19092015 60 Second Spanish Property Show

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Our Spanish Dream Part 33 First thoughts of property finding

PART 33 First thoughts of property finding

Over the years that we had considered buying in Spain, seen various family members and friends make the move and watched the market change, we had learned a lot.  It became obvious to us that we seemed to know more about how things work and more about thinking through and considering options than many of the self-appointed ‘professionals’.  It also became glaringly apparent over time spent with agents and at shows that agents were only interested in selling you property on their books, not helping you in finding the right place for you; after all their client is the vendor, (not you, the buyer), and the only way they make money is by selling you one of their client’s properties.

There were some large company’s around before the 2008 happened, that are unfortunately now re-emerging, offering cheap four day viewing trips.  They would fly you out, put you up in a hotel, assign a person to you as your ‘guide’ who basically met you for breakfast and never left you alone until late evening.  You would be driven round new developments and shown show houses, sold the dream and on the final day asked which property you would like to buy.  They were very successful.  The fact that you could have bought the same property cheaper from another source or that there were hundreds of re-sales that would offer you a better match to your requirements for less was irrelevant to these companies.  Once you moved into your new home you were often offered a job as one of their ‘guides’.  It was a lucrative business and resulted in some bad press for the Spanish property market.

So we saw a need for property finding rather than property selling.  A service that works for the buyer, not the seller.  The idea of Spanish Dream Property was beginning to form.

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Our Spanish Dream - Part 32: So, where were we left after 2008?

When we bought our house we did lots of calculations to ensure we could afford the house. We built in a contingency for both our own income declining (although we didn’t expect it to) and for the exchange rate dropping by 10%. “Why?” asked people we knew, “it’s not as if the exchange rate is likely to drop to 1.30€/£1, it’s never been that low.”

In the latter part of 2008 and whole of 2009 the pound struggled to stay above 1.10/£1, spending more time below it than above it. Dave’s work hours were cut to 4 days a week, the development company Bev did work for cancelled all outstanding projects, meaning commissions expected totalling thousands of pounds in the next few weeks were not going to arrive, many months of work for which she would now never be paid, and the part-time business needed more hours but still produced less income than before.

Our good news was grandchild number 1 had arrived safe and sound in December 2007 and grandchild number 2 was now on the way. On a sad family note, Dave’s Dad lost his long fight with illness in the summer of 2008 and his Mum was needing more care as dementia took an ever greater hold.

We kept our heads above water, but it was not the financial place we had expected to find ourselves in at all. The cost of running our Spanish house was now much higher due to the rock bottom exchange rate and rising running costs, it needed around 35-40% extra in sterling just to stay on an even keel. But despite all the doom and gloom it seemed people were determined to still have their holidays in the sun and bookings for 2008 and 2009 were good and both seasons full.

Dave and Bev Townsend have two homes, their main one in Norwich and a second home in Playa Flamenca in south Costa Blanca, Spain which they also let as a holiday rental www.house-by-the-pool.com. They run a property finding business offering a free service for those seeking to buy a property in the Costa Blanca (Alicante) or the Mar Menor area of the Costa Calida (Murcia) www.SpanishDreamProperty.com. Bev has family in Spain and they intend to move there full-time in a couple of years.

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Our Spanish Dream - Part 31: The banking crisis happens!

    

March 2008 will be etched on the memories of many people for all the wrong reasons. The banking crisis started, mainly in America, but it had begun. By the end of that year it seemed the whole world was in financial crisis. The bank bailouts were followed by entire country bailouts in the Eurozone. The Bank of England slashed interest rates to record lows, allowed sterling to go into free-fall to devalue the pound and started quantative easing to stop the UK going bankrupt too. The exchange rate had fallen from over 1.40 euros to the £1 to parity in just a matter of months – unforecast and unprecedented, in fact it was almost unbelievable.
Looking at things from the ex-pat perspective anyone living on a UK pension or other sterling income suddenly found their income had dropped by roughly a third. A UK pension/income of £800.00 per month had gone from over 1200 euros in January 2007 down to just 800 euros two years later. Add to that spiralling electricity and gas prices, increased living costs and no interest on any capital savings and many ex-pats found themselves in real financial hardship. With mortgages almost impossible to come by and people in real fear of losing jobs and just ‘sitting tight’ wondering how to ride out the crisis, it was the perfect storm for the collapse of the housing market.
Everyone knew that the building bubble would bust at some point, too many new builds were springing up along the Spanish coast, the rate of build was unsustainable, but a decline in building and maybe a small correction in prices was all that was required, so they said. Well, with construction companies going into liquidation overnight and the value of land dropping like a stone, building ground to a complete halt.
Re-sale prices went into freefall and in some areas the value of property halved. Negative equity abounded and some people had no choice but to hand the keys of their house back to the bank. This was far from Spain’s finest hour.

