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Hello to you all,
Can I first start by telling you what Not to do, because I and many others have made this very same mistake? It’s costly and all that’s left at the end of our experience is just that…”Experience” but by then it’s too late.
We have treated the home buying experience in the same way we buy cars, so allow me to explain this fully as to exactly what I mean.
Firstly I speak from two types of experience. One I have worked in the motor trade for the last 17 years and Two I also bought a brand new property. So here goes......When buying any thing we always want the best but can not always afford to buy brand new, so we buy what we can afford. This happens through out our lives but at some stage we tell ourselves that “ONE DAY WE WILL BUY XYZ BRAND NEW”
This usually starts with a car, we have promised our selves this and most of us keep promises and especially if it’s for ourselves. Now those of you that have purchased brand new cars at least once in your lives will know only to well that this is a big mistake when you try and sell it within the first 3 years, because of the amount of cash you loose on it, also most new cars have teething problems and although there is no such thing any more as “running in a car”They are not at their best until they are 6 to 12 months old.
So what you should have done is to buy one that’s an ex-demonstrator or an ex- lease car / hire car that at least 3 months old and no older than twelve months old.This way you get all the benefits of the new vehicle i.e. newness, warranty, reliability, style, etc.
But what’s this got to do with houses in Spain? Well quite a lot really because that’s exactly what most of us have done in Spain with regards to our purchases. We all got sucked in to buying our houses in the same way that we bought our first brand new car, we thought why not buy New?
Well as you now should all know, that’s what every one did; they bought new because the same timeshare reps you met on holiday years ago moved to Spain to sell new properties. With all the same promises of how much money you can make.WRONG….!
The developers keep on building them and we idiots keep on buying them, which means we can not sell ours because people want NEW. Viciouse circle begins.But here is the punch line and my reason for this posting.
Don’t buy new, buy resale because they really represent far better Value for money and like a car they are not truly at their best until 12 months have passed.
Take my apartment for example it’s been valued at 289000. The agents want a whopping 20,000which means it worth 269,000. Will I get this? Probably not as I have bantered it around a few places and there is not a great deal of interest, a few sniffs but that’s it. I am desperate to sell so I am now loosing on it by reducing the price down to just 239,000 that’s 50,000 euros I can whistle good bye too.Not to mention the luxury furniture etc that I kitted the place out with. All in all I have spent a further £20,000 not euros so I am well down in my pocket.
It’s on this site here at “eye of Spain” http://www.eyeonspain.com/Property-for-sale-details.aspx?ref=SP462 reference SP462 and when I bought it I was very shrewd about what I was buying.
Instead of buying some thing that was 2 a penny I bought it on a golf course for tranquility, this fortunetly is still the case, I bought security through out inc latest gadgets of sensors, grills, double locks and underground parking, again this has been a god send with all the crime that’s around.
So my choices were good but getting people to contemplate the idea of buying resale’s in the past has been a no-no, that’s up until now. Just watch what happens in the very near future as people like you realize that the real bargains are in the RESALES NOT NEW!
We as new buyers have done all the spade work with lawyers constant visits worries, builders problems etc, etc, and paved the way for others to take advantage and make a killing. Houses/ apartments that have been lived in are what you could call "run in" they have had all the teething problems smoothed out and generaly made pretty for you.
Don’t loose your hard earnt cash on false promises, listen to me and save your self a large fortune.
I hope this helps loads and loads of buyers now and always!
My very best regards.
Love Love.
Brian.
_______________________
Its not what you are- its who you are that matters in life!
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Good post Brian
We have also realised this and have been fotunate enough to obtain a refund on our off plan purchase after seeing resales on the same development as we purchased on cheaper than we paid. Besides this there are ongoing delays with the develpment.
We are now viewing resales only,where we can negotiate on the price and like you point out most off the stress of buying new has been taken away from us. Its not only the agents commison that has to be taken into account but also the iva that goes on every sale.
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Hi Brian,
Welcome to the forum,some very valid points points but not all people that buy new are "idiots" and not all people selling them are ex "timeshare reps".
Some people will always buy new for the reason of they do not want a property that has been lived in,whether this is right or wrong it is there perogative,as to the fact resale are better value then ask yourself if you were Mr Builder and had 15 houses standing empty,would you give someone a discount?the answer is yes and they do it through the agents.
