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telsave

Thinking Of Spain

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Hi

Been watching the forum for a little while and decided to plunge in today to ask if anyone can give a little expertise and advice.

We are considering moving over to Spain now that I have got grey hair and are looking at the Costa del Azahar area really around half hour to hour drive around Castellon de la Plana. Budget is a bit tight as we ideally do not want to sell our property in the UK unless it is absoutely necessary.

Ideally would like to be away a little from the coastal region to avoid holiday makers but am open minded otherwise. Any particular pitfalls to look out for would be appreciated also.

We are going across there on 15th July for a week to have a look around although we are fairly familiar with the area from Alcossebre South to Castellon.

We understand that Castellon are at long last opening their new airport next year, which is one reason we are considering the move now before prices escalate. But there again looking at the forum it would appear that many areas are seeing deflation in the housing market but is this just in the highly popukaated tourist areas where you cannot get moved for cranes and new buildings?

regards

Dave

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Hi

Been watching the forum for a little while and decided to plunge in today to ask if anyone can give a little expertise and advice.

We are considering moving over to Spain now that I have got grey hair and are looking at the Costa del Azahar area really around half hour to hour drive around Castellon de la Plana. Budget is a bit tight as we ideally do not want to sell our property in the UK unless it is absoutely necessary.

Ideally would like to be away a little from the coastal region to avoid holiday makers but am open minded otherwise. Any particular pitfalls to look out for would be appreciated also.

We are going across there on 15th July for a week to have a look around although we are fairly familiar with the area from Alcossebre South to Castellon.

We understand that Castellon are at long last opening their new airport next year, which is one reason we are considering the move now before prices escalate. But there again looking at the forum it would appear that many areas are seeing deflation in the housing market but is this just in the highly popukaated tourist areas where you cannot get moved for cranes and new buildings?

regards

Dave

I do not know much about the area you are looking at, but I agree with the other comments made about prices in Spain generally and particularly the over developed areas like Costa Blanca. I too have been considering Spain for a holiday home and particularly in the Costa De la Luz area near the Portugues border. It is much less developed there, but prices are still falling. Estate Agents there have openly told me that clients are reducing their prices by 30000 40000 euros. I saw one nice property on a golf course up for 295 Euros, he reduced it to 270 and I have offered 230 Euros. I can't see any point in buying unless I factor in possible further falls in value. Anyway best wishes with your seach for a holiday home. I too have grey hairs

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Hi there.

I moved to Spain around 12 months ago. I sold everything i owned in the UK and moved, having only even been once or twice on holiday.

I am so glad that i decided to rent when i got here.

It allowed me to scope the area's i was told were nice and find out for myself.

I moved into Villamartin in the Costa Blanca as this was the "in place to be" 10 years ago. Luckily as i said i rented here and didnt buy. The choice for Villamartin was that i would be in the middle of the Costa Blanca/Calida so travelling to see clients in Denia and La Manga was an equal journey.

Unfortunately the Costa Blanca (and a lot of area's in Spain) is on the decline with regards to house prices, this is due mainly to overbuilding and lack of buying, plus when the new tax laws on 2nd properties were introduced in Germany, around 10,000 properties came on the market overnight.

Where i live, there are around 100 apartments and villa's for sale and have been the entire time i have lived here. One in particular has decreased his price 5 times in 10 months, a 30,000 drop on the original asking price. My friend has a property in Senora de Roda, next to the Roda Golf Resort, he is now asking for 15,000 less than the builder is selling them for, just to get rid of it.

I have seen a lot of Estate Agents close in the last few months with many more to follow.

Unfortunately the programs on Spain back in the UK have not helped the property market either, but fortunately they have shed a lot of light on the issue's here, perhaps the government will step in when they see the decline in foreign investment and straighten things out.

I personally predict a fall in the market for at least 12-18 months.

If you are looking for a retirement home and not an investment then by all means consider the move, the lifestyle here is tremendous.

But consider my 'personal' advice when i say that coming for a 2 week holiday to an area, doesn't necessarily mean you would want to live there. If you are moving here permanently and are selling up in the UK, consider investing your money and use the gain on the investment to pay toward renting for 3-6 months, this way you will 1. know yourself if you want to live in this area, 2. have time to look round for the "perfect" house instead of buying the first one you see (impulse buying is the main problem with house buying in Spain)

One other thing i may add is that we have seen it all since we have been out here. Please, when buying a property here, do not treat it like buying a car ... "oooh i like that one, ill take it" and hand over cash. Please, Please, get a survey done, get your own lawyer (not one recommended by the estate agent) to check out the property thoroughly.