Dave and Bev Townsend have two homes, their main one in Norwich and a second home in Playa Flamenca in south Costa Blanca, Spain which they also let as a holiday rental www.house-by-the-pool.com. They run a property finding business offering a free service for those seeking to buy a property in the Costa Blanca (Alicante) or the Mar Menor area of the Costa Calida (Murcia) www.SpanishDreamProperty.com. Bev has family in Spain and they intend to move there full-time in a couple of years.

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18072015 60 Second Property Show

Ref: HEDR8403 Type: Semi Detached Area: Costa Blanca South Town: Campoamor

Beds: 3 Baths: 2 Pool: Yes Price: €180,000

Description: This 3 bedroom, 2 bathroom semi-detached house is located in Dehesa de Campoamor and just a few minutes walk to the beautiful sandy beach and marina. Situated on a small development surrounded by a pine wood this property comprises of a front porch leading to the longe/diner, independent kitchen with door to the utility area and a shower room on the ground level. Upstairs there is a family bathroom and three double bedrooms all with built in wardrobes and the master having a sunny balcony. Externally there is a front terrace, rear terrace and a side terrace with private swimming pool. This property benefits from being just a short walk to the beaches, restaurants and shops. Is fitted with hot and cold air conditioning and is to be sold full furnished.

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Welcome To the 60 Second Property Show                         3 Bed 2 Bath                             Townhouse in Villamartin

Ref: HEDRLD14217 Type: Townhouse Area: Costa Blanca South Town: Villamartin

Beds: 3 Baths: 2 Pool: Yes Price: €109,000

Description: Reduced from €119,000 to €109,000 This very spacious 3 bedroom, 2 bathroom townhouse, with private swimming pool is located in Villamartin. Local amenities, three golf courses and beautiful beaches are all just a short drive away. The property consists of a large lounge/diner with a log burner, a separate fitted kitchen with an adjoining utility room, a downstairs bedroom, a bathroom and storage cupboard. Upstairs is the second family bathroom, two double bedrooms and a sun terrace, with external stairs leading up to the large solarium with storage cupboard. Situated in an elevated position, the upper terraces offer fantastic views of the salt lakes and the distant sea. This property also benefits from hot and cold air conditioning throughout and off road parking. Sold furnished.

Our Spanish Dream - Part 30: Communities

We often get asked if a property is leasehold or freehold – those terms as such don’t exist. Effectively all individual properties are owned outright, but when you buy a house on a community, you own your house but the communal areas are owned by the community, which is all the owners together. The laws governing how communities are run are known as the Horizontal Laws and all communities have to be run according to these laws.

So what does owning a house on a community mean? First, it doesn’t suit everybody. The strictness of community living varies greatly. For instance, I know a community where all the air con units must be out of sight (so low down on balconies/solariums etc), all sun blinds are a particular colour and the pool is closed during siesta time, (when it’s hottest and you most want to use it!).

Our community is much more accommodating; you can have sun blinds in whatever colour you like, the pool stays open all day and if you want air con units you put them where it suits you. We also have a very understanding attitude to glazing in a terrace or changing your terrace tiles if you wish to do so. So although there are laws governing how a community is run, within that, the community itself decides the details.

On our community there are monthly ‘committee meetings’ and anyone can ask for a particular matter to be discussed and dealt with, but a committee run community is not common and brings its own challenges.