Re Sale properties are sometimes cheaper, sometimes not,it all depends on the vendor and their financial situation.If they bought 10 years ago and are not too greedy then you can get a good deal,if they bought 2 years ago from a large agent that added 18% and then want a decent profit then the price is not going to be that great.
A prime example is on a development that we sell there are still 2 properties avaliable at €230,000,someone rang me recently and asked me to put their identical property on the market that they had purchased a year ago for €285,000,i refused,it was then sold by a large agent for the asking price(not a great bargain me thinks!).
You can get a bargain at the moment in either new or resale because the supply is outwaying the demand.
I do not think comparing a car purchase to property is a fair comparison unless you have very expensive taste in cars,also every car depreciates immediately and not so with property anywhere.
Finally, not all agents add massive commisions to property,if you shop around you could market the property at your price and not an inflated figure.
You will find that you still have to do as much work on purchasing a resale as you do a new build property,the legal aspects are the same.
Keep posting, as its nice to get different perspectives.
Samson-You will still have to pay 7% tax on a resale just under a different guise,unfortunately you cannot escape the tax man.
Regards
Georgia
_______________________
www.taylorlandandpropertygroup.co.uk
still here after all these years!
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Call me a cynic if you like (most "regulars" already know I am), and it's not that I disagree with Brian's comments or think that he hasn't offered some useful insight for new buyers, but is this post not just a very elaborate sales pitch for his "bargain" property, with a subtle link to the page where his paid for ad is?
Brian, no offence meant, I actually think it's rather clever!
_______________________
"Get your facts first, then you can distort them as you please"
Mark Twain
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And all well and good IF you want one immediately and IF you have the money available immediately. Buying off-plan means you have, in most cases, a couple of years to plan, sell your existing property if necessary and raise the readies. So, great, if you are buying a second home and have a couple of hundred grand spare (lucky you) but for the majority of us I would suggest ordering now and moving in a couple of years would suit us down to the ground. OK, so prices are not rising much at the moment but when I bought mine (six and half years ago) it was £66,000. When we moved in, 20 months later, they were selling for £96,000 due to increases in value and decreases in the value of the pound. I had 3/4 of the money when I ordered it and it gave me over a year and half to raise the rest. If I'd waited, I'd have had to find an extra 30 grand in that year and a half which was out of my budget. The new one I ordered last year will be ready at the end of next year which gives me time to sell the one I've got and at the price it was when I moved in. So I haven't made anything in 4 and a bit years but I certainly will have on the original purchase price. Oh, and it's no good saying I'll have to pay the 7% IVA on the new one because I'd have to pay 7% in transfer and other taxes as well if I bought a resale. Remeber the so-called housing crash in UK in the 90s with negative equity etc? Those who held on to their homes have seen them rocket since then. My UK house in 1985 cost me £27.500 which I thought was extortionate. In 1995 they were selling for £65,000 and now at almost £200,000. I'm afraid, Brian, that you've just picked a bad to time to sell. Please have a look in 5 or 6 years and see what the demand is. Good, well priced property will always be a sought after item. Little ticky-tacky boxes with peeling walls on sale at more than the price of a new one won't.
A hackneyed phrase but horses for courses.
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Brian - what you state is true, resales cost less than their 'new' counterpart. I to have spent the last 15 years in the motor trade,that was clever way to get it noticed, and a great sales pitch for your place. May I add its very nice it is too. 
_______________________
"the past does not equal the future"
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Hi gtcstudio,
So what you are saying in fact is everybody who buys a new property then goes on to sell it for less!!?
Dont forget this not a ford escort we are talking about it's bricks and mortar!
There are very few examples of a development that has resale for less than the new build price,the only time this happens is when people are desperate to sell.
Bobaol-Some great points there,exactly right,its what suits your needs and finances at the time.
Regards
Georgia
_______________________
www.taylorlandandpropertygroup.co.uk
still here after all these years!
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Hi There every one!
Georgia may I just quietly step in here and say that IN THE PRESENT CLIMATE yes some of us are actually loosing money!
I for one have joined this site in the hope to sell my bricks and mortar at considerably les than what it should be worth!
