Can anybody share any personal experience regarding buying property in spain for investment purposes mainly, has it worked out for you , should you have bought elsewhere and would you do it again

At the moment, buy because you want to live there, not because you want to invest. The whole of Southern Spanish Coast has already been ruined by us, and the Dutch, and the Germans, and the Spanish themselves.

A Spanish Costa house price crash is already underway. Put your money on the horses instead!

VP

Do yourself a favour and don't bother. Go and live there but for investment purposes the market is saturated. This advice comes from a bull !

I personally own a run down townhouse in Spain, the coast (costa del sol) is saturated with property and the market is dead!!.
They are still building like crazy and the amount of properties available is vast, to buy or rent, very overpriced to buy although you can rent a nice place for approx 500 Euros pcm.

This sentence is a contradiction in terms! If you want an investment then don't buy in Spain.

I'm, catching a flight out there this afternoon to see the In-laws who have moved out there on masse. Even considered buying myself a town house in a traditional spanish (not Brit costa) village last year.

Despite it being considerably cheaper than here, comparitavely it's worse. Not only have the Spanish had a boom in these Phil&Kirsty 'esq shows they've also had daft Brits buying in their droves.

I would say if you expect the UK market to dip 10% expect Spain to dip 30%

I predict there will be dozens of Brit Eldorado ghost 'villages' with tumble weeds blowing through in 2010.

There's a thread on Spain in the overseas part of this forum, with interesting views

My brother-in -law bought a property in Torrevieja, from new about 15 years `ago I think. He's been trying to sell it for about 15 months now, and has reduced the price gradually in that time.

The problem he has is that he's competing with all of the marketing power of the new-build developers - no-one seems interested in second hand places. He's despairing about ever being able to sell it, and it's become a bit of a mill stone.

Also, last August I spoke at length to an agent who was helping me to buy a property in Turkey. He had also had some involvement in the Spanish market, and knew a number of other agents involved there too. I a nutshell, he thought the Spanish market was in serious trouble, due to over development. He thought it was all heading for a disaster.

Take all this however you wish. I have no axe to grind at all, although I do feel a little sorry for my brother-in-law!

See the thread below:

http://www.housepricecrash.co.uk/forum/ind...?showtopic=3645

The thread will inform you about the 'Land Grab Laws' (LRAU and its replacement LUV). There are links that will lead you to more detailed information.
To buy property in Spain is very high risk, whether for investment or to live in, because of the land grab laws and because of the risk of a very severe property price crash.

Yes, I would have thought many people would be fearful of buying in Spain now because of both the enormous bubble and also the land grab laws.

Yes agree 100% - the resales and off-plan markets both saturated. I have been trying to sell an apartment on Costa Del Sol for nearly 5 months and even thought I've dropped the price by 20% now, there are just no buyers around.

I know of a chap who has been buying off - plan and selling for healthy profits in Turkey. I beleive he's done it 3 times in the last 12 months.
For pure investment always consider European Cities as you are likely to get much better rent as its year - round as opposed to just holiday seasons.

I was really looking for a holiday home rather than a get-rich-quick scheme! I didn't buy in the end - I reckoned it was cheaper and easier to rent one of the thousands of holiday homes that are always up for rent in Turkey - another area of over-development, IMO

Sky News is reporting a big demo in Valencia today by ex-pats who have had their homes posessed under the land grab laws.

One of their journos must have lost his nest-egg!

yes, the prices may be lower in Spain than most of England but the HP to local income ratio is higher than here......
It must also be stressed that the rate of building is far greater than here.......
Spain's population is only two thirds of ours.....but last year they completed 4 times as many (half a million) new homes............

As was mentioned above, the best way to start in Spain at the moment is to rent long term. Rents in the non-obvious tourist places are a two thirds and even half the cost of the same in the UK.

