[irishhombre]

On a different thread/topic another user asked me about a property I bought in Andorra, so i thought it would be better to just start a new topic/thread.

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Andorra is really straight forward to buy in.

You see a place you like, make an offer through the agent and if accepted they will arrange all the legal work.
You are suppose to put a small holding deposit down when a price is accepted, this takes the propErty off the market.
The estate agent will introduce you to the local bank and they will take you through the mortgage application, its only about 2 pages long...so really easy. I took a mortgage out as it was a new country for me and i thought it was better to have a bank behind IT, maDe things feel safer. LTV is 60/70%.

The bank i use is Credit Andorra, in La Masanna and the apartment i bought is in Arinsal. Arinsal is cul-de-sac type of town and is a nice place to go not only in the winter for the skiing, but also in the summer.

Happy to answer more of your questions.

[soldintime]

so do you see it as a holiday rental. Andorra is quite a good place for tax exciles. My guess is there is a good rental market for people wnating to stay that way in Andorra.

[irishhombre]

the holidays rentals are not great, but the AST periods are either 6 months or 5 years.....so good long term rentals...but no profit in it.......also a new law prohibits private apartments being put on the holiday rental market...so you cant use the local agents there to rent it..unless its an aparthotel (which is what i bought).

i dont rent mine out, except to family and friends

i really see it as a pension, the mortgages are repayment type....based on a 10 year plan.

So in 10 years i will have a fully paid off property that has hopefully doubled in value by then and no tax to pay on it when i sell.

good time to buy there now....the knock on effect of the spanish market has caused a ripple....my place has not increased anything in the last year......but its a long term thing and its a great place to go for a few days....flights to toulouse or barcelona are cheap and its a scenic drive.

The info sites say it is 3/4 hours from barcelona and toulouse, 2 hours max...lots of new tunnels and motorways, i was late for a flight once and done it in an hour to barcelona and toulouse in an hour an a half....good roads ish.

This post has been edited by irishhombre: 23 August 2007 - 10:11 PM

[bendecko]

Hi Irishhombre,

Are you still spending time up there in Andorra? We spent some time up there last winter and just loved it - coming up in March looking at buying a 3 bed flat or maybe a house that need some work. Do you get a feel for the market; is it heading up still or down?

Your thoughts please!

Bendecko

[irishhombre]

bendecko, on Feb 12 2008, 09:32 PM, said:

Hi Irishhombre,

Are you still spending time up there in Andorra? We spent some time up there last winter and just loved it - coming up in March looking at buying a 3 bed flat or maybe a house that need some work. Do you get a feel for the market; is it heading up still or down?

Your thoughts please!

Bendecko

Hi Bendecko,

Not been on here for a while and just saw this old post.......how did you get on in Andorra? did you buy anything?

IH

[bendecko]

Hi IrishHombre,

We did go up then, and had a look but it really did seem overpriced. We saving pretty hard so figured we'd hang on for now. Kept monitoring the places that had already been on for a year or more and they still all for sale. Most owners there will be quite wealthy/2nd/3rd homes so I guess they don't need to sell.

Alternatively I'm looking at building our own dream pad. I've heard build costs are about 1500 euro/m2 finished off.

Andorra is a fantastic looking place and great for kids in the summer too. Are you spending much time in Arinsal?

Regards

Bendecko

[irishhombre]

HI

I was not spending as much time there as i would have liked, so i ended up renting out the apartment....for 5 years.....the rentals there are very strange...if you rent a place out it can only be for 6 months or 5 years.....no inbetweens...and if the tenant moves out early they must pay a months rent for each remaining year of the 5 year contract.

But i do miss the place and if you are buying it is really cheap....but the pound is weak also.....

Arinsal is the nicest place i think.....not as dead in the summertime.....and plenty of summer activities.

good luck and let me know how you get on out there in the future.

regards
IH

[jorpi]

Dear all
as per my opinion Andorra has now very good oportunities . The offer is so big actually and the principal reason is in the Banks side.
If you are still interested in bussines in Andorra, let me know . We life in Barcelona but spend all weekends in Andorra because is my husband country.
regards

[james7]

Have prices fallen much? Is it easy to get a mortgage?

[soldintime]

I have had a look at some online estate agents. There is a real discrepancy between for sale prices and rental prices.

I have seen the same property for sale at €650,000 and for rent at €1,100. I believe in renting overseas. I like the Andorra taxes but passive residency is hard to require.

Can I rent without a passive residency permit like a tourist would?

Is it still the situation of 6 months rent or 5 years rent?

What is expat life like?

At the moment we live in Malta and expats are more retireries not my cup of tea.

[felix]

soldintime, on Apr 24 2009, 04:48 PM, said:

I have had a look at some online estate agents. There is a real discrepancy between for sale prices and rental prices.

I have seen the same property for sale at €650,000 and for rent at €1,100. I believe in renting overseas. I like the Andorra taxes but passive residency is hard to require.

I see this all over the world for many years now. I have no idea what is in the mind of all these home owners, as to me it seems an expensive hobby.

Quote

What is expat life like?

I have been a few times in Andorra and can only say that it is literally a village. Hardly anyone lives there anyhow left alone many expats. Besides that it is rather cold there.

Quote

At the moment we live in Malta and expats are more retireries not my cup of tea.

I have not been to Malta yet. The impression I get from the internet is that it is a good place for non-EU passport holders to reside in order to get visa free access to other Schengen countries and at the same time not to be bothered by the generally high European taxes. Do you happen to know more about this?

This post has been edited by felix: 24 April 2009 - 11:33 PM