Buying a house in Spain

C

cullenswood

Guest
Hi,

I am toying with the idea of buying a house in Spain for investment purposes (ie one that I will rent out to tourist etc). I have a mortgage already over here, but I was wondering what is the story with getting a mortgage for the Spanish house. Would I be able to get one from an Irish bank, and would the same rules apply, ie I would only get 92% of the value of the house etc.

Thanks
 
spain

Look for Brendans post on Spanish property, I agree with his view even though I do own a holiday place out there.
I would have question, is it an investment in the real sense of the word.
A mortgage in spain could cost you €4k and that 10% on a €100k property + 11% other purch costs + €1.5k/annum to run it.

If you intend to let it and NOT tell the Revenue then thats a risk I would'nt take, even though a lot are at it.

Also, who is going to let it, you directly or an agenct (more cost)
So, you have rent - costs - the return you would be getting elsewhere(or the mortgage) - renting agency costs.
And what if the Spanish revenue decide to come after you.
Also, if declaring her then Tax.

0]
 
re

check out this web site it may not be in the area you are thinking of but a lot of people seem to have problems renting their property www.torrevieja.co.uk this place is a short drive to both Alicante and Murcia airports which have the low cost carriers
 
Re: tracy

Some points to note:

Property prices are slowing down in Spain.
Spanish wealth tax (patrimonio) is income tax at 25% and 2% of the properties value.
Gross rental tax is 25% of income. This must be paid whether the property is empty or not.
You need a gestor (spanish acccountant), to work this out approx E1,500 per year for wealth tax and local rates.
Average management charges lowest 25% of rent up to 35% for anyone decent.
web-site www.holiday-rentals.com might be worth checking out. They charge E230 per yr (I do not work for them!)
 
Re: tracy

I caught two minutes of Trevor McDonald on TV last night with tales of woe from 4-5 English couples who had bought in Spain & ended up in legal/builder hell.
 
re

The people who ended up with planning/legal problems was because they did not get an english solicitor to deal with the problems buying in abroad. This can happen anywhere in europe.
 
Re: House in Spain

A friend of mine is selling his beautiful 3 bed house in Torevieja, close to beach etc. You can send me a personal message if you want and I will give you a contact number. The house is close to Alicante or Murcia and is in a better area of Torrevieja than most.

Slim 8)
 
slim

Why is he selling?
Is in a non delievering investment?
Is a crime problem?
Poor location ?
Poor location in Torrevieja?
Does he plan to but agin in Spain?
If so, where?

What has changed, since he actually decided to buy it that has made him change HIS mind?

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Planning

The people who ended up with planning/legal problems was because they did not get an english solicitor to deal with the problems buying in abroad. This can happen anywhere in europe.
Click to expand...

If rainyday is referring to the problem I think he means, an english lawyer could do nothing for him.

The scandal in the Spanish property market right now is the seizure of privately owned land (often that of foreign owners) by spanish developers who then proceed to develop the land. Sometimes charging the ex-owner for the cost of installing a road, and lighting and drainage.
This is all being done by the exploitation of a loophole in Spanish law which was introduced to prevent private landowners hoarding land and preventing development.

Pretty scary stuff.
Glad I'm not in that market right now.
 
planning

Surely if they got the correct legal service they would be aware of the loophole in the law??

There is no guarantee that the law will not change in any country that will affecthome or holidays homes. Planning policies changes from year to year so who know what the these people will come up with around that table!
 
lrau law

this mainly affects people who bought detached properties on large sites and it is a scandal - its gone to the EU.
The new properties build on urbanisations or urban areas are clear of this.

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Re: House in Spain

[qoute]Why is he selling?
Is in a non delievering investment?
Is a crime problem?
Poor location ?
Poor location in Torrevieja?
Does he plan to but agin in Spain?
If so, where?
He is looking for a bigger property with a pool along the coast. The house has more than doubled in value. He does not really rent it out.The area of Tvja is lovely and close to beach. Crime is preventable there with full alarm fitted.
Click to expand...
 
Re: House in Spain

I fecked up that post as I had it all neat and quotes then I went for a different emoticon and lost the whole thing. why does that happen. Re-wrote it and screwed it up. Doh!
 
thx slim

I have an apart on edge of tva but i don't rent it. This year I went looking for a little house near a beach or further in with a pool and just did not see anything we liked.
Also, some stuff out in la zenia has got pricy - 2 bed 80 m2 for 180k.

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price

Compared to Ireland that is cheap. What are you complaining about you get a pool and sun near a beach. Where would you get for that in Ireland?

Ireland starts at around half a million and from posts that I have read here on this board the property is not even a property house that you could walk in and live there before you could do that you would have to do some renovation work as well??
 
price - apples and oranges

the price basis in one location will be different in another
and depends on local factors eg, site in Dublin and a site in Kabul.
0]
 
apples and oranges

Never hear of a place called Kabul in Ireland???
 
Re: Torrevieja

Prices in La Zenia and along the coast have generally gone mad and I think this will lead to the decline of the area as a new build location. Pal's house is in an area known as Montemar, 200yds from beach/marina - I think it's a bit further out than La Zenia, just past the Aguamarina apts. It's a 3 bed semi detached with room for a small pool. He is looking at going further north for bigger properties/pool etc.

Slim 8)
 
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