First Time Purchase in Spain

Hi everyone

My family and I (wife & 2 kids) are planning our first purchase in Spain in the La Manga area and would like to get the comminities feedback on whether to go directly to the Bank (we currently have a Sabadell Acc) or use a broker & if so recommendations?

We're looking a 2-3b apartments upto 100K (EUR) that we could potentially start spending extended vacations in and eventually move to spain when the kids are ready for infant school.

Thanks

Saddik

Hi Mr Deeks

I personally would say it doesnt really matter who you use. The important thing is to get a decent independent lawyer and make sure that you know all the costs which are not explained to you. i.e.Spanish Income tax, Inheritence tax should one of you pass away or you split up, community fees and your additional personal liability should something untoward happen. If you are getting a Mortgage beware of banks tying you to their insurance products (which is nearly impossible to get out of), finally beware of sales agents who will lie through their back teeth to get a sale) i.e. Say there are 100 properties in a community, they will tell you that 95 are occupied, you buy and find that only 10 are occupied. That means that any community fees the 10 households pay would not be enough to cover things like Maintenance, Lifts, Pool etc, so you end up with a worthless property

I'm sure a broker will charge you a fee.  Your bank has probably got a good few properties on their books that are reposessions at knock down prices.  I would therefore recommend that you go there first and see what sort of deal you can obtain.  If you don't like it, you can always walk away and try elsewhere.  Good luck.

I stayed on La Manga 20 years ago with the intention of buying, but was very disappointed.  Over priced and over populated - the whole area is expensive - could never see the attraction of the place.

Assuming you're referring to mortgages, I would have thought it will simply be a matter of personal choice whether to go direct to your bank or try a broker; start with your bank, since you already know them, and then get a comparison from a broker. Presumably, since you already have a Spanish bank account, you have some connection here, but I can't help wondering, since this was your first post, if where to get a mortgage should be the starting point for your research into such a big decision? There's so many other important questions that need considering (especially re: the kids). Maybe you've already done all that. Not that it's any business of mine or anybody else's, of course!

I know nothing about La Manga (other than football teams seem to like hanging out there!) and have never been there, but my curiosity was aroused and I did a quick search for 2/3 bed properties up to 100K; it turned up what seems to be a pretty good choice of fairly decent looking places for less than you'd pay for a crappy studio on the Costa del Sol, so if this is "overpriced", the location must have some major negatives. The images on Google look quite attractive - clean and tidy, although large stretches of residential blocks with very little infrastructure, making me wonder if it's a suitable place to live full time with kids. And I wonder....how much of the area will be under water by the time the kids are grown up? 

Hello Mr Saddik Deeks and welcome to EOS.

A broker will recommend the mortgage company that pays him/her the highest commission. A bank can only offer you what it has, good or bad.

Why do you need to borrow money from a foreign bank to buy a foreign property in a country that you are not a national? How would you repay it if you were unable to work and earn a living?

Roberto,

We all have different tastes, but yes I saw the pretty pictures which is why we looked at buying on La Manga, but very disappointed - parts not far away are great and good value, but you're paying too much for the La Manga name.  When we were there it was close to the era that Gazza had a bust up with Glen Hoddle and wrecked his room at the Hyatt Regency - that obviously boosted the appeal of the place for some.

If you like the touristy parts of CDS you might like La Manga - each to his own.

I'm not sure if we're at crossed purposes here or not; from my quick search (on Idealista) property there seems to me to be remarkably cheap. So if, as you say, it's overpriced, I naturally think the area must have some serious drawbacks. A couple I know recently bought a tiny 1 bedroomed beach bungalow, which needs modernising, in Fuertaventura for €100K. For the same money, it would appear they could buy a 2 or 3 bed apartment with a garage, in good nick, in La Manga. Just to avoid any further confusion, the touristy areas of CDS, nor Fuertaventura, nor what I can see of La Manga on Google Street View, appeal to me at all! But € for €, La Manga appears relatively cheap. 

Roberto, there's no cross purpose or confusion here.  I'm interested in property, it's my business in the UK. 

As a generalism you expect to pay a lot more for the same property in the Canaries than the mainland, due to the better balanced climate.  I spent a week travelling around Gran Canaria,10 years ago, but without success due to the prices.  Perhaps I've been spoilt by the prices over here?  So not surprised by the experience of your acquaintances.

