Hello, Advice needed please on purchasing a coastal apartment in the Murcia area

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07 Nov 2011 12:00 AM by cslb94 Star rating. 3 posts Send private message

Hello,

We are looking to purchase an apartment in the Costa Calida and a little advice would be very useful!

We are new to buying a property in Spain, and are seriously considering buying a suitable coastal apartment mainly for holiday rental purposes.  We particularly thought the Murcia area would be a good investment, mainly due to the Paramount theme park being built in this vicinity and also the opening of the new Corvera airport.

However, we are not sure which particular areas would be an attractive prospect.  We are coming out to Spain in two weeks and wondered if anyone could recommend a village/town which they would consider suitable for rental purposes, but also near the coast and good value for money. 

Our purchase now will hopefully be an investment towards our pension

Any advice would be greatly appreciated!

Many thanks

 

 

 

 

 

 





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09 Nov 2011 4:00 PM by EOS Team Star rating in In Spain of course!. 4015 posts Send private message

EOS Team´s avatar

Welcome to Eye on Spain!

Well, I would have expected at least some estate agents or current owners to jump in here with some ideas.

I don't really know the area so can't advise but hopefully you'll get some responses soon.

As with most of the coasts, there is a huge amount of available property so take your time and do plenty of research.  If you are looking to do holiday rentals just remember that there is a lot of competition in this area now so you will need to "work" the property to get bookings in.

Best of luck and let us know how it all goes.

Justin



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09 Nov 2011 4:16 PM by gcarton Star rating. 144 posts Send private message

Look at Mojon Hills in Isla Plana, next to Puerto Mazarron. Fabulous views and great location near to beaches. Did not take much for us to be convinced three years ago. The urbanization is complete and with habitation certificates. There are various phases (discreet sections) and all told around 12 swimming pools. Good mixture of Spanish and Expats. Properties vary from one to three bedrooms and there some still available with bank mortgages. Some people do rent, but there is a lot of competition all around.

Guy





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09 Nov 2011 4:22 PM by lindaw164 Star rating in Glasgow and Jardins .... 253 posts Send private message

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As the previous poster said there is a lot of competion around regarding letting properties.  In my opinion (and it is only my opinion)  if you are buying to supplement your pension then you would probably be better looking back in the UK as the rents are nota s high as they used to be in the Spain.  The initial purchase price does not include the additonal tax you have to pay on top of the purchase price and the notary and legal fees can be quite high.  Also if you rent your property but are not an actual Spanish resident you get no allowances and the total rent received for the year is taxable.

Maybe just something to look into before you take that step!





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09 Nov 2011 5:15 PM by Bri Star rating in North. 591 posts Send private message

 I agree with the comments made by lindaw164.    Buying just to rent is particularly difficult when you don't know the area.  However, I would say that the properties around us that rent big time are all front line sea view.  If you can get that you can get 600 a week for a two bed apartment BUT only for July and August.  For much of the year you will be looking at 400euros a month and as pointed out you will no allowances.   If you were looking for somewhere to use yourself, I would say go for it - lots of bargains everywhere.  But in my opinion, investing in property abroad is only ever worth it if you love the place and want to use it yourself.

Good luck anyway. 



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09 Nov 2011 8:05 PM by Acer Star rating. 1492 posts Send private message

Hi cslb94,

I reckon the earlier comments made are good.   With the price of renting being so cheap and with the Euro problems still likely to happen...but on the other hand some might say this is the opportunity with some cracking deals to be had.

The problem for a lot of folk is that currently they can only be confident of renting their property in the peak months of July and August.    Possibly if and when Paramount happens there may be prospects of a longer rental period.  But if you want to use the place you buy in the summer you'll be unlikely to pick up much in the way of earnings.

But to answer your question, one place to mention though is Mazarron Country Club.  If you research you'll find lots of previous comment on this forum, mainly about the scandulous antics of the crooked developer.  But the place is now beginning to come together - the owners have taken control and gradually putting matters right.   It's an urbanisation that is a few miles north of Mazarron with an increasing number of facilities and security.  MCC is about 10 minutes drive from the nearest beach and has a good mixed European community with lots of functions, babeques etc throughour the year.  It's easy to get more info and 'photos etc with a quick google.

Hope this helps.



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09 Nov 2011 9:26 PM by cslb94 Star rating. 3 posts Send private message

Hi All,

Many thanks for the advice - we really appreciate it! This forum is a major part of our research on buying in Spain and we will certainly take onboard all your comments.

As a family we have travelled to Spain many times and love it (especially the climate)!  Although we do not know the Murcia area that well (have been to La Manga Club a few times) we were attracted mainly by the climate, accessibility (Alicante, San Javier and the new Corvera airport), the possibility of the new Paramount theme park and also by friends that have recommended this area. We have this wonderful vision, that we will be able to hop on a Ryanair flight at Bournemouth and be sat on our own balcony in Spain within a few hours! So it will be vital that our apartment will have to suit us as a family as well as having the option of rental.

