# Buying a property in Spain



## chocodip (May 7, 2014)

Hi I'm in need of some help here. If any of you fellow expats in this forum have any knowledge about the real estate market in Spain, I'd really appreciate some inputs!
I am looking at purchasing a property in Spain (anywhere as long as it's in the urban areas), to rent out throughout the year. I was looking at places like Barcelona, Madrid, Las Palmas de G.C. or Ibiza...somewhere touristy and frequently visited that would command a good price. 
Which places would you suggest and why? Also, please bear in mind that I do not want the value of the property to depreciate so it has to be an area that is consistently in demand and would be less likely to get impacted incase of any economic crisis/recession in the future. 

Thanks!


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## 90199 (Mar 21, 2010)

To rent out short term in the Canary islands you would need a licence and the authorities won't issue them.


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## chocodip (May 7, 2014)

*Hi*

Hi sorry i forgot to mention that im a Spanish national but ive been living abroad since quite a few years now. I was a resident of Gran Canaria.


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## xabiaxica (Jun 23, 2009)

chocodip said:


> Hi sorry i forgot to mention that im a Spanish national but ive been living abroad since quite a few years now. I was a resident of Gran Canaria.


unfortunately that won't change anything - what Hepa says holds true no matter what your nationality


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## chocodip (May 7, 2014)

Are you serious? I didnt know about this. Could you shed some more light about the licence please? Is this applicable to short and long term let?


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## snikpoh (Nov 19, 2007)

chocodip said:


> Are you serious? I didnt know about this. Could you shed some more light about the licence please? Is this applicable to short and long term let?




SOME regions have adopted this regulation for short-term lets. At the moment, where I'm from, Valencia, has no such requirements.


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## davexf (Jan 26, 2009)

chocodip said:


> Which places would you suggest and why? Also, please bear in mind that I do not want the value of the property to depreciate so it has to be an area that is consistently in demand and would be less likely to get impacted incase of any economic crisis/recession in the future.
> 
> Thanks!


Hola 

This is Spain - property prices have deflated since the boom of 2007 ended. I know of nowhere in the world where there are cast iron guarantees of getting your money back. Then on top of that there are always taxes of one sort or another. 

But around here 1,500€ a week in the season is not unheard of - which is why people only rent out in the summer season - but there are associated costs with this, finding people to rent, servicing the weekly changeover, renewing broken items even if the renters pay for the item etc. 

Davexf


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## chocodip (May 7, 2014)

snikpoh said:


> SOME regions have adopted this regulation for short-term lets. At the moment, where I'm from, Valencia, has no such requirements.


Thanks snikpoh. Would you recommend buying a property in Valencia?


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## chocodip (May 7, 2014)

davexf said:


> Hola
> 
> This is Spain - property prices have deflated since the boom of 2007 ended. I know of nowhere in the world where there are cast iron guarantees of getting your money back. Then on top of that there are always taxes of one sort or another.
> 
> ...


Hi Dave,
I understand that prices have deflated but some areas seem to be pretty stable from what ive heard. Plus i personally feel buying a property at rock bottom prices would make more sense before they get inflated once again? Please do correct me if im wrong.


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## zenkarma (Feb 15, 2013)

snikpoh said:


> SOME regions have adopted this regulation for short-term lets.


Yes, I think the license only applies to short-term holiday lets and as you say, only applies to some region/provinces at the moment. I think it's been left to each province to decide whether to apply the license system.

The OP doesn't say whether he/she is intending the property to be for short-term holiday lets or for longer term lets.

If for longer term lets and for long term investment (5-10 years or more) one of the principal cities of Madrid or Barcelona would be the best bet in my opinion. Even so, it's a brave person who invests money in the Spanish housing market at the moment.


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## zenkarma (Feb 15, 2013)

chocodip said:


> Plus i personally feel buying a property at rock bottom prices would make more sense before they get inflated once again?


What makes you think prices will become inflated again? They may do, but it's going to take a long time.

Plentiful supply of cheap mortgage credit and an excess of supply versus demand rises prices. Banks have clamped down on cheap mortgage credit and there's almost a million empty properties on the market. It's hard to see where the driver will come from to start raising prices again.

Quality properties in prime city (Madrid, Barcelona) locations purchased for the longer term will always be a safe investment as there _should_ always be a demand for them. In my opinion.


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## chocodip (May 7, 2014)

*Hi*



zenkarma said:


> Yes, I think the license only applies to short-term holiday lets and as you say, only applies to some region/provinces at the moment. I think it's been left to each province to decide whether to apply the license system.
> 
> The OP doesn't say whether he/she is intending the property to be for short-term holiday lets or for longer term lets.
> 
> If for longer term lets and for long term investment (5-10 years or more) one of the principal cities of Madrid or Barcelona would be the best bet in my opinion. Even so, it's a brave person who invests money in the Spanish housing market at the moment.


Ur right im still debating as to whether this is a wise decision but ive been thinking about this as a source of extra income especially during hard times when theres no other income flowing. It would be long term


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## chocodip (May 7, 2014)

*Hi*



zenkarma said:


> What makes you think prices will become inflated again? They may do, but it's going to take a long time.
> 
> Plentiful supply of cheap mortgage credit and an excess of supply versus demand rises prices. Banks have clamped down on cheap mortgage credit and there's almost a million empty properties on the market. It's hard to see where the driver will come from to start raising prices again.
> 
> Quality properties in prime city (Madrid, Barcelona) locations purchased for the longer term will always be a safe investment as there _should_ always be a demand for them. In my opinion.


Thanks zenkarma ill have to think about it.


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