# Thinking of buying in Benidorm - any thoughts/suggestions/advice gratefully received!



## Babbs (Oct 1, 2008)

Hi there

My daughter is considering buying a 1-2 bed place in Benidorm. She would have to rent it out most of the year in order to cover the mortgage. However hearing scary stories of villas and apartment blocks being knocked down, I am really concerned that her money might not be safe.

It would be a long term investment - probably something she could retire to in 20 odd years so it wouldn't really matter of the prices drop in the short term. She would only be able to afford E50,000.

She likes Benidorm because it is vibrant and seems like a popular place so would have a good chance of renting throughout the year but she would consider other areas. As she does not want to drive in Spain, she would need to be within reasonable distance of an airport that is served by Bristol airport.

Any suggestions or tips would be gratefully received! Thanks


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## xabiaxica (Jun 23, 2009)

Babbs said:


> Hi there
> 
> My daughter is considering buying a 1-2 bed place in Benidorm. She would have to rent it out most of the year in order to cover the mortgage. However hearing scary stories of villas and apartment blocks being knocked down, I am really concerned that her money might not be safe.
> 
> ...


tbh I would be less worried about it being knocked down than about _needing _the rental income to pay the mortgage

nowhere/no-one can guarantee that a place will be rented for any, let alone most, of the year


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## crookesey (May 22, 2008)

Sorry but it's a none starter if she needs to rent it in order to pay the mortgage, and €50,000 sounds like a third line studio apartment. Once again I'm very sorry, but you did ask.


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## Carebear56 (Aug 16, 2013)

Thanks for replying so quickly! My mother posted the above on my behalf but I have now joined ex-pat forum in my own right 

I am pretty sure I could cover the mortgage but was hoping to rent out in order to help paying it. It wouldn't be that much of a problem if I couldn't rent it out, but I was more concerned about buying a dodgy property or not being able to trust the estate agent or solicitors. I have heard stories from friends about cons in the property business - in fact I know of two people who have lost entire lifetime savings when trying to buy in Spain.


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## Madliz (Feb 4, 2011)

I would also be concerned about the state of the apartment block in 20 years. After 20 years of renting it out, would it still be your dream property? What would the annual maintenance fees be for the block? Would you be paying fees to a rental agent? Who would service the property between rentals? What tax would you liable for on the rental income? This isn't as easy as it might seem and the cheapest properties here are cheap for a reason!


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## Carebear56 (Aug 16, 2013)

Thanks for the tips. I am looking to buy something with little or no monthly maintenance (eg am not looking at apartments with pools). Thinking about what it would be like in 20 years is a good point and something that I hadn't thought of.

I was hoping to rent through an agent (much like a lot of 'Buy to Let' owners do in England). I just assumed that the agent would arrange the servicing as well in return for a fee. Do you know if there is a similar type of business in Spain? Sorry to be such a newbie but I have little knowledge of Spain beyond holidaying there. 

I do intend learning more Spanish starting this September. My immediate thoughts are to rent somewhere in Benidorm next summer for about 6 weeks, to see if it is the kind of place I would like to live in. If I am there on my own for an extended period, I might get more of a realistic idea of what it is like to live there as opposed to holidaying there.

Thanks again for taking the time to reply.


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## zenkarma (Feb 15, 2013)

Carebear56 said:


> Thanks for the tips. I am looking to buy something with little or no monthly maintenance (eg am not looking at apartments with pools).


From reading what you're written so far, you can't afford this apartment and I'd advise you to stop right there.

With little or no monthly maintenance? Are you insane? All apartments will have a maintenance charge on them, usually bi-monthly or quarterly. If they don't, they'll look scruffy and falling to bits—someone has to look after them and you have to pay that someone. 

Now add in the following monthly charges: Electricity, Water, IBI (local tax), Refuse Removal and if you're not living there Non-resident Property tax. You can add in telephone and internet too if you like.

I have a one bed flat in Almeria and currently all those things (maintenance, electricity, water, IBI, refuse, non resident property tax) cost about £2,000 a year. That's £166 (€193) a month, whether I go out there and stay in it or not. Add that to your mortgage cost.

And Benidorm? There are much nicer places in Spain than Benidorm.


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## Carebear56 (Aug 16, 2013)

zenkarma said:


> From reading what you're written so far, you can't afford this apartment and I'd advise you to stop right there.
> 
> With little or no monthly maintenance? Are you insane? All apartments will have a maintenance charge on them, usually bi-monthly or quarterly. If they don't, they'll look scruffy and falling to bits—someone has to look after them and you have to pay that someone.
> 
> ...


