Is It Dangerous To Buy Property In Spain?

Go Back   Expat Forum For People Moving Overseas And Living Abroad > Europe > Spain Expat Forum for Expats Living in Spain

Spain Expat Forum for Expats Living in Spain The Spain Expats forum is a dedicated community of people who have moved to Spain, or who are planning to. This is the place for Expats to meet and discuss anything about moving to, & living in, Spain.

Like Tree1Likes

Is It Dangerous To Buy Property In Spain?


Closed Thread
 
Subscribe to this Thread Thread Tools
  #1 (permalink)  
Old 12th January 2010, 09:23 AM
jojo's Avatar
Member
 
Join Date: Sep 2007
Location: Worthing UK/Nerja, Spain
Posts: 33,612
Rep Power: 349567
jojo has a reputation beyond reputejojo has a reputation beyond reputejojo has a reputation beyond reputejojo has a reputation beyond reputejojo has a reputation beyond reputejojo has a reputation beyond reputejojo has a reputation beyond reputejojo has a reputation beyond reputejojo has a reputation beyond reputejojo has a reputation beyond reputejojo has a reputation beyond repute
5022 likes received
5506 likes given

Users Flag! Originally from uk. Users Flag! Expat in spain.
Default Is It Dangerous To Buy Property In Spain?

My husband was sent this e-mail this morning, he subscribes to something or other and they send him e-mails every now and again. I thought this one was quite topical. I hope posting it here doesnt break any copyright rules ??????




Written by Nick Snelling . Eye on Spain!

Almost everyone is now aware of Spain's reputation as somewhere that is hazardous in which to buy property. Indeed, virtually every week a headline appears in the international press highlighting yet another scandal concerning Spanish property. Again and again, stories describe the plight of people who have bought property in Spain only to find, to their horror, that their properties have potentially ruinous problems. Some of these properties are not fully legal or subject to considerable liabilities, whilst others risk the compulsory loss of part of their land or, worst of all - a possible demolition order. It is enough to make anyone thinking of moving to Spain change their mind.

So, is it really dangerous to buy property in Spain?

Well, the honest answer to this question is a qualified - no. No, if you know what you are doing and no - if you are exceptionally careful and know the 'rules of the game'.

The trouble is that most people who buy property in Spain do so carelessly whilst naively imagining that the Spanish property industry operates much the same way as in the UK. It does not. Not at all! In fact, understanding this point, in its most raw and brutal form, is essential if you are to buy a property in Spain that is a safe and sound buy - both from the point of view of legality and investment.

Of course, if you are moving to Spain permanently and intend buying a property in Spain then the stakes could not be higher. Indeed, if you make an error it may be one that will cost you your life savings, turn a dream into a nightmare and risk everything that you have worked hard for over many long years. All of which is unnecessary - if you have the right knowledge.

After seven years in Spain (including working extensively within real estate), I think I have seen, one way or another, most of the problems and scams relating to Spanish property. Unfortunately, half the property problems in Spain are caused by the very nature of the Spanish property industry and half by property buyers themselves - who are frequently taken advantage of and act like 'lambs to the slaughter'.

Of course, there are guidelines to buying Spanish property safely. Some of the most important are:

1. Know the difference between 'Urbanizado', 'Fully Urbanizado' and 'Rural'. To understand these absolutely critical Spanish property terms is not 'rocket science' - but is so fundamental that you should not even be looking at property in Spain before you know what they mean and their very serious and differing implications.

2. Every Spanish property should have a Licencia de Primera Ocupación or First Occupancy Permit (sometimes known as a 'Certificado de Habitacion' or 'Cedula'). If it does not have one - do not buy it.

3. Only buy a property that is easily re-saleable - so be prepared to compromise on what you want if it means buying a re-saleable property. Obviously(!), know (objectively) what is or is not re-saleable. Guidelines are available and they are very important...

4. Never confuse a 'bargain' price with a sound buy. The two are not necessarily the same thing! This is as true of a property crash as it is of a boom.