Every community has an unpaid President, elected at the annual general meeting for a one year period and usually a resident. There is also a paid Administrator, usually a legal firm. The President does have total authority which can get interesting if they don’t talk to people!

However they can only act within the law and the administrator is responsible for overseeing that side of things and the financial matters, such as collecting the community fees. A community may be as few as 4 or 5 properties or may stretch to hundreds, but 50 to 100, sharing one or two pools, is quite common. Fees will be dependent on the amount of community facilities so vary from around 400 euros to 800 euros per year (golf courses are a lot more).

Dave and Bev Townsend have two homes, their main one in Norwich and a second home in Playa Flamenca in south Costa Blanca, Spain which they also let as a holiday rental www.house-by-the-pool.com. They run a property finding business offering a free service for those seeking to buy a property in the Costa Blanca (Alicante) or the Mar Menor area of the Costa Calida (Murcia) www.SpanishDreamProperty.com. Bev has family in Spain and they intend to move there full-time in a couple of years.

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Our Spanish Dream - Part 29: Keyholders number 4

With no keyholders we contacted the lady we had met in October 2011. Her business was going well and she would be happy to meet us in February. We also went on-line and found another company and booked a meeting with them first.

The first couple arrived and we showed them our check list. They were fine about it but their costings were complicated so some cleans would be more expensive than others. He also said they would pop in on the renters unannounced and if they were out would let themselves in to turn off things like air con left running and leave a note telling the guests they should have turned it off. I was horrified! The idea that they would just let themselves in was totally unacceptable. I found the man very unpleasant, quite an abrasive character, and I could see he would upset people, including me!

It was a relief to meet the other lady again. Her business had expanded, her husband, now retired from the army, and her daughter and her partner were now working with her. The daughter would be responsible for our house. She was in her thirties, well presented, very likeable and had immaculate nails, (like her mother). I later discovered she had trained as a nail technician, which explained a lot.  We liked her and her partner. She was totally unfazed by the check list, her partner would do the airport transfers and any odd jobs. We signed them up, so relieved I didn’t have to deal with the abrasive guy again.

I’m delighted to say they are the best keyholders and cleaners we have had and all the guests have liked them too.

Dave and Bev Townsend have two homes, their main one in Norwich and a second home in Playa Flamenca in south Costa Blanca, Spain which they also let as a holiday rental www.house-by-the-pool.com. They run a property finding business offering a free service for those seeking to buy a property in the Costa Blanca (Alicante) or the Mar Menor area of the Costa Calida (Murcia) www.SpanishDreamProperty.com. Bev has family in Spain and they intend to move there full-time in a couple of years.

Our Spanish Dream - Part 28: Keyholders Number 3

    

So our holiday in October 2011 didn’t get off to a very good start, sacking the keyholders in the first couple of days. We had two weeks to find new ones and get them up to speed. We somehow heard about a new business locally so I emailed the lady. She was away on holiday so couldn’t come and see us until the following week but we made the appointment anyway. In the mean time I sat and put together a full ‘check-list’ for every single room and the outside areas of what we wanted doing before and after every guest. It was very long! The bottom line was simply that we wanted it as clean and presentable as we would like to find it ourselves if we were paying to stay there. We set the bar high.
The next day the air conditioning engineer arrived to service the units. We told him what was going on and he said his wife was looking for a small job and he would mention it to her. We met up, she was very pleasant, I showed her my check list and she took the job on a trial basis over the winter. Knowing she may not be carrying on beyond that we still met the other lady. She was immaculately turned out and I wondered how she could keep her perfect nails so good when she loved cleaning, she was very professional and we liked her. We explained that we had taken on someone over the winter but would like to keep her details in case it didn’t work out.
Our new keyholder was great for two seasons, but a change in her circumstances seriously dropped us in at the deep end when she had to move on short notice out of the area with her husband’s job in December 2013. She was so embarrassed about leaving us in the lurch she just left most of the keys in the house, locked up, sent us an email and posted the front door key back to us!  So in January 2014 we were again keyholder-less with a house in Spain and us in the UK!

