CHRIS_D

I was wondering around town today and noticed an estate agent which specialises in spanish/south of france etc houses/villas. What took my interest was how cheap they all were .

ie 3 bed villas in spain are going for as little as 79,000 euros, and similar in france (one came with over 2500 m2 of land) - and from looking at the photos they're bloody nice too.

Has anyone on here gone this route and how did you go about it? I'm in the forces and i currently live in a married quarter, so at present i dont own my own home. If i bought one (i would be a first time buyer as well) I would probably rent it out for the time being and possibly move in permanently when i leave the forces (as i'm not planning on staying in this country when get out).

Anyway, your input/advice is appreciated

chris

ScoobyWon't

Bought an apartment in Tenerife about 10 months ago.

I was asked to prove income, and show I've paid my income tax. Then you just choose the property you want and apply for a mortgage. The bank does the valuation and survey for you. In tenerife you pay 5% tax on the price you've paid. You have to visit a 'Notary' which is where all official documents are signed where you sign, the seller signs and the bank signs.

For rental purposes, just ask around for a reputable local property manager. They will normally do a 6 month let, and carry out any repairs etc for you whiel you are out of the country, they generally add an extra 100 euros onto the monthly rent as their cut.

I believe that UK firms selling property abroad have to have a Spanish branch.

Just search altavista or google for 'estate agents in Tenerife' obviously replacing Tenerife with what ever area you are looking at.

HTH, just ask if you have any other questions and I'll tell you what I know.

jaycee

Hi Chris,
I'm looking at buying in Spain at the moment.
A good site to start with is www.yhis.com
www.primelocation.com has properties all over the world.
There is lots to take into account, location, permanent residence or holiday home, renting out when empty, etc.
All prices quoted for Spanish properties exclude a purchase tax of 7% and are also subject to a tax of 2.5% of its value per year.
I've got a list of sites which I'll forward to you.
I dont think you can do TOO much research when buying abroad!!

Let me know how you get on.

Jason

GaryK

Chris,

As already mentioned do your homework, really thoroughly! We bought back in '01 on the costa del sol. Now we bought off-plan which while you may be able to get a bigger return there is a risk, Ive seen places start building, people pay deposits and it all goes tit$ up cos no planning permission was sought. The other thing is its not uncommon for new builds to take much longer, ours was quoted as 6 months to completion when it was 2 years! Helped us in a way as we had to make stage payments and gave us more time to raise the cash. On the other hand if we had bought a resale and mortgaged it could have let it out alot sooner.

Price wise its the same as here, location will determine price, our 2 bed apartment near marbella was 80K but further round the coast, costa blanca, 80K would get you a 3 bed villa.

The property market is buoyant but I think investment wise the amount of money made would have been the same as here (hindsight is wonderful!). As already stated you have to pay 7% IVA (tax) on property so normally allow 10% of property price to cover this and legal costs.

Having visited spain many times Im not so keen to own there and would probably buy in france just as a get away from it all sort of place.

Gary

CHRIS_D

thanks for the replies so far guys, mucho appreciated all being taken onboard

I'm not going to rush into this one, as i said it just gave me food for thought as i browsed through the window display.

Having thought about it i have two options:

1. Buy a fully built and ready to live in villa in spain

or

2. same again but in france, or buy a cheap property with loads of potential but in need of renovating (I have recently got myself very qualified in construction & i am also a carpenter & joiner)

cheers again
keep em coming

chris

chinnybloke

We looked at France and we found...

There are loads of web sites which show fantastic properties at amazing prices. However, when it comes to going over there and then actually arranging to see the ones you want, you will almost certainly be disappointed. We found it hard to tied up viewings to the exact properties you want. You think its all arranged you know where you are going and what you are going to see. We didn't see any of the ones we actually had booked appointments for. Having said that, the ones we did see were unbelievable for the money. I think you need to add about 10% to the asking price for taxes,fees etc in France. Also the Euro has gone badly against you in the last 6 months so they are actually a lot more expensive just because of the £/Euro rate. Try looking at:

www.french-property-news.com/fpn/regional.htm
www.jbfrenchhouses.co.uk

And buy a magazine calling Living France. Loads of property and web sites in the back plus useful info.

The JB site is very good and the people that run it are very helpful too. They were the best we dealt with. In the end we abandoned France due to the ferry costs and bought one in Scotland instead.

Happy hunting. If you email me your details I'll send you a book on Buying a Home in France as I don't need it now.

[Edited for typos....probably more in there but I've been on the booze]


[Edited by chinnybloke - 7/24/2003 10:46:11 PM]

Flyboy-F33

Is Jaycees comment correct? Do you really have to pay 2.5% of the property value each year in tax? Havn't heard that before and it seems quite high.

GG

248SPG

Chris,

Just been listening to a local Radio station here in Berks and they have a Spanish homes Exchitbition on in a Hotel in Basingstoke tomorrow (Saturday 26th)

Didn't catch the name of the Hotel but thought I would let you know.



