I'm in Marbella at the moment researching the low-end accommodation sector (ie:- 1* pensions/ hostals/ hotels) with regards to moving from Australia in the near future and getting into the business. I was wondering if the prices of such places (primarily the properties I mean, not the businesses) have dropped by much over the last year or two, and if so will they continue to drop? I know this is akin to asking about the length of the proverbial piece of string but I would still be interested to hear what people think.
With regards to buying a commercial property, I have also been told the following 'on the qt' by an apparently reputable source (a business broker operating here for a number of years):-what's important is the valuation of the property and not your income or indeed the income of the business. In assessing a commercial property for mortgage purposes the bank will take no more than a cursory look at the businesses trading history. Your finance broker or abogado is all important when it comes to applying for finance. The 'Spanish Way' is if you have the right contacts then they will use a 'tame' valuer to get the deal done. For example, on the face of it you aren't able to borrow more than about 60% to purchase the freehold of a commercial property- maybe 70% as an absolute maximum. However, if the property has, say, dropped in price by 50% over the last couple of years then there's every chance that the bank will still go off the older valuation (especially if it ties in with the valuation of the property that is listed in the Land Registry) and if they do then they will lend against that regardless of the price that you have agreed with the vendor. So effectively if a property is valued at one point two million euros but you agree a price with the vendor of 600,000, the bank will lend you 60% of 1.2 million- 720,000, which is more than enough to cover the purchase price plus costs!
I have spent quite a bit of time on google etc researching this whole thing and I have to say there's not very much information around at all about buying commercial property in Spain, whether from the banks or anywhere else. From my experience that leads me to believe that what I'm being told isn't as far off the mark as it may sound (and perhaps not off the mark at all). I'm starting to believe that plenty goes on here that's 'under the radar' and things can be accomplished if you know how the system works.
I'd be very interested to hear any feedback from anybody with experience of such matters 'on the ground'.
With regards to buying a commercial property, I have also been told the following 'on the qt' by an apparently reputable source (a business broker operating here for a number of years):-what's important is the valuation of the property and not your income or indeed the income of the business. In assessing a commercial property for mortgage purposes the bank will take no more than a cursory look at the businesses trading history. Your finance broker or abogado is all important when it comes to applying for finance. The 'Spanish Way' is if you have the right contacts then they will use a 'tame' valuer to get the deal done. For example, on the face of it you aren't able to borrow more than about 60% to purchase the freehold of a commercial property- maybe 70% as an absolute maximum. However, if the property has, say, dropped in price by 50% over the last couple of years then there's every chance that the bank will still go off the older valuation (especially if it ties in with the valuation of the property that is listed in the Land Registry) and if they do then they will lend against that regardless of the price that you have agreed with the vendor. So effectively if a property is valued at one point two million euros but you agree a price with the vendor of 600,000, the bank will lend you 60% of 1.2 million- 720,000, which is more than enough to cover the purchase price plus costs!
I have spent quite a bit of time on google etc researching this whole thing and I have to say there's not very much information around at all about buying commercial property in Spain, whether from the banks or anywhere else. From my experience that leads me to believe that what I'm being told isn't as far off the mark as it may sound (and perhaps not off the mark at all). I'm starting to believe that plenty goes on here that's 'under the radar' and things can be accomplished if you know how the system works.
I'd be very interested to hear any feedback from anybody with experience of such matters 'on the ground'.