But beware, many Spaniards in out-of-the-way places are beginning to be a bit anti people who pour in and snap up property, not so much the rental crowd but definitely the buying crowd. Of course the average Spanish person won't know at first which category you are in. They don't take to kindly to tasteless Brits wandering around in soccer support gear with lagers at the ready either. Spain outside the tourist traps is still, thankfully, a civilised and traditional place where they take a dim view of loud mouth Brits.

VP

hehe it's en masse. lol sorry found that funny.

Yea dont buy in Spain it's crap. The only people who will buy your overpriced crib are other stupid Brits - locals will not.

The Spanish has a fairly developed anti-speculation movement. Last year in Madrid they had 20k people on the streets protesting against goverment failiure to curb speculation and build more affordable homes. Spanish people are very confused about how to handle their lives - the stay-at-home-and-save-for-flat-which-costs-about-the-same-as-acouple-of-family-cars life process has been snatched away in the space of a few years. A typical boxy Madrid flat may cost E200k - we're talking multiple 15 times the typical wage. It's the UK situation on steriods.

http://www.viviendadigna.tk/

Would these villages be called Heldorado or Chavdorado

Dear Alfie, I believe that your comment regarding thr LRAU of Valencia is wrong. This is a problem which exclusively affects Valencia and not other parts of Spain.

I agree that buying property in Spain is a risk now because there's a general downslide in prices, same as everywhere else, but that's all. The Land Grab Laws are restricted only to the Community of Valencia.

It's not the right time to buy in Spain now. You should have bought here between 1996-2002. People who bought then have doubled their investment. Prices have soared over 20% per year on the coasts.

Bear in mind that us Spaniards dislike renting properties. We all want to have our own houses, so this contributes to the high demand.

However, I believe there's a huge oversupply at present on the coasts developments, and prices are bound to fall within the next three years or so. We've seen it many times over, it's always the same construction cycle. 4 good years followed by 4 bad ones. There'll be quite afew bank repossessions here, just like in the UK. The Spanish market mirrors the UK's because we are heavily dependant on our UK customers to buy us properties.

So If you have any money now saved up, just keep it stashed in your bank, and wait to catch the next train in 3 or 4 years time. Don't buy now.

See my reply on the 'Don't Buy Property in Spain'.

We may have to agree to disagree.

We do at least agree that it is not a good idea to buy property in Spain.

I agree that at present I wouldn't recommend any prospective buyer to acquire a property not only in Spain, even in the UK is not a good idea right now, it's not the right time and they would lose the money for sure.

Wait three or four years until prices have come down, then purchase.

I have just returned from LaManga - very nice for golf- but what amazes me is that no one seems to check with a currency broker for transfers either way -
they just trust the banks and they are so expensive-
I find Helen at www.4xcurrency.com very helpful - free bank to bank transfer and very good rates- info@4xcurrency.com tell her Dave sent you Cheers

Spain, Costa del Sol : Save your cash from the crash !

Over the last months I've noticed many cars in the street have been put up for sale. First warning sign that people are running short of cash.

This weekend I've seen for the first time in the last 8 years a reduction in prices listed in two real estate agencies, one in Puerto Banus and one in Marbella city centre.

I've seen a couple of red stickers with the logo "new price" sticked right beside the prior price. In some cases I've seen properties in the range of the 400k euros go down 50.000 euros (more or less 33.500 pounds). That's more than 12 % fall !!!

As I've posted before, If you have cash, just keep it tucked in your bank for the meanwhile (ie three ot four years to come). it isn't the right time to buy property in Spain or anywhere else for that matter.

At least one real estate company is closing on the Costa del Sol per week.

(EDIT 4th april. Well, that real estate which had the red stickers in Puerto Banus, Oysten Steel, is now closed)
(EDIT 18th april Mooring Properties in Puerto Banus has also closed down).

drakan

i would like to buy something in spain NOT on the coast and in a small traditional village that is quiet cadiz province . I do not want to be aorund any europeans and am happy to be just around spainiards. BUT i am concerned because you keep telling us that it is not a good time to buy. I was thinking of looking this summer but you seem to think that now is not a good time. what would you advise?? can i find something and if so .....what should i do aobut a good honest lawyer??

monical.....