 

 

Dave and Bev Townsend have two homes, their main one in Norwich and a second home in Playa Flamenca in south Costa Blanca, Spain which they also let as a holiday rental www.house-by-the-pool.com. They run a property finding business offering a free service for those seeking to buy a property in the Costa Blanca (Alicante) or the Mar Menor area of the Costa Calida (Murcia) www.SpanishDreamProperty.com. Bev has family in Spain and they intend to move there full-time in a couple of years.

 

Our Spanish Dream - Part 27: Keyholders Numbers 1&2

    

Keyholding is both the most important part of a successful rental and the most frustrating part of your rental!  When we first bought the house a lady at the estate agents said she would be happy to keyhold and meet guests when they arrived.  The guests would then pay her the cleaning and laundry fee before they left.  (It’s important that you show this as an extra on all your ads.)  So we paid her an annual fee and thought that we had things sorted.  The problem was that she really didn’t have the time to do the job properly and wasn’t flexible enough to fit around arrival and departure times of guests.
Towards the end of the first season she recommended a local business set up as full-time keyholders and cleaners.  Run by three people it went very well for the first 2 years.  Then one left and another couple joined, but the two couples fell out within months and the business was down to two people.  They had more work than they could handle properly and standards dropped so we had a heart to heart.  They asked for a second chance and we stupidly agreed.  The next season was a disaster!
They didn’t clean to the standard required, didn’t water our plants and the quality of service was going down all the time.  When we arrived ourselves at the end of the season I cried at the presentation.  It took us two solid days of cleaning for about 10 hours each day to get the house to a standard we wanted and we still had to do our usual twice yearly cleaning of voiles, bed covers, windows, shutters and cupboards and do the inventory.  So in October 2011 we sacked the keyholders!
Sacking your keyholders is fine if they are doing a bad job, but it rather leaves you in a difficult position when you return to the UK and you have no-one taking care of the house or preparing it for renters.
Some quick thinking was needed!

Dave and Bev Townsend have two homes, their main one in Norwich and a second home in Playa Flamenca in south Costa Blanca, Spain which they also let as a holiday rental www.house-by-the-pool.com. They run a property finding business offering a free service for those seeking to buy a property in the Costa Blanca (Alicante) or the Mar Menor area of the Costa Calida (Murcia) www.SpanishDreamProperty.com. Bev has family in Spain and they intend to move there full-time in a couple of years.

Our Spanish Dream - Part 26: You can’t get sea sick on a pedalo!

So having chosen south Costa Blanca as the place to buy a property because it is one of the few areas in Spain that doesn’t have mountains or lots of windy roads, due to my travel/motion sickness problems, you would think I’d be sensible enough to stay away from other things that cause an issue. But this is me, and I don’t always do the sensible thing. I have always hated the idea of depriving my family the joys others take for granted, so over the years I have been the ‘bag-holder’, standing for hours, totally bored and with aching feet, while my family have shrieked and squealed their way around several theme parks.

 

Benidorm may not be my idea of a nice resort but we have used the amenities there on several occasions. 

So I have stood for hours by the rides at the 

Terra Mitica theme park, tried not to get dizzy watching the children on rides at Mundo Mar and numerous fun fairs, and even braved bobbing about on the sea.

 

We have taken the short ferry ride from Denia to Moraira; I’m sure it was picturesque but I wasn’t able to look. We took a glass bottomed boat out to the waters around Calpe Ilfach to see the underwater life, and while they let me sit in the bottom looking at the fish it was fine, but then I had to sit up-top when they moved and that wasn’t fine. But I guess the classic was the pedalo – I have never been allowed to forget insisting that “you can’t get sea sick on a pedalo” and proving myself very wrong.

 

I’m sure there are many more attractions than I will never visit now my children can go without me that involve been spun around, flung around or tossed about in the Costa Blanca but please, do go an investigate them yourselves because the report won’t be what you would like to hear if you ask me to try them out for you..