During our stay next week,we will definitely go and have a look at the Mazarron Country Club and Mojan Hills.  I'm glad that you mentioned these places, as I've looked at so many properties on Rightmove and without knowing the area, I wasn't sure whether it was worth a visit - but will definitely do that now.  I can imagine there is a lot of competition with rental properties and therefore we  need to find a suitable apartment that will fit our budget, so we won't soley have to rely on rental income. Fortunately, we have a good deposit, so on my calculations, as long as we are able to rent the property out for 5 weeks of the year at an average of £260 per week, it will meet our borrowing costs. 

Thanks again

CSLB94

PS. An agent suggested that we allow just under 9% of the purchase  price of the property to cover tax and legal costs - would you say that was a fair assumption?

 

 

 

 

 

 

 





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09 Nov 2011 10:45 PM by Bri Star rating in North. 591 posts Send private message

 Have a look at Roda golf and beach club as well.  Lovely properties and now going at less than half the original price.  It has suffered from people failing to complete (like everywhere), but if the theme park goes ahead I think it will be a good investment.   I would rather be there than in Mazaron Country Club, though Mazaron itself is beautiful.  Can't remember now re purchase costs cos its a long time ago, but that sounds maybe a little low?   Someone will be able to tell you. Enjoy yourselves looking and don't rush into anything - prices are not going up for a long time!!!!  



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09 Nov 2011 11:01 PM by JazII Star rating in Mar Menor and UK. 133 posts Send private message

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 You might like to take a look at Cartagena, there are some gorgous properties there; also some of the towns such as San Pedro del Pinatar, Santiago de la Ribera etc have a lot to offer including various blue flag beaches on their doorstep, watersports, restaurants and cafes and the opportunity to practice your language skills.  





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10 Nov 2011 12:10 AM by sandrab Star rating in Bournemouth & La Ter.... 528 posts Send private message

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Hi

We are from Bournemouth and we do just that - hop on the Ryanair Shuttle and 3 hours later max we are chucking our bags in our Roda  Golf apartment and out for dinner!  Fantastic  - it really is a  lovely place and we just think it's fabulous.

Would be happy to chat to you more about the whole area and Roda in particular and if you pm me would be happy to pass on whatever information you might need. 

Regarding purchase costs I would probably allow more than 9% - more like 12% - IVA was at 7% on new property and legal and mortgage set up costs do add considerably more to the acquisition costs. 

Like other posters I think the area has possible great potential and am watching with interest the developments up at Corvera as well as the possibilty of Paramount actually going ahead.  The whole are has so much to offer from fantastic national parks, great cities, great food, beautiful beaches and mostly fabulous weather.

Best wishes

SLB

 



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10 Nov 2011 8:17 AM by David W Star rating. 199 posts Send private message

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You'll do well to hop on a Ryanair flight between Nov-may from Bournemouth, even Bournemouth to Alicante for that matter!
They just don't happen!!



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10 Nov 2011 9:00 AM by Acer Star rating. 1492 posts Send private message

Hi SLB,

I'm not sure if you were planning to do, but I would appreciate hearing your thoughts having made your visit - if you like, how about doing a TripAdvisor style assessment with marks out of 5 for each ?



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10 Nov 2011 11:31 AM by Bri Star rating in North. 591 posts Send private message

 Agree re Cartegena - wonderful place and fantastic shopping!!!!!   Still Spanish as well.  We are directing you to some lovely communities - but honestly, do look at a Spanish village house option as well. 



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10 Nov 2011 5:19 PM by Lifeline Star rating in Murcia. 367 posts Send private message

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 You are being given really good advice and I would like to begin with the positives of which there are many! We have bought and now live in Murcia 20 minutes inland and 15 minutes from Corvera. Murcia area is a very hot place in the Summer and usually 4-5 hours of lovely sunshine in the Winter. The beaches are amazing and the roads are so quiet most of the year. It is a beautiful area to live in.

BUT there are TOO many holiday rentals available and as an investment my advice would be don't do it UNLESS you do your calculations well. Consider for example non resident taxes, utilities,heavy Summer usage of aircon. with renters and empty weeks.

Also look up holiday rental agencies. However some of our friends who have property to let, on or close to the beach,do quite well for the peak Summer weeks. Los Alcazares and that coastline is lovely.

Best wishes in your search.



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10 Nov 2011 6:27 PM by snorkychopper Star rating in England / Spain. 226 posts Send private message

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Afternoon

Loads of properties around Mazarron,  its nice coastal location with a cracking beach at Bolnuevo, and an easy commute from San Javier and Corvera (when it opens) and its as quiet as the grave outside of  August..

We own on Condado De Alhama, 15 mins outside Mazarron  - its a huge golf course site and plenty of property available here at 80K EU and up, I am biased but the Penthouse frontline appartments are excellent

We have good security for lock up and leave and on the doorstep of Paramount (hopefully) likewise just down the road at Camposol TONS of properties available and all much reduced since the heady days of "off plan" madness - we were down there last week and I would go back after work tonight if I could !!