5. Never accept the very existence of a property in Spain as evidence of its legality - even if it has been around for a long time. The property may still be illegal, semi-legal or have huge potential liabilities.

6. Be extremely wary of buying any Spanish property that is situated within less than at least 100 metres of the highest point that could be reached by the sea in a major storm.

7. Always use a Spanish lawyer for your conveyancing who:

a. Is completely independent of the seller and any estate agent.

b. A specialist in conveyancing.

c. Completely fluent in your language.

d. Fully and properly insured.

e. Is prepared (and does!!) place all advice in writing to you.

8. Always use a properly qualified, fully insured, experienced building surveyor to survey your property - even if this means using an ex-pat surveyor. (Good Spanish surveyors specialising in house survey work are very hard to find).

9. Never pay any 'black' money for a Spanish property - i.e. cash that is not shown on the Escritura (deeds) as part of the total property purchase price.

10. Never be pressured, never rush and always double check what you are told - and obtain written proof if you have the slightest doubt about the truth of some matter.

Follow the above and you will be well on your way to buying a sound property in Spain. Break the 'rules' and act without the right knowledge and you will almost certainly regret it!

Finally, I must stress that you can move to Spain and buy property in Spain safely. We did - and our property has been a sound choice on all levels. Even now, in the midst of a massive property crash, it is easily re-saleable and has preserved the essence of its value. But then we knew what we were doing and that moving to Spain to buy a property was an undertaking requiring serious preparation and planning - if it was not to end in disaster...


Nick Snelling is a freelance journalist and author of four books including: 'How to Move Safely to Spain' http://www.movetospain-safely.com Further articles and information can be seen on http://www.nicholassnelling.com

Article Source: http://EzineArticles.com/?expert=Nick_Snelling


Last edited by jojo; 13th January 2010 at 12:04 PM.
Quick reply to this message
  #2 (permalink)  
Old 12th January 2010, 10:21 AM
Pesky Wesky's Avatar
Member
 
Join Date: May 2009
Location: Near Madrid. Frequent visitor to Bilbao, love Asturias and Burgos
Posts: 17,938
Rep Power: 61177
Pesky Wesky has a reputation beyond reputePesky Wesky has a reputation beyond reputePesky Wesky has a reputation beyond reputePesky Wesky has a reputation beyond reputePesky Wesky has a reputation beyond reputePesky Wesky has a reputation beyond reputePesky Wesky has a reputation beyond reputePesky Wesky has a reputation beyond reputePesky Wesky has a reputation beyond reputePesky Wesky has a reputation beyond reputePesky Wesky has a reputation beyond repute
9077 likes received
8951 likes given

Users Flag! Originally from uk. Users Flag! Expat in spain.
Default

Quote:
Originally Posted by jojo View Post
My husband was sent this e-mail this morning, he subscribes to something or other and they send him e-mails every now and again. I thought this one was quite topical. I hope posting it here doesnt break any copyright rules ??????


Jo xx
Thanks Jo. Have printed it off to read on my lunch break (at 4 o' clock!)

Quick reply to this message
  #3 (permalink)  
Old 12th January 2010, 10:40 AM
Stravinsky's Avatar
Member
 
Join Date: Aug 2007
Location: Oliva, Spain
Posts: 5,690
Rep Power: 5938
Stravinsky has a reputation beyond reputeStravinsky has a reputation beyond reputeStravinsky has a reputation beyond reputeStravinsky has a reputation beyond reputeStravinsky has a reputation beyond reputeStravinsky has a reputation beyond reputeStravinsky has a reputation beyond reputeStravinsky has a reputation beyond reputeStravinsky has a reputation beyond reputeStravinsky has a reputation beyond reputeStravinsky has a reputation beyond repute
766 likes received
288 likes given

Users Flag! Originally from uk. Users Flag! Expat in spain.
Default

Its what I have said before.

If you bought a house in the UK and didnt know what you were doing, didnt use a solicitor and just accepted what the seller and agent said then you wouldnt be suprised I guess if it ended in tears. So why do it here!!!?