Hi Monicals. Yes, I uphold it's not the right time to buy. Prices on new promotions have gone down 7,4% (report of consulting Aguirre Newman) on average on the coast. Anyways, the prices in Cádiz are still reasonable in comparison to what has happened on the Costa. If you have some time to spare, just wait for one to three years, you'll be able to buy a house at leat 20% cheaper if not more. Spaniards are going to be hit very hard in this upcoming recession. And the fisrt thing they do is sell there second houses used for holidays. So you'll have plenty of nice quite houses in the Cádiz area within the next two to three years.

If you buy in a small typical Spanish village inland then you may aswell buy now, because prices there aren't as high and it's fairly cheap in comparison with costa estates.

I was in Cadiz two weeks ago. Beautiful. If you are looking for a nice place I'd recommend Sancti Petri. It's not exactly a typical Spanish town but there are hardly any foreigners at all, only very few Germans, no British. It has huge potential in the next twenty years. Life is peaceful and there is even a golf course which is surprising because they are all Spaniards. It is surrounded by amazing natural beauty. Very unspoilt. The trouble is that that area is somewhat windy in the beach, great for surfing.

As for recommending a lawyer, I'm afraid I'm biassed beacuse i'm one myself. I'd recommend you to ask at the Bar Association of Cádiz for a good english-speaking one. He shouldn't charge you more than 1% fee of the purchase in Cádiz. On the costa del sol they charge 1-1.5%.

This is the info you'll need to contact the Bar Association of Cádiz:

C/ Tamarindos 17 y 19
Telfs.: (00 34) 956 28 76 11 y (00 34) 956 28 79 05 Fax.: (00 34) 956 28 70 22
11007 Cádiz

I hope this helps.

A friend of mine is buying off-plan in Almeria. What is happening to prices there, falling or rising?

Drakan - Are you referring to the partly deserted fishing village of Sancti Petri to the south west of Chiclana de la Frontera or Novo Sancti Petri to the south east?
I assume that as you mentioned the golf course, you are referring to Novo Sancti Petri as the course there was designed by none other than Seve Ballesteros.

I stayed in an hotel in Novo Sancti Petri last year as I was on a fact finding/house hunting mission. I went to the old fishing village, where incidentally people still run fishing boats from, and yes it was very peaceful indeed. I walked through the derelict village and saw the what was left of the old school, the church and the small hospital. As you say Sancti Petri is very peaceful - unless the armed forces are doing target practice

I made contact with an estate agency in Chiclana and went to view four houses.
Three of those were new build and one wasn't.
I'm sure that you have heard of the expression, "Not enough room to swing a cat?"
When I entered the three new builds, I left the cat at the entrance door
I won't even describe the last one other than to say, that the owners had found a very unique way of "beautifying" the lid of the septic tank.

I would be interested to hear which part of that area you are referring to.

My regards

Hi David,

Novo Sancti Petri. It's rather peaceful, full of Spaniards and some Germans, but no British (this is what Monica sought). Albeit it's in the coast, not inland, and it's not a typical spanish village at all.

As you point out correctly, sancti petri is a beautiful derelict village which belongs to the navy and to the local town hall. theres an ongoing conflict between them to see who benefits from the juicy plusvalías once building starts. The view to the castle in the sea atop an island remembered me strongly of Mont Saint-Mitchelle, in Normandy, obviously not as spectacular or well kept, but still quite appealing.

That area is a goldmine for a property developer who manages to get both administrations in agreement. however it totally lacks the infrestructure of the Costa del sol area. So it's only suitable for those who seek a quite life -almost- in the countryside. the nearest airport is either in Jérez or in Gibraltar.

Surprisingly, it has come unnoticed to the mainstream of foreign tourism, safe the odd german. It still holds a naive encahantment to it not tarnished by mass tourism. However, it's rather too peaceful for my liking.

