Buying apartments / villas in Ibiza!

L

Lathamstreet_Stu

New Member
Hi,

Im looking at the possibility of buying a 2nd home on the White Isle, poss an aprtment but not sure of the following and was after some advice really if you cud help:

1. What sort of property could you get for the £150-200k bracket?? (Obviously this isnt going to be a villa!!!!!)

2. How does it work getting a 2nd mortgage and what sort of deposit would you have to put down?

3. Which areas of ibiza would be best to purchase a property, where wud i get value for money to Rent the aprtment out for the times when im not there!!!

4. Whats it like over in Ibiza during the off peak season?

Sori if this is off topic, any help much appreciated

:lol:
 
We looked into this about 4 years ago, then a new 2 bedroom apartment in PDB was costing about 250,000 euros. We were thinking about using it as a home when we stayed and then renting it out the rest of the time.......however PDB is a ghost town out of season so for 6+ months of the year you'd have real trouble renting it out. Ibiza Town/Talamanca is much busier out of season but the property is more expensive there. We decided against it in the end cos my husband who's an estate agent thought the market was just getting too saturated with private rental apartments.

That's just what we discovered after a bit of investigation, someone who's actually done it will know more about it and can probably give you more advice.
 
you would have a better change of getting an atp in playa den bossa.there are loads for sale and even more blocks going up.nice for you to rent in summer and use in winter i would say.depends how many rooms your looking at.
 
Lathamstreet_Stu said:
... What sort of property could you get for the £150-200k bracket??
(Obviously this isnt going to be a villa!!!!!) ...
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svmijb.jpg
 
You say "second home" so I assume it is somewhere you would like to live rather than just somewhere to rent out. You should bear this in mind when chosing somewhere. Find something in an area you like to fit your budget - just like you would at home.
We bought a place in Cala Carbo in 2005 and try and get across 3-4 times a year.
There are any number of options for how you pay - we remortgaged our UK property and paid "cash" which is a relatively simple option - unless you have the cash of course!
The other thing worth mentioning is be wary of completion dates for new builds. Some apartments we were shown "off plan" were due for completion in 2007. They still haven't started building them.
Do get a proper spanish lawyer though.
Good luck.
 
Lathamstreet_Stu said:
Hi,

Im looking at the possibility of buying a 2nd home on the White Isle, poss an aprtment but not sure of the following and was after some advice really if you cud help:

1. What sort of property could you get for the £150-200k bracket?? (Obviously this isnt going to be a villa!!!!!)

Due to the current economic situation, property here (mainland) and all over spain are obviously on the decline (price wise), and entering a quieter period , the winter, there should be some even better deals come the new year. I'd say your budget should buy you a half decent apartment in a nice complex. You'd have to be patient and shop around, and most importantly don't be afraid to make to make a 'silly' offer, you'd be suprised a what people are taking to off load their properties. My wife has sold a few recently between 15 - 25% off the asking price. Don't forget, although the rate is poor for buyers, it's good for vendors (english) who will be changing their euros for pounds.

2. How does it work getting a 2nd mortgage and what sort of deposit would you have to put down?

This is the grey area. You need to consider adding 10% in costs for your purchase (of the declared sale price), it is actually slightly less but 10% will cover it. This includes bank charges, notary fees and taxes.

The banks now are only offering 60% to non residents of the bank valutaion, or 70% off the sale price. Obviously this varies from bank to bank, but at least it gives you a guide. You may get lucky and find a broker/bank who'll give you more (if required).

3. Which areas of ibiza would be best to purchase a property, where wud i get value for money to Rent the aprtment out for the times when im not there!!!

I can't really answer this accurately, you'd need to ask the locals, but logically i'd say any decent established coastal town/village.

4. Whats it like over in Ibiza during the off peak season?

As per above, ask locals. But generally in Spain, Easter, June, July and August and most of september.

Sori if this is off topic, any help much appreciated

:lol:
Click to expand...

Although I dont live in Ibiza, My wife and I have an estate agency here on the mainland, so i've tried to answer as best i can, see answers above in bold.

I hope i've been of assistance. :lol:
 
Lord Deadfish said:
..... be wary of completion dates for new builds. Some apartments we were shown "off plan" were due for completion in 2007. They still haven't started building them.
Do get a proper spanish lawyer though.
Good luck.
Click to expand...

I second this as an owner of an apartment on the mainland. The whole experience of buying property abroad has been a bit painful and even though my apartment was FINALLY finished after about 18 months of being fobbed off with completion dates, 2 years later we have damp patches and leaks that the construction company are refusing to take responsibility for.

