27 Jul 2013 9:20 AM:

Hi,

My family and I lived in Spain till last year and all the comments people have made are valid and should be listened to.  We tried to be legit -but Spanish beauracy (and an illegal house!) does not make it easy for the honest man, so I would say test the water before you jump in completely.

I know it's a different marketplace but I work for a property management agency in the UK now.   Their terms of the leases are that whenever a tenant moves out he has to get the oven professionally cleaned.   My experience is that tenants very rarely leave the oven in a good state when they leave so the owners are keen to have this service written in.   You seem to be doing your research so maybe you could canvas the local property agents and ask their thoughts?   If you can offer them commission on any business they put your way this may help you get started quicker.

Yes there is a recessesion on, but if you do your research, go in with your eyes open and are prepared to lose some money if it doesn't work out, then I wish you well and hope you succeed.

Thread: Starting a new business - need some market research

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12 Mar 2012 3:23 PM:

They have not removed the 1 year fixed but they have asked IFA's to discourange selling it at the moment as it is predominantly a property fund, liquidity squeezes do happen, and they are trying to manage themselves rather than borrowing from a bank. I also understand that on the managed performance fund it is not an 18 month wait, simply around 30 days.  They have an income protection fund that is far less susceptible to illiquidity (lack of cash flow) but offers lower rates of return. 

As an IFA, i have nothing but praise for the way LM operate and the professionalism they show day in, day out.  I cannot say that for all product providers. Recently LM dropped the rates for sterling - again, they were managing their fund, but gave us all plenty of warning that that what was they inended to do.

Effectively, if you invest in Lm (they do several types of funds) you are participating in the busines objective of that fund, and any business has risks.  But tell me what doesn't have risks - keeping you money under the matresse (fire/burglary). Putting it in the bank -  (risk of bail out or compensation scheme payout being too slow, or not high enough). It all has risks of some sort, so the answer is to spread it.  So as an IFA and an accountant myself, I think LM do a very good job and if I had some cash I would put a little into LM over 3 to 5 years.   This does not mean they won't dry up a little at some point, until they can sell properties that they have fully developed, or those properties that they have given first charge security loans over. I tell you what, I bet they could sell any properties there quicker than we can here in Spain. There is an additianal risk for superior gains compared to the banks, but the risk does not have to be silly. 

Generally, it is important we look out for each other but at the same time, we need to enlighten people by giving them statements of fact and not mere speculation. That's not saying you were, as you are entitled and right to raise your queries.    

 

 

  

 

 

 

Thread: HIGH INTEREST INVESTMENTS

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11 Mar 2012 11:16 AM:

 There are several spects to this;  

The fees do seem a fraction high as usually they will come in at around 10% for a property of this value. Within the fees - certain fees are fixed so the higher the property value the lower percentage they appear compared to the price of the property. The person who responded by saying that fees are broker fees is probably incorrect as set up fees are taken by the bank, and if a broker or introducer is used then they would normally pass half the fees to broker. Or they increase the set up fes to accommodate the broker - nothing wrong with this as the broker would have done the work.

All in all, the fees maybe around 1000 to high.  This is the vaguest comment along with the inheritance % below that  I'm going to make as I have not seen the entire make of fees as will be set out by the bank.

Spain, by it's very nature and customs is a corrupt and immoral place. Get used to it - or rent and pick up your bags when you have had enough.

So - lucky you! You have been offered effectively aa 100% mortgage. Generally these are impossible to get.  At low interest rates this is a god send. Secondly, if the going gets too tough and you do not have  property regestered in the UK, you could hand back the keys and walk away. ( I don't recommend this on moral grounds - but that's what people did in spain over the last few years, and the  banks took the hit). Don't do this is you have a property in the uk, as the bank can pursue you for your assets if you default on the mortgage.

Lastly, in thepast values were under declared. It happened to us and I wasn't pleased or comfortable. This effectively means that when I come to sell my house (fat chance as it is illegal) I will be paying extra capital gain if I do not buy another main residence here in spain. (Most brits sell to leave as we can't get on with the country itself, family ties, or partners not settled - that is fact ) .

But you have an over declared house, so assuming you have it for a few years you can make up to 20K (approx) 60 -40 before any capital gain can be registered. When you sell at 61K  you will make 1K at 18% capital gains or inheritance tax reasons -  and these are a killer, (generally around 40% but depends on their relationship connecion to you - could be more could be less). They may value you this at the 60K or get it valued when you die, so that the value comes in at less, otherwise 40% on 60K is 24K they will have to trump up.  You cannot rely on spain to do the reasonable thing, they will simply shrug their shoulders at your kids when they need help)

Buying abroad is frought with danger and things we do not understand. I certainly wish I hadn't bought  - it's not just about the property - it's about the waysof spain. Some people I have met have been very happy, some ( simply a disproprtionate amount of people) have not and have been done over in some way - and that can effect your health.

Another thing to consider is if you do rent and you decide to buy later, you may not have the required earnings at that point to be able to get a mortgage. So possibly, this is something you need to decide now.

I am a financial adviser and an accountant, so I am telling you how it is, I am not fishing for work, but me and my family have had the bad end of the stick.  I would simply rent  - have no worries and complications,  and place the money outside spain to generate growth and an income. And the reasons we have these forums - because generally us brits care about each other - it's in our make up.    

 

Good luck. 

 

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Thread: Advice needed urgently please re spanish mortage offer

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