Regards,
Drakan

Stay away.


This place is going to crash big time. I only hope it happens sooner rather than later, because most people here believe in a "soft landing" and that does nothing but worsening it all.

There may still be reasonably priced property down south in Almería but when the crash comes, it's price will be dragged down together so... don't buy now!

I agree with the poster who said the situation here is like the UK on steroids... HP to income ratios are A LOT worse here at the moment. It makes you think the housing market in the UK looks good!

I`ve been living in Cadiz province for the last five years (renting) and have watched the property market with some interest. The prices have rocketed in this area and are now almost totally unaffordable only held up by 40+ year mortgages and interest rates from 2.8%.
The amount of new developments in the area has to be seen to be believed and the infrastructure is being put in place to handle a large influx of overseas buyers(Costa de la Luz being advertised quite heavily in UK at the moment I believe).
Novo Sancti Petri is expanding rapidly towards Conil with more hotels and the typical El Dorado estates that the locals think foreigners want - small, crowded and ridiculously overpriced, but stick in a golf course or two and they will buy in droves ( I wouldn`t touch it with someone else`s pole). With the various economies in europe set for a difficult (under statement) period I very much doubt that demand will keep up with supply with the inevitable consequence of a sharp correction of prices.
I personally think that anyone considering purchase in Spain should hold off for a year or two to see how things turn out, prices can`t rise much, (if any), more and there is a significant probability of a full scale crash

As I've always posted, it's not the right moment to buy in Spain because of the looming real estate crash. Wait in three or four years time. The last crisis lasted almost nine years (1989-1997), so the low point (in prices) of this one won't be reached until three or four years time. Normally the crash is proportional to the boom. The boom has lasted from 1997-2004, eight years. So expect a crisis which lasts as long. Plus this one-time 40 year low-interest rate scenario will hardly repeat itself with soaring oil prices, large scale donwnsizing and surging inflation (due to increased oil prices), people in debt up to their eye-balls. All this stages the perfect melting pot for some big-time crisis.

My previous post was intended for Monica and in reply of David's. Despite my warnings to Monica that it just wasn't the right time to buy a property in Spain, or anywehere else incidentally, she seeked advice so as to find a suitable location in the Cadiz area.

I keep warning everyone to stay away.

Check out the following link for some interesting articles about the Spanish property market.
http://www.spanishpropertyinsight.com
Trouble is that us Brits always think of property as being an investment. I live in Belgium where property is just somewhere to live. In Europe, real estate is an easy target for taxes from purchase to sale, actually living in it and last but not least, crippling inheritance tax with little or no threshold combined with obligatory heirs. The indiginous population therefore look for other, more sensible, (read invisible), investments. I believe that Spain is no different.
I own a small holiday home near Torrevieja. The prices in this area went crazy, fueled mainly by British buyers. The Spanish all joined the party and kept their habit of rounding up Euros instead of Pesetas.

There will be a crash to bring some sense back into the market but it will mainly affect the concrete jungle homes. If you buy to use as a holiday home and like the area, look for a desirable property, (must be in an established urbanisation, have a bit of land, pool etc. and knock 25% off the asking price. If the deal is done you have a bargain. The crash will reduce all the values but your investment will be secure for the future.

Hello everybody!!

I am spanish and I well know the spanish property market.

I read continously that spanish property market is going to crash in future time, but you have to know that the last year prices have increased in 17%. I have been hearing about this crash since 2002, and the global increase since this year has been up to 60%.

It is right that some areas are dead for investment, as Costa del Sol and Costa Blanca, but not others as Costa de Almeria, a new area where there is a new market and a good future. There you can find properties at 50% of the prices you can find in other areas, mainly in rural locations, but near coast and with all amenities and services.

I recommend a friend web site where you can find this kind of properties in Almeria area.
htpp://www.sunrivervillas.com

Best Regards.

Hristo,

You must have some vested interest posting the above.

Although it's true that Spanish properties rose by 17% last year, that number takes into account a national average without pondering a series of factors.

