Developers are resorting to drastic action to get rid of unsold stock.

Property crisis leads to social housing in luxury new developments

The downturn in the Spanish property market is forcing developers to adopt creative solutions to off load their stock of unsold properties. In some cases this means offering subsidised social housing on luxury golf developments. …

Purchasing a Spanish Property - The most valuable advice I can give about buying a home in Spain is “DON’T DREAM ABOUT IT DO IT”. Someone I am sure told you long ago “It is not the thing that you do in life you regret but rather the things you don’t do”. In no case can I think that this old adage is truer than in the case of those people I meet who are still dreaming of buying a holiday home or moving to Spain.

It’s sunny, economical, and safe. As part of the EEC you are entitled to live and work here, the political climate is secure and as Brits have been coming here in their droves since the sixties, we are an established part of the scene. As it is only a couple of hours away from the UK by plane it is really closer than many British holiday resorts.

Once you have made a decision to take advantage of what Spain offers, it is a case of how to go about it. There are more estate agents in Spain than almost any other business, many of them sell a house every three months but because of the high commissions these agencies charge, it is enough to make a living on.

Others are money making machines who spend absolute fortunes on Exhibitions, road shows, national press campaigns, telesales organisations etc. They tend to specialise in selling new build properties designed for the British market. That means in plain speak, overpriced ghettos built on reclaimed land. They have to recuperate their marketing costs somewhere and if they are subsidising your flight and accommodation, watch out. If you buy from one of these companies you will not only pay through the nose for you accommodation but also for the accommodation and flights of the people who came out with no intention of buying in the first place.

As with most things in life it is best to seek out the middle way, look for medium sized specialist estate agents, with a good reputation and a good track record is important. A new agency recently opened up may not be there when you need them. Property is not a pair of shoes, you may well need help from the agency long after you have moved in to the property. Does the agency offer after sales, does the property have its title deeds, can the agency recommend builders, lawyers and property maintenance.
Use the internet. One of the great boons to buying a property abroad has been the internet. To be able to get information about properties, areas, communications and to actually be in regular contact with your agent from home at the touch of a button has made buying abroad so much easier.

It means that weeks even months before you actually visit your property, you can get the true measure of the agent through whom you are buying. Are they professional in their replies, are the knowledgeble about their areas. Let’s face it if you don’t feel you can rely on them before you buy what chance of a decent after sales service do you have. So use this time to get to know your agent.

Use a lawyer. In Spain it’s not legally required to use a lawyer to buy a property. You can also go to Las Vegas and place all your money on a throw of the dice. Equally sensible.

Any estate agent who tells you not to use a lawyer is at best imprudent, at worst dishonest. Either way steer clear of them. Beware of in house lawyers if the agency offers it’s own lawyer you must be aware of a possible conflict of interest. You can find lawyers on the internet these days but beware of the Marbella lawyers who charge fortunes.

You should pay between 1 and 1.5% of the value of the house and with cheap property under 100,000 a minimum fee of around 1,500 should be the most you should pay. Check what comes with the service and are taxes paid for you? Do they arrange your NIE number (essential to pay taxes) is that included in the fee.