# Looking to buy property in Spain and eventually move there



## gomezreger (Oct 25, 2011)

Hello to all,
I currently live in the US with my wife. We have been seriously thinking about buying property in Spain next year with the intentions of moving there in about 3 years.
We aren't sure if we should go for a beach apt or maybe a villa or farm house farther from the beach.
We are targeting the area between the cities of Valencia and Alicante, but we don't want to live in a big city. Smaller places suit us better.
Does anybody have any suggestions, ideas, recommendations, etc. about this? And how about property prices? I understand they have come down significantly in Spain, right?
Thanks in advance.


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## Pazcat (Mar 24, 2010)

You really would be better off coming over for a few months and checking things out first before buying property here. You are right about property prices being really low but the price isn't going to rise in three years, some would have you believe that the prices will only get lower.
The problem is if you buy now and move later on what happens if you don't like the area?
It wont be an easy task trying to resell the property or even rent it out.
Once you are here things change as you get to know the place better, what we first had in mind to do has changed somewhat just by living here.

I'd check Spain out first, make sure you can move here with the appropriate visas etc before worrying about property.


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## caromac (Nov 16, 2008)

Hi, we live about half way between the two and slightly inland from Gandia.

It is a lovely area, stunning mountains and quite close to the coast. The people are friendly the area is still very Spanish.

I prefer this area to say the hotter regions further south although we cant really complain about the weather except maybe the last weekend! 

Not really sure about house prices but know friends who have recently had a lot of interest in their property at a similar to what they paid about 10 tears ago and it has sold! 

You would have to spend time in Spain to really choose region that you like as it is a big country with lots to offer. Happy planning!


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## gomezreger (Oct 25, 2011)

Thanks for your response. What is the name of the town you live in? How far from the coast?
Also, you mentioned the weather. What is it like there? We visited the area in the summer time and it was nice and hot. What about winters? We're looking for a place that is warm/hot all year round.




caromac said:


> Hi, we live about half way between the two and slightly inland from Gandia.
> 
> It is a lovely area, stunning mountains and quite close to the coast. The people are friendly the area is still very Spanish.
> 
> ...


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## xabiaxica (Jun 23, 2009)

gomezreger said:


> Thanks for your response. What is the name of the town you live in? How far from the coast?
> Also, you mentioned the weather. What is it like there? We visited the area in the summer time and it was nice and hot. What about winters? We're looking for a place that is warm/hot all year round.


Hi - I live almost exactly halfway between Alicante & Valencia - on the coast

we get temperatures in the high 30ºsC in August (feels much hotter because of the humidity) - and today, still early winter really, we had about 15ºC - which is a little higher than it has been for the past few days - we also had very little wind, so in the direct sun it was lovely

however - last night we had temps just above 0ºC in this town - a little higher where I am at about 6ºC - last winter we were into negative figures fairly frequently at night

tbh I doubt you'll find anywhere on the mainland which is guaranteed warm/hot all year round - for Spain, you'd need to be looking at the Canaries for that


one other thing - your flags suggest that you aren't EU citizens - if that's the case I imagine you've started looking into what visa you might be able to apply for?


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## gomezreger (Oct 25, 2011)

We're trying to escape the long winters (5 months on average). A little cold for a short period of time doesn't bother us. However, we prefer warmth. The more the better. How big is Javea? And how are the property prices there?
Yes, we're US residents and already checked the visa issues.


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## maxd (Mar 22, 2009)

14 Day Weather Forecast for Tenerife, Canary Islands like that through the winter too.

I hate the cold tenerife is the warmest place in Europe. Valencia is too far north for winter sun.


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## Crawford (Jan 23, 2011)

gomezreger said:


> We're trying to escape the long winters (5 months on average). A little cold for a short period of time doesn't bother us. However, we prefer warmth. The more the better. How big is Javea? And how are the property prices there?
> Yes, we're US residents and already checked the visa issues.


...... and don't forget to take into account that you will need to provide private health insurance for yourselves, unless you intend to work and pay into the system.