In terms of cash for the buying process 9% isnt enough more like 12 to 13% !!

Dont rely on rental as the area is awash with property but if Paramount goes ahead maybe we will all be proved wrong and the demand will keep us all in clover !

 

Good luck

Mark

 

 

 



This message was last edited by snorkychopper on 10/11/2011.



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10 Nov 2011 7:29 PM by sandrab Star rating in Bournemouth & La Ter.... 528 posts Send private message

sandrab´s avatar

Yeh, that is a negative not being able to hop on the plane to Murcia between 1 November and 31 March.  But we can get to Alicante from 1 Feb and if we really want to push the boat out we can nip over to Southampton and use Flybe (champagne prices) for a quick trip to Alicante.

 

Tripadvisor - never thought of that! 

I am though very realistic like other posters - too many rentals, not enough punters all year round but................there may be potential in a few years time.  I personally hope the development has absolutely stopped.  We love to go and visit as it is still, in parts, real Spain.

Lots of bargains around too.

Best of luck

SLB

 



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10 Nov 2011 8:42 PM by Bri Star rating in North. 591 posts Send private message

Here here SLB.  The one good thing to come out of the madness is the halt to development.  Let's hope the breathing space means that more thought can be put into how to develop in future.   Whether or not it is a good 'investment' is going to be largely down to the price you pay.    You need to knock a good 20% off the lowest price.  Just make an offer - they can only say no and you might be pleasantly surprised.   



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10 Nov 2011 10:19 PM by rod Star rating in Uk and Spain. 469 posts Send private message

Clsb
Your expectations on revenues are low enough it appears and the rose tinted spectacles seem removed somewhat, you will have vast competition from the minnions of course some of which are now charging 100 pounds a week for the roda and polaris white boxes,the universal theme park I am sure wont happen for a long long time so back burner that, having btls in spain and uk I would favour uk as the tax treatment is less severe ,but if like me you need to escape from the rat race then do do buy your dream

Regards

Rod







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10 Nov 2011 10:31 PM by Bri Star rating in North. 591 posts Send private message

 I agree in general with you Rod.  We also have btls here in the uk and it is still attractive to do this.   But you are not going to find anything for the kind of prices we are talking about in Spain at the moment - or at least nothing we have been able to find that we would consider worth investing in for btl.    But I do repeat what I have always said and beieved.  Only buy overseas if you want to use the property and love the country.  



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11 Nov 2011 12:40 AM by meggie Star rating in England. 114 posts Send private message

I look back to your first post, CSLB, and see your are thinking of buying a place in Spain mainly for holiday rental purposes and as an investment towards your pension and I want to shout DON'T DO IT!

As you have read, there are hundreds of properties along the coast (and inland) that are available to rent at the moment...many of them left empty for months on end as there is so much choice for the would-be renter.  We were incredibly lucky to sell our place in Spain just before the downturn really took hold.  We know people that put their Spanish property on the market at the same time as we did...and they still haven't sold (4 years later!).  With so many properties available to rent...why not rent a place for those times that you want to spend in Spain?  Look at what's happened with the Spanish property market over the past few years. Look at what's still happening.  If you buy in Spain, it's going to be a long, long time before you see any significant rise in price and the days of being able to guarantee a decent rental income from your property...particularly after you've deducted all the expenses involved, including 25% of the rental income earned...have all but gone.

We have 2 Buy-To-Let properties here in the UK, the first one bought 3 years ago and the latest one bought just a few weeks ago.  Our first BTL has never been empty of tenants (the present tenant has been in it for nearly 2 years now) and the second one was rented from the day the sale was completed.  We adore Spain and spend as much time as we can there....in a rented property.  The big plus for us has been the fact that we can leave any place we rent in Spain without having to worry about it.  IF we decided to live in Spain full-time, perhaps we would buy another place there, perhaps not.  But as far as INVESTMENT is concerned...it's the UK every time for us.  We haven't had to pay a penny on the income we've taken from our properties here.  In the UK, you have to meet certain criteria before paying tax and expenses the property are taken into account.  In Spain, the powers that be have spent the past few years (and more) thinking up ways of getting money into their depleted coffers and property owners have been an easy target.  You really need to think exactly why you want to buy a place in Spain before you part with your hard-earned cash as it could be a very long time before you can get it back again.

Sorry to sound so negative.  I write this reply purely out of concern.  It really is so disheartening to keep reading and hearing about people that wish they hadn't bought/tried to buy a place in Spain....for whatever reason.  We really do love Spain and we'll keep spending time there for as long as we are able to travel.  If, having considered your options, you go ahead and buy a place in Spain, I wish you well and hope it turns out to be all you hoped it would be.

 

 



This message was last edited by meggie on 11/11/2011.

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