Ireland AM - "Spanish Property Grab"

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Rosinsky

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Did anyone watch the programme this morning on the Spanish Property Grab situation. It featured TMC Solicitors a legal firm and also guys from a web based company called Myoverseasproperty.ie.

Has anyone else been affected by this issue? We have been looking to buy a holiday home in Spain ( Costa De Sol) recently; however, it is kind of worrying?

From what I understand, a law was passed in order to prevent new developments from being constructed within 100 km from the coast. The law was implimented to preserve the coastline. The local government ignored the law and allowed for building to proceed - now the government has come back saying that the building was illegal and that thousands of properties will be demolished.

( Obviously it was early and I may have some of the facts wrong so I would appreciate it if someone can clarify the details of this issue.)

What areas does this law apply to? Can the government actually demolish thousands of property? Would anyone advise me to hang on??
 
I saw a program on channel 4 called 'selling houses abroad' which featured a couple that fell appalling law. The show is repeated on E4 and More4 from time to time. It seems that there is a Spanish solicitor bring a class action against the Spanish government in the European Court of Human Rights, I have not heard of any out come yet but I'm sure the findings will be big news, watch this space.............
 

I do know of one 5 star hotel down there that was built depsite the national laws. Its been a year since ive been there but at the time the hotel wasnt allowed to conduct business and I beleive they were involved in a court case to open it up. I would hazard that if they loose the case it will be knocked down -
I suggest if your buying there dont buy within 100metres of the sea to be safe.
 
My lawyer always had a go at my parents for buying in Spain, he said the Spanish laws gave the government too much power to just take your land. My parents have done well over the 30 years they have owned there but I always remember what he said when I hear about land grab and now this.

Burn
 

The guys ( TMC Solicitors & Myoverseasproperty.ie.) on the show was providing advice in relation to the matter I should point out and they said that buyers should not panic. I understand that the Spanish government is in trouble with the EU in relation to the matter - would appreciate any feedback from someone that knows exact details and what places should be avoided.
 
With respect I think you are mixing up two distinct issues, (1) the Valencia Land Grab law and (2) the illegal development along the Costas but particularly in Costa del Sol.

In relation to (1) I think the victims won a case in Europe and the law will be changed or unenforced and in (2) I think a lot of properties will be demolished or fines paid but anyone thinking of buying needs to have a good lawyer, versed in Spanish law, working for them. Caveat Emptor and all that.

Slim
 
Hi there,

It can happen anywhere in Spain - get a copy of the planning permission and have it translated. I bought about 3 years ago in spain it wasn't off plan it was well under way when we bought it - bought from a company called TM Torreblanca who have been in business for 40 years or so - I have no affiliation other than I own one of their properties. From start to finish found very professional - I bought on costa blanca - and must say we get great use out of it but if I were to sell at the moment I wouldn't get what we paid - there are lots of 2nd hand lovely properties for sale. We are in it for the long haul but with regard of where to buy research research -it is amazing what information you can glean from the internet. I had not been to the area before we bought but had been to spain a lot before - I bought books and read about different areas. We are equidistant between alicante and murcia so can show for best prices for flights. A useful website [broken link removed] mark stucklin who writes for the sunday times is involved in this forum - I found it very informative. Do your research regarding taxes you have to pay yearly and be well informed before you buy so you know what you are getting yourself into - a lot of people don't!
 
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http://www.eyeonspain.com/ is another useful website,

It is used by UK and Irish people and the forums and articles will give you helpful advise, news and tips on how to avoid the many pitfalls in Spanish property.


Murt
 
I recently came across an excellent Estate Agent in Tenerife. The Company is PCI-International and the CEO is an Irish man Gerry Galvin who is legally resident in Tenerife for the past 12 years and is highly qualified and experienced in the international finance and property sector.PCI will provide a total one-stop property service. www.pci-international.com

rochs
 
Hi,

There is an interesting article in the Home section of today's Sunday Times (20th Jan 08) written by Mark Stucklin which might be of interest to you.
 
Murt10 said:
More information. Plenty of articles etc

[broken link removed]


Murt
Click to expand...

Thanks for all the responses. I am sure the due diligence will pick up on the issues of planning.

As I am only purchasing for the purpose of own use the actual market is not too important to me; however, I would be interested to hear comments on the Spanish property market. Certain individuals are very sceptical about it as it appears to be over priced - especially the region I am looking at.

The capital appreciation has been falling the last few years and yields are not always great but will they continue to grow at least in line with inflation??

We have also looked at holiday homes out in the Dominican Republic - the access is a right pain but I would like to hear also back from people that have purchased out there. The 15% LTV mortgages and also the Tax situation is not ideal.
 
