fund lifestyle choices, but who are finding it increasingly difficult to find clients for their holiday homes - does anyone know if this a widespread problem? I am using this information for personal research only. Many thanks in advance for any views or comments.

I think there are two seperate issues you are looking at. Firstly those who wanted a holiday home, bought it and now can not afford it. They are forced into trying to rent it out on a permanent basis to cover the costs of Mortgage. These people are in trouble. I know of large villas and aprtments on exclusive private developments which are being rented out for just enough to cover the management fees. Others I know have mortgage repayments of at least 3 times what rental they can achieve. If renting out through agents then the ones who grease the palms the most get theirs rented out. Long term rentals are down by over 50%, and the ones on poor quality developments are not rentable.

The second group are those that remortgaged UK property to buy, so have no direct mortgage on their spanish property but a larger UK mortgage. These may be trying to do Holiday lets. Holiday lets are holding there value better in good areas (about 25-30% off) and if people are willing to rent out in peak season they can get income.

So the answer is yes, full time rentals are difficult, as are rentals in anything other than the best areas. In 2008 it was about £750 a week for a nice 2 bed apartment in Duquesa on the CDS. Now it is about £350 a week. However if you are still wailling to pay about £700 you can get a top quality Marina apartment in the wealthier area of Sotogrande. Which means that people rarely take the Duquesa option unless they like the area.

Cheers

N.

[getdoon_weebobby]

hows the spanish market now?