Quick reply to this message
Sponsored Links
Advertisement
 
  #4 (permalink)  
Old 12th January 2010, 11:14 AM
thrax's Avatar
Member
 
Join Date: Nov 2008
Location: Frigiliana/Torrox campo
Posts: 4,432
Rep Power: 9762
thrax has a reputation beyond reputethrax has a reputation beyond reputethrax has a reputation beyond reputethrax has a reputation beyond reputethrax has a reputation beyond reputethrax has a reputation beyond reputethrax has a reputation beyond reputethrax has a reputation beyond reputethrax has a reputation beyond reputethrax has a reputation beyond reputethrax has a reputation beyond repute
2398 likes received
1643 likes given

Users Flag! Originally from uk. Users Flag! Expat in spain.
Default

Absolutely right!! I personally know several Brits who are currently fighting off demolition but it is always down to one thing: they didn't do their homework and thought they could skip round the rules. Unfortunately, however devastating the outcome, if you don't follow the correct process you can risk everything. Someone I know built their own home based on a handshake with a local mayor in a bar. He is now in prison for corruption and they have nothing in writing to prove he agreed to the build (not that anything he agreed to would be worth much I guess...). They haven't lost it yet but obviously it is a very stressful situation to be in.

__________________
Before facebook nobody cared what you had for breakfast; they still don't.
Quick reply to this message
  #5 (permalink)  
Old 12th January 2010, 10:13 PM
Member
 
Join Date: Dec 2009
Location: Puerto de Santa Maria, Cadiz
Posts: 1,331
Rep Power: 10926
nigele2 has a reputation beyond reputenigele2 has a reputation beyond reputenigele2 has a reputation beyond reputenigele2 has a reputation beyond reputenigele2 has a reputation beyond reputenigele2 has a reputation beyond reputenigele2 has a reputation beyond reputenigele2 has a reputation beyond reputenigele2 has a reputation beyond reputenigele2 has a reputation beyond reputenigele2 has a reputation beyond repute
231 likes received
104 likes given

Users Flag! Originally from uk. Users Flag! Expat in spain.
Default

Reading this and related threads have made me rather depressed. People chasing dreams and when the roof falls in they hope their government, Europe or even the so called government of Spain might help them but sadly the world is not like that. They are on their own with no easy way out. What a mess. And even if these people were stupid and/or naive I still feel for them.

But refreshing here a touchy subject has been debated largely in a very civilised way. Hopefully that debate will lead to people being more cautious in the future. I guess that is what this place is all about. Take a bow everyone


Last edited by nigele2; 12th January 2010 at 10:16 PM.
Quick reply to this message
  #6 (permalink)  
Old 13th January 2010, 12:00 AM
Stravinsky's Avatar
Member
 
Join Date: Aug 2007
Location: Oliva, Spain
Posts: 5,690
Rep Power: 5938
Stravinsky has a reputation beyond reputeStravinsky has a reputation beyond reputeStravinsky has a reputation beyond reputeStravinsky has a reputation beyond reputeStravinsky has a reputation beyond reputeStravinsky has a reputation beyond reputeStravinsky has a reputation beyond reputeStravinsky has a reputation beyond reputeStravinsky has a reputation beyond reputeStravinsky has a reputation beyond reputeStravinsky has a reputation beyond repute
766 likes received
288 likes given

Users Flag! Originally from uk. Users Flag! Expat in spain.
Default

Quote:
Originally Posted by nigele2 View Post
Reading this and related threads have made me rather depressed. People chasing dreams and when the roof falls in they hope their government, Europe or even the so called government of Spain might help them but sadly the world is not like that. They are on their own with no easy way out. What a mess. And even if these people were stupid and/or naive I still feel for them.

