52.2%, 47.5% and a whacking 85% are the discounts on original book value that are being demanded by the Spanish ‘bad bank’* for the transfer of new build housing, second-hand housing and undeveloped land respectively, according to a recent Reuters report. These will bring the property prices down to the values that everyone knows are realistic, though perhaps are still not at true market level, as property prices have continued to fall largely due to the actions of the banks themselves as they desperately unload property and provide astonishing finance offers. With banks offering loans at 100+% of their property valuation, what can go wrong? If you’re intending to hold the property and know that you can afford the payments, it makes sense. However, if you’re wanting to sell again anytime soon, you’ll be competing against the banks without being able to offer such generous finance and therefore have to offer at a lower price. In addition, you’ll have the buying and selling costs, which can be up to 20%. Continue reading
It was an idealistic law in the first place and it should be that properties existing before it was created should remain forever. However, anything built after 1988 should be removed as having been built knowingly illegally. Banana Beach included as all involved should have known, advised or been advised that the property was illegal for many reasons including the Ley de Costas. Those involved have to be sued for negligence and criminal acts and professional indemnity insurers and the government pay compensation to those who bought ‘in good faith’ trusting their advisers, those issuing permissions and those with responsibility to oversee. Continue reading
In 2018, your property by the beach will be taken from you, demolished and the site left to nature. That was the effect of the original act of 1988 in the spirit of the 1978 constitution, which expressly declared coastline as public domain. It was then largely forgotten or ignored for 20 years until people began to realise that the end of the 30 year dispensation for occupation of the coastal land would be upon them very soon. Obviously, some people with influence were to be affected and so changes to the law are being considered to give the properties at least another 75 years; although they are going to have to pay a fee for that (the country needs the money!). Then it will be somebody else’s problem! Also some areas are less or not affected and, according to El Pais, about 10,000 properties are excluded altogether. The complaints of owners whose properties have already been demolished and neighbours who are being less laxly treated will no doubt carry on for years. Continue reading
Experienced investors will tell you that buying in a foreign market without the proper advice is too big a risk to take. While the reporters submit stories of cut-price properties in Spain and bargains just waiting to be snatched up, it is essential to confirm the correct current market value of a property from somebody very familiar with the area.
A Survey Spain Valuation Survey considers much more than the property itself, assessing the geographical location, market positioning and information on comparable properties. Our Independent Report will also assess and analyse the documentation available at the time, in an effort to identify any irregularities. Continue reading
A Nota Simple is an official extract report that contains a full property description and can be obtained from the local property title registry office or, by subscribers, over the Internet. This is a very important document in Spain, as it contains information about the legal status of a property. If you intend to buy a property of any kind, it is very important to know who is the registered owner, what is the registered description and what legal charges or restrictions are registered against the property. Continue reading
Mr. B, who was about to purchase an apartment in Spain, was made aware that a tornado had hit the town of Alcaucín, causing flooding to the underground car park of the development, with the water level up to 15 feet high.
The developer sent him a structural report in Spanish, but it was very brief. Upon visiting the site, he noticed that further damage had been caused. It became quite clear that the damage was a lot more serious than the developer had initially stated. Continue reading
February’s monthly lunch of the award-winning Marbella Business Institute (MBI) took the form of a discussion on the future of local property and its values.
The intention was to benefit from the experience and knowledge of members of MBI. As it has been in existence for more than 30 years, its investor and entrepreneur business members have seen the Costa del Sol survive through at least three recessions and their subsequent booms. Continue reading
Despite all the scare stories and TV programmes recounting personal financial disasters, many foreign property buyers in Spain still spend hundreds of thousands or even millions of pounds or euro without having an expert look over the property for defects. Sometimes the buyer then ‘repents at leisure’ afterwards, both because defects are found or, as often happens too, the ideal property they reluctantly discounted because of imagined serious flaws, turns out only to have superficial easily remedied problems. Compared to the cost of the property or even just the costs of repairs or checking the legal status, the investment is small for the reassurance provided by a RICS survey. Continue reading
Campbell D. Ferguson of Survey Spain Chartered Surveyors, recently had an article published in ‘Spain is Different’, which looked at the importance of using a surveyor when buying property in Spain. There can be issues such as incorrect legal paperwork, where a property owner may have carried out improvements legally or illegally that could be recorded inaccurately. Physical defects with the property may not appear to be problems at first, but can often result in serious implications further down the line. Concrete decay, damp, insect attack, subsidence and earth tremor are just some of the problems that affect Spanish properties. The variable climate means that it is very important that property is adequately maintained. These are some of the issues that can be evaluated by a surveyor. Continue reading
A property has a generic value that most people will guess at, an experienced real estate agent will estimate and a trained professional – in this case a chartered surveyor – will be able to calculate more accurately without being influenced by the possibility of a selling fee or the emotion associated with property ownership.
There are tried and tested methods used by property professions to value every kind of property from retail units and warehousing to factories, office complexes and recreational facilities – not to mention homes ranging from the smallest studio to the largest mansion. Continue reading