Go Back  British Expats > Living & Moving Abroad > Europe > Spain
Reload this Page >

Advice on property in Malaga area

Advice on property in Malaga area

Old Jul 14th 2013, 11:00 pm
  #16  
Account Closed
 
Joined: May 2013
Posts: 1,176
IamStu has a reputation beyond reputeIamStu has a reputation beyond reputeIamStu has a reputation beyond reputeIamStu has a reputation beyond reputeIamStu has a reputation beyond reputeIamStu has a reputation beyond reputeIamStu has a reputation beyond reputeIamStu has a reputation beyond reputeIamStu has a reputation beyond reputeIamStu has a reputation beyond reputeIamStu has a reputation beyond repute
Default Re: Advice on property in Malaga area

Originally Posted by cricketman
Speculation based on the information that is out there. Most "experts" (ok what do they know?) are predicting a further 15% drop this year and 10% the year after, and no increases during the next 10 years. I agree

Come back next year to see if I was right
Thank you for highlighting my original post.

The drops in value are speculated to fall further due to the number of repossessed properties held by the banks.
Are repossessed properties therefore a bad investment?
Are the values of repossesed properties due to drop also?
Other forecasts predict a drop of 5pc this year and a further 5pc next year.

The original poster was simply asking advise on purchasing in the Malaga area.
So what is wrong with advising they look at what the banks are holding?
IamStu is offline  
Old Jul 14th 2013, 11:03 pm
  #17  
BE Forum Addict
 
Joined: Aug 2006
Location: Velez-Malaga
Posts: 4,965
Lynn R has a reputation beyond reputeLynn R has a reputation beyond reputeLynn R has a reputation beyond reputeLynn R has a reputation beyond reputeLynn R has a reputation beyond reputeLynn R has a reputation beyond reputeLynn R has a reputation beyond reputeLynn R has a reputation beyond reputeLynn R has a reputation beyond reputeLynn R has a reputation beyond reputeLynn R has a reputation beyond repute
Default Re: Advice on property in Malaga area

Originally Posted by IamStu
To be honest Lynne I´m not sure. We own our own property so the discussion was brief. That said, even with the "extra charges", the reductions in price are huge.
As long as people are aware of this before deciding whether to go ahead with the purchase or not, they can weigh up for themselves if they are happy (and able) to pay the extra tax as they feel they will still be getting a "bargain". However, if they are not it can come as a very nasty shock, hence why I thought it was worth mentioning.
Lynn R is offline  
Old Jul 14th 2013, 11:14 pm
  #18  
Lost in BE Cyberspace
 
Joined: Apr 2009
Posts: 7,749
cricketman has a reputation beyond reputecricketman has a reputation beyond reputecricketman has a reputation beyond reputecricketman has a reputation beyond reputecricketman has a reputation beyond reputecricketman has a reputation beyond reputecricketman has a reputation beyond reputecricketman has a reputation beyond reputecricketman has a reputation beyond reputecricketman has a reputation beyond reputecricketman has a reputation beyond repute
Default Re: Advice on property in Malaga area

Originally Posted by IamStu
.

The original poster was simply asking advise on purchasing in the Malaga area.
So what is wrong with advising they look at what the banks are holding?
Nothing wrong with that advice at all. I am just saying "approach with caution"
cricketman is offline  
Old Jul 14th 2013, 11:25 pm
  #19  
BE Forum Addict
 
Joined: Mar 2011
Posts: 1,518
stuboy has a reputation beyond reputestuboy has a reputation beyond reputestuboy has a reputation beyond reputestuboy has a reputation beyond reputestuboy has a reputation beyond reputestuboy has a reputation beyond reputestuboy has a reputation beyond reputestuboy has a reputation beyond reputestuboy has a reputation beyond reputestuboy has a reputation beyond reputestuboy has a reputation beyond repute
Default Re: Advice on property in Malaga area

Given that the hacienda impose a tax on the perceived value of a property as opposed to what was actually paid is there any pressure groups or whatever arguing for the removal of same. If prices do indeed fall further the housing recovery will by definition be further damaged. I understand (I think) the rationale behind the tax is linked to previous methods of buying/selling.
stuboy is offline  
Old Jul 15th 2013, 12:47 am
  #20  
 