But refreshing here a touchy subject has been debated largely in a very civilised way. Hopefully that debate will lead to people being more cautious in the future. I guess that is what this place is all about. Take a bow everyone
But it is a little annoying that the word out there is that it's dangerous to purchase property in Spain ...... whereas in reality it needn't be if the right precautions and procedures are undertaken

Quick reply to this message
  #7 (permalink)  
Old 13th January 2010, 08:55 AM
jojo's Avatar
Member
 
Join Date: Sep 2007
Location: Worthing UK/Nerja, Spain
Posts: 33,612
Rep Power: 349567
jojo has a reputation beyond reputejojo has a reputation beyond reputejojo has a reputation beyond reputejojo has a reputation beyond reputejojo has a reputation beyond reputejojo has a reputation beyond reputejojo has a reputation beyond reputejojo has a reputation beyond reputejojo has a reputation beyond reputejojo has a reputation beyond reputejojo has a reputation beyond repute
5022 likes received
5506 likes given

Users Flag! Originally from uk. Users Flag! Expat in spain.
Default

The problems with buying in Spain are alot of the time self inflicted. The guide above is showing you how to do it safely.

Lets face it, people tend to want a place in Spain, not only because its a nicer climate, the views, the lifestyle etc - but because they can - or could get more for their money and sometimes they get blinded by that.

The problem is that the rules in Spain are different to those in the UK and tend to be more lax - therefore it seems so easy to "ignore" warning signs and be a bit "naughty" (you'd not get away with it in the UK).

Jo xxx

Quick reply to this message
  #8 (permalink)  
Old 13th January 2010, 11:07 AM
Pesky Wesky's Avatar
Member
 
Join Date: May 2009
Location: Near Madrid. Frequent visitor to Bilbao, love Asturias and Burgos
Posts: 17,938
Rep Power: 61177
Pesky Wesky has a reputation beyond reputePesky Wesky has a reputation beyond reputePesky Wesky has a reputation beyond reputePesky Wesky has a reputation beyond reputePesky Wesky has a reputation beyond reputePesky Wesky has a reputation beyond reputePesky Wesky has a reputation beyond reputePesky Wesky has a reputation beyond reputePesky Wesky has a reputation beyond reputePesky Wesky has a reputation beyond reputePesky Wesky has a reputation beyond repute
9077 likes received
8951 likes given

Users Flag! Originally from uk. Users Flag! Expat in spain.
Default

At last! A clear article stating some of the facts!!
This is the kind of person the Priors etc need to be in contact with.

It's made very clear here
  • There are rules and regulations about buying property in Spain
  • Some of them are different to the UK
  • If you break those rules you are gambling with your investment
  • It is possible to buy property safely in Spain

Quick reply to this message
  #9 (permalink)  
Old 13th January 2010, 11:57 AM
Member
 
Join Date: Apr 2008
Location: Spain
Posts: 21,747
Rep Power: 47472
mrypg9 has a reputation beyond reputemrypg9 has a reputation beyond reputemrypg9 has a reputation beyond reputemrypg9 has a reputation beyond reputemrypg9 has a reputation beyond reputemrypg9 has a reputation beyond reputemrypg9 has a reputation beyond reputemrypg9 has a reputation beyond reputemrypg9 has a reputation beyond reputemrypg9 has a reputation beyond reputemrypg9 has a reputation beyond repute
5569 likes received
3290 likes given

Users Flag! Originally from england. Users Flag! Expat in spain.
Default

Quote:
Originally Posted by nigele2 View Post
Reading this and related threads have made me rather depressed. People chasing dreams and when the roof falls in they hope their government, Europe or even the so called government of Spain might help them but sadly the world is not like that. They are on their own with no easy way out. What a mess. And even if these people were stupid and/or naive I still feel for them.

:
But Nigel, why should the British or Spanish taxpayer help out those people who have made mistakes caused by their own foolishness?
We already do far too much of that in the UK, IMO.
I along with millions of others lost money because my investments didn't turn out as I hoped. The small print warns you about that, though....
I'm sick of my still large tax burden being spent on so many things I don't support - reckless foreign wars, feckless people who see welfare as a pleasant alternative to low-paid work ,duck moats and 'flipped' second homes for MPs : the list is endless.
I don't want to add to that : supporting people who recklessly took a gamble on a better life in a foreign land and found that it didn't work out.
Don't get me wrong: my name isn't Mary Thatcher But those people who worked hard all their lives, prudently saved for their retirement, stayed away from unsound get-rich-quick schemes and now find that 100k of investment returns them 500 a year are the people I feel sorry for. They would have been better off taking out huge loans and mortgages then taking up the benefits they are entitled to when the bubble bursts. So much for work and thrift....
The Government of Spain isn't 'so-called' by the way- it's very much in evidence round here. So many Plan E schemes...
But I suppose it's better for the economy to subsidise schemes whereby people work and local business benefits than to pay the dole for them to be idle.
I wonder if people in the UK would support such schemes whereby people on benefits who are able-bodied were obliged to do some socially useful work in return for state support? What do you think?
Wuppenau likes this.