Thanks for that. I will definitely add that figure in to the cost of a mortgage. I am only in the beginning stages of even thinking of buying in Spain and will take a lot longer before I make up my mind. 

If it isn't something I could not afford, I definitely would not take out a mortgage that over stretches my finances. I have a secure job and I also have a fair sized deposit so although it sounded like a pipe dream, it is a more realistic proposition than it initially sounded. 

I am open to suggestions of different areas. My main concern is that I could reach it easily from Bristol airport. My mum did suggest Almeria but I have checked and there doesn't seem to be flights from Bristol.


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## Pesky Wesky (May 10, 2009)

Carebear56 said:


> Thanks for that. I will definitely add that figure in to the cost of a mortgage. I am only in the beginning stages of even thinking of buying in Spain and will take a lot longer before I make up my mind.
> 
> If it isn't something I could not afford, I definitely would not take out a mortgage that over stretches my finances. I have a secure job and I also have a fair sized deposit so although it sounded like a pipe dream, it is a more realistic proposition than it initially sounded.
> 
> I am open to suggestions of different areas. My main concern is that I could reach it easily from Bristol airport. My mum did suggest Almeria but I have checked and there doesn't seem to be flights from Bristol.


Madrid!


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## 90199 (Mar 21, 2010)

Pssst,

Come to the Canary Isles, choose on of the larger ones, in the south , sunshine almost year round. Far nicer than Benidorm


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## zenkarma (Feb 15, 2013)

Carebear56 said:


> I am only in the beginning stages of even thinking of buying in Spain and will take a lot longer before I make up my mind.


Well I would strongly suggest you think long and hard about this and seriously crunch the figures and see if it really is financially viable or not. 

I know the 'cheap' property prices in Spain are really tempting at the moment, the running costs are ever increasing. IBI is going up, the Hacienda (Spanish Tax Office) are getting very aggressive about taxation, I recently read the electricity costs are going up by about 10%! Food prices are already on par with the UK now. Spain just isn't the cheap place it used to be.

One thing I did miss out from my previous figures was insurance which is about €350-400 a year and that was included in the £2,000 annual running cost.



Carebear56 said:


> I have a secure job and I also have a fair sized deposit so although it sounded like a pipe dream, it is a more realistic proposition than it initially sounded.


It was when you started talking about renting out a room and low/no maintenance costs that starts the alarm bells ringing. You just need to realistic about 1/ how much this is going to cost you to buy, figure about 10% transaction cost to buy, 2/ how much your mortgage is going to cost per month as well as factoring a potential 2 point or more increase in interest rates and 3/ the annual running costs which I've given you an idea of and the fact that they will increase with inflation as well.



Carebear56 said:


> My main concern is that I could reach it easily from Bristol airport. My mum did suggest Almeria but I have checked and there doesn't seem to be flights from Bristol.


Yes, accessibility is an important factor. Ideally you want a budget airline from Bristol to an airport reasonably close to where your flat is located and that's most likely to be Malaga. That shouldn't necessarily preclude other areas though, you just have to think laterally. 

I know not everyone agrees with me on this but I really hate budget airlines with a vengeance. Easyjet fly direct to Almeria and most of the time I'd use them (last time I went from Leeds on Jet2 to Murcia but the transfer was a bit too long really) but I'm also seriously considering paying a little bit more and flying from Heathrow on scheduled airlines to Madrid and getting an internal down to Almeria. If Bristol flies to Madrid, you could do the same to any airport on the south coast. Yes it takes longer, yes it costs a little more and yes you have the hassle of getting an interconnecting flight, but there are advantages. The flights take off at more reasonable times (Easyjet take off at about 6am from Gatwick, which isn't the most reasonable time to fly) there are more flights to choose from and on scheduled you get treated with a bit more legroom, a bit more respect, less like cattle and less screeching kids!

You pay your money and you take your choice really. You just need to do your research.


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## Madliz (Feb 4, 2011)

Sorry to sound negative but it's meant in good faith. My sister-in-law had a secure job...until she was made redundant. My husband got a cancer diagnosis at age 52 and lasted 19 months. Life didn't flow the way it was expected to.

I now urge people to look at the worst-case scenario. If you are still sure you could cope if things take an unexpected turn, proceed! A mortgage one is unable to pay, for whatever reason, can make life very uncomfortable, as many on expat forums know only too well.


