Buying in Spain.....Now

[Red Leader]

Prices look really good and for a holiday home it looks bloody good value.
What do you think?

[dingg]

Brexit may bugger up the time you'll be allowed to spend there, if it gets policed by anyone.

[anonymous-user]

• Has planning permission been properly granted for the development?
• Does the developer actually own what he's selling to you?
• In a multiple development, what happens if other owners don't pay their service charge?

All of these points can be tricky in Spain, especially the third one in the case of "bargain" opportunities.

Example:

• New development of 20 apartments sold for €50,000 each
• Service charge €2,500 p.a.
• Property prices crash by a third and 10 absentee owners walk away.
• Outgoings to maintain the development don't reduce so the service charge must double to €5,000 p.a.
• These are now $33,000 apartments with a big annual service charge.
• Suddenly nobody wants to buy the apartments even though they are cheap, because the service charge is too high.
• Prices fall further as desperate sellers try to exit.
• More owners walk away.
• Service charge should go even higher but nobody will pay that much so the development falls into disrepair.
• Any remaining owners find they have unsaleable apartments and a hefty service charge.

And the answer is - buy quality. But quality doesn't often come cheap.

[Red Leader]

rockin said:

* Has planning permission been properly granted for the development?

• Does the developer actually own what he's selling to you?
• In a multiple development, what happens if other owners don't pay their service charge?

All of these points can be tricky in Spain, especially the third one in the case of "bargain" opportunities.

Example:

• New development of 20 apartments sold for €50,000 each
• Service charge €2,500 p.a.
• Property prices crash by a third and 10 absentee owners walk away.
• Outgoings to maintain the development don't reduce so the service charge must double to €5,000 p.a.
• These are now $33,000 apartments with a big annual service charge.
• Suddenly nobody wants to buy the apartments even though they are cheap, because the service charge is too high.
• Prices fall further as desperate sellers try to exit.
• More owners walk away.
• Service charge should go even higher but nobody will pay that much so the development falls into disrepair.
• Any remaining owners find they have unsaleable apartments and a hefty service charge.

And the answer is - buy quality. But quality doesn't often come cheap.

Good advice and thanks for taking the time to send it..just what I was looking for!

[WhiskyDisco]

Avoid properties with gardens and swimming pools.

[rdjohn]

rockin said:

And the answer is - buy quality. But quality doesn't often come cheap.

When I looked mid-June, there were about 8,000 properties for sale in the wider Marbella area, that figure is currently 13,200. However about 95% are not likely to be interesting.

The Spanish government is currently providing mortgage support to millions of mortgages, that will inevitably come to an end with dire consequences in areas that rely heavily on residential tourism.

The economy is down 19%, so inevitably prices will get even cheaper and possibly lower than before the financial crash. Timing a buying opportunity will be key and then needs to be balanced against the aftermath of the pandemic and Brexit. Fewer cheap flights, more hassle generally etc etc.

Some background info.

https://translate.google.com/translate?hl=en&s...

Edited by rdjohn on Tuesday 11th August 10:24

Edited by rdjohn on Tuesday 11th August 10:37

Edited by rdjohn on Tuesday 11th August 10:51

[droopsnoot]

I was once interested in doing something similar, and read a fairly recent question and its responses on another forum. The general idea was that many owners are so desperate to rent their properties that you can get a decent place for a month for not much money, and if you have any problems, it's down to someone else to sort them out. You don't need to tie your own money up, and if you don't like the place, or if it changes between visits (more development, different neighbours), you can just go somewhere else next time. At the time, investing the money was likely to produce enough annual income to cover the rental costs, so it'd be hard to justify buying. On the figures above, that's probably not the case any more, but there's still the potential hassle factor to consider.