Dave and Bev Townsend have two homes, their main one in Norwich and a second home in Playa Flamenca in south Costa Blanca, Spain which they also let as a holiday rental www.house-by-the-pool.com. They run a property finding business offering a free service for those seeking to buy a property in the Costa Blanca (Alicante) or the Mar Menor area of the Costa Calida (Murcia) www.SpanishDreamProperty.com. Bev has family in Spain and they intend to move there full-time in a couple of years.

Our Spanish Dream - Part 25: Keeping it Legal

Taxation is always a tricky subject. I’m not going to try and advise you on what you should pay, just that you should be declaring your income in both Spain and the UK if you are renting out your Spanish home and are a UK tax resident. The Spanish are slowly catching up with illegal renters and fining them for non-declaration and non-payment of tax.

We had always wanted to do things legally, but persuading our fiscal rep to do it was another matter. For years the ‘black economy’ had flourished and the Spanish tax authorities had largely ignored the situation. The financial crisis would change all that.  Post 2008 all European governments have chased unpaid taxes however they can, and not declaring your income in Spain carries high fines. The rules have changed in both countries over the past few years so do seek proper qualified advice on tax. The short version is that you need to declare your income in Spain and after certain allowances have been deducted you will pay around 24% tax on the net earnings. As Spain and the UK have a dual tax agreement you can declare in the UK your earnings, less certain expenses (what is allowed is different in the two countries!), the amount of Spanish tax you have paid and the HMRC will not tax you twice on the same income. BUT you MUST declare the income in both countries.

In some regions of Spain you need to register a rental property, Alicante region is just starting this but as at early 2015 it isn’t necessary if you only own one house. I suspect this will change. In some regions there has been a registration requirement for many years and in others there is none at all. The bottom line is that it is up to you to make sure you are complying with the local laws and national laws in both countries - if you don’t keep it legal then don’t moan if you receive a fine!

Dave and Bev Townsend have two homes, their main one in Norwich and a second home in Playa Flamenca in south Costa Blanca, Spain which they also let as a holiday rental www.house-by-the-pool.com. They run a property finding business offering a free service for those seeking to buy a property in the Costa Blanca (Alicante) or the Mar Menor area of the Costa Calida (Murcia) www.SpanishDreamProperty.com. Bev has family in Spain and they intend to move there full-time in a couple of years.

 

A great property on the Costa Blanca South

2 Bed 1 Bath Semi Detached in Villamartin

Ref: 4297 Type: Semi Detached Area: Costa Blanca South Town: Villamartin

Beds: 2 Baths: 1 Pool: Yes Price: €99,950

Description:  TOWNHOUSE WITH PRIVATE POOL 2 BEDROOMS 1 SHOWER ROOM, 1 WC FULLY FURNISHED KITCHEN COMMUNAL POOL EAST FACING

[Please click an image to enlarge]

 A great property on the Costa Blanca South

http://www.spanishdreamproperty.com/index.php?action=listingview&listingID=76948

Our Spanish Dream - Part 24: Lessons from the First Season

Dave had worked in the boat hire business and in a four star hotel. We’ve stayed in great hotels and rented cottages and villas ourselves. So when kitting out our house we considered what we would like if we were renting - a real home from home in comforts but with a touch of Spain.

So what did we learn from our first season of renting out house-by-the-pool.com? Well, first was that most renters are lovely people who appreciate a well presented comfortable property and respect it, the community and the key holders. Most! There was a small element that did none of these. When we came to do the inventory at the end of summer we discovered some were happy to take ‘mementoes’ of the house home with them and some were happy to claim they hadn’t broken anything. 

Why did they want our towels or our pillow cases? Glad to say it was a minority. A couple of others broke a glass or mug and replaced it with two, which was kind and unexpected.

What we hadn’t realised when we first began advertising the house was that we would be able to fill it ten times over in August, so we could be fussy about who we had stay. We had already decided no hen, stag or student parties, but from here on we spoke to everyone and asked questions. The next year we turned away two or three enquirers and still filled the season. If a person wasn’t respectful to us the chances were they wouldn’t be respectful to our keyholder, our neighbours or the house.