Sorry to be such a neg-ferret, and I know not everyone has a crappy experience, but I would never buy an off-plan build abroad again.
 
Not one mention of the black economy in all the replies even by some of the Estate agents replying.
For those that dont know. you can expect to pay for up to 33% for your property in unrecorded cash in any transaction.
This money is included in the asking price but you will need the cash for it. Also the mortgage market is nowhere near as advanced as the UK/Ireland. You will need to put up at least 30% of the "official value" of the mortgage.
Thus for a €200K property you would need close to 80 in cash to get the deal done.
A local lawyer is essential obviously and the mortgage on a Spanish owned property nust be Spanish as far as I know.
Finally and perhaps the realtor can confirm this. Despite the crash in propert in Spain prices in Ibiza have held up really well by comparison.
That said it is still a buyers market and if you see something advertised at 250 your opening bid should be 150

Denis
 
Lathamstreet_Stu said:
Hi,

Im looking at the possibility of buying a 2nd home on the White Isle, poss an aprtment but not sure of the following and was after some advice really if you cud help:

1. What sort of property could you get for the £150-200k bracket?? (Obviously this isnt going to be a villa!!!!!)
Click to expand...
Have you not looked on the real estate websites? There are loads of apartments or you may be able to get a 2 bedroom house.


3. Which areas of ibiza would be best to purchase a property, where wud i get value for money to Rent the aprtment out for the times when im not there!!!
Click to expand...
You get more apartment for your money in San Antonio but income from rent is often less than elsewhere

4. Whats it like over in Ibiza during the off peak season?
Click to expand...
Ive only been here since December but some areas were ghost towns which can be nice if you like that sort of thing. Santa Eulalia has quite a few people about. Ibiza town is still fairly lively and there is nearly always some event happening in the centre (Vara de Rey) on a Saturday night.
 
woodruffe said:
you would have a better change of getting an atp in playa den bossa.there are loads for sale and even more blocks going up.nice for you to rent in summer and use in winter i would say.depends how many rooms your looking at.
Click to expand...

I've been looking to buy a place in either PDB or the Marina (behind El Hotel) for months but haven't yet found the right apartment.

Does anyone know if summer rental rates are sufficiently inflated to where one could rent out during the summer and recoup mortgage payments for the entire year, then live in the apartment during the off season ?
 
i must have got lucky.

i bought a place about 4 years ago off plan with no solicitor and no clue what i was doing and it turned out fine.

i became a resident and had a 80% mortgage from Cam bank. (look to put down around 30% including taxes etc)

i bought a place in marina botafoch as i thought this would be better to rent all year although i discovered that my rent from the summer almost covers the whole year so i have all winter to myself now.:)
 
Not every property changes hands with black money involved, It is up to the buyer/seller to decide, There are pro`s and con`s with it, If you have a wedge of cash, It can be a very good bargaining point , you both save on tax`s, the "white" price go`s down on the property register, you pay tax on that amount on a transfer, could save you both a lot of €,
The problem is when you come to sell it, If you can find a buyer that is happy to do the same, Happy day`s, If your buyer need`s to declare the full valuation, eg pay you completely White / on the register, you are liable for the sales tax on that amount plus capital gains tax equivalent @ %18 on the difference between what you paid for it and what you sell it for other than a few deductions for maintenance, That could sting:lol:

Have a good one
Tim
 
Not every property changes hands with black money involved, It is up to the buyer/seller to decide, There are pro`s and con`s with it, If you have a wedge of cash, It can be a very good bargaining point , you both save on tax`s, the "white" price go`s down on the property register, you pay tax on that amount on a transfer, could save you both a lot of €,
The problem is when you come to sell it, If you can find a buyer that is happy to do the same, Happy day`s, If your buyer need`s to declare the full valuation, eg pay you completely White / on the register, you are liable for the sales tax on that amount plus capital gains tax equivalent @ %18 on the difference between what you paid for it and what you sell it for other than a few deductions for maintenance, That could sting:lol: or also could be used for as the Italians say "Money washing"

Have a good one
Tim
 
sam23 said:
i must have got lucky.

i bought a place about 4 years ago off plan with no solicitor and no clue what i was doing and it turned out fine.

i became a resident and had a 80% mortgage from Cam bank. (look to put down around 30% including taxes etc)

i bought a place in marina botafoch as i thought this would be better to rent all year although i discovered that my rent from the summer almost covers the whole year so i have all winter to myself now.:)
Click to expand...

That's exactly what I'm doing as well. Hope to close on something before next summer.
 
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