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## xabiaxica (Jun 23, 2009)

gomezreger said:


> We're trying to escape the long winters (5 months on average). A little cold for a short period of time doesn't bother us. However, we prefer warmth. The more the better. How big is Javea? And how are the property prices there?
> Yes, we're US residents and already checked the visa issues.


I've just looked at you old posts - you're a Spanish citizen? That will make things _much _easier!

Jávea has about 40,000 residents (only 32,000 on the padrón though - the local govt is trying to do something about that ) - but it retains a feel of being much smaller!

have a look at Fergie's first post on this thread - it describes our home town perfectly 

http://www.expatforum.com/expats/sp...pain/280745-newbies-question.html#post2545185

property prices are considerably lower than a few years ago - but still generally rather higher than in surrounding towns & villages

here's the tourist website Portada - Portal Turístico de Xàbia - Ayuntamiento de Xàbia


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## caromac (Nov 16, 2008)

gomezreger said:


> Thanks for your response. What is the name of the town you live in? How far from the coast?
> Also, you mentioned the weather. What is it like there? We visited the area in the summer time and it was nice and hot. What about winters? We're looking for a place that is warm/hot all year round.


We are in a village about 20 or so minutes from the coast. Montitxelvo is small only about 600 + residents.
This area boasts 300 and something days of sunshine. It is colder in the winter and rainy days can be quite chilly but they don't happen often.
Its just lovely!


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## kazzer (Dec 4, 2013)

Hi there, I would personally advise you to rent first then that way you can try a few different places before you decide which area you would like to live in. We have been here for 9 months now and all of our neighbours who have been here for years have advised us not to buy, but to just keep renting, so just a thought for you. We love the weather here and the area where we are is beautiful, 45 minutes south of Alicante, but there are so many different beautiful places out there, so honestly you need to be around a few different places to see which is going to be best for you and your wife.


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## gomezreger (Oct 25, 2011)

And how are property prices there? We're not opposed to the Canaries but we lean toward the Peninsula.


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## gomezreger (Oct 25, 2011)

Yes, never gave up my citizenship but feel rather disconnected Also, not very familiar with the area. How about the possibilities for renting until we move definitively there in a couple years?


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## gomezreger (Oct 25, 2011)

kazzer said:


> Hi there, I would personally advise you to rent first then that way you can try a few different places before you decide which area you would like to live in. We have been here for 9 months now and all of our neighbours who have been here for years have advised us not to buy, but to just keep renting, so just a thought for you. We love the weather here and the area where we are is beautiful, 45 minutes south of Alicante, but there are so many different beautiful places out there, so honestly you need to be around a few different places to see which is going to be best for you and your wife.


The problem is that we cannot move there until 2016 (maybe 17) and if we wait then rent for a few months or years, we fear we'll miss the opportunity to buy at low market rates, which everybody says it's what's going on now in Spain, isn't it?
If we wait too long, prices will go up. We have a limited budget.


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## BBCWatcher (Dec 28, 2012)

I would not be taking the bet that, in 3 to 4 years, Spanish real estate will be substantially more expensive (including currency fluctuations and savings yields over that period) and that your plans will remain perfectly unchanged both in terms of moving to Spain at all and in terms of your most desired property.

In August the IMF predicted another 15% decline in Spanish real estate values, and one real estate company estimates no chance of recovery through at least 2016 given the abundant supply of homes, some continuing home construction, emigration, and demographics. Recovery (if it occurs) will also be spotty, with many areas of Spain taking much longer to recover.

Anyway, no, the forecasts for Spanish real estate are not upbeat. Take your time.


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## NickZ (Jun 26, 2009)

gomezreger said:


> The problem is that we cannot move there until 2016 (maybe 17) and if we wait then rent for a few months or years, we fear we'll miss the opportunity to buy at low market rates, which everybody says it's what's going on now in Spain, isn't it?
> If we wait too long, prices will go up. We have a limited budget.


Remember real estate is by definition a very localized market. 

Unless you find a dream home that checks all the boxes and you'll regret losing it there isn't a rush.


