Sharp fall in house sales to foreign purchasers on the Costa del Sol

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Why do you think sales have dropped?

http://www.typicallyspanish.com/news/publish/article_8728.shtml

This message was last edited by sandra on 2/5/2007.

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Coz all the sharp investors have gone to get fleeced in Bulgaria etc

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Smiley you may be right but it does not cost as much to get fleeced in Bulgaria than it does in Costa del Sol. Having recently tried to purchase in CDS I have not found it a good experience because of planning etc. Also I think the property there is overpriced by around 25%

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No your both wrong.

Its cos the estate agents have too many sales going through so they are too lazy to sell to anyone else. If you speak to any of the big boys, sales are booming, commissions are getting bigger and the champagne is still flowing!

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Hi Rixxy I think Ocean, Viva, ADH, etc etc might not be inclined to agree. I think the ones who are doing well are the smaller independents without masses of telesales, BMW's, etc to support. The ones who perhaps are more reliant on client recommendation seem to be doing ok from what I can see - it is no doubt a tougher market for them as the investor has departed for pastures new but the client dynamic that we have seen over the last 18 months has shifted to people who actually wish to own a home here whether it be for rental or personal use. Tinto I would have to agree that the prospect of buying in Bulgaria at much cheaper than the CDS is immensely attractive from a cost perspective - shame you cant say the same about the weather nor the fact that as a non resident I am led to believe you are not legally entitled to own property in Bulgaria so it has to be in the name of a Bulgarian company which may or may not have its own issues. Plus the fact that there appear to be members of Bulgarian Mafia setting up "management companies" to service said properties. Friend of mine went there with a view to buying and developing a large plot of land. All of the land was available for sale except one smallholding in the middle which was crucial to the project the elderly farmer apparently had no wish to sell on the premise what do I need with money when I have lost my livelihood. The real estate agent (if that is what he was) stated that it would not be a problem and the farmer would be persuaded. My mate got a call a couple of days later to say the deal could now go ahead as the farmer had agreed - it had not been too costly for him to be persuaded as he had paid with his life. My mate was on the next flight out.

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Surely now Bulgaria has joined the United States of Europe any of us can buy there, resident or not? But IMHO, why risk investing in an emerging nightmare, sorry, market? If it's the prices that are attracting you, check out Galicia or Asturias - www.kyero.com is a good starting point. Nearer to UK, beautiful place, and although they speak a funny kind of Spanish up there, the problems are all so much more familiar!

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Hi Roberto residents are considered differently in Spain top non residents - European or not - likewise Bulgaria if you are not resident then you cannot own property there legally.

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Interesting....isn't that infringing my human rights or something?

Anyway, I still reckon your money would be better spent elsewhere. What do you think? 

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Spain does not seem to be much better. They take your deposit for a property then your solicitor finds out that it does not have a proper licence and then they will not refund your deposit. A nice little earner. Who needs the hassle.

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Buy re-sale. QED

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AS Roberto says buy resale and make sure all deposits paid are conditional and paid through your INDEPENDENT LAWYER. There are still people buying in Spain and being successful in their purchase - there CAN be good value at the moment (certainly CDS) as it is a buyers market.

That being said I have a client who has bought off plan in Granada and sold on for a 25% return in just over a year. I think he is the exception rather than the rule but thinks he has a buyer for the second of 5 - he is a serious property investor with a global portfolio - some get kept some get moved on but I have seen the financials and he is doing extremely well at it but he spreads his risk and everything he buys is ALWAYS with a long term view that he will complete. If he can sell on prior to completion and the deal is right then he will but he takes the view that property is a cyclical market and always has been - if he controls the time of sale he will rarely (if ever) lose money. I have to say that he is still a buyer in Spain for the right deal with the right value.  

Roberto bearing in mind your Avatar I dont think Cherie has come on strong for your kind yet - no doubt she will in the fullness of time just to keep 2 Jags and Brown happy!

This message was last edited by Smiley on 2/8/2007.

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Having built a villa on the Mediterranean coast of  Turkey (much more beautiful than any of the Spanish costas), I can say that although there are local problems in the coastal tourist towns, nothing like the problems the Costa del Sol seems to be having.  Our biggest problem is the huge influx of Brits wanting to retire in a town that doesn't have the infrastructure to sustain all the new development.  Don't know about Bulgaria but in Turkey you do not need to be a resident to buy property, and taxes are very low.  Plus, if you keep your house for 4 years then sell, there are no capital gains taxes.

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