That first season was a steep learning curve. We discovered guests like and expect British TV, internet access, a games console (and games), air conditioning in every room, a coffee maker and a hair dryer. They don’t like sweeping the floor, taking out the rubbish or using their own beach towels instead of the bathroom towels on sand!

Dave and Bev Townsend have two homes, their main one in Norwich and a second home in Playa Flamenca in south Costa Blanca, Spain which they also let as a holiday rental www.house-by-the-pool.com. They run a property finding business offering a free service for those seeking to buy a property in the Costa Blanca (Alicante) or the Mar Menor area of the Costa Calida (Murcia) www.SpanishDreamProperty.com. Bev has family in Spain and they intend to move there full-time in a couple of years.

 

Our Spanish Dream - Part 23: First Guests

So with the first bookings in the diary we sent our son and his girlfriend out to the house in the Easter uni break to try out the house.  We arranged with our keyholder that he would be treated just as a paying guest, and in return for his free holiday he had to do a full assessment of the house and set-up.  Amazingly he was very complimentary on what we had done and the information we provided.  He was able to make a few suggestions.  That first year we also had two friends visit, one with her grandchildren and one with her teenage son.  The feedback we received was really useful and we were confident we were going about things the right way.

Advertising is an expensive business and we trialled several online sites.  Costs for these varied from several hundred pounds a year to free, and completing all the information for each site was time consuming.  In the end our bookings came almost entirely from just two of the sites, none at all from the free ones.  It pays to use a site ranked high in the search engines.

We also used, and still do use, our own web site with lots of extra information www.house-by-the-pool.com

Since those early days we have made many changes, sought feedback from every renter and listened to suggestions.  We have changed most of the furniture inside and out, installed air conditioning in every room, replaced kitchen equipment, installed satellite TV and wifi internet and much, much more.

Finding the right keyholders is critical and has been a long-running issue.  We’ll cover that in other posts.  We changed fiscal/legal representation as our original firm were insistent that we didn’t need to declare our rental income in Spain as nobody else did.  Our new representation were happy to help us stay legal and help with the tax declaration.

 

Dave and Bev Townsend have two homes, their main one in Norwich and a second home in Playa Flamenca in south Costa Blanca, Spain which they also let as a holiday rental www.house-by-the-pool.com. They run a property finding business offering a free service for those seeking to buy a property in the Costa Blanca (Alicante) or the Mar Menor area of the Costa Calida (Murcia) www.SpanishDreamProperty.com. Bev has family in Spain and they intend to move there full-time in a couple of years.

 

Our Spanish Dream - Part 22 Other People's Errors

    

I could write a book on this one!  Perhaps the most common error is buying in the wrong place.
We had friends who visited relatives living an hour's drive inland and were shown a plot of land by a local on which they could build their dream home.  Assuming they had just put down a deposit, I suggested they talk to their lawyer because if the plot was outside the village they would need 10,000m2 to be able to seek planning permission to build a property in that area and the plot was 6,000m2.  They didn’t know; they had believed the local man and paid for the plot in full in cash while on holiday!  They were under the impression that the Notary would advise them about planning matters but the Notary’s job is to check the sale is legal, not advise the buyer.  They hadn’t used an independent solicitor and they hadn’t used a property finder.  And despite having planned to be part of a large ex-pat community in the sun they had, on impulse, bought a large ‘goat field’ up a mountain where it snows for two months of the year.  Several years on and they still hadn’t re-sold the plot.
Friends of my parents sold their Spanish house and had to re-buy in a hurry.  They bought a place with a great view but no amenities and the wife doesn’t drive.  Buying a rural property is fine if you are in good health and both drive.  The plots are large and often have citrus or olive trees, or old vines to tend.  If your health fails or you become unable to drive you may find selling your rural property takes a long time.
The rules are simple: talk through your needs/wishes with someone experienced in Spanish property, take your time to assess the suitability of the properties you like, use an independent lawyer (absolute must), do your homework and think of the long-term.
At Spanish Dream Property we love helping people find their right dream property.