FIFTY THOUSAND EUROS LESS (50,000) or £30,000. To be exact!
Ok I admit I am desperate to sell it and who ever buys it will have a real steal on their hands but at the moment the market is not what you could call buoyant.
So unless you can afford to hang on to your property UNTILL the market changes it’s exactly like a Ford Escort at the moment for some of us owners.
Who ever buys an under priced resale at the moment certainly can’t lose, but buying New is not a wise move.
Let me give you an example here:
If you bought your Ford Escort brand new and your neighbor bought his ford escort almost new for example the same model as you but he bought it second hand and six months after you, when you both sold your cars together at the same time you would have lost far more than your neighbor. That’s why I am urging people to buy resales at the moment because they not only represent more value for money generally, but at the moment because all property prices are lower then they really are a fantastic.
I hope you did not mind me trying to make sence of my analogies.
Full respect to all.
Brian755
_______________________
Its not what you are- its who you are that matters in life!
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Hi Brian,
I totally agree with you,at the moment you can get a great deal on resale as you are dealing with distressed vendors,after all you wouldn't sell at a loss unless you had to would you,this shifts the balance of power to the buyer creating a"buyers market".
I am not disagreeing with what you are trying to say it is just that it is only a proportion of the market and cannot be applied across the board.
Not everyone can proceed with a resale financially as you need all the money in the here and now and some people will always buy new.
I sell predominantly resale property,so as you can imagine i am not trying to put a dampner on it but you have to account for all taste and requirments.
I wish you all the best with your sale and hope you find a buyer soon.
At the end of the day the property is only worth what someone is prepared to pay for it.
By the way there is is only one o in losing
All the best
Kind Regards
Georgia
_______________________
www.taylorlandandpropertygroup.co.uk
still here after all these years!
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Hello Georgia,
Yes I take your point as well.
Thank you for pointing out how to spell losing.
I will confess to being a terrible speller which I am not proud of, my talents are else where.
However thanks for pointing that out to me and now I want to return the favor:
You should of put a capital i when referring to yourself ( I )
There is an E in your dampner should read ( dampener )
And finally your word requirements should also have an E in it (requirements)
I am not very educated due to having gone to 14 different schools I did not pick much of an education up but I have done ok.
I never point out errors normally to people but in this case I will make the exception. LOL.
Also sent with Kind Regards x
Brian755
_______________________
Its not what you are- its who you are that matters in life!
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The peryls ov pinting out speeling errurs reers its hed yet agen.
You mack won litle mistook and they awl jump over yu. Stil, if yu is gonner pint owt sumwon elses errur, yu gotta tek the consekwensus.
Bak on thred now????
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Spelling, motor bikes, cars
I'm just glad as a first time buyer, that I use more conventional things to pick what I buy, when, and how.
I have my last son in university 18months left of support for food and houseing, so that means to me I could not comit to a second mortgage,
What should I go for: New House not resale
I'm not in it to make a profit, I need to get on the property ladder but the massive interim/staged payments, are beyond me at the present time.
What should I go for: New House, OFF Plan, the right payment schedule.
I'm concerned over solicitors contracts builders, WHY SHOULD I DO IT.
Take advise,
Some of us don't have 250000 euros, to out lay, we buy new, off plan, because that is the only way we can.
We could all buy and mortgage on the promise of some agent that the rental would pay back more than the out lay,
But some of us just want a property to retire to and not rent out, enough beds for my children to visit and enough money in the bank to get by,
Not spending the rest of our lives buying and selling for a better return, I hope the property I get now is the one I "sign off" with.
To all first time buyers, look around this web site all the quetions you have, will have been answered before somewhere, you will see regular members who give advice, I sent messages direct, and got sound clear advice.
don't look at my spellig or grammer.
I'm just a Manchester lad who's herting just a bit, after saturday.
_______________________
I Live in Warrington & Cabo Roig
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Ooo errrrrrr, Jontymellor,
A little miffed about the Blues getting the cup!?
Just cos me and the old git are Chelsea fans, I won't rub it in....................come on you blues!!!,,,,whoops, sorry!
Anyway, you are right, you can't buy a pad in Spain if you can't afford it.