The property market in Madrid has nothing to do with the Costa del Sol and Almería.

In Madrid it's us Spaniards and south american inmigrants who buy flats as fisrt homes to LIVE in.

Whereas in the costa resorts, the main buyers are British (which account for more than 90% of the purchases) who happen to buy a SECOND home and unlike us latins regard their purchase as an INVESTMENT.

The truth is that the property in the costa areas of Spain have fallen on average by 8% within the last year. British investors following buy-to-let schemes are pulling out of the market and there's a huge oversupply of newly built off-plan properties available in the market. It's a seller's market, not a buyer's and prices are plummetting down.

Whereas in Madrid prices have risen on average 3-5%. Both markets are completely different, because the end-purchasers are completely different and buy for different reasons.

When brits get into financial trouble the first thing they'll do is sell-off their property portfolios in Spain. Whereas in Madrid, being the first -and only- property of most Spaniards, prices won't fall as much as in the costas.

CHECK OUT THIS ARTICLE IN ENGLISH:

http://www.andalucia.co.uk/channels/genera...asp?newsid=1269

You just have to be blindsighted or obtuse not to realise that Spain (USA-florida etc ..) are all heading for some big-time crash.

Buy property in Spain albeit in 3-4 years time, not now. The wealthiest people I know all bought in the early 1990's in the midst of the last crash. Only fools would buy now as an investment when we're over a cliff's edge.

I'm tired of seeing how real estate agencies are going bust every week now. You're post is hugely misleading and I suspect you have some vested interest in a real estate agency.

Anyone know where I can track down good governemnt statistics on the different nationalities that are buying in Spain.

From the research I have done and the people i have spoken too, the Spanish have been buying as many properties (if not more) than the foreigners on Spain's Costas. Even in places like Marbella. The property boom is not solely the responsibility of the British expat.

IMO The Spanish have had an affinity for investing in property. The boom has been driven by Spanish speculation and holiday home buying, more so than foreign investment.

I remember reading and article in the Sur in English at the beginning of this year, that said there were 70,000 vacant proprties held by investors in the malaga city area. And these investors were not interested in rental return as they couldn't be bothered with the risk or hassel (law favours the tennant not the landlord).

I wish i could find the article again!

Drakan, do you know of anywhere? Perhaps a Spanish website which has these kinds of figures. They must be collected at the Notarie's office afterall.

Hi.

Not 70.000 empty homes.

In Spain there are 3.000.000 (three million) empty homes.

Link to all official statistical government bodies:

http://www.ine.es/serv/estadist.htm


Breakdown of foreigners in Spain by the INE (Instituto Nacional de Estadística, which is the official state organization which elaborates statistics of just about everything regarding Spain):

http://www.ine.es/revistas/cifraine/cifine_ext0605.pdf

Foreign Investments in Andalucía province, which includes breakdown by nationalities and purchase of homes:

http://www.juntadeandalucia.es/institutode...xtran/index.htm


Basically in Spain, us spaniards buy more houses than foreigners.

But those houses are in the 130-200k region.

Foreigners concentrate overwhelmingly in the costa areas/resorts. That information you have that spaniards have been buying as many properties as British in the costa areas is completely wrong and false.

Spaniards buy a lot in Madrid and large cities. On the costa areas we cannot afford to pay 6000 euros (4.049 GBP) in Marbella a square metre as you British (and truly, neither can you). We only make on average 800 pounds a month.

Spaniards have been buying as an investment within the last years to make 15% yield p.a. compared to the meagre 1.5% the banks give you (that's why there are three million vacant homes) albeit they buy mainly in large inland cities as Barcelona, Madrid and cheapy cheap real estate of 150-250 k.

It's the British who buy as investments a second home in the costa areas. Many through crazy buy-to-let schemes sold on to them by fellow coountrymen which is tantamount to swindling. And time will prove me right.

British account for more than 50% of purchase of homes in the costa areas, particularly Málaga province.