Dave and Bev Townsend have two homes, their main one in Norwich and a second home in Playa Flamenca in south Costa Blanca, Spain which they also let as a holiday rental www.house-by-the-pool.com   They run a property finding business offering a free service for those seeking to buy a property in the Costa Blanca (Alicante) or the Mar Menor area of the Costa Calida (Murcia) www.SpanishDreamProperty.com Bev has family in Spain and they intend to move there full-time in a couple of years.

Our Spanish Dream - Part 21: The Rain in Spain….

….falls mainly in the mountains!  Don’t be fooled into thinking that all Spain is wonderfully warm in winter.  There are ski resorts in the south of Spain but not in the south of England.  Within Europe, Spain is second only to Switzerland in the percentage of its land that is covered by mountains.  Madrid is the highest capital city in Europe.  The Costa Verde (Green Coast) is so-called because it has lush green countryside, so it rains - a lot.  Much of Spain’s mountainous interior is pretty empty, unless you count wild boar and birds of prey.

So if you are looking for winter warmth you head for the south or south eastern coasts.  If you like to wear your winter woollies you go inland or north.  The mountains are beautiful and majestic; in the summer they are bathed in sunshine, in the winter often shrouded in cloud, the higher regions white with snow.  We visited Granada in May, it was 25 degrees near Malaga but 15 degrees in Granada, above the city the peaks still draped in winter’s white coat.  In January the Costa De La Luz on Spain’s south west coast can be battered by Atlantic winds, and the storms of the Bay of Biscay can wreak havoc with the ferry timetables into Bilbao in northern Spain.

So, my message?  Choose wisely where you buy.  The Costa Blanca to the Costa del Sol are popular destinations for ex-pats seeking the sun for obvious reasons.  They don’t suit everyone and in places are very built-up or commercialised, but you can still find a quiet corner or buy close to one of the numerous national parks if you don’t want tourists. 

But the fact is that most ex-pats seek out other ex-pats and like to be able to buy a box of Tetley tea bags and a newspaper where the clues for the crossword are in a language they understand.

Dave and Bev Townsend have two homes, their main one in Norwich and a second home in Playa Flamenca in south Costa Blanca, Spain which they also let as a holiday rental www.house-by-the-pool.com   They run a property finding business offering a free service for those seeking to buy a property in the Costa Blanca (Alicante) or the Mar Menor area of the Costa Calida (Murcia) www.SpanishDreamProperty.com Bev has family in Spain and they intend to move there full-time in a couple of years.

Our Spanish Dream - Part 20: Doing The Sums

    

So, you have managed to save / beg / inherit / borrow for the dream holiday home in the sun and you have settled on Spain as your location.  What next?  Buying in Spain is not quite like buying in the UK.  The biggest shock to most people is the tax payable.  IVA (Spanish VAT) is paid on new properties for which levels are set by central government and at the time of writing (early 2015) the rate is 10%.  If the property is re-sale then Transfer Tax (ITP) is due instead, for which the rates are set by regional government, and these can change with very little warning.  We find property in the Alicante and Murcia regions.  At the time of writing the tax rates are 10% and 8% respectively.  Cheaper properties are not excluded from this tax.

In addition you will need to allow for legal costs – your independent solicitor (do NOT use an in house one!), Notary fees, Land Registry and other sundries such as your NIE’s.  These can amount to 3,000 to 4,000 euros.
Spanish mortgages were scarce during the property crisis but are now available again to those meeting strict lending criteria.  Taking out a mortgage in Spain is another expenses business, usually costing several thousand euros.
You may have heard of people receiving additional tax bills after buying a house because they got a bargain price.  This needs to be discussed with your solicitor at the time of purchase as there is insufficient room to cover the matter here.  You are welcome to contact us if you are concerned.
Because of the sheer costs involved in buying and selling in Spain it is very important that you get the choice of property right, buying the wrong property or in the wrong location is a very costly mistake.
That’s where we come in – Spanish Dream Property helps you get it right first time, and that matters!