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## maxd (Mar 22, 2009)

There are always deals whenever you buy. The house I bought is probably 250K down on peak prices. So I do not care about an additional potential 15%.

What does 15% mean anyway, there are vast differences between people's situations and motivations for selling.

Someone who does not need to sell is going to ask what they think it is worth, but someone who is experiencing financial difficulty, a divorce or a death is more likely to be motivated to sell.

Everything sells even in this market at the right price and in the right location. Out of 4 houses I looked at 3 are now sold because they were all bargains!

So 50% off peak prices is ok for me and I am buying below build cost ( taking 1000 euro per m2 as a gauge).

You can wait for a couple more years for 15% or you can put in a cheeky offer and get it accepted and save yourself a couple years waiting anyway. Also now you have a lot more negotiating power because people knows things are bad and basically have to take a big hit on selling, so if you are buying in the better areas of Spain that might not work in 2016.


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## Chopera (Apr 22, 2013)

maxd said:


> There are always deals whenever you buy. The house I bought is probably 250K down on peak prices. So I do not care about an additional potential 15%.
> 
> What does 15% mean anyway, there are vast differences between people's situations and motivations for selling.
> 
> ...


I agree - very few people buy exactly at the bottom of the market, and if they do it's more by luck than judgement. If you get within 10% of the market bottom then you've done well, and I think that if you are buying at 50% off peak then that's good enough as well. However I wouldn't go out of my way to buy now through fear of the market rising. I really can't see that happening for at least 5 years.


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## ExpatWannabee (Jul 6, 2011)

gomezreger said:


> The problem is that we cannot move there until 2016 (maybe 17) and if we wait then rent for a few months or years, we fear we'll miss the opportunity to buy at low market rates, which everybody says it's what's going on now in Spain, isn't it?
> If we wait too long, prices will go up. We have a limited budget.


If you have a limited budget, then all the more reason to wait a few years until your purchasing power is greater. Even if Spain's economy were to move into high gear tomorrow (and no one's predicting that) housing prices would not go up because there are literally millions of vacant homes in the country, some of which have NEVER been lived in. The supply of housing is far greater than the demand, and it's pretty hard to see that changing in just 2-3 years.


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## Chopera (Apr 22, 2013)

ExpatWannabee said:


> If you have a limited budget, then all the more reason to wait a few years until your purchasing power is greater. Even if Spain's economy were to move into high gear tomorrow (and no one's predicting that) housing prices would not go up because there are literally millions of vacant homes in the country, some of which have NEVER been lived in. The supply of housing is far greater than the demand, and it's pretty hard to see that changing in just 2-3 years.


It depends on the supply in the area you are buying though, not the country in general.


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## maxd (Mar 22, 2009)

Chopera said:


> It depends on the supply in the area you are buying though, not the country in general.


Yes this exactly. Is it in a desirable area or in an empty apartment building by a motorway.


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## basbelle (Sep 28, 2013)

My fiance (by then he'll be my husband) our two toddlers and I are planning a move to that same area of Spain here in July of 2014. As an "American" (my parents are Argentine and my grandmother was born in Galicia) I can understand where you're coming from thinking that you want a jump on relocating by finding an affordable house and buying right away just to "get a foot in the door" of the buyer's market going on in Spain. From over here it does seem like something you want to jump on before that door closes. But things are vastly different once you actually get over there. We've moved around considerably considering our young children and two things I've learned is 1. Listen to the people who actually live there and 2. Rent before you buy. Being on this forum should help considerably (it has for me) but also you need to do some searching on your own. Get familiar with Google Maps/Earth. Find sites to give you good ideas about the pricing in the areas you're interested in. Doing that I found that Torrevieja might not be for us, Javea might be pricier than we were thinking but Moraira (still near the coast as is a prerequisite for me) is close enough to both Alicante & Javea for the interest we have in each city (airport and schools, respectively) and it's affordable. Do I know if I want to buy a house there, knowing it's going to be at least a 10 year (if not more) investment? Hell no. But get informed, get as familiar with the areas as you can from your PC. And possibly plan a vacation to take a look around. If you can't move until 2017 a trip will be a must. Even just relocating to rent is a big (huge) step, especially coming from the 'States. It looks really cool on paper but the everyday differences are going to be tremendous, please don't forget to take those into consideration. 
Good luck and I hope everything goes well for you. Please feel free to keep in touch, especially once we get there we would be more than happy to send you info/pictures/house listings to help you get started. Moving to a new place making friends can make all the difference in the world 
Best wishes!