You cannot compare the average flat a briton buys close to the beachfront, approx 250-300 k minimum, with one that a spaniard buys: around 150 k and being mainland, not in the costa. Any nice duplex beachfront is around 1.200.000 euros nowadays.

The last years have witnessed how our youth have been forced to emigrate back to the small andalusian villages and buy small village houses thre because the foreigners with there high income power, in comparison to us spaniards, drove uo the prices from 1997 onwards. It's rather ironic how we left these villages in the 50's and 60s and now we're going back to them because we cannot afford a flat close to the beachfront. And with this I'm not putting the blame on foreigners, I'm only highlighting a fact. Obviously the towns are full of middle aged spaniards, but they bought those flats long ago. It's the youth whose been driven away back to small mainland villages.

And in fact many British have been buying mainland also the last years. Specially rustic villas to retire to. So the prices in the mainland have also been driven up.

The British uphold the economic boom of the costa areas in Spain. There is no doubt.

Germans have been selling like theres no tomorrow. With there internal problems and the Tax crackdwon their Tax Authorities did they are no longer key players here. They still are in Mallorca.

French are almost non-existant.

So all in all it's the British who've saved us this time round.

Perhaps in the next economic cycle in eight years I'll be placing my bets with the British -again- albeit also the Chinese which I see recently have become ever more active although always very chinese-like, keeping a low and relentless profile. But they are here already.

Also ask the "Colegio Oficial de Arquitectos" for official statistics on new homes built. They all have websites.

Regards,
Drakan

I am Spanish and lived in your beautiful country for five years (went to college there). My advice:

DON´T, DON´T, DON´T BUY PROPERTY IN SPAIN!!!

We got a huge housing bubble here and it is about to burst. If you want to invest in property go to Croacia (nice weather and people), Turkey or anywhere else.

There is a huge housing problem in my country and things are going to get very nasty in the next years. If you buy a property in Spain you will be losing money and I suppose you don´t fancy that do you?

By the way, I bought a nice massionete in Southampton in 1999 for 52000 pounds. The same kind of property here cost about four times the price and it is built with the crappiest materials in the Earth (the guys who build the houses in Spain only care about making money quickly).

Buy yourself a house in my beautiful country and you regret having done it in less than two years. Prices are going down for sure. It can not be otherwise in a country where the average salary is 600 pounds (monthly) and a one bedroom flat can go easily for 250000 pounds.

Take my advice and put your money somewhere else.

A nice Spanish man,

Iván.

I do look forward to posts by Drakan - he speaks a lot of sense in my opinion. As he says the Brits are holding the market up - and maybe they are flagging a bit now as prices have weakened.

I have also been wondering if another nation might take over and buy into Spain and keep the prices steady, if not increase them. I've heard some stories about Eastern Europeans, especially Russians who are coming over with money to burn - think Roman Abramovich!

Now Drakan mentions the Chinese!

As much as people knock the Costas - for most people the ultimate dream is a villa by the sea and surely any properties with sea views in Spain will always be desirable. So I think the Costas will always have ups and downs but in the long-term they should be a desirable location, government regulations permitting.

Mark

Well actually Spain´s average wage is 833 pounds a month in 12 installments plus 2 extra wages for June and December.

For the life of me I've never heard of one-bedroom flats fetching as much as 250.000 GBP or 375.000 Euros.

Doing the Maths, a one-bedroom flat is on average 40 m2. So 375.000/40= 9.375 Euros per m2 or 6.250 GBP per m2 following what you say !!!

In Marbella front-line beach properties are approx 6.000 euros m2 or 4.000 GBP m2.

For 350.000 Euros or 234.000 GBP you can purchase a NEW two-bedroom flat, with two bathrooms, 114 m2, large sunny terrace, luxury fittings, large kitchen and washing room, one store room, one garage, tropical mature gardens, waterfalls, overlooking a 9-hole golf course in .... Guadalmina, Marbella, the most expensive and luxurious beach resort in Spain.