Quick reply to this message
  #10 (permalink)  
Old 13th January 2010, 12:01 PM
Member
 
Join Date: Apr 2008
Location: Spain
Posts: 21,747
Rep Power: 47472
mrypg9 has a reputation beyond reputemrypg9 has a reputation beyond reputemrypg9 has a reputation beyond reputemrypg9 has a reputation beyond reputemrypg9 has a reputation beyond reputemrypg9 has a reputation beyond reputemrypg9 has a reputation beyond reputemrypg9 has a reputation beyond reputemrypg9 has a reputation beyond reputemrypg9 has a reputation beyond reputemrypg9 has a reputation beyond repute
5569 likes received
3290 likes given

Users Flag! Originally from england. Users Flag! Expat in spain.
Default

Quote:
Originally Posted by Pesky Wesky View Post
At last! A clear article stating some of the facts!!
This is the kind of person the Priors etc need to be in contact with.

It's made very clear here
  • There are rules and regulations about buying property in Spain
  • Some of them are different to the UK
  • If you break those rules you are gambling with your investment
  • It is possible to buy property safely in Spain
Agreed 100%
Did you see the ITV programme on Marbella last night? Loads of people there who bought safely.
Our villa was the large pink one on the top of the hill, BTW. The one with the Rolls and the two Bentleys in the garage
Seriously, though, those people bring more money into Spain in a month than the combined purchasing power of Almeria pensioner immigrants in a year.
Young idiots spraying champagne at 1500 euros a bottle over each other....
They obviously aren't expecting the bulldozers at the gates of their luxurious homes.

Quick reply to this message
Closed Thread


Quick Reply
Message:
Options

Register Now

In order to be able to post messages on the Expat Forum For People Moving Overseas And Living Abroad forums, you must first register.
Please enter your desired user name, your email address and other required details in the form below.
User Name:
Password
Please enter a password for your user account. Note that passwords are case-sensitive.
Password:
Confirm Password:
Email Address
Please enter a valid email address for yourself.
Email Address:
Location
Where you live
Expat From Country
Please select the country you originate from. This will appear as a flag when you make posts on the site.
Expat To Country
Please select the country you have either moved to or want to relocate to. This will be presented on the site when you make posts.

Log-in


Thread Tools

Posting Rules
You may post new threads
You may post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
VAT on new property in Spain cut by 50% until end of year Pesky Wesky Spain Expat Forum for Expats Living in Spain 1 5th September 2011 06:34 PM
Selling a Property in Spain perciverance Spain Expat Forum for Expats Living in Spain 6 28th July 2010 04:43 PM
Buying property in spain??? Pesky Wesky Spain Expat Forum for Expats Living in Spain 0 8th October 2009 10:21 PM
Buying property in Spain caz Spain Expat Forum for Expats Living in Spain 4 25th June 2009 02:39 PM

FORUM PARTNERS

ExpatForum.com is owned and operated by VerticalScope Inc.

Retiring Overseas Guides | Moving Overseas Guides | Cost of Living | Health Care Guides


All times are GMT. The time now is 08:26 PM.


Powered by vBulletin®
Copyright ©2000 - 2019, vBulletin Solutions, Inc.
Search Engine Friendly URLs by vBSEO
vBulletin Security provided by vBSecurity v2.2.2 (Pro) - vBulletin Mods & Addons Copyright © 2019 DragonByte Technologies Ltd.