WHAT IS THE PRICE PER SQ MT FOR RESALE PROPERTY INLAND ALICANTE

For example , if one found a house of 250 sq m what would be the way to calculate the correct price at 3rd qtr 2011 prices, seems impossible to find out as Agents all vary on their take on what is sensible and what isnt, suprise suprise !

A 4 bed house terrace , in a small village  half hour inland from Oliva, does anyone have any idea please as we hear that is how the House and Tax Ministry calculate what a property is worth , but no one seems to know !

Is the house legal, does it have all the paper work, is it registered with the land registry and catastro and paying suma ? if so ask to see the latest suma bill which details the value given by the Catastro, obviously this will give a lower value than the actual resale value but it is a starting point.  At the end of the day a property is only worth what someone is prepared to pay for it. Having said that there are stiff penalties being implemented by the hacienda to those that are purchasing and selling under the true bottom line execepted value.  Same thing happens in the UK as well.

House all legal , just trying to ascertain what the place is worth as Haciend come back to purchasers accusing them of not paying full price even though prices are still falling!

Still need to know how anyone can find out what the price is per Sq Mtr for a village property , all done up and all legal , there must be an official price as the Haceinda seem to work from one!

Agents do their calculations working on what the Sq Mt is against what some Vendors are asking , for inland Alicante what the hell is it ?

Thanks in advance to all who may be able to solve this conumdrum

When selling I have asked a friend, who was at that time a clerk in a Notariy's office, what I should declare.  He checked on his computed and gave me a fugure which the Hacienda would accept.  Each time I sold, using his advice, I had no problems.

I believe the type of property, and how it is classifed, causes the 'Hacienda value' to vary.

If you ask a Notary I think they would be able to tell you.  Or even the Hacienda.  Its not a secret.

A friend declared a house last year which is situated inland from south Alicante. They had it built and the hacienda gave a value of 1,250,00 euros per square metre, for the build, and although they had paid in the region of 50,000 euros for the 2 acre plot of land the catastro value is less than 9,000,euros. So taking into account the true cost of purchasing the land and the cost of building it actually came to 200.000. euros but the catastro value in total and the declared value on the escritura is 159,000,00 euros. Having said that the resale value is approx 299.000.00 in todays market. This property is constructed on rustica land which has a lower value than urban land !

We have a neighbour who has their property up for sale and they have been told that although they had paid the builder over 300,000, euros for the house six years ago the hacienda would probably except 230.000 as being the true value, this works out to be in the region 1,900,00 per square metre which also includes the value of the land it is constructed on !

 There is a web site that gives values per square meter in Spain but sorry cant rember what it is called

there is an average value 2.178 euros square meter  in urban areas as I recall doesnt vary too much

hope at least this gives you some idea

This is one of the problems with the market at the moment – there does not seem to be an accepted method of establishing the value of property. Many see the value of a property as the price the buyer is prepared pay. Estate agents valuations are very different to a banks valuation, and the asking prices for a specific property can vary from agent to agent. Many properties advertised are marked as a 'huge reduction' and the question has to be asked 'A huge reduction on what - an originally hugely inflated price?  It looks like a good dose of due diligence in required on a buyers part to establish area and type property value.

 THE PRICE I QUOTED IS A GOVERNMENT FIGURE BASED ON ACTUAL PRICES

TO CHECK OUT WHY NOT LOOK UP SOME PROPERTIES DO THE SUMS AND SEE WHAT YOU GET

BUT YOU PAYS YOUR MONEY AND TAKES YOUR CHOICE

fotocasa.es provides a "precio medio zona".

 Bank of spain figures per meter

http://www.globalpropertyguide.com/Europe/Spain/Price-History

I think all the figures given by our contributors indicate the absence of any reliable property valuation system in Spain. The figures mentioned so far have been e1,250m2; e1,590m2; e2178m2 which are clearly quite genuine. So, depending on the size of the site the figures will vary a little but not to any huge extent. If we take a new build today, constructed  to both UK and EC standards, the cost is significantly less than these figures. As an example I have seen several piece of land recently @ around 10,000m2 with water and electricity on site and was advised that a build of up to 200m2 footprint would be allowed - more if a first floor was added:

The cost of the land in the area for 10,000m2 was e35,000 and the build costs of a 200m2 house would be  e600m2 -e650m2 for a standard finish + Taxes and utility/service connections. This equates to e750m2 - e800m2 +taxes and connections. 400m2 x 2 floors would bring the M2 price down even further.

This does not mean of course that all houses are built and sold at these figures - some new houses are still vastly over-priced despite being a 'distressed sale' or a 'massive reduction', but what it does do is demonstrate the m2 valuations do not have any sensible patterns. Can you imagine in UK, having to phone the Inland Revenue to ask their opinion?

Obviously land prices do vary and some areas will be higher than the figures quoted, but land prices are dropping all the time and  will continue to do so for the foreseeable future. So does the disparity in figures between old and new mean that pre-owned property is over-valued or that building plots and construction prices have had to find an acceptable level.

The building costs quoted above are realistic and have not been guessed or assumed.

Woodbug.  Can you imagine in UK, having to phone the Inland Revenue to ask their opinion?

But in the UK peope have not for generations declared far less on the purchase contract than the price thay are actually paying, as they have done, probably many still are.

If this were not so no one would ask what price they should declare !!!!    They would just show the true figure as in UK.

In the UK the only time the qusetion arises is when a person 'sells' a property to someone (which is in fact a gilft)  at a nominal price trying to avoid the tax which would otherise be payable on a gift.

You are quite right Johnzx although I believe that most expats now know the score with buying Spanish and will not be taken in with the old 'traditional' methods of buying property. It hardly applies though, as nobody is buying at the moment and by the time the buyers do return, hopefully Spain will have get the job sorted out - it's heading that way and movements towards reformed legislation are on the horizon, but lets not forget we are in Spain and things may take a little longer than us expats would like.

Having said that Johnzx, I  know a UK developer who took over a part finished small building site of 4 houses and paid a song for it. Almost 3 years later his accountant got a visit from the bowler hat brigade wanting to see the figures as they felt the properties may have been purchased at an under-value and as a result, some forms may have to be filled in!

The best way to set the minimum price of the property in the deed in order to avoid future re-liquidation of taxes: it is necessary to apply to the "valor catastral" (the reference value for the IBI tax) a rate that every "comunidad autónoma" fixes every 1st January and it is published and managed by the Consejería de Hacienda of each comunidad autónoma (Andalucía, Catalunya, Madrid, Comunidad Valenciana, etc.).

For example:

A catastral value of a property in Barcelona of 100.000,00 Euros has to be multiplied by 2,90 (according to the figures published for 2011 for Catalunya and specificly for Barcelona): 290.000,00 Euros.

Suntrap Property.

 idealista . com has a section on price per meters of properties in different zones, I recall.