Fred James's Avatar
 
Joined: Jun 2006
Location: Granada Costa
Posts: 10,932
Fred James has a reputation beyond reputeFred James has a reputation beyond reputeFred James has a reputation beyond reputeFred James has a reputation beyond reputeFred James has a reputation beyond reputeFred James has a reputation beyond reputeFred James has a reputation beyond reputeFred James has a reputation beyond reputeFred James has a reputation beyond reputeFred James has a reputation beyond reputeFred James has a reputation beyond repute
Default Re: Advice on property in Malaga area

Originally Posted by stuboy
Given that the hacienda impose a tax on the perceived value of a property as opposed to what was actually paid is there any pressure groups or whatever arguing for the removal of same. If prices do indeed fall further the housing recovery will by definition be further damaged. I understand (I think) the rationale behind the tax is linked to previous methods of buying/selling.
Hacienda use a crude method to determine the "official" value of the property. This is used for various things such a IHT.

The value is the current Catastral value multiplied by a factor which varies from one municipality to another. These factors are freely available.

In some cases the official value will be lower than the purchase price, in others it will be more.

If you wish to challenge the valuation you are free to do so but it will cost a fair bit as you will have to get proper valuations. If you can agree a better price then you will have the tax reduced.
Fred James is offline  
Old Jul 15th 2013, 1:48 am
  #21  
Forum Regular
 
Patrick2976's Avatar
 
Joined: Nov 2007
Location: Mijas, Spain.
Posts: 230
Patrick2976 is a jewel in the roughPatrick2976 is a jewel in the roughPatrick2976 is a jewel in the roughPatrick2976 is a jewel in the roughPatrick2976 is a jewel in the rough
Default Re: Advice on property in Malaga area

Crikey Fred. I'll show my rear on the ayuntmiento steps if they ever agree a lower price in this neck of the woods.......

Originally Posted by Fred James
Hacienda use a crude method to determine the "official" value of the property. This is used for various things such a IHT.

The value is the current Catastral value multiplied by a factor which varies from one municipality to another. These factors are freely available.

In some cases the official value will be lower than the purchase price, in others it will be more.

If you wish to challenge the valuation you are free to do so but it will cost a fair bit as you will have to get proper valuations. If you can agree a better price then you will have the tax reduced.
Patrick2976 is offline  
Old Jul 16th 2013, 4:28 am
  #22  
Forum Regular
 
Joined: Jul 2012
Posts: 85
siteservices is an unknown quantity at this point
Default Re: Advice on property in Malaga area

we paid 100,000 euros for our apartment a year ago and paid everything we were asked, did everything by the book. I did a thread on here about the subsequent demand for 1,800 euros tax as they valued it at, I think, 123,000 euros. We paid 700 euros (independent valuation plus solicitor's fees) which valued it at 104,000. our appeal has however been rejected. our solicitor says there is nothing we can do. So we are now having to stump up the extra tax. Welcome to Spain!!!!!!!!!!!!!!!!!
siteservices is offline  
Old Jul 16th 2013, 8:00 am
  #23  
Forum Regular
 
Patrick2976's Avatar
 
Joined: Nov 2007
Location: Mijas, Spain.
Posts: 230
Patrick2976 is a jewel in the roughPatrick2976 is a jewel in the roughPatrick2976 is a jewel in the roughPatrick2976 is a jewel in the roughPatrick2976 is a jewel in the rough
Default Re: Advice on property in Malaga area

I have some friends who bought a house for circa 450K in Benalmadena. The ayuntamiento started sending bills for 17K for the tax difference a year later. However they sent it to their old address. My friends didn't actually get the bills for 6 months during which time the tax had risen to 21K due to late payment fines. No line of redress as the authorities said "you didn't tell us you had moved" !!!!