We bought our place knowing that we could afford the mortgage (actually we took out an equity release), but anyone that goes into the buying process in the hope that rentals will ay their monthly outlay, have to be mad!
It is just not a gauranteed option!
We wanted a place for US, bous now and again if we rent it out to friends and family, but do the sums.
Be prepared that you DONT rent it at all, and make sure your pocket can finance it without rentals.
We never wanted our place to be rented out, this we hope will be our place to retire, so we have made it our home.
Who would would Tom Dick or Harry in their "family" bed?
(Mind yu, depends on how good looking they are!)
Seriously though, if you are looking to buy and rent to cover yur costs, dont' , it will end in heartache!
Regards,
_______________________
FibbyUK
One off fee to pay your own La Renta tax (210 Form)
Check out my website:
http://www.payingtaxesinspain210form.pwp.blueyonder.co.uk/
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Me miffed
I've been suporting them since 1967, these days of top of the leages and semies and finals are great even if we don't win.
But back to the thread, a house in spain is great, but it's that, my house, and if and when I get it, the winters will be mine and my 3 Kids all grown up with families by then, and my brothers Kids, it will probibly be full for f the other part of the year any way, who's got time for rental!
Regards
_______________________
I Live in Warrington & Cabo Roig
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Hello to you all,
Can I first start by telling you what Not to do, because I and many others have made this very same mistake? It’s costly and all that’s left at the end of our experience is just that…”Experience” but by then it’s too late.
We have treated the home buying experience in the same way we buy cars, so allow me to explain this fully as to exactly what I mean.
Firstly I speak from two types of experience. One I have worked in the motor trade for the last 17 years and Two I also bought a brand new property. So here goes......When buying any thing we always want the best but can not always afford to buy brand new, so we buy what we can afford. This happens through out our lives but at some stage we tell ourselves that “ONE DAY WE WILL BUY XYZ BRAND NEW”
This usually starts with a car, we have promised our selves this and most of us keep promises and especially if it’s for ourselves. Now those of you that have purchased brand new cars at least once in your lives will know only to well that this is a big mistake when you try and sell it within the first 3 years, because of the amount of cash you loose on it, also most new cars have teething problems and although there is no such thing any more as “running in a car”They are not at their best until they are 6 to 12 months old.
So what you should have done is to buy one that’s an ex-demonstrator or an ex- lease car / hire car that at least 3 months old and no older than twelve months old.This way you get all the benefits of the new vehicle i.e. newness, warranty, reliability, style, etc.
But what’s this got to do with houses in Spain? Well quite a lot really because that’s exactly what most of us have done in Spain with regards to our purchases. We all got sucked in to buying our houses in the same way that we bought our first brand new car, we thought why not buy New?
Well as you now should all know, that’s what every one did; they bought new because the same timeshare reps you met on holiday years ago moved to Spain to sell new properties. With all the same promises of how much money you can make.WRONG….!
The developers keep on building them and we idiots keep on buying them, which means we can not sell ours because people want NEW. Viciouse circle begins.But here is the punch line and my reason for this posting.
Don’t buy new, buy resale because they really represent far better Value for money and like a car they are not truly at their best until 12 months have passed.
Take my apartment for example it’s been valued at 289000. The agents want a whopping 20,000which means it worth 269,000. Will I get this? Probably not as I have bantered it around a few places and there is not a great deal of interest, a few sniffs but that’s it. I am desperate to sell so I am now loosing on it by reducing the price down to just 239,000 that’s 50,000 euros I can whistle good bye too.Not to mention the luxury furniture etc that I kitted the place out with. All in all I have spent a further £20,000 not euros so I am well down in my pocket.
It’s on this site here at “eye of Spain” http://www.eyeonspain.com/Property-for-sale-details.aspx?ref=SP462 reference SP462 and when I bought it I was very shrewd about what I was buying.
Instead of buying some thing that was 2 a penny I bought it on a golf course for tranquility, this fortunetly is still the case, I bought security through out inc latest gadgets of sensors, grills, double locks and underground parking, again this has been a god send with all the crime that’s around.
So my choices were good but getting people to contemplate the idea of buying resale’s in the past has been a no-no, that’s up until now. Just watch what happens in the very near future as people like you realize that the real bargains are in the RESALES NOT NEW!