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## Pesky Wesky (May 10, 2009)

Look here for destinations from Bristol
Browse destinations – Bristol Airport

You can hate them or not, but budget airlines might be all you have, and from Bristol that IS all you have. There are plenty of things I don't like about Easyjet, rising prices being one of them, but they don't have a crazy flight timetable BRS - MAD, very reasonable times actually and even though the flight is nearly always late taking off, so far they have never landed late, when I've travelled with them


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## bob_bob (Jan 5, 2011)

You won't make anything renting it out, look at sites like alpharooms.com and see how cheap and readily available accommodation is in Spain.


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## zenkarma (Feb 15, 2013)

I just wanted to add in a couple of things I forgot to mention. As I mentioned in one of my posts, the Hacienda are becoming very aggressive on increasing taxation and as I understand it they've just recently increased the transfer tax on properties. You now need to factor in about 15% transaction costs (not 10% as I previously mentioned) for buying a property in Spain. This covers all taxes, notary fees, stamp duty, registry office, legal fees and mortgage setting up costs. For a €50,000 flat factor in €7,500 in purchase costs.

The second thing I forgot to mention is the so called 'Bargain Hunter' tax or 'Impuesto sobre Transmisiones Patrimoniales y Actos Jurídicos Documentados' and 'Propuesta de liquidación'.

This needs some explanation, so this is how it works. Let's say you agree to buy a flat for €50,000. In the peak of the market, that flat might have been worth say €100,000, reflecting the 50% drop many properties have experienced since the peak. You naturally assume on purchase you have to pay transfer tax (IPT) on €50,000. However, the local Town Hall may well have a valuation on that flat of €75,000 and will send you a bill for €75,000 - €50,000 = €25,000 IPT tax, which could well run to another 2 or 3,000 euros.

Yes it's unfair, but you still have to pay it — welcome to Spain and the corrupt Spanish way of doing business.

If you get the impression I'm trying to put you off, you're right, I am. Buying a property in Spain should not be entered into lightly and you should only do so once you've done a lot of research and fully understand exactly what you're getting yourself into and how much it's likely to cost you.


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## Carebear56 (Aug 16, 2013)

I'll start looking


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## 90199 (Mar 21, 2010)

I have a friend who has rented an apartment, fully furnished, on the coast for 250€ a month, water and electricity included, and a cleaner once a week.


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## Pesky Wesky (May 10, 2009)

Hepa said:


> I have a friend who has rented an apartment, fully furnished, on the coast for 250€ a month, water and electricity included, and a cleaner once a week.


Bargain!!

Where's that Hepa?


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## 90199 (Mar 21, 2010)

Pesky Wesky said:


> Bargain!!
> 
> Where's that Hepa?



Bargain and how!! It is in the small Atlantic village of La Caleta, on the island of El Hierro,


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## Pesky Wesky (May 10, 2009)

Hepa said:


> Bargain and how!! It is in the small Atlantic village of La Caleta, on the island of El Hierro,


Taking into consideration that my inlaws live in Bilbao, looks like it might be THE most favourable place in Spain to retire to!!
Joke.
OH would never hear of it. In fact he hates the Canaries 'cos that where he had to do his military service, so they don't hold happy memories for him.


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## 90199 (Mar 21, 2010)

Show OH the photos on the below link


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## crookesey (May 22, 2008)

Hepa said:


> Show OH the photos on the below link


Great photos, it looks wonderful.


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## Carebear56 (Aug 16, 2013)

I really appreciate you all taking the time to reply. I have tried to respond to each one individually but I can't seem to post below each poster - am still a newbie so forgive me for the round robin.

I have definitely been given lots of food for thought and the main message seems to be to proceed with caution. I'm not impetuous so will give it lots of thought. I think taking Spanish lessons this September should help and maybe spend an extended period of time in Spain next year.

Claire


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## xabiaxica (Jun 23, 2009)

Carebear56 said:


> I really appreciate you all taking the time to reply. I have tried to respond to each one individually but I can't seem to post below each poster - am still a newbie so forgive me for the round robin.
> 
> I have definitely been given lots of food for thought and the main message seems to be to proceed with caution. I'm not impetuous so will give it lots of thought. I think taking Spanish lessons this September should help and maybe spend an extended period of time in Spain next year.
> 
> Claire


when you post a reply, click the button which looks like this on the post of the person you want to reply to 











& it will quote them - like I have with your post


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## Carebear56 (Aug 16, 2013)

xabiachica said:


> when you post a reply, click the button which looks like this on the post of the person you want to reply to
> 
> 
> 
> ...