Dave and Bev Townsend have two homes, their main one in Norwich and a second home in Playa Flamenca in south Costa Blanca, Spain which they also let as a holiday rental www.house-by-the-pool.com   They run a property finding business offering a free service for those seeking to buy a property in the Costa Blanca (Alicante) or the Mar Menor area of the Costa Calida (Murcia) www.SpanishDreamProperty.com Bev has family in Spain and they intend to move there full-time in a couple of years.

Our Spanish Dream - Part 19: Blood, Sweat and Broken Bones

We arrived for February half term week 2007 with giant bags; you could still fly with 25kg bags then without penalties.  We had sourced loads of discounted goods for the house and set to work.  Although we had cleared most of the rubbish on our previous trip, the serious sorting and cleaning started here.  With our web site up and running and our first bookings taken we needed to get it finished.

We scrubbed and cleaned every surface and cupboard.  We threw things out - a broken tv hidden in a wardrobe, torn and old bedding, giant paper fans that had been hung on the walls, (the only extra décor in the house), a broken hi-fi cabinet, oddments of cutlery, chipped plates and glasses, old mugs, old towels and endless sundry items.  The marble surround on one of the wash basins was broken so a new one ordered at a very reasonable price.  We found some good value DIY shops, second hand places and discount shops.  The washing machine was broken and even still had wet and rotting towels stuck inside it!  The new one was purchased and to my amazement the shop was happy to take away the old one for a very small fee (complete with towels!).

We fitted curtain rails, hung voiles, hung pictures, bought sofa throws, lamps, mugs, crockery, glasses, cutlery and bedding.  We rearranged what little outside furniture there was and bought more – it was plastic but all we could afford.  (It would be replaced over time.)  We scrubbed the balustrade, terrace, balcony and solarium.  We painted grills.  We stayed up late into the night and rose early to carry on.  We had to get it finished.

Finally, on the final evening it was ready to photograph properly.  We had packed already as we were leaving early the following morning and had taken the outside shots earlier.  Dave moved from room to room taking photos.  I moved the cases out of the way for a photo of the downstairs bedroom to the doorway of the shower room.  Dave took the photo, took a couple of steps back, and turned without looking, lost his balance and fell over the small case into the shower room!  He put his free arm out to save himself but hit the side of the wash basin on the way down.  He was badly winded and in pain all night.  It was only once we were back in the UK and he went to the doctors that he discovered he had broken two ribs on the wash basin!

 Before                                                                 After

Our Spanish Dream - Part 18: One week, two weeks...8 weeks!

Despite my parents, Aunt, Uncle, Grandfather and his partner Doreen having lived in Spain for many years, (in the case of Doreen and her children, since the 1960’s), we still managed to underestimate the Spanish red tape!  Another two attempts at completing the purchase were attempted. The lady’s new passport was certified in England as definitely belonging to her, and a copy of the certification was sent to Spain together with certified copies of her birth, marriage and divorce certificates and all produced by her solicitors, but still the Notary would not agree for the transaction to take place as the Power of Attorney was in the wrong name!  There was only one way the sale/purchase was going to happen and that was by the lady attending in person to prove she was one person, not two people. 

This put yet another delay on the proceedings as she needed to arrange time off work and flights etc.

Eventually on 15th December 2006, with the lady showing up with every piece of proof of identity she could think of with her, the Notary accepted the paperwork and the house was ours - eight weeks and one day after anticipated, but it had happened.  We finally owned our own house in Spain!  What a Christmas present!

Our next visit was already planned for February.  We had taken loads of photos on our previous visit ready for marketing the house as soon as we could for rentals in 2007.  There was much to do.  We had chosen the name for the house and web site when we found the first house in Cabo Roig, but it fitted this one just as well 

Dave and Bev Townsend have two homes, their main one in Norwich and a second home in Playa Flamenca in south Costa Blanca, Spain which they also let as a holiday rental www.house-by-the-pool.com   They run a property finding business offering a free service for those seeking to buy a property in the Costa Blanca (Alicante) or the Mar Menor area of the Costa Calida (Murcia) www.SpanishDreamProperty.com Bev has family in Spain and they intend to move there full-time in a couple of years.