Hi Rosinsky,

My advice for what is worth is to buy a second hand place in spain if it is spain you are going to buy in, they have come down a lot in price. If you are in it for the long haul, I'd say you should be ok with capital appreciation. Location, location, location is everything though no matter where you buy, be practical sometimes what might be buzzing in the summertime might be a ghost town in winter months.
 
Dear Angela 59,
I am intending to buy a property in Coata de Blanca near by Alicante,
what would you recommend me to do first to start it up, please ?
Thanks in advance
Niky
 
Hi Nicky,

I did a lot of my research on the internet believe it or not. At the moment if I were you (I don't know if you are looking for a new or second hand) - I would actually go out if you have the time for 1 week and have a look around - there are plenty of second hand properties for sale. You can fly in to Murcia or Alicante with Ryanair or Alicante with Aer Lingus. Look up on the internet resales for that particular area. The one thing I'd say is buy something that suits your lifestyle and convenience to airport. The development I am in is Zeniamar, Orihuela Costa which is about 6 Kms outside of Torrvieja, there are plenty of shops, restaurants around within walking distance, the beaches are some 20 mins walk or 5 mins in car and there is a choice of beaches - I find the area I am in is spread out so you do need a car. If you want to PM for any further information let me know.

Angela59
 
Thank you Angela 59 for the very helpful information, I am going to Spain in March to have a look everything myself, planning to visit Alicante, Torreviega, Orihuela, Murcia, is there posible to get rent a car ? I am going to see both second hand and new build properties, not buying right now, just to make research. I have heard that to byu directly from developers could be cheaper, however to check all legal aspects is not easy for me. Are there any tips and advises you can give me more to do the research only, not to buy yet, please ?
Thanks and
Kind Regards
Nicky
 
Hi Nicky,

Firstly with regard to car rental the cheapest car rental IMO is www.carjet.com you can collect car from either alicante or murcia book online get a voucher rather than paying full price in case you don't get to fly - give voucher on collection. I bought directly from TM - they have agents in different countries and I found them very professional and have been in business 40 years and have developments in various parts of spain so you could look up their website and see if you like what you see. I can't vouch for other developers but personally I would not buy off-plan in spain too risky, TM build before the sell so you can see what you are getting. Parador is another company but to be honest there are a lot of properties for sale out there in spain at the moment so again it is a buyers market. I bought mine new I saw it in it's raw stage but it came fully furnished, some developments don't this could cost an extra E20,000 to furnish your apartment - IMO if I was buying again I would buy second hand as there are a lot of things done for you i.e. air conditioning and various other things. I think do your research on where you think you would like go and see it. Alicante is nice, Torrvieja is a nice bustling port quite high rise though, La Mata is to the north of Torrvieja - nice to, Orihuela Costa is nice not too high rise, Orihuela city and Murcia are inland. Decide whether you want beach/golf/inland and then whittle down. Best of luck.

Angela

Also the legal end add about 10% on to price that you get - this includes stamp duty and vat etc - I can recommend solicitors I used I find them good - just beware who you are buying from www.spanishpropertyinsight.com this is a very good forum and post some of your questions there - I found this website invaluable when I bought. I have no affiliation to TM Torreblanca - just a happy customer.
 
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Nicky, Look at the Overseas forum on Housepricecrash. They have a long thread on Spain. As others have said, buying a resale from a desperate seller (there are lots of them) is a better bet than buying new. (Incidentally, Orihuela gets a 'caning' and I've heard of Torrevieja being described as the biggest council estate in Europe; high crime levels).).
Do think very carefully about this. The mere fact that you ask if it's possible to rent a car in Spain displays a worrying level of naivity.
 
hi BigRog,

Just to clarify a few things on any of the costas in spain there is a high crime rate - the main crime being burglaries and it is not spanish people doing the burglaries - listen to the news in Ireland on any given day of the week - burglaries are the least of your worries here. I don't live in Torrvieja about 6 kms outside and it has an amazing promenade, lovely restaurants on a weekend night you'll find 3 generations of spanish families walking the boulevard at 10 or 11 at night - I've never had any problems there - it is high rise. I live on Orihuela Costa in an upmarket urbanisation - Orihuela is a big area, there is also Orihuela city 20kms inland. I think people have to research for themselves and go with gut feeling - scaremongering doesn't do anyone any benefit - to be honest when I was buying I found alot of scaremongering on some forums with the result I was scared nearly to go to the beach - IMO having travelled there for the last 3 years for about 4 months per year I have seen none of this - I know there are alot of burglaries on new builds but if you take the precautions and make sure your property is secure - then you will have no problem. A businesswoman who lives near where I live in Ireland also has a place in spain near mine in her own words she said "I feel safer on my own in my apartment in spain than I would here in Ireland while being on my own - I'd concur with that sentiment - though I did feel scared ........ having listened to some people like yourself - have you been to either of these places?
 
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