We checked the Escritura (deeds) of one of our recent clients only to find that he lived in a pub. The apartment he purchased for €200,000 was originally built as a commercial center and at the last minute changed into housing, the builder never asked for his planning permission to be changed thus the deed was never changed. His property as a commercial is only worth €100,000 and the town hall will not change it either.

I know this may sound daft and very obvious, but please come to Spain with sufficient funds to live as Spain will not provide you with any benefits. The amount of clients we come across whom sell up in the UK, buy a house in Spain and end up living on £250 a month between them, to cover bill's food etc is unbelievable.

If you want or need anything please do not hesitate to PM me and ill help you out as best as i can.

Edited by OFS Spain

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Hi

Thanks for the prompt helpful replies.

We agree that as we are intending to move to Spain as a retirement we would rent somewhere first for at least 3 months to have a look around. We have been to this area many times and my sister actually has lived in Grao for 30 years but even so has little knowledge of the outlying areas as they do not drive and see to spend all of their time between Grao and Castellon.

We will make a decsion slowly and will take adequate advice we hope before parting with any cash.

The visit we are making this month is our first serious look at the market although we have watched the market for around 24 months via the Internet.

We appreciate the market in the BOOM areas is being hit badly and really is a becoming a buyers market, but as I do not particuarly see us living in those areas perhaps where we are looking is not subject to the same decline, but Buyer Beware.

Thanks again for help any other comments would be warmly accepted.

regards

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Please also remember to apply for residentia and your NIE numbers out here.

In the Communidad de Valencia, there is no IHT problem between husband and wife if you ARE resident (well... its a 99% allowance so you are taxed on 1%)

Between parents and children it is different only if the children do not live in the Communidad de Valencia also. If they live outwith or even back in the UK, they WILL be subject to this tax.

You will hear varying stories with regards to IHT.

In a layman's nutshell.

If you and your wife died while owning assets in Spain you kids would have to pay from their own pockets any tax liable BEFORE they receive their inheritance.

Example

Property owned 300,000

Money in account 50,000

Tax due - 350,000 x 34% = 119,000

This has to be paid by the children in order to receive your 350k

Please not that these are very very crude and are no way accurate (as there are small allowances etc) but it gives a rough idea.

Tax is based on a snap shot of your estate at death and sometimes can take into account the beneficiaries existing wealth. It is then taxed on a sliding scale depending on the amount in question between 7% and 34%.

If you are not a resident, the situation between Husband and Wife is similar to parents and children.

This is only a general point i am making if you need exact figures etc, please PM me with details.

There are potential ways around this situation depending on numerous factors.

This is another point to take into consideration.

Edited by OFS Spain

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With the spanish market at a peak and likely to drop considerably why not look at renting. You migt findit works out 50-60% cheaper than buying end it gives you the flexibility of moving if you do not like the area.

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If it is sun you are after, in my opinion Cyprus & Malta are from a tax point of view good places to retire in Europe. Cyprus has 5% tax on pension income. Malta has only got tax on income you remit. If you have lots of capital from a house sale you could live almost tax free.

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many thanks for the latest kind comments. Spain is the only option for us as is the area of Spain that I mentioned as I would be living close to my sister and the two girls love to shop......Mmmmmmmmm perhaps Malta would not be a bad idea. :rolleyes:

Looking forward to more comments.

regards

Dave

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Hi

Been watching the forum for a little while and decided to plunge in today to ask if anyone can give a little expertise and advice.

We are considering moving over to Spain now that I have got grey hair and are looking at the Costa del Azahar area really around half hour to hour drive around Castellon de la Plana. Budget is a bit tight as we ideally do not want to sell our property in the UK unless it is absoutely necessary.

Ideally would like to be away a little from the coastal region to avoid holiday makers but am open minded otherwise. Any particular pitfalls to look out for would be appreciated also.

We are going across there on 15th July for a week to have a look around although we are fairly familiar with the area from Alcossebre South to Castellon.

We understand that Castellon are at long last opening their new airport next year, which is one reason we are considering the move now before prices escalate. But there again looking at the forum it would appear that many areas are seeing deflation in the housing market but is this just in the highly popukaated tourist areas where you cannot get moved for cranes and new buildings?

regards

Dave

My advice is sell up in the UK and rent in Spain to see if you like it first. So many Brits go piling in (myself included Doh!) and realise they can´t sell when they want to go back. There are hefty property taxes and you won't be able to get rid of your 'black money' if you want to back. I'm very fortunate as I'm happy here and mortgage free - I just wish I'd rented first.

Edited by markinspain

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I agree about renting, its a good idea to rent first in any area that you would like to buy in,

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