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sam1994

Spanish property market

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In 2002 my parents bought a new build flat for £100k. They got something ridiculous on the Euro rate like 1.65, so I think they'd still be up.

The property is in fantastic condition; the community cares to maintain it and there's interest (Marbella). Places are selling.

Problem is.. Spain every year for a few weeks gets a bit routine like, and it's about £5k to insure it, maintain it.. Before you go on holiday. We're not getting good use out of it but don't want to rent it out. Too small for the parents to retire there.

Sell now, or wait? I hear the cranes are starting to fire up again and Spanish property building is going to resume.

Even if they sell for £100k now, they'll get 20 cracking holidays, plus save a holiday every year. 

S

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One of our clients is a property developer in Spain.

They have just sold one of their larger luxury properties in the Marbella area.

They have also put further development on hold due to "the changing market".

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21 minutes ago, DTMark said:

One of our clients is a property developer in Spain.

They have just sold one of their larger luxury properties in the Marbella area.

They have also put further development on hold due to "the changing market".

Yup, I'll believe that.

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3 hours ago, sam1994 said:

In 2002 my parents bought a new build flat for £100k. They got something ridiculous on the Euro rate like 1.65, so I think they'd still be up.

The property is in fantastic condition; the community cares to maintain it and there's interest (Marbella). Places are selling.

Problem is.. Spain every year for a few weeks gets a bit routine like, and it's about £5k to insure it, maintain it.. Before you go on holiday. We're not getting good use out of it but don't want to rent it out. Too small for the parents to retire there.

Sell now, or wait? I hear the cranes are starting to fire up again and Spanish property building is going to resume.

Even if they sell for £100k now, they'll get 20 cracking holidays, plus save a holiday every year. 

S

5k a year to insure and maintain a 100k flat? Wow. So the only reason to own it is speculation on it’s value.

If they’re bored with going there I’d say sell. 

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Assuming the place was built legally - and a lot of the costa buildings were not - then Id say they need to deprecate any spanish real estate at 5% a year.

Its probably not wroth the cost of knocking it down.

Seriously. Spanish property is not built to last esp. stuff from mid 90s to today.

If they can sell it for anything then bite the buyers hand off.

 

 

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4 hours ago, sam1994 said:

In 2002 my parents bought a new build flat for £100k. They got something ridiculous on the Euro rate like 1.65, so I think they'd still be up.

The property is in fantastic condition; the community cares to maintain it and there's interest (Marbella). Places are selling.

Problem is.. Spain every year for a few weeks gets a bit routine like, and it's about £5k to insure it, maintain it.. Before you go on holiday. We're not getting good use out of it but don't want to rent it out. Too small for the parents to retire there.

Sell now, or wait? I hear the cranes are starting to fire up again and Spanish property building is going to resume.

Even if they sell for £100k now, they'll get 20 cracking holidays, plus save a holiday every year. 

S

Which by my logic and maths has cost them £100k

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Is nobody with property in Spain somewhat concerned that their place might just be grabbed by their nutcase government at any time (potentially, to house migrants)..

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45 minutes ago, DTMark said:

Is nobody with property in Spain somewhat concerned that their place might just be grabbed by their nutcase government at any time (potentially, to house migrants)..

I would apply that to any country, except this one of course. We had a load of broohaha over one billionaire Russian lady buying an apartment funded from dubious source, then it all went quiet. Job done in the government's eyes, the proles bought the PR.

Meanwhile those 100,000+ Russian/Chinese millionaire property speculators look on and laugh.

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20 minutes ago, spunko said:

I would apply that to any country, except this one of course. We had a load of broohaha over one billionaire Russian lady buying an apartment funded from dubious source, then it all went quiet. Job done in the government's eyes, the proles bought the PR.

Meanwhile those 100,000+ Russian/Chinese millionaire property speculators look on and laugh.

It depends.

People are trucking idiots regarding property in far off -or close by - places.

Few countries have robust, un-bent property registers/property laws.

UK, US, Canada, Oz, NW, most of Northern EuropeScandi all are above board.

The rest of the world isnt, and that includes places like Spain and Italy, where the local title register tend to be in the local mayors.desk.

BIL (Italian) sometimes gets involved in Spanish property cases, trying to unrivalled unholy fuckups involving local mayors, dodgy builder,s bent salespeople and idiot forgners - not just Brits, but other Norther Europeans who've 'got a  good deal' in the sun. People use him as he speaks English - the lingau france for business and legal fuckups in Europe- and spanish, and hes not spanish, so-mething that becomes very important after Europeans first taste of Spanish legal brains.

Then you have property in places likeThailand and Cambodia. You might as well flush money down he drain.

Anybody buying property without a long term right to remain/cicitzhp is a fucking idiot. As the chinese and asians are going to find out i nthe UK.

 

 

 

 

 

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5 hours ago, sam1994 said:

In 2002 my parents bought a new build flat for £100k. ...............snip.............. problem is.. snip................ it's about £5k to insure it, maintain it.. Before you go on holiday. We're not getting good use out of it but don't want to rent it out.  ............ snip

Sell now, or wait? .......snip

Even if they sell for £100k now, they'll get 20 cracking holidays, plus save a holiday every year. 

S

An investment that has delivered no capital growth, no income and COST £5000 per annum.

That's probably all you need to know.

By way of comparison £100k put into a typical global equity fund in 2002 would be worth nearly >£250k now and have given an annual dividend income which rises year on year, now about £5k.

As to which will do better over the next 17 years, I'm afraid I can't tell you.

Good luck whatever you decide.

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Posted (edited)

I'd add that it depends on what the parents would do with the money.  If you suspect that they'd just take it and invest in a UK timeshare system (eg) then you'd be better off keeping quiet.

Edited by dgul

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1 minute ago, JoeDavola said:

Someone's getting rich off that apartment block and it's not his parents.

I think if you buy an older property in Spain, you are probably OK, and even get Spanish neighbours, which would suit me.

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6 hours ago, swiss_democracy_for_all said:

5k a year to insure and maintain a 100k flat? Wow. So the only reason to own it is speculation on it’s value.

If they’re bored with going there I’d say sell. 

The community fees are the problem, and why selling may be difficult. The president and administrator seem bent and don't look for fair value service companies. Not sure why we were paying a gardener my age 40 euros an hour when 1/4 of the < 25s are unemployed or something like that.. 

The planning permission is legit. The mayor only started taking bribes about a year or two after we bought..

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3 minutes ago, sam1994 said:

The community fees are the problem, and why selling may be difficult. The president and administrator seem bent and don't look for fair value service companies. Not sure why we were paying a gardener my age 40 euros an hour when 1/4 of the < 25s are unemployed or something like that.. 

The planning permission is legit. The mayor only started taking bribes about a year or two after we bought..

Latin culture. The gardener will be a relative or friend, possibly even paying some of that 40 Euros an hour back to the admin in brown envelopes. As will be the people who do all maintenance work, the money will be more serious for anything electrical or plumbing-related. 

They could rent it on AirBnB for the peak months, that might pay quite a bit of the 5k, and use it themselves in off-peak times. Otherwise I'd say sell and put it towards something bigger.

 

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