16 Feb 2013 4:02 PM:

As several have said already, a major concern for me is in the sudden changes to laws at government and regional levels that can introduce large increases in costs pre and post sale.  VAT is now 10% on new property and wealth taxes etc... just adds to the uncertenty.

Retiring to Spain or anywhere requires careful planning and a reasonable estimate of costs. Retiries already have to contend with wildly varying currency exchange rates which have blighted many UK pensioners living in spain.  It is very difficult to know what its going to cost you to buy and live in a particular Spainish property in a particular region until you do it.

Even if you budget for and can afford all the variables associated with a purchase you are still faced with a multitude of ongoing costs of ownership.  IBI, utilities, cleaning, maintenance, insurance, transport costs(car, taxi, flights etc..), owners income tax, complex fees, etc... etc... and then CGT and inheritance taxes ... it goes on and on.

At the end of the day even if a property looks cheap as chips, the owership costs could end up being prohibitive. Renting out your property seems to have a whole range of problems and costs of its own so if you are thinking that the income will cover all the other costs then perhaps you might find it doesnt.  The stress involved might make it not worthwhile anyway.

So that is where I am at the moment, I want to buy but I just dare not, the risks seem to high. So I will probably rent until the Spainish government sorts out all the crap associated with buying in Spain. Might be a long wait.

 

 

 

Thread: What are your main concerns when looking for property in Spain?

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24 Sep 2012 2:58 AM:

 

Ooops, I accidently deleted my post... will try again later, great thread !

This message was last edited by thermalsocks on 24/09/2012.

This message was last edited by thermalsocks on 24/09/2012.
Thread: Is Now The Time to Buy or Sell ??

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05 May 2012 4:54 PM:

I have been looking at Camposol (Murcia) for over a year and I too have been attracted to small properties where Awaiting Title Deeds is stated in the description because these propertiers can be 10K lower in price than those with Title Deeds.  Camposol has had and continues to have problems with the developer MASA and the local council over completion of works (roads, street lighting, water leaks and a rambla). There are issues over designation of some properties as mentioned in other posts.  The problem with Title Deeds is due mainly to MASA not providing them (including other certificates) and this has become political and a legal wrangle with the local council also involved. Thousands of people live happily on Camposol and many seem to have gone through some wrangles with MASA about title deeds but got there in the end.  I suggest you read the minutes of the Camposol Residents Association (google it) meetings and perhaps email Bob Owen (Chairman) about your concerns. One issue seems to be that a recent electoral change in the regional council and Mayor has stalled the excellent progress that the CRA was making to resolving the Camposol issues but this may perhaps be due to the horendous financial, employment and austerity situation that Spain now finds tself in. Also talk to the half dozen or so estate agents who market property on Camposol for thier opinion (but beware, they want to SELL you a property). As others have said the basic rule of thumb is not to touch any property hat doesnt have Title Deeds but for risk takers it might be an option if they get all the facts about the property and find out who has the Title Deeds and why. 

Thread: What Does awaiting Title Deeds mean

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08 Apr 2012 3:22 AM:

The Euro was like an ill concieved, designed and poorly implemented airplane and no one thought what to do if something went seriously wrong with it if we hit severe turbulance in the worlds economy.  There are also too many economy passengers who are being subsidised by the few first class passengers. So what is happeneing now is a fly-by-the-seat-of your-pants attempt to hold it all together.  Seat belts have been fastened, oxygen masks have been deployed and some passengers are wearing life jackets, but we are still going down.  A mayday call has been sent out but few are in a position to help.  The navigation system is out and communications are intermittent and confused.  The pilot and co-pilot are argueing and fighting over the controls.  Doomed to fail ultimately as bits fall off, the only question is what will the wreakage look like, how many casualties and what can be salvaged?

Greece will fall out of the Euro first and then almost any other Euro country is a next-up candidate.  Spain may well leave but the consequences will be dire for other EU countries and possibly some non-EU countries who have invested in Spain or who have bought its debt.

Brtish Ex-Pats would be wise to consider all possible senarios and how these might effect them based on their personal situations.

A likely result of Spain leaving the Euro is a devaluation of the currency, be it Peseta or some other currency that replaces the Euro.  This would have a high cost in terms of payments of both sovreign and personal debt in a devalued currency and in changing accounting systems for all Spains businesses. The new Peseta would have to be pegged to an agreed Euro exchange rate for several years to allow the modification to be made.  Devaluation may be done in controlled stages.  After which the Peseta could be allowed to float against other currencies or pegged to golds value, the UK pound or the US dollar.  Allowing it to float could be disasterous as it could go into free-fall making the currency worthless. The strategy is costly, risky and not a quick fix for Spains problems.

However, if it found a reasonable stable level then this might help the return of tourists, make property more attractive to buy for foriegn buyers, improve exports and encourage investment, which in-turn might stimulate jobs growth leading to a recovery in GDP, tax revenues and deficit reduction.  Imports will be more expensive so inflation could rise adding to austerity.  Spain will however always owe a huge amount of money and will continue to struggle to pay its public sector workers without austerity measures and associated civil strife.  Like Greece, Spains creditors may be forced to take a hair cut.  Unemployment will be high for many years unfortunately.

 

 

 

 

This message was last edited by thermalsocks on 08/04/2012.

This message was last edited by thermalsocks on 08/04/2012.
Thread: If Spain did reintroduce the peseta...

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08 Apr 2012 1:58 AM:

It would be helpful to have separate threads each for Driving licences, NIE, Residence and Tax status as all have different laws that apply and are dependant on your status as an EU citizen (or not) and where you spend most of your time, where you own property and where you work.  It gets very confusing if a single question mixes these items up.

I have had to read all the posts here in this thread to get some clue as to the correct and current situation with regards to the above items and I am still not sure that they take account of current Spanish and British laws or any changes recently enacted or proposed.

The bottom line for me is not to consider living for anytime in Spain, apart from an annual 14 day holiday, without engaging the services of bilingual lawyers and accountants and having every scrap of correspondance professionally translated.  I consider this a nessesary cost of living in Spain for the long term and factor it in with every other cost of property purchase.  I would also have a letter in both Spanish and English detailing my full rights under EU and Spanish Law with me at all times to give to the Police or any misinformed jobsworth I might encounter.

 

Thread: New rules on NIE and Residencia

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