Thanks!


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## 90199 (Mar 21, 2010)

You have also got to remember, "Nothing ventured nothing gained,"


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## crookesey (May 22, 2008)

Hepa said:


> Show OH the photos on the below link


I've had a look on the internet, but as per usual it doesn't answer the questions that I ask.

I've worked out that a ferry from say Tenerife is required, but is a car required, and where would I hire both that and an apartment? I'm really interested in having a look around, any suggestions?


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## Madliz (Feb 4, 2011)

Hepa said:


> You have also got to remember, "Nothing ventured nothing gained,"


Very true. I at least have no mortgage concerns and if/when my house here in Madrid sells, I will be staying in Spain because I love it, despite everything!

As long as you do your homework and sums, give it a shot!


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## Carebear56 (Aug 16, 2013)

Hepa said:


> You have also got to remember, "Nothing ventured nothing gained,"


Do all the things above apply to the Canaries? I'm keeping an open mind about where I might buy and will go to visit/stay for a while in any place that looks possible. 

Thanks for your input Hepa!


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## 90199 (Mar 21, 2010)

Carebear56 said:


> Do all the things above apply to the Canaries? I'm keeping an open mind about where I might buy and will go to visit/stay for a while in any place that looks possible.
> 
> Thanks for your input Hepa!


I have bought two properties here, without any problems and am seeking to sell an apartment then re invest in something better. All I did on each occasion was agree with the vendor and attend at the notario's office. However I didn't need a mortgage for either.

You however would be well advised to consult a lawyer of your own choice, who speaks English. One who will steer you away from the afore described pitfalls

Property in the Canary Islands is generally more expensive than Iberian Spain and Northern Spain where it is really cheap. However the cost of living here is far cheaper than Spain and the U.K., VAT is only 7%


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## Carebear56 (Aug 16, 2013)

Thanks Hepa. I can feel a holiday to the Canaries coming on!


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## 90199 (Mar 21, 2010)

crookesey said:


> I've had a look on the internet, but as per usual it doesn't answer the questions that I ask.
> 
> I've worked out that a ferry from say Tenerife is required, but is a car required, and where would I hire both that and an apartment? I'm really interested in having a look around, any suggestions?


There are three ways to get here, Ferries from Los Cristianos Tenerife,

Fly from Los Rodeos the northern airport in Tenerife,

Fly from Gran Canaria.

The links below will help with hire cars, ferries, planes, and apartments, however there are apartments cheaper but usually rented privately and by word of mouth.

https://www.bintercanarias.com/eng

Naviera Armas | Naviera Armas

Fred Olsen - Ferry ships - canary islands

http://autosbamir.es

http://www.hotel-boomerang.com/en/apartments_in_el_hierro


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## 90199 (Mar 21, 2010)

Carebear56 said:


> Thanks Hepa. I can feel a holiday to the Canaries coming on!


Gran Canaria or Tenerife might suit you at first....Good luck


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## Carebear56 (Aug 16, 2013)

Hepa said:


> Gran Canaria or Tenerife might suit you at first....Good luck


Just looked at the photos on the link you shared. Looks beautiful. Great photos


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## Sirtravelot (Jul 20, 2011)

There is a reason Buy-To-Let is, or was, so successful in the UK.

Buying in the UK is a lot cheaper (than Spain).

The UK has a shortage of homes. Spain has the complete, total, opposite.

You don't speak Spanish. It might not be 100% necessary, but if I were going to invest 50K in a country, I would hope to speak the language. China is booming, but I'm not going to invest there because I don't speak Mandarin and I know little of the culture. A lot of people got burned for not knowing Spanish.

My honest opinion is this: DO. NOT. DO. IT.

But at the end of the day, I'm not you, so do what you want.


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## crookesey (May 22, 2008)

Where I have to be careful is to avoid isolation, my wife's niece and her family live in a village in The Peak District National Park. They used to have a general store, a butchers and a post office, now they have nothing. I don't need near neighbours, but I wouldn't mind being a walk away from a village/small town.


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## 90199 (Mar 21, 2010)

Carebear56 said:


> Just looked at the photos on the link you shared. Looks beautiful. Great photos


The best kept secret in Spain.


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