We as new buyers have done all the spade work with lawyers constant visits worries, builders problems etc, etc, and paved the way for others to take advantage and make a killing. Houses/ apartments that have been lived in are what you could call "run in" they have had all the teething problems smoothed out and generaly made pretty for you.
Don’t loose your hard earnt cash on false promises, listen to me and save your self a large fortune.
I hope this helps loads and loads of buyers now and always!
My very best regards.
Love Love.
Brian.
_______________________
Its not what you are- its who you are that matters in life!
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Brian has confirmed my suspicions about his motive for this post, by "bumping" it up the message board simply by copying and pasting his original and rather elaborate advert for his property. It's up to Justin what to do with it, but if anybody agrees with me, I suggest posting irrelevant messages after mine so that his advert gets buried again!
_______________________
"Get your facts first, then you can distort them as you please"
Mark Twain
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Sorry Roberto but you are wrong!
Yes I have copied and pasted it but not before writing to Justin about it.
I suggest you speak with him to confirm my motives but its all above board. Its to do with the video Justin did informing every one on how the new posts work since Sept 2006.They are working backwards for some reason. When some one starts a thread it should be the first thing people see when they click on that thread, after all that’s why they are clicking on it. But at the moment the starter threads are at the bottom not the top, so if people want to see the starter thread at the moment they have to go to the bottom.
I am awaiting his reply and have resent the original message again so Justin or his staff should also see 2 of my messages, both being the same. Like I say if you have a problem with this please seek help with Justin direct and do not drag others into what you see as being wrong. I have not done any thing to upset any one I hope!
And I am sure it will all be sorted out soon. As for an elaborate advert all I can say is just remember that this site is paid for by paying clients like me, I am not ashamed of advertising the fact that I am desperately trying to sell my apartment and I am full of praise for the opportunity.
I am trying to add value to the site with my knowledge and information along with every post, which can not be said for every one. Some just scan the comings and goings to see who’s doing what and not really contributing. Sorry if I am now offending you now but I call a spade a spade and if I have something to say I say it to whom it concerns. I do not talk 3rd parties etc. Next time please contact me direct if you think I am doing something incorrect tell me direct and not go to the forum complaining about something you suspect! I have Private posts so there’s no excuse, I could not see yours though hence me having to write to you here. Chill out and sorry if this sounds strong, I am being honest, so let’s keep it friendly, open and not like this LOL!
Brian 755
_______________________
Its not what you are- its who you are that matters in life!
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Hi Roberto,
As you can see to my previous replies to brian's original posts i do not agree with all his comments and have said so in reply.
But in saying that i can vouch for the fact he is a guy in a genuine position of needing to sell his personally owned apartment and although he may have gone about it slightly the wrong way at first i can understand his position.
I was of the same opinion on first reading his posting untill i investigated and have been in touch through PM.
I thought i would add this as it may seem on first read that there is some commercial intent but as is say i have spoken to him and there was no malice intended.
Hope this helps
Regards
Georgia
_______________________
www.taylorlandandpropertygroup.co.uk
still here after all these years!
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Why would any one want to copy past the same message, when it was done I thought it was a mistake.
Roberto I'm with you!
And at my tender age of 50+, my life experience to date, 3 kids, 4 houses, 6 dogs all in the UK I agree, I still say BUYING A HOUSE is nothing like buying a car.
I may be shot down I have no real experience to give, I only know that the reason that off plan is good for me, is it is the only way I can afford it!
I'm not a person who has that much cash around, I pay my UK mortgage and other bills, I'm well payed, but who can afford, 30% on the nose then pay a second mortgage, and as I have found through this web site, if you have a average mortgage of around 70k in the UK and you want a Spanish mortgage of 70%, you better be on some earnings!
New or Reasle to buy is just a reason of what you can afford, I don't need anyone to tell me if I have got 300k euros in the bank that I could easily find a good resale deal, I would just look in the first German news paper where they are being unloaded with great speed.
There again with that 300k I could get a good key ready property to, and not worry about the first years of truoble as I would most likly have a survey and good lawyer on my side before I parted with any cash.
The problem is not new off plan or resale its getting people to buy within there budgets.
Sorry if this is out of line, its just my opinion
Jonty
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I Live in Warrington & Cabo Roig
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