# help!!!!! thinking of getting an apartment



## pauliewaulie35 (Jun 9, 2014)

hi me and my wife are after a cheap apartment in spain (Alicante), seen some around £40,000 just 2 bed apartments. is there any other costs involved, ie council tax, also how much is communal pools a year (I know they will probably vary) also would it be worth renting out to get some of our mortgage money back......any help we would be so greatful , cheers paul


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## Lynn R (Feb 21, 2014)

pauliewaulie35 said:


> hi me and my wife are after a cheap apartment in spain (Alicante), seen some around £40,000 just 2 bed apartments. is there any other costs involved, ie council tax, also how much is communal pools a year (I know they will probably vary) also would it be worth renting out to get some of our mortgage money back......any help we would be so greatful , cheers paul


For a start, there will be property transfer tax, legal fees and notary fees to pay. You need to allow at least 10% of the property price for those.

You also need to check how much the catastral value of the apartment is. If a property is being sold off really cheap for some reason, at a price below the catastral value (that's similar to the old rateable value in the UK), then the Spanish tax office is highly likely to send you an additional bill (which could happen quite some time after you've bought) for the difference between the amount you actually paid in transfer tax and the amount you should have paid based on the catastral value.

Yes, there will be Council Tax to pay (called IBI here), plus utility bills (the standing charges, remember, have to be paid all year round even if the property's not occupied) and depending on the area, possibly a separate rubbish collection charge as well (basura). In an apartment building there will be community fees to be paid on top of all those, impossible to say how much because each one will be different. Find out from the estate agent how much all those things are when you are looking.

Finally, as a non-resident there will be annual non-resident taxes to pay.

I would not count on renting the property out, there are so many available that it's better to view any rental income you are able to get as a bonus rather than relying on it to meet outgoings.


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## Swerve (Jun 29, 2011)

It may be an idea to tell members where your looking and you may either get positive or negative comments but whatever you can never have too much information. 

Btw have you a mortgage sorted out as the times of getting them easily in Spain are long gone. 

Re the renting out as Lynn says rents are low and getting a good tenant is hard to come by. And if it was just holiday lets after you deduct any fees involved it's just not worth the hassle. 

If you need the rental to be able to buy then I would advise not to buy. 

Good luck.


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## Lynn R (Feb 21, 2014)

Oh, I forgot one more thing - you will need to open a non-resident bank account in order to be able to transfer funds to buy the property, pay taxes and fees,and set up direct debits to pay the bills. Unless you are having a salary or a pension paid in, bank accounts in Spain aren't free of charges. You'd need to budget at least €80 per year for bank charges and the annual fee for having a debit card.


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## thrax (Nov 13, 2008)

If you are looking to have an income from the apartment then location, location, location is all important. You haven't said exactly where you are looking to buy which might be useful for any forum members who live in the area or know the area. If you choose the correct area then rental income could be very good. Certainly in our area the occupancy rate of private rentals this summer is around 70%.


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## buble (Apr 29, 2011)

Also, you should be aware that Spanish apartments can be, and generally are noisy.
The uncarpeted floors don't protect you from the clomp, clomp, of shoes (especially ladies heals) accross the floor above!!!!!
In the summer months, doors wide open and loud music is another common factor.


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## SteveScot (Feb 11, 2013)

The IBI charges are nothing in comparison to UK council tax charges. I think my IBI bill for an extended 1 bed bungalow were 125 euro for the year. Bins and water charges generally amount to 65 euro per quarter. You may want to consider buying somewhere that specifically doesnt't have community fees to pay, or a communal pool, as not having either of these will keeps ongoing costs down too. Holiday lets are a PITA unless you have someone trustworthy to look after your place, arrange cleaning etc.... 

Non residents 'imputed tax' which assumes that you're making some rent on your holiday home really doesn't amount to much for smaller / cheaper properties (mine's around 25 euro per year).

Above all, factor in buying fees and outlays (approx 10-15%) and don't look upon it as an investment, as prices may well drop further!


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## Chopera (Apr 22, 2013)

Community charge inc. pool probably around €100/month, but it does vary (especially with the number of properties sharing the pool, etc). Also don't forget things like A/C which can be expensive.


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## Lynn R (Feb 21, 2014)

Sorry about this, but there is one more thing that we all, including me, seem to have forgotten about - insurance of the property. I believe that sometimes the community fees payable for apartments cover buildings insurance, but you would still need contents cover, and if planning to rent it out, probably special cover including extra public liability. Hopefully one of the forum members who rent out properties could confirm that.


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## brocher (Mar 21, 2011)

Although many of the individual costs are not particularly large, they do all add up. 

Don't forget all the costs involved in cleaning, hand overs and advertising to find people to rent it! I believe you need a license now for holiday rentals, and the authorities are clamping down.


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## zenkarma (Feb 15, 2013)

pauliewaulie35 said:


> is there any other costs involved, ie council tax, also how much is communal pools a year (I know they will probably vary) also would it be worth renting out to get some of our mortgage money back...


Hi Paul

You've had some pretty good answers so far that have covered most things.

Purchase costs are around 10% of purchase price, it varies by region—Andalucia should be about 10%. Running costs for a 2 bed apartment will be around €2-3k per annum that includes everything.

If you can afford the purchase price and annual running costs without having to take out a mortgage and renting it out go for it but don't expect too much capital appreciation for at least 5-10 years.

Renting it out can be problematic and to be honest it's probably more hassle than it's worth in return. If you were full time resident in Spain renting it out yourself it might be doable but given the costs, hassle and competition involved I wouldn't factor in any rental returns in your calculations.


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