Buying property in Spain. Is it a risky experience?

Buying property in Spain. Is it a risky experience?


Hola amigos, Stuart here from
Spain speaks with another video today about living in this country and today I
thought we’d talk about buying property in Spain so let’s go for a drive and
have a chat so it’s that time of the year again spring is here a lot of
people are going to be coming to Spain for their holidays and let’s be honest a
lot of people are going to fall in love with the country and they’re going to
think about buying property here because when you go to these Mediterranean
resort type places and you’re sitting out on a terrace at 11 o’clock in the
evening and the weather’s fantastic there’s no wind you’re able to have a
drink and a nice meal outside and a lot of people romanticize about living in
Spain so they start looking at property now you’re going to read a lot of bad
stories about buying property in Spain there’s going to be lots of buyer beware
stories in fact I can tell you a few stories now about buying property here
as we’re coming into an area where there is a lot of construction going on at the
moment because Spain is in a another property boom the economy in this
country kicks into gear when the housing and construction sector takes off and
it’s been booming at least in this area for the last couple of years and
hundreds and hundreds of flats have been built new blocks new shops pop up as we
can see new life into an area that was barren for ten
years because all of this area here was going to be built ten years ago but the
christ is putting into that but when the bank started opening their credit lines
up again the Constructors and the buyers came back to life was that this bloke
crossed the road here so all of these houses here on both sides of the street
are about a year old might be a little bit longer think these ones over here on
the left are about six months old maybe even less and these ones about a year
and a bit probably last summer they were they were
handed over to the owners and with every property that you purchased there’s
going to be a bit of drama in Spain I don’t think too many people have got
stories to tell where everything went smoothly normally there’s always
something that happens which slows down the process the Builder could get into
some financial difficulty try to get more money out of the people that are
buying the property those things are fairly common and basically there is a
buyer beware warning when you are buying property in Spain because there’s a lot
of dodgy characters involved in the industry and the housing bubble in 2008
when it burst showed just how unprotected buyers are or buyers can be
when it comes to trying to get property in Spain now the majority of times
you’re going to be tempted to buy off plan because new construction is what
moves the economy here but I’m of the opinion that it’s probably better to get
into a house that’s already consolidated an area that’s already consolidated
therefore you’re not going to get any surprises you can see what you’re
getting into obviously you need to get a lawyer to check the property to make
sure that there’s no outstanding debts or it hasn’t been built in an illegal
area because those are all problems that have happened in the past
buying property here so make sure you do your due diligence and get things
checked with a lawyer beforehand and preferably one that speaks English
because you want to be able to understand that
contract as best you can now as I said before you’re going to hear a lot of bad
stories you’re going to hear stories about people that have bought houses
that didn’t have the proper planning permissions you’re going to hear stories
about people that have bought houses that were built in illegal areas and
people have lost their money but let’s be honest the majority of houses get
built and people end up living in them otherwise it would be absolutely chaotic
but over the years foreigners buying property in Spain
obviously being easy targets probably there’s more stories to tell because
they get stuck in a legal limbo they get stuck in a language limbo they can’t
communicate and that dream can turn sour now my experience with buying property I
bought property in Spain and I bought property in Portugal and I’m going to
tell you now that Portugal was by far the better experience now there’s a
bloke walking on the side of the road here and did not know what he’s doing
this is a national highway and there’s a bloke walking on the side of the road so
get that into your head so my experience in both Spain and
Portugal my experience in Spain buying property started in 2001 my girlfriend
and I decided to buy a house we bought off plan and we thought everything was
great some friends of ours had also bought one of the properties we went to
the offices of the people who were building it everything seemed aboveboard
everything seemed normal we put down the deposit that they asked for we organized
everything from that point of view and we got told that there was going to
be about 12 to 15 month waiting time because they hadn’t started building yet
but everything had been organized and it was just the question of time as I said
about 12 to 15 months so 12 months passed and everything was going smoothly
the houses were being built a little bit slow let’s say a few of the
things that you’d expect to be done after 12 months weren’t but we felt well
maybe it’s going to be 15 fifteen months went by same situation
nothing had improved two years went by and we started to get a little bit
nervous and we started to join up with other members of the same group of
houses what happened was that the the building company had bought a piece of
land now we’re going to build about 30 houses on that piece of land all of the
houses were the same and but there’s no cooperative or there’s no real contact
between the people that have bought the houses but what happened that through
some protesting we ended up coming to the place on a Saturday to protest about
how slow the building seemed to be coming along and we managed to meet a
few of the other people and that’s where things started to go south because we
started to hear other stories about how some of them had been asked for more
money the construction costs had suddenly increased and this was all
because the market in that particular time was increasing so much that the
building company the original price that they had offered seemed cheap so they
wanted to get more money for the property and what happens is that people
don’t pay well sometimes they relinquish the house and the company is able to
sell it to another person for more money but we all stood our ground some people
decided to pay an extra thirty thousand euros I think it was at the time some
people didn’t some people got lawyers involved and it turned out that we
didn’t have to pay the extra money at all you can see a lot of trucks going
past here at the moment this is all related to the construction boom that’s
happening in the moment there’s hundreds and hundreds of trucks moving around
these roads at the moment and transporting building materials and what
have you not so anyway that was the thing so we ended up getting the house
about a year later than planned and in the end everything worked out but it was
a nervous twelve months while all of this was taking place my experience
buying property in Portugal was completely different we also bought off
plan we went to the real estate agent he showed us a flat we met the Builder he
told us that it was going to be ready in 12 months we were skeptical because
been through the Spanish experience but twelve months to the day we got the
phone call that the house was ready the mortgage had been organized with the
bank all we had to do was go to Portugal signed the papers and a notary and
everything was sweet so the Portuguese experience was a lot better I don’t know
whether that was just our particular case or whether they’re more serious in
Portugal when it comes to building also there wasn’t as much of a boom at the
time so that also could be one of the reasons why but in general I would say
that Portugal is a better country and a little bit more serious when it comes to
construction so I’m nearly at where I need to be so to sum this video up if
you are planning to buy property in Spain do your homework that’s all you
have to do make sure that everything is legal and aboveboard
don’t get sucked into buying a place to quickly have a look around if you see
that there is an urbanization as they call it here or a housing estate that’s
been built in a dodgy area do not invest your money there no matter how tempting
the price and basically that’s it so if you have bought property in Spain
or are planning to do so leave a question or comment in the section below
I’ll see you in my next video hasta luego

