Thinking of buying in Spain
Dec 6th 2012 | 3:05 am
#16
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From: London-ish
Re: Thinking of buying in Spain
Hi Agoreira.
Apart from the most expensive which are being snapped up by Chinese and Russians (sounds familiar?) the UK market is stagnant, prices are fairly stable but buy-to-let mortgages are much harder to come by and need larger deposits than a few years ago so there is little chance of getting a mortgage that I could realistically afford here.
I have lived in 2 University towns (Nottingham and York) and know a couple of landlords who despair at the state students leave their premises in. Okay, the students lose their deposits but the landlords have to spend a lot more repairing and replacing damages.
Apart from the most expensive which are being snapped up by Chinese and Russians (sounds familiar?) the UK market is stagnant, prices are fairly stable but buy-to-let mortgages are much harder to come by and need larger deposits than a few years ago so there is little chance of getting a mortgage that I could realistically afford here.
I have lived in 2 University towns (Nottingham and York) and know a couple of landlords who despair at the state students leave their premises in. Okay, the students lose their deposits but the landlords have to spend a lot more repairing and replacing damages.
Dec 6th 2012 | 3:30 am
#17
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Re: Thinking of buying in Spain
Well be prepared for similar in Spain. Friends of mine rented their property to a.n.other brit who defaulted on the rent, did not pay utilities and trashed the property before doing a runner.
Last edited by missile; Dec 6th 2012 at 4:14 am.
Dec 6th 2012 | 5:09 am
#19
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Re: Thinking of buying in Spain
Is that long-term rentals or do you get this with holiday rentals via an agent as well?
Dec 6th 2012 | 7:16 am
#20
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Re: Thinking of buying in Spain
At least you get paid in advance with a holiday rental.
I do know of some agents who have rented without owners knowledge and kept the cash. Others who employ pet tradesperson to do repairs at inflated cost and get a cut. If you are not there to keep an eye out, you will not know - just another sucker to be fleeced
Dec 6th 2012 | 5:59 pm
#21
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From: Isla Redonda
Re: Thinking of buying in Spain
We look after a couple of rental properties, one without a pool gets about 5 weeks occupancy a year, the other country property with a pool gets about 35-40 weeks occupancy a year.
Dec 6th 2012 | 11:25 pm
#22
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Re: Thinking of buying in Spain
Thats interesting. I suppose its a Brits thing wanting a pool even when the beach is near, a bit like us having more convertible cars per capita even though we dont get great weather
Dec 7th 2012 | 12:04 am
#23
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Re: Thinking of buying in Spain
Jan 3rd 2013 | 8:38 am
#24
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Re: Thinking of buying in Spain
I disagree. It's an excellent time to buy as long as you aren't looking to make a quick buck. You won't get anything for your savings and although rents are at an all time low they're still going to cover the cost of maintenance, property tax and a bit in your pocket. It rather depends how greedy you are. If you'll settle for a small return and are very careful about your tenants (i.e prepared to wait for the right ones and treat them well) you will have the pick of some very nice properties at much more reasonable prices. As others have said, they may well fall even lower. What you have to take into account is where an area is going. Is it going to dive into being a 'barrio' or when things return to something like normal which will prob take between 10 and 20 years will it be well situated well built and the sort of place you or a future buyer would like to live.
If I had money right now I'd spend it buying on the outskirts of a major city. In my case there's a lovely new build, quality 'suburb' which has halted temporarily but is of great quality properties just outside Seville. I'd buy there!
If you're wanting the coast there are loads of flats to choose from but you have to watch out for the ghettoisation of poor quality projects which no-one wants to buy. I'd spend some time here renting yourselves and visit several areas. Just because it's an investment in the future and a bit 'cheap' these days, no reason to buy carelessly.
If I had money right now I'd spend it buying on the outskirts of a major city. In my case there's a lovely new build, quality 'suburb' which has halted temporarily but is of great quality properties just outside Seville. I'd buy there!
If you're wanting the coast there are loads of flats to choose from but you have to watch out for the ghettoisation of poor quality projects which no-one wants to buy. I'd spend some time here renting yourselves and visit several areas. Just because it's an investment in the future and a bit 'cheap' these days, no reason to buy carelessly.
Jan 3rd 2013 | 9:58 pm
#25
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From: Aracena area Huelva Spain
Re: Thinking of buying in Spain
I wish I could agree with your assessment of low rental income covering basic property costs ie mortgage, property maintenance fees community charges etc. Where we live there are so many charges, intercommunity, intracommunity, EUC, IBI that would cover our basic mortgage payment three times over. If you buy in a community it seems that you are at the mercy of officials who can charge any figure they like in several guises at the one for the same basic service. If I had known that before we bought we probably would not have proceeded.
