# Advice



## tsmiggy (Mar 22, 2015)

I will try to keep this short...... be gentle with me.

Aged 61.......... Luckily I have paid for my house.

Some savings earning very little interest,and a little slack on the work front,self employed.

Fancy moving to Spain in a few years time,but meanwhile I am thinking of buying a property for around£45000,using a possible rental income,and maybe using it myself at times.What are likely to be the pitfalls,and what should I be aware of.

Any guidance would be great.............. cheers 

Tony


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## thrax (Nov 13, 2008)

Hi and welcome to the forum!! First of all, do you have any idea at all where in Spain you would like to be? The usual advice on here is to suggest you visit as often as you are able and to as many areas as you can to see if anywhere ticks most of your boxes. We also recommend that once you have decided on a location, you rent first before buying in case it turns out that the area isn't right for you. I realise that this might be difficult in your particular circumstances but in the current climate (a renters and buyers market) should you buy in the wrong location, selling might be a long term problem.

As for buying a property here there are numerous pitfalls, as there are in any country. It is essential you have a very good lawyer because a number of checks must be carried out to ensure there are no distant relatives still around who have not agreed to the sale of the property but still have a monetary interest in the property. Although rare, it is not unknown for someone to purchase a property only to find, years down the line, that a member of the family you bought from was not consulted and therefore has a claim on the property. It has been known for people to lose their house in such circumstances although I stress this is rare. One way to make certain the paperwork is 100% correct is to take out a small mortgage with a bank and they will make certain the property's paperwork is accurate.

You also need to research which areas would give you the likelihood of a good rental income and preferably all year round which would point you towards the south. You should also be prepared to add 10 - 12% to the purchase price for taxes and fees etc.


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## snikpoh (Nov 19, 2007)

thrax said:


> You also need to research which areas would give you the likelihood of a good rental income and preferably all year round which would point you towards the south. You should also be prepared to add 10 - 12% to the purchase price for taxes and fees etc.


It's nearer 15% now as the transfer tax (ITP) itself is 10%.


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## thrax (Nov 13, 2008)

I didn't know that thanks...


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## Lynn R (Feb 21, 2014)

In Andalucia, the transfer tax is only 10% if the purchase price is €700K or over. For properties under €400K it is 8% and for those in between, 9%.

Ways to tackle Spanish property transfer tax | Spain & Gibraltar News

No doubt there are other regional variations so it would be best to check the position in whatever autonomous region the OP is interested in, rather than assume it is the same throughout Spain.


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## tsmiggy (Mar 22, 2015)

Thank you for the advice.In the first instance I would like to use the rental for income whilst working in the UK,but as I approach retirement I may decide to move to Spain,or spend more time there.My preferred option would be in a area around fellow Brits,and unlike my present location be next to the coast.I have to admit I do not know the areas where rental potential is better,and equally I do not know if the amount I would like to spend is achievable.


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## thrax (Nov 13, 2008)

I can only speak about the area where we live but you might want to consider the area east of Malaga including Torre del Mar, Torrox, Nerja and Frigiliana. Take a look on the web and you might find it suits your requirements. But, of course, there are thousands of other wonderful places to live in Spain. You need to create a list of what your most important requirements are, weather, supermarkets, airports, costs etc...


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## Rabbitcat (Aug 31, 2014)

Anyone what rate the ITP is for the Valencia Region ? Thanks


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## Rockpea (Sep 11, 2015)

snikpoh said:


> It's nearer 15% now as the transfer tax (ITP) itself is 10%.


We're just finishing our purchase process in Murcia and it's come in at almost exactly 10% - 8% purchase tax and the rest is legal fees, Notary, land registry etc. Similar budget to OP so thought it worth posting


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## Dunpleecin (Dec 20, 2012)

I would say if you're renting to people in the UK as a holiday let, somewhere within 45 minutes of either Malaga or Alicante would be a decent draw.


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## snikpoh (Nov 19, 2007)

Dunpleecin said:


> I would say if you're renting to people in the UK as a holiday let, somewhere within 45 minutes of either Malaga or Alicante would be a decent draw.


.... and what's wrong with Valencia airport?


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## mrypg9 (Apr 26, 2008)

I doubt you'd find anything within 45 minutes of Malaga for £45k even at today's exchange rate...stick a 1 in front of the 4 and you'd be nearer the mark, for a coastal apartment.
Alicante might be the better bet.


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## Madliz (Feb 4, 2011)

A quick look at Rightmove shows many properties in Málaga, both apartments and townhouses, of 1 & 2 bedrooms, from under €30k upwards (yes, euros).

Property for sale in Malaga and Property in Malaga

You have to skip past all the fractional ownerships, mobile homes, etc., but there are many cheap properties for sale. There's even a 1-bed detached with garden, 50mins from the airport.

I find that Spanish sites tend to have still more bargains, as property sold to Brits can be overpriced.


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## Dunpleecin (Dec 20, 2012)

snikpoh said:


> .... and what's wrong with Valencia airport?


Probably nothing but do the prices compare with flights to ALC and AGP? Do they fly all year? And can you go from Liverpool, Bristol, Stansted, Bournemouth, Belfast, Glasgow etc etc?


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## snikpoh (Nov 19, 2007)

Dunpleecin said:


> Probably nothing but do the prices compare with flights to ALC and AGP? Do they fly all year? And can you go from Liverpool, Bristol, Stansted, Bournemouth, Belfast, Glasgow etc etc?


Yes, yes and certainly from Bristol, Gatwick and Stansted (I don't know about the others).


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## tsmiggy (Mar 22, 2015)

Thanks for all the information,i will look through it.The £45000 was not a rigid price point,but I was thinking of not stretching myself at this moment.

Like I pointed out my main reason will be to provide a income for maybe 4 or so years,maybe using it myself at times.Then at the next stage spending a far greater time in Spain.Its good to make contact with people already in that situation,knowing the advice I am given is more likely to be inpartial.

Tony


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