Steve

RichardC

Spain is like England. You can buy on the Costa Del Sol and you will pay very high prices. If you buy inland you can get the same size house with tons of land for the same price. Don't trust what prices the brocheres state for new builds, as the prices can change daily, and the builder only knows the correct prices.
If you are looking at an investment then i bought a 3 bed near La Manga for approx £120,000 and have been told that it is worth nearer £150,000. The house will be completed April 2004 and I only signed for it 8 months ago.

Look around the exhibitions for a good agent.

RichardC

jaycee

For Flyboy the doubting thomas!!

Info taken from www.yhis.com

The cost of owning property in Spain


There will of course be costs associated with owning a property in Spain. Some of these will be maintenance costs, such as cleaning, repairing, reforming, utility bills, rubbish collection, and so on. These will be determined by the size and type of the property you buy. Obviously a large villa with a garden and pool will require much more effort and cost to maintain than a small apartment. A good agent should be able to give you an idea as to the maintenance costs you will face for different properties.

Apart from the general maintenance costs referred to above, there are a number of costs in the form of taxes and fees that property owners in Spain face.

Property Ownership Tax (Impuesto Sobre Bienes Inmuebles - IBI)
A local tax on the ownership of property in Spain, irrespective of whether the owner is a resident or not. Calculated on the basis of the valor catastral, the tax rate goes from 0.4% - 1.1% of the valor catastral , depending on the location of the property.

Annual Wealth Tax (Impuesto Sobre Patrimonio)
Both residents and non-residents have to pay an annual wealth tax on the net wealth they own on 31st December of each year. For non-residents this tax only applies to assets located in Spain. Non-residents who only own property in Spain (and no other types of assets) can expect to pay a wealth tax based on the value of the Escritura Publica or the Valor Catastral, or a value assigned by the tax administration for the purposes of other taxes - which ever being highest. The tax rate varies between 0.2 and 2.5%.

Personal Income Tax (Impuesto sobre la Renta de No Residentes - IRNR)
Non-residents who own property in Spain have to pay an annual income tax . The tax will vary according to whether the property is rented out or not.

In certain cases, non-resident property owners must appoint a fiscal representative who is resident in Spain. This representative proves very helpful as personal income tax is self assessed and submitted.

Residents have to pay annual income tax known as the Impuesto Sobre La Renta De Las Personas Fisicas.


Jason





[Edited by jaycee - 7/25/2003 12:11:15 PM]

banshi

Gary

I think you'd be fortunate to find a "real" villa in a popular beach location for that price now. A few years back they were building nice detached places predominantly for Swiss/German buyers at around 120k.

They are now putting two quads,(2/3 bed back to back semis)in similar plots and selling to the Brits @ 70k a time. Sometimes even demolishing quality villas to achieve this.

As Richard says the market is booming on the Costa. Btw where have you bought?

British sales play a significant part, hence the exihbitions & UK based estate agents. Now most local offices can conduct business in English so don't be afraid to approach them.

Determine your prefered location and spend some time there with your own itinery. The major operators busing Brits around the Costa have deals with specific builders and will prioritise on high commission eaners.

Whilst some are more subtle than others the low cost viewing visits are invariably high pressure pitches. Some stories I hear make double glazing salesmen seem honest So if you go that route set out determined not to buy on the first trip.

Personally for new builds I'd try to deal direct with the developers.

SJ_Skyline

Built this site last year, http://www.simplyspanish.com/ may be worth a look.


Rich

Flyboy-F33

Thanks Jaycee.....that sounds like a lot of tax. I think I'll buy a yacht instead, It may not appreciate but I can always move it around.

ScoobyWon't

Adavantage of the Canary Island to mainland Spain is that the taxes are lower, IVA isn't paid at all but instead IGIC which is 5%.

There isn't a yearly 2.5% tax either.

Oh and I can tell you how to easily save yourself a shed load of the 5% IGIC tax legally!

jaycee

I'm all ears!!

Jason

GaryK

Banshi,

Dont get me wrong, we'll have done well and your right, prices have hiked some, if we didnt buy when we did we would get a 1 bed place at best now on our budget. Our apartment is in Altos De Calahonda, up in the hills in calahonda. Its a 2 bed 2 bath apartment with fully fitted kitchen and is nicely done.

For me the costa has lost some of its appeal and we may sell the place.

Gary

banshi

Sorry not very clear. I was wondering where Rich bought.

The coast from Alicante to La Manga is almost a single building site. But I know what you mean in the "good old days" this area was predominantly used by Spanish holidaymakers and very little English was spoken. Now you walk into a Supermarket and you could be in the East End.

The idea is to move inland I suppose. But whilst these foreigners are OK, I know two with Scoobs It's important not to be isolated after all a pint and a little banter is an essential requirement