15 thoughts on “Buying property in Spain. Is it a risky experience?

  1. What a mug buying a house off plan. Yes, inflation is real and inflation on construction costs was 11% in the UK in 2009 or about 2.75% per quarter.

  2. Lots of properties without proper permit. Interior designs are horrible in Spain. You need lots of $$$ + good foreign architect to refurbish.

  3. Trust no professional in spain, corruption is rife and recourse via the legal system is monumentally difficult, my brother in law has been involved in a 22yr property claim case, nearly everyone involved at every level has been shown to be corrupt

  4. I buy and rent out in home in Finland and every winter 2-3 months we spend on Tenerife using Airbnb. I lived 5 years in Italy, its nice yes but not easy, same Spain. You would not enjoy there all year around without good casflow from somewhere else.

  5. I believe you should rent for a while and assess everything properly.
    Friends of our bought out in Spain a few years back and nice villa but not a good investment.
    Easy to lose money, although they love the villa they do regret not having rented for a good while first

  6. I have a Motorcycle in Spain and I have to pay "mandatory Insurance" even though it has been broken down and off the road for 2 years, apparently it is the Law- not like the UK where you can SORN it. sorry for being off subject — just a heads up

  7. Happens in Mexico all the time when buying a home or condo have to be on your toes builders go bankrupt and the buyers are out their deposits. My friend lost her 25 thousand deposit

  8. Why bother buying property in these God forsaken countries? Just rent your place in the uk and use the money to rent a flat there.

  9. Old renovated hotel near Malaga to sell. Used to be run by an artist and was an international meeting spot with stage, restaurant and bar. It has been completely restored, has a manor house with eight added appartments, chimney, bar and three spacious cabin sites in the garden. Five minutes drive from sweet white village with post office, medical center, world quality supermarkets, half hour drive down to the next Costa del Sol town. Its upon a small hill, detached from everyone else, and overlooking a stunningly beautiful valley with palm trees and sea view and surrounded by mountains. All papers in order. Sale for retirement. For further details contact me at 00 49 15210246762. The house was a well known restaurant in the area and can now be an ideal spot for a meditation center, business training center, a new hotel, a research center or whatever requires those ideal conditions of detachment WHILE being completely connected to everything.

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