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Re: The Price you pay
Originally Posted by cricketman
(Post 11452038)
The truth is that rental prices are so low in Spain that often it isnt worth the hassle to rent them out
My parents in-law have an empty flat which they "value" at 250k Similar flats rent out for 500-550 euros per month Out of this, my parents-in-law have to pay 150 euros IBI and 200 euro community fees per month. And will need to pay income tax on what they receive and landlord insurance. They say it isn't worth the risk, tenants may trash the place or stop paying rent and even if they are good tenants, things like kitchens and bathrooms wear out and applicances need replacing. They would rather have it empty and keep it up for sale for years and years hoping for that one elusive buyer. Millions of people across Spain feel the same way |
Re: The Price you pay
Originally Posted by Daveinspain
(Post 11452511)
Getting a non paying rentee out of a property here might be another reason.
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Re: The Price you pay
This was the last update to the law I saw.
However, the recent laws have changed this situation for the better: from the 23rd December 2.009, the court will try to notify the writ at the rented property once, and if the tenant were not found there, then the notification would be put on the courts board. This will surely shorten the notification time to 2 months instead of the 5 months it has been taking. Furthermore, the legal aid has to be applied for by the tenant within 3 days after receiving the courts eviction notice, otherwise the process shall not stop until the solicitor is granted. Finally, the normal formalities have been simplified, i.e. it is no longer necessary to request expressly the execution of the ruling after this is firm, so that once the ruling is issued, the execution should start automatically. As a result, the landlord can expect a ruling within 2-3 months after starting the process, and the whole eviction can take place in 5 months altogether, or even less. It is true that the legal changes are still unknown to most people, but in my opinion, their effectivity relies mainly on the actual capacity of the landlords to react timely. It is of little relief that the law now protects the landlord, if the same landlord waits 4 months to take legal action. In short, the landlord should not wait more than one month to request formally and in writing payment of the arrears. In the event such request is not attended within one month, the following step is submitting the writ at court, seeking payment and eviction of the tenant. Given the speed ;) of the Spanish legal system............seeing is believing:blink: |
Re: The Price you pay
Originally Posted by casa del sol
(Post 11451072)
..............
It is the banks that lose when debt is used to buy, because the banks own the property. ..... Take out a 100k mortgage at just 6% over 25 years and you pay back 150k in interest alone. And on top of that you still have to find the 100k purchase price for the property. A repayment mortgage (instead of interest only) will still cost you nearly 200k just to buy that 100k house. So to say that it's the banks that lose is just nonsence. Debt is classed as an asset not a liability and a set of accounts full of mortgage debt is worth a fortune to any bank. |
Re: The Price you pay
Originally Posted by billgates
(Post 11455822)
Debt is classed as an asset not a liability and a set of accounts full of mortgage debt is worth a fortune to any bank.
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Re: The Price you pay
Originally Posted by Fredbargate
(Post 11455830)
I believe it is this idea that almost collapsed the banking system recently leading to Joe Public having to bail them out.
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