Jan 3rd 2013 | 11:32 pm
#26
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Re: Thinking of buying in Spain
I wish I could agree with your assessment of low rental income covering basic property costs ie mortgage, property maintenance fees community charges etc. Where we live there are so many charges, intercommunity, intracommunity, EUC, IBI that would cover our basic mortgage payment three times over. If you buy in a community it seems that you are at the mercy of officials who can charge any figure they like in several guises at the one for the same basic service. If I had known that before we bought we probably would not have proceeded.
Jan 3rd 2013 | 11:44 pm
#27
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Re: Thinking of buying in Spain
Hi,
we are thinking of buying in Spain, initially with a view of renting out for 10 years or so and then moving out ourselves, so the place we buy now may not be where we end up living.
Any suggestions about where/what to look for/avoid so we have decent renting potential? I've tried searching the web but all I seem to get is agents trying to sell property and I can't really put too much faith in what they say.
thanks
we are thinking of buying in Spain, initially with a view of renting out for 10 years or so and then moving out ourselves, so the place we buy now may not be where we end up living.
Any suggestions about where/what to look for/avoid so we have decent renting potential? I've tried searching the web but all I seem to get is agents trying to sell property and I can't really put too much faith in what they say.
thanks
Based on experience I`d say dont buy a "buy to let" in Spain , it will all end in tears , guaranteed , better to invest your money in the UK , agricultural land is very secure and on the increase in most places.
Jan 4th 2013 | 12:00 am
#28
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Re: Thinking of buying in Spain
That was one of the things that put me off urbanisations when we were buying. I thought little village house at least I have a good idea of what my payments are going to be, community fees??. There were other considerations of course but that was a major one. I also and someone may know the answer, what happens on your urbanisation say if the majority are Expats who return due to situation (must have happened) if the don't pay their fees, how does that affect those that stay and do?
Not all new builds on urbanisations are subject to community charge. Most are independent homes and are subject to SUMA based on the value of the property, just like any other town or rural property.
Most appartments and some town houses "in little villages" are subject to community fees.
Community fees are applicable where there is shared communal property e.g. a pool. The costs are controlled by the elected Community President. This is a similar arrangement to those who live in a community or an appartment in the UK and pay management fees. In spain property owners can be held accountable for their share. Ultimately if owners do not pay, application to the court can be made to repossess their home and sell it to pay their debt.
Last edited by missile; Jan 4th 2013 at 12:03 am.
Jan 6th 2013 | 11:05 pm
#29
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Re: Thinking of buying in Spain
hi,
come and visit salobrena, rent a villa for a couple of months, get a feel a place ,thats my advice. renting here is good and living here even better,
day its 18d and warm and sunny !!!!!!!!!
come and visit salobrena, rent a villa for a couple of months, get a feel a place ,thats my advice. renting here is good and living here even better,
day its 18d and warm and sunny !!!!!!!!!
Jan 7th 2013 | 10:04 am
#30
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Posts: 214
Re: Thinking of buying in Spain
I'll give you my experience, we own 2 properties in benidorm...
It is a great time to buy, depending where you want to live eventually, in Benidorm properties are not such a bargain, however they rent out very easily and hold their price in this climate pretty well.. you can get a new 2 bed , 2 bathroom for around 150-180,000 Euro..
You will need to find a good agent , this is a must to prevent any of the hassles mentioned on this thread.
You should buy in aa place you really like, don't just buy because its cheap..
You can get properties really cheap now in certain areas, depends what you want..
our properties are always fully booked and we easily cover our maintanace bills ( around 1,500E a year, taxes etc...
wwe bought both off plan, furnish them well and you shouldn't have any problem renting it... obviously depends where you buy.. the main problem I find with people buying propert ( anywhere in the world ) is taking a big mortgage and then hoping the rent will cover the payments..people lose there homes this way.
remember to add approx 10% of the purchase price for tax, solicitor etc...
Do good research , get a good solicitor, good agent, and your should be fine, and remember spain WILL come out of recession and your property will then rise in value...
It is a great time to buy, depending where you want to live eventually, in Benidorm properties are not such a bargain, however they rent out very easily and hold their price in this climate pretty well.. you can get a new 2 bed , 2 bathroom for around 150-180,000 Euro..
You will need to find a good agent , this is a must to prevent any of the hassles mentioned on this thread.
You should buy in aa place you really like, don't just buy because its cheap..
You can get properties really cheap now in certain areas, depends what you want..
our properties are always fully booked and we easily cover our maintanace bills ( around 1,500E a year, taxes etc...
wwe bought both off plan, furnish them well and you shouldn't have any problem renting it... obviously depends where you buy.. the main problem I find with people buying propert ( anywhere in the world ) is taking a big mortgage and then hoping the rent will cover the payments..people lose there homes this way.
remember to add approx 10% of the purchase price for tax, solicitor etc...
Do good research , get a good solicitor, good agent, and your should be fine, and remember spain WILL come out of recession and your property will then rise in value...