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## maxd (Mar 22, 2009)

http://www.housepricecrash.co.uk/images/bubble-lifecycle.gif

We are 5 or 6 years since the peak, so who knows how close we are to the bottom. I know from investing in shares that bubbles usually deflate to half their peaks. I think we are 30% down from the top on average but as mentioned earlier you can find deals 50% off or more.

As Warren buffet says when they are crying I am buying, when they are yelling I am selling 

http://www.marketoracle.co.uk/images/2013/Mar/sf-spain-rpp-adjusted.png


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## BBCWatcher (Dec 28, 2012)

For reference, here is Eurostat's housing price index data through 2Q2013 (most recent data available).

The poster asked whether it would be a good idea to buy a home in Spain now, without having lived in Spain much less in the locality, for possible occupancy starting in 2016 or 2017.

I would not take that bet. I would park any such ready funds in, for example, a guaranteed 5 year CD at PenFed, a government insured U.S. credit union, which is offering 3.04% APY (with a maximum one year interest only loss for early withdrawal). I do not consider it likely that Spanish housing will even come close to beating 3.04% APY dollar risk free over that time horizon.


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## maxd (Mar 22, 2009)

Spain Sees Quarterly Increase in House Prices, 1st Since 2Q 2010 - WSJ.com

Could be a blip in the downtrend or could signal a start to the bottom.


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## gomezreger (Oct 25, 2011)

ExpatWannabee said:


> If you have a limited budget, then all the more reason to wait a few years until your purchasing power is greater. Even if Spain's economy were to move into high gear tomorrow (and no one's predicting that) housing prices would not go up because there are literally millions of vacant homes in the country, some of which have NEVER been lived in. The supply of housing is far greater than the demand, and it's pretty hard to see that changing in just 2-3 years.


Thanks for the response. You and others are right: the market is not going to skyrocket in a couple years. However, there is rumor (friend works at a bank in Seville) that banks will start lending again sometime in 2014. If that's the case, more people will be able to buy houses, therefore property values will go up. You know how the market reacts/works. It doesn't matter how many available properties there are. If people can buy, prices go up. Right?


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## BBCWatcher (Dec 28, 2012)

maxd said:


> Spain Sees Quarterly Increase in House Prices....


Always read beyond the headline. According to the article, third quarter home prices fell another 7.9% compared to the third quarter last year.

Which is the way one looks at such statistics because there's strong seasonality in real estate. That seasonality _barely_ managed to make the third quarter look better than the second quarter this year. Or, in short, Spanish housing prices are still in freefall, but they might/maybe/possibly be falling less quickly.


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## TSN.IMM (May 13, 2013)

gomezreger said:


> Thanks for the response. You and others are right: the market is not going to skyrocket in a couple years. However, there is rumor (friend works at a bank in Seville) that banks will start lending again sometime in 2014. If that's the case, more people will be able to buy houses, therefore property values will go up. You know how the market reacts/works. It doesn't matter how many available properties there are. If people can buy, prices go up. Right?


While banks are willing to lend can be a good sign, it does not always mean the market will be better because there is a market situation in which borrowers are reluctant to borrow (What's the point to borrow if you don't see anyway to payback and will eventually be repossessed after paying significant interests).


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## xzabal (Oct 18, 2013)

Crawford said:


> ...... and don't forget to take into account that you will need to provide private health insurance for yourselves, unless you intend to work and pay into the system.


I must say that for those of us from the USA the cost of insurance in Spain is pretty amazing. I'm 67 with a 53 wife, and I just signed for full coverage with Adeslas and it will cost 207 euros per month. I am applying for a residence visa but they want proof of insurance before you get it.


