buging property in spain

cancun_2

need some guidance please.
I'm about to buy a property in spain and want to know if anyone has done this successfully.Its a new property in Torrevieja and i hope to rent it out once complete. Also need to get mortage sorted both in spain and here. I have been doing a bit of research and some sums i know i can afford it (just) but would like some guidance on how to go about doing this all.

Any advice on how to do this as stress free as possible would be much apprecciated

YorkshireBoy

cancun wrote:

need some guidance please.
I'm about to buy a property in spain and want to know if anyone has done this successfully.Its a new property in Torrevieja and i hope to rent it out once complete. Also need to get mortage sorted both in spain and here. I have been doing a bit of research and some sums i know i can afford it (just) but would like some guidance on how to go about doing this all.

Any advice on how to do this as stress free as possible would be much apprecciated

I have a work colleague with a property in Torrevieja, and have taken my holidays there 3 times from 2001-2003.

In researching the area before we went, I found a few useful web sites...

https://www.torrevieja.co.uk
https://www.torrevieja.com
https://www.lamarinaforum.com (or could be .co.uk?)

On the https://www.torrevieja.co.uk site you will find there are several people (Steve Hall immediately springs to mind) who have written/offer free guides to buying/renting/living in Spain and the Costa Blanca in particular.

You've probably done the above, and more, but simply searching Google for items about Torrevieja will return 1000's of results.

Out of interest, whereabouts are you buying?

HTH
YB

cancun_2

i'm buying in centre of Torrevierja. Apartments are called Zammit.Its pretty scary taking this huge step but i think it will be worth it.Do you like the area and is it very popular for renting?I'll be going out in a few weeks time on an inspection trip

gatita

Hi Cancun, I thought long and hard before I decided to reply to your post, as I am probably going to say some things you would prefer not to hear! I lived and worked for many many years in Spain and especially the Alicante region, my daughter is half Spanish and lives and works there now. I am telling you this so you will know I am not just a once a year holiday maker etc. I also speak Spanish fluently.
The area of Torrevieja is becoming a bit of a 'no go area' mainly due to the Russian mafia mob that seem to have taken over there! It is now quite a dangerous area, and a lot of people are trying to sell up and move to other parts. Ask yourself WHY is property so much cheaper there than in other parts of the costa?
I do hope you will not mind my writing this, but if nothing else, at least it will make you think and maybe help you to not make a costly mistake.

hairy_cornflake_2

Hi Cancun

I bought a 2 bed appartment in San Miguel de Salinas (off plan in Oct 03) - I am due to complete next month. Whilst initially very scary I had an excellent agent who has guided me all the way.

I like the websites that yorkshire boy has recommended - they give some very good information

In relation to mortgages - any good independent broker can sort out the mortgages for Spain and over here - that should be the least of your worries.

In relation to gaticas comments, I dont believe its becoming a no go area.

I think most towns the size of torrevieja whether they are in Spain, UK or in fact anywhere in the world is going to have an unsavory element - thats human nature.

The last time I compared torreviejas prices to other locations I would hardly call it cheap.

My agent have a website -:

https://www.millenniumworldwide.com

Best of luck

WHA

Have you checked out what local taxes you will be liable for and whether they can be offset against UK taxes? I am thinking about income tax (and Spanish equivalent) on the rental income (less allowable expenses) and the capital gains tax (and Sp eq) upon final sale.

A lot of people seem to think that UK taxes are mirrored overseas, which is not the case at all. Some countries, and even areas within countries have very different types of taxation.

You may find yourself paying some form of local tax which can't be offset against UK taxation, effectively meaning that you are taxed twice in each country. There are double taxation treaties between most countries to prevent this sort of thing, but you can't assume that this will work for you without checking it out properly.

Examples I have come across include an overseas equivalent of capital gains tax, but where an annual tax is charged on the property value instead of a capital gains tax type of charge upon eventual sale, the overseas tax not being called "income tax" nor "capital gains tax" nor worked out similarly, hence not being allowed under the double taxation treaty.

I'm not an expert on these matters, but I have seen enough of these obscure cases to be very wary with buying overseas. I would strongly suggest that you take proper professional advice from both an overseas and UK property taxation expert (not estate agents, letting agents nor builders!), and ask the local chambers of commerce etc in Spain just to put your mind at rest that there are no "funnies" in your chosen area!

