Hi,

Our association, AUAN, is one of a number of associations representing homeowners who came unstuck when they purchased their 'dream home in the sun'.  Our experiences were recently covered on national Spanish television. A subtitled version of the programme can be viewed here : http://www.youtube.com/watch?v=8rh5tyVtarQ&feature=youtu.be It serves as a salutory tale of why you need to proceed with caution when buying a property in Spain.

The British Embassy provides some good advice for those wishing to buy. The information is based on the experiences of those that came before you, so please take note: https://www.gov.uk/how-to-buy-property-in-spain

Good luck with your purchase :)

This message was last edited by mariadecastro on 06/06/2014.

Our latest press release represents a fairly typical example of the type of scenario that comes to light these days.... We don't issue this sort of story to bring doom and gloom. Rather we wish to ensure that homeowners are informed and we would be most obliged if the government at both a regional (Andalucia) and national level would get off their backsides and do something about it.......

Prosecutor asks for demolition of 13 houses in Partaloa

AUAN, 6th June 2014

Dear Auan,

Thanks for your posta and I sincerely wish you well with your valuable work.

But your comment that the "British Embassy provides some good advice" grates a with me.  This advice is 10/15 years too late and for many somewhat after the hourse has bolted.

IMHO their input could be described as too little too late.  Surely they should be rather more active politically and it's about time they got their diplomatic finger out.  But that's just my opinion from the sidelines, you might know differently.

One of the greatest pit falls to buying a second home in Spain apart from potential legal problems are the related costs associated with it. Most people underestimate them.

Never assume renting it out will cover your expenses.

Maintenance costs increase annually. Things go wrong it costs.

Risk of break-ins and theft.

If you buy a villa with pool, gardening and pool costs are expensive.

Airflights and car hire are not cheap in the peak holiday season and often other times when you want to travel..

Taxes are increasing especially for second homes. Utility standing charges are high. Property values are at best static and liable to fall further over the long term. Interest rates will rise.

Better uses for your money, hotels etc, more interesting destinations than Spain, freedom of choice. Going to the same place every year will eventually become dull. Investment returns on your money pays for holidays, second homes are a constant drain on your resources.

Good advice from MIckyfinn.

Also be aware that letting your property in Spain is nowhere near as straight forward as many, including agents, will tell you and like you to believe. Many who let, do so in ignorance of the legal requirements, having been mislead by 'experts' who either do not know themselves or maybe have a vested interest.

The bottom line is:  It is not cost effective to let one property, after you have obtained all the paperwork, permissions, paid the taxes, cleaning, replacements, damages and possibly  IVA (if you employ someone to manage it)   etc.

I have lived in Spain over 25 years and speak Spanish sufficiently well to be able to negotiate all the problems, if letting was viable,  and I have some years of  letting experience.  

My son has a holiday home here, which he would like to sell, but as we know this not the time to buy, despite what some people have been saying (wrongly as it has proved) for the past couple of years, during which time the market has continued to decline.

Thus my son has allowed a friend to live in his apartment, completely free of charge (to avoid the problems associated with letting) until such time as thing may improve.  He is in his third year of occupation, taking care of my son’s (very long term) investment.

PS  Another potential problem with letting is that the owner is responsible for all insured losses by visitors in relation to the let.  No holiday insurance pays for what the owner is responsible for,  including cancelled fights , or re-locating the visitors to another property ,  if the rented property were to become uninhabitable, say through fire or flood. If you do not believe this, check with the assessors dept of any insurance company, not just the people who sell the cover as they often do not know.

Acer, you make a fair point with regard to the reaction time of the British Embassy but the advice now available is well researched and useful. It also provides links to associations such as ours should you run into difficulty.

Our real frustration is with the national and regional governments of Spain who have failed to do anything at all.

The greatest mistake we made when purchasing our new Apartment in Spain was to trust the Builder, alway make sure all the paperwork which includes the Habitation Certificate has been granted by the local government council. we are now 8 years after completing on our property and still the Spanish Habitation Certificate has not been granted. the Builder owes several Thousands to the purchasers of our complex, we are still paying high Community fees to, swell the fund for the completion of several parts of the complex which incluses the individual Utility meters (which the builder charged €900 at the purchase completion) even with receipts we are still waiting, The Lawyer, Escutura & Builder all charges us the legallly ? completion yet wr are still waiting.

http://www.eyeonspain.com/blogs/costaluz/11873/Legal-tip-1075-Registrars-Notaries-and-Planning-regulations.aspx

Legal tip 1075. Registrars, Notaries and Planning regulations 
02 December 2013 @ 12:40