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## oronero (Aug 24, 2012)

xzabal said:


> I must say that for those of us from the USA the cost of insurance in Spain is pretty amazing. I'm 67 with a 53 wife, and I just signed for full coverage with Adeslas and it will cost 207 euros per month. I am applying for a residence visa but they want proof of insurance before you get it.


Do you mind telling me what a similar premium for insurance costs for the pair of you in the USA, is it much more expensive there?


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## xzabal (Oct 18, 2013)

oronero said:


> Do you mind telling me what a similar premium for insurance costs for the pair of you in the USA, is it much more expensive there?


I am still working so most of my insurance is paid by my employer, but if I wanted to get insurance comparable to what I will get from Adeslas I would be paying way over $1500, about 1.100 euros


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## oronero (Aug 24, 2012)

xzabal said:


> I am still working so most of my insurance is paid by my employer, but if I wanted to get insurance comparable to what I will get from Adeslas I would be paying way over $1500, about 1.100 euros



Wow, I had heard that it was dear but I had no idea just how expensive it was Stateside! 

It kind of explains why the poor or those that are on min.wage have no cover.


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## xzabal (Oct 18, 2013)

oronero said:


> Wow, I had heard that it was dear but I had no idea just how expensive it was Stateside!
> 
> It kind of explains why the poor or those that are on min.wage have no cover.


I must explain that I am over 65 and thus covered by Medicare, the US social system which pays 80% of my medical expenses (no prescriptions), but most of what I would pay for insurance would be to cover my wife. If an expat in the US over 60 years of age wanted to get full medical coverage, he would have to pay a fortune.


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## oronero (Aug 24, 2012)

With regards to US medical costs I just came across this video, where they compare the costs of a hip replacement between Spain and the US.

4 Shocking Facts about US Healthcare - YouTube


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## gus-lopez (Jan 4, 2010)

xzabal said:


> I must explain that I am over 65 and thus covered by Medicare, the US social system which pays 80% of my medical expenses (no prescriptions), but most of what I would pay for insurance would be to cover my wife. If an expat in the US over 60 years of age wanted to get full medical coverage, he would have to pay a fortune.


Yes , friends of mine would have liked to retire to the US as they lived & worked there for many years but unfortunately the husband, 64 & with no medical problems whatsoever was quoted $52k per year just for him. his wife , who is older & also in excellent health, they didn't even bother asking about. :lol:


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## oronero (Aug 24, 2012)

Wow, I am horrified at how expensive health care is in the States, it makes the costs of living in Europe cheap, wherever you live. You can pay the yearly rent, gas and elect bill as well health care in Spain for the cost of health care only in the US, you could probably include your food in that also !


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## Emillio (Jan 25, 2014)

In my opinion now is the good time to buy property in Spain, becouse the price for sure will not be so low as it is now, and still you have the possibility to chose, becouse now the russian people and the French, are buyng sow mutch.
I live in Denia, a little town between Alicante an Valencia, near to Javea, and I love the weater here.


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## Madliz (Feb 4, 2011)

As far as cost comparisons go, my son (in London) sent me (in Madrid) this:


Cost of Living Comparison Between Madrid, Spain And London, United Kingdom


One can compare over 4,000 cities around the world in many different categories, including healthcare:

Numbeo - The biggest Internet Database about Cost of Living, Housing Indicators and many other informations about cities and countries!

Most interesting.


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## jojo (Sep 20, 2007)

Emillio said:


> In my opinion now is the good time to buy property in Spain, becouse the price for sure will not be so low as it is now, and still you have the possibility to chose, becouse now the russian people and the French, are buyng sow mutch.
> I live in Denia, a little town between Alicante an Valencia, near to Javea, and I love the weater here.



I think the Spanish need to sort out their distressed sales (bank repossessions), the millions of half built, newbuilds and empty properties before the market does anything other than fall - just my opinion!!!

Jo xxx


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## caromac (Nov 16, 2008)

The market is becoming more bouyant in our area - it is a great place to live though!


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