Originally Posted by siteservices
we paid 100,000 euros for our apartment a year ago and paid everything we were asked, did everything by the book. I did a thread on here about the subsequent demand for 1,800 euros tax as they valued it at, I think, 123,000 euros. We paid 700 euros (independent valuation plus solicitor's fees) which valued it at 104,000. our appeal has however been rejected. our solicitor says there is nothing we can do. So we are now having to stump up the extra tax. Welcome to Spain!!!!!!!!!!!!!!!!!
Patrick2976 is offline  
Old Jul 16th 2013, 8:07 am
  #24  
Lost in BE Cyberspace
 
Joined: Apr 2009
Posts: 7,749
cricketman has a reputation beyond reputecricketman has a reputation beyond reputecricketman has a reputation beyond reputecricketman has a reputation beyond reputecricketman has a reputation beyond reputecricketman has a reputation beyond reputecricketman has a reputation beyond reputecricketman has a reputation beyond reputecricketman has a reputation beyond reputecricketman has a reputation beyond reputecricketman has a reputation beyond repute
Default Re: Advice on property in Malaga area

Originally Posted by Patrick2976
No line of redress as the authorities said "you didn't tell us you had moved" !!!!
Well that is actually a fair enough point by the ayuntamiento

But yes, the demands for extra tax are frankly ridiculous, sometimes I think that they dont actually want anyone to buy property.

Its bad enought that tax comes to nearly 10% of the purchase price, but for it to come to 10% of the price it was valued at 5 years ago is taking the p*ss
cricketman is offline  
Old Jul 16th 2013, 2:31 pm
  #25  
BE Forum Addict
 
Joined: Mar 2011
Posts: 1,518
stuboy has a reputation beyond reputestuboy has a reputation beyond reputestuboy has a reputation beyond reputestuboy has a reputation beyond reputestuboy has a reputation beyond reputestuboy has a reputation beyond reputestuboy has a reputation beyond reputestuboy has a reputation beyond reputestuboy has a reputation beyond reputestuboy has a reputation beyond reputestuboy has a reputation beyond repute
Default Re: Advice on property in Malaga area

Which is why for so many wannabees like me Spain is moving way down the list of suitable second/retirement homes. How sad I often think to myself is it that I have loved Spain for so many years and yet it appears to strive to discourage inward investment. I have taken the trouble to teach myself enough Spanish to more than get by on. And yet the endless saga of house taxes, illegal builds, dodgy escituras, ill informed estate agents, vendors and officials makes it a game of Russian Roulette. If I were to move to Spain it would not be to take advantage of either the meagre benefit system or the health system. With independent means, a bit of the lingo, a fair disposable income I would have though that Spain in its current economic situation would be bending over backwards to attract my initial capital and future contributions. But no, it seems to me with its punitive and illogical laws at national level and its unequal regional laws to be a non-starter. Spain has so much to offer to so many people yet it seems to be forever shooting itself in the foot. Without the Mediterranean climate Spain would be a wasteland in its present state.
stuboy is offline  
Old Jul 16th 2013, 6:45 pm
  #26  
 
Joined: Jun 2011
Location: In the middle of 10million Olive Trees
Posts: 12,053
Domino has a reputation beyond reputeDomino has a reputation beyond reputeDomino has a reputation beyond reputeDomino has a reputation beyond reputeDomino has a reputation beyond reputeDomino has a reputation beyond reputeDomino has a reputation beyond reputeDomino has a reputation beyond reputeDomino has a reputation beyond reputeDomino has a reputation beyond reputeDomino has a reputation beyond repute
Default Re: Advice on property in Malaga area

Originally Posted by stuboy
Which is why for so many wannabees like me Spain is moving way down the list of suitable second/retirement homes. How sad I often think to myself is it that I have loved Spain for so many years and yet it appears to strive to discourage inward investment. I have taken the trouble to teach myself enough Spanish to more than get by on. And yet the endless saga of house taxes, illegal builds, dodgy escituras, ill informed estate agents, vendors and officials makes it a game of Russian Roulette. If I were to move to Spain it would not be to take advantage of either the meagre benefit system or the health system. With independent means, a bit of the lingo, a fair disposable income I would have though that Spain in its current economic situation would be bending over backwards to attract my initial capital and future contributions. But no, it seems to me with its punitive and illogical laws at national level and its unequal regional laws to be a non-starter. Spain has so much to offer to so many people yet it seems to be forever shooting itself in the foot. Without the Mediterranean climate Spain would be a wasteland in its present state.