To be honest I've lost any interest I had with La Manga as I wouldn't want to live there.  But for sure when I looked it was massively over priced relative to the surrounding area.  It depends what you're after, but there are places like Cartagena, Los Alcazares, Puerto de Mazarron and many others inbetween that may represent better value for money and more attractive.  But...beauty is in the eye of the beholder. 

Well, not knowing the surrounding areas either, I really can't say, but Canaries was just one example; most of the CDS is also far more expensive. If La Manga is expensive compared to the areas you mentioned, perhaps that explains why most of the Place in the Sun shows featuring couples wanting a villa with pool for less than 50k are looking around there!

Thank you everyone for their input on this & the various factors you have each added.

My family and I are not limited to the La Manga area but living by the coast for us is a must, the airport is within an ear shot so getting back to the UK for business is essential for me.  We will use the property as a base to start while we get our residency in place etc etc with the intention to rent it later on down the line, hence the coastal property near major trans links & golf course are positive rental factors.

@Roberto - Your totally right, my reason for this expidition is for my kids, they are still very young so my wife and I are taking the opportunity to grab hold of the lifestyle we've always wanted.  I'm in talks with the Bank and a Broker (IMS) anyone had any dealings with them?    

@Kavanagh - Thanks for this info i was unaware this was the game they play, I have several investment properties in the UK and have always used a broker who never charged.  I will proceed with an application with both and see who comes up with the best product before proceeding.

@Jimbofinn - Been looking on Solvia, but thanks for your input

@Jarvi - Recommendations on a solicitor?

Sorry if i couldnt answer everyone

Hi Mr Deeks.

Sorry but I cant really recommend one. 

Are lifestyle coastal options not suitable in the UK?...have you discounted this as an option by selling some of your existing UK investments to reinvest in the UK?

There are many beautiful coastal resorts ( or countryside within reach of the coast and golf courses....see escape to the country!)  that now appear to benefit from improved weather, plus rental holiday options to supplement income in the interim are becoming increasingly popular, and thereafter Spain could be an occasional ( or frequent!) holiday destination leaving you with a variety of destinations to visit for you and the family.

Just a thought and alternative to consider without the many complexities ( legal and financial) associated with purchasing abroad at this particular moment in time. 

Another alternative is to rent in Spain before you commit to buying.

But ads, Mr Deeks never asked for advice on all that lot.

There’s nothing to fear from looking at all options when making major lifestyle changes. :)

Goodluck with whatever you decide Mr Deeks.

https://www.gov.uk/guidance/how-to-buy-property-in-spain

http://www.nhs.uk

https://www.nhs.uk/using-the-nhs/healthcare-abroad/healthcare-when-travelling-abroad/healthcare-in-spain/

This message was last edited by ads on 01/06/2019.

Hi everyone, so ive taken some time away to dig deeper into this topic and unfortunatly Ive hit a bit of a dead end.  When i was last corresponding on the thread i was in full time employment as well as having several investment properties, nevertheless circumstances have changed and i'm no longer working for a company but reverted to self employment status as full time landlord in the UK as i have been for 15 years.

After reaching out to the banks directly it was put to me that in order to qualify for finance I would have to be in full time employment, when I tried explaining my situation they didnt seem to be too intrested.
Is anyone else self employed and know a forward route that i can explore to secure financing to make our first purchase in spain. 

We have a good deposit to place down and regular income from rental properties secured on ASTs.

Thanks

Can you borrow against your assets... I . E remortgage the properties that you are renting out.

All financial institutes are entitled to pick and choose who they lend money to whether you like it or not. It is not their money; it belongs to savers and investors. If you are turned down by mainstream lenders you will need to try subprime lenders who will take more risks but charge higher interest rates.

Sometime as they say ‘’beggars cannot be choosers’’ and in your case if you cannot get your way, maybe it’s time to shelve the whole idea.

A good independent lawyer, with good expertise in both property and mortgage law will clearly guide you throgh the right way.

KInd regards

Maria

Thanks for the replies today....

@mariadecastro - Thank you will be in touch

@windtalker - I have considered this option and am currently looking further into it to see if its viable for my family and I.

@Kavanagh - tell me something i dont know or maybe a work around, but to recommend shelving my family dreams is hardly helping or constructive so with all due respect if you dont have any further ideas please do not comment.