I am looking to invest in property in Spain do you think this is a good idea or do you know of any pitfalls?
Answers:
This is really a minefield at present! There are so many issues at present here with property investment. There is the issue of land Grab (LRAU) laws, not just affecting people in Valencia, but also Murcia at the moment. There is also an issue with illegal builds, unsuspecting people come along and get taken in by builders and developers, sink their money into property and then find they cannot get the 'certificat of habitation' which is essential, all because the plans were never approved.
At the moment, property sales are in a slump, properties have been on the market for 12 months or more without a sniff of a viewing,let alone an offer. 50% of new builds are empty, unsold, and 9% of all the housing stock is empty. there are heavy rules applicable to letting property and this is being clamped down on with the town halls, an owner is not allowed to rent out without the correct paperwork and paying 17% on the rental income.
Cost of living is very much comparable with the UK, its not the cheap place it was even from 3 years ago, and with the lack of competition with the utilities, they take the pee quite a bit with their service to customers, many people are waiting 3 years or more to have a telephone line installed, only one company, so no one else to go to.
When you see a property, dont burn your boats be selling in the Uk first, take 6 months out here, rent a place where you want to be, and get a feel for the place, a couple of weeks holiday is not enough to know what the place is like out of season or in the mountain areas, its very different indeed. There is a lot of resentment from Spanish to Brits and others, for buying here as its pushed the prices up for them too, many cannot now get on the housing ladder, just as in the UK.
Always remember, the price of a property is not the price you pay, you need to add anything up to 15% to cover taxes etc.
You also need to consider if you are planning to completely relocate, what you will do for income, the place is saturated with every kind of business and tradesmen, so they are all merely scratching a living, its in a recession and its clear for those that live here, that it will bite deeper yet
In all honesty, I would look to other places for a bettr investment, Bulgaria, Hungary, Morocco, all up & coming places with property at far better prices
Other answers:
Go for it!! my mum lives in Spain, has done for the last 5 years and spain is undergoing a lot of development, which means the property prices are soaring, so you had better get in there quick
Go for it!! my mum lives in Spain, has done for the last 5 years and spain is undergoing a lot of development, which means the property prices are soaring, so you had better get in there quick
yes go ahead and buy your property in spain of course it will be a good investment,just make sure you get a good solicitor and that every thing is legal and above board and that there will not be any comebacks to you, good luck.
Your a little late getting off the starting blocks.
Property in the Costa's has boomed and now is not a good investment.
In land is still very good but they have started loading the prices for the British by around an extra 20k plus the estate agents are loading the profit margins.
You need to tread carefully and follow the rules or you could get stung. Find someone you trust who has already purchased as they will know all the pit falls. What ever you do don't buy off plan.