Good post and have to agree with you.

But according to what I am hearing from the CDS the Russians actually enjoy it all. Either it is better than at home, or like reputed tax breaks for the Chinese they don't get caught up in these problems.

Domino is offline  
Old Jul 16th 2013, 7:25 pm
  #27  
Forum Regular
 
Patrick2976's Avatar
 
Joined: Nov 2007
Location: Mijas, Spain.
Posts: 230
Patrick2976 is a jewel in the roughPatrick2976 is a jewel in the roughPatrick2976 is a jewel in the roughPatrick2976 is a jewel in the roughPatrick2976 is a jewel in the rough
Default Re: Advice on property in Malaga area

I think it's a fairly safe generalisation to say that most of the Russians on the CDS are wealthy and very able to afford the taxes etc.... or perhaps it's their penchant for incentives in brown envelopes that sits so well with the locals.

Originally Posted by Domino
Good post and have to agree with you.

But according to what I am hearing from the CDS the Russians actually enjoy it all. Either it is better than at home, or like reputed tax breaks for the Chinese they don't get caught up in these problems.

Patrick2976 is offline  
Old Jul 16th 2013, 11:42 pm
  #28  
BE Forum Addict
 
Joined: Mar 2011
Posts: 1,518
stuboy has a reputation beyond reputestuboy has a reputation beyond reputestuboy has a reputation beyond reputestuboy has a reputation beyond reputestuboy has a reputation beyond reputestuboy has a reputation beyond reputestuboy has a reputation beyond reputestuboy has a reputation beyond reputestuboy has a reputation beyond reputestuboy has a reputation beyond reputestuboy has a reputation beyond repute
Default Re: Advice on property in Malaga area

Originally Posted by Patrick2976
I think it's a fairly safe generalisation to say that most of the Russians on the CDS are wealthy and very able to afford the taxes etc.... or perhaps it's their penchant for incentives in brown envelopes that sits so well with the locals.
Either way their presence I believe is increasing. They must know something I don't.
stuboy is offline  
Old Jul 17th 2013, 1:00 am
  #29  
Lost in BE Cyberspace
 
Joined: Apr 2009
Posts: 7,749
cricketman has a reputation beyond reputecricketman has a reputation beyond reputecricketman has a reputation beyond reputecricketman has a reputation beyond reputecricketman has a reputation beyond reputecricketman has a reputation beyond reputecricketman has a reputation beyond reputecricketman has a reputation beyond reputecricketman has a reputation beyond reputecricketman has a reputation beyond reputecricketman has a reputation beyond repute
Default Re: Advice on property in Malaga area

Originally Posted by stuboy
Either way their presence I believe is increasing. They must know something I don't.
The Russians use Spain as a money laundering centre

They bring money into the country and put it into property, Spain doesnt ask where it comes from, and it becomes hidden from the Russian authorities

Plenty of Russians and other nationalities buy in London for the same reasons
cricketman is offline  
Old Jul 17th 2013, 1:30 am
  #30  
BE Forum Addict
 
Joined: Mar 2011
Posts: 1,518
stuboy has a reputation beyond reputestuboy has a reputation beyond reputestuboy has a reputation beyond reputestuboy has a reputation beyond reputestuboy has a reputation beyond reputestuboy has a reputation beyond reputestuboy has a reputation beyond reputestuboy has a reputation beyond reputestuboy has a reputation beyond reputestuboy has a reputation beyond reputestuboy has a reputation beyond repute
Default Re: Advice on property in Malaga area

Originally Posted by cricketman
The Russians use Spain as a money laundering centre

They bring money into the country and put it into property, Spain doesnt ask where it comes from, and it becomes hidden from the Russian authorities

Plenty of Russians and other nationalities buy in London for the same reasons
Spain seems to want to know a lot about ordinary folk like me who would like to do things legit.
stuboy is offline  

Contact Us - Manage Preferences Archive - Advertising - Cookie Policy - Privacy Statement - Terms of Service - Your Privacy Choices -

Copyright © 2024 MH Sub I, LLC dba Internet Brands. All rights reserved. Use of this site indicates your consent to the Terms of Use.