Natelle_2

Hi Cancum,

Let me first of all clarify my position in relation to this matter. We have a villa approximately 4 kilometers outside of Torrevieja, and have owned this since 2001. We live part of the year in the UK and part of the year in Spain. We are not two week or once a year holiday makers. We have also recently began an agency for Spanish property. I mention this not for your business but to save any one checking our personal details and saying that we are trying to mislead you.

I cannot agree in any way what so ever with the following comments made by gatita "The area of Torrevieja is becoming a bit of a 'no go area' mainly due to the Russian mafia mob that seem to have taken over there! It is now quite a dangerous area, and a lot of people are trying to sell up and move to other parts. Ask yourself WHY is property so much cheaper there than in other parts of the costa?".

I would agree with the comments of hairy_cornflake, "In relation to gaticas comments, I dont believe its becoming a no go area.
I think most towns the size of torrevieja whether they are in Spain, UK or in fact anywhere in the world is going to have an unsavory element - thats human nature.The last time I compared torreviejas prices to other locations I would hardly call it cheap

There have been arrests in the past few months of some people reported as Russian mafia, in Alicante, if I remember correctly, which were related to drug smuggling through the port there. I certainly don't remember Torrevieja being mentioned in the papers as a no go area, and our none of our neighbours or friends in Torrevieja are rushing to sell up to evacuate from the area.

Property prices are continuing to rise and selling. A lot of the re-sale properties on the market are due to owners trying to cash in the rising prices and upgrade their property or release capital gains. As you will know from your investigations there can be a long wait for offplan purchases.

If you want an up to date picture of the Costa Blanca area and Torrevieja have a look at the following site, if you haven't already, http://www.costablanca-news.com

The matters which I would suggest you might like to re-appraise is the choice of location of your proposed property "i'm buying in centre of Torrevierja" and the main reason for the purchase.

There certainly is a market for rental properties in the Torrevieja area, however it is my believe that there is a situation of the supply being greater than the demand. There have been so many properties sold on the back of the potential for rental. You must consider the location, location and location of the property, the closeness of the beaches, whether there is access to a communal swimming pool, the type of clients you will be aiming at,the facilities they want and need, and questions like that.

If you are looking for a property for your own use with the added bonus of a few weeks rental, to assist with the running costs, then the rules of the game are different.

The company with whom you are going on the inspection trip will be able to assist you with banks, mortgages and solicitors if they are a reputable agent.

As a final recommendation I would say if the financial aspects work out then go for it. We are intending to spend even more of our time in Spain and less in England. If it was purely my choice I would be living in Torrevieja full time.

I hope I haven't gone on too long.

cancun_2

Natelle

You say that we need to consider location...can you recommend any up and coming new locations that would be ideal for us.
We are also looking at an apartment in Montesinos.It says that it is 15mins from everything..
I really would appreciate your comments on this.
What is realistic for renting in this area.Would it be possible to rent all year round or the majority of weeks of the year. We are complete amateurs to this and need all the advice that we can get.
My husband and i are starting to doubt if this is a good investment or too much of a risk!

Thanks for taking the time to look at my questions.

gatita

All I have to say is that I disagree with Natelle and Cornflake..........take a look at the links below. Even the Spanish are VERY concerned with the level of crime in Torrevieja. On the 2nd link I know its is in Spanish, but you can have the page translated, (BADLY lol:rolleyes:) but maybe it will give you a general idea.

http://www.thinkspain.com/news-spain/6232

http://servicios.lasprovincias.es/valencia/pg050303/prensa/noticias/Sucesos/200503/03/VAL-SUC-141.html

On the 2nd link I would draw your attention to the last but one paragraph where it states:

"The Costa Blanca is one of the biggest focal points in Spain for mafia organisations, of the 75 known ones in the area, , 50 of them are situated in Torrevieja"

I rest my case:o

Lara

Cancun: have pm'd you

Natelle_2

gatita: As it's not our intention to get involved with drugs, illegal immagrents, counterfeit goods or anything else that is the wrong side of the law, it's doubtfull if our path will directly cross that of the mafia. There are drugs, illegal immagrents and the like, in our home town in the UK and we don't get in involved with them either. There always is and always will be a criminal element in every part of every country, thats life.