So my friend, If you're paying 250.000 GBP for a one-bedroom flat in Spain you've been seriously conned.

Being Spanish, as you claim to be, you'll have no trouble reading this link to a spanish newspaper which reveals that the m2 on average in Madrid´s so-called Golden Mile costs 5.500 Euros m2 or 3.666 GBP and we're talking here of the most expensive real estate in the capital not the average national price you mention; a very far cry from your 9.000 Euros m2, wouldn't you agree ?

http://www.elmundo.es/suplementos/suvivien...1128031219.html

And incidentally, should you attempt to guise yourself as Spanish again, which you are not, I advise you to be smart enough and change your local time. Your local time is not from Spain, more like Portugal or Casablanca being it two hours less than over here.

So BTL means Back To London!

An interesting report on Housing and Demographics in Spain (In Spanish)

My Spanish is pretty poor, but there are some nice maps

I'm spanish, from Valencia. I know quite well the housing market and its situation. We have been suffering a huge housing bubble in the last five years. We are at the end of an inflacionist process and the prices are higher than ever, but we are already having a change in trend. I would advise you to wait, I think we will have a house price crash bigger that the one your having there.

Been thinking of buying a villa in moraira costa blanca

what do you think of price risks and land grab risks there?

Hi Sorted

I'm afraid I can't offer any specific advice on Moraira but here's a couple of thoughts.

I've been in the Barcelona area for a couple of years now and I've been working as a jobbing builder doing renovations to existing houses. I came here with the intention of buying land (there's lots for sale), building new houses and selling them on to foreign (i.e. Brit, Dutch, German, French, etc.) buyers - the Spanish themselves prefer very different types of houses (many tiny rooms, no light, poor quality, cheap) - cultural differences, I guess.

I've quickly realised that this is a no-goer. Main reasons are huge tax liabilities on both buying (at least 10%) and selling (CGT on profit which is huge if non-resident). Also, complete market saturation of new build as every b*gger is at it. I'm sticking now to getting paid to do improvements to crumbling houses bought by Brits.

Typically the market around Spain, especially the costas, is very overblown and has stagnated (my partner works in an EA so I get pretty good view of the market).

Build quality is fairly poor, though recent builds do seem to be much improved - I found out that until a few years ago in my area they used sea-water in the concrete (they like cheap here!) - goes great with the steel re-inforcement!

Don't worry too much about the Land Grab Law if you buy your villa on an official urbanisation (housing estate) - the LRAU only applies to Rustic land and the problem arises when this is grabbed by property developers (sanctioned by their Uncle who is the Mayor) to make urbanisations. Once the Urb is in place and legal, the danger (to the owners on the Urb) has passed.

You must, must, must use a real Spanish lawyer who knows what he's talking about - Spain has a cripplingly complex legal system; locals who are genetically coded to extract the most they can from gullible foreigners; and justice only available to people who live to the age of 200 years!

If you're buying the villa to live in or use as a holiday home for yourself for many years then maybe it's ok (but why not just stay in luxury hotels in the latter circumstances - it will be cheaper after all the costs). If you're thinking of buying for flipping - forget it. If you want to FBTL then be very careful, rental guarantees are worthless.

Must go now, the sound of the waves breaking on the beach outside my (rented) house is making me want to have a p**s.

Good luck whatever you do.

Cheers
LL

LL
An excellent synopsis of the situation, precisely how I see it.

Hi

I agree Costa's are well over priced, but i know of excellent property investment in the Granada area of Spain.

The only part of Spain that is dead is the Costa Del Sol.

If you want, i can send you details.

Regards

Joe Smith

Anyone seeing signs of crash on costa's yet - my research suggests things are just flat and there are still quite a few uk buyers

Hi again Sorted

I may need to start revising my opinions - looks like some €million+ houses are shifting round here at the moment - I really haven't got a clue what's going on - possibly some sort of last desperate bounce before the crash?

Regards
LL