FAO UK peeps who have bought property in Ibiza ....

puppylover

Active Member
what is the best way to do it regarding mortgages/solicitors. Is it best to get a spanish mortgage or do it through a UK mortgage broker (although there is a limited amount of UK conmpanies who deal with mortgages abroad). Need some advice please....
 
puppylover said:
what is the best way to do it regarding mortgages/solicitors. Is it best to get a spanish mortgage or do it through a UK mortgage broker (although there is a limited amount of UK conmpanies who deal with mortgages abroad). Need some advice please....

Include me on any advice you get anywhere else please, if you don't mind PL. Its a consideration....
 
Buckley said:
puppylover said:
what is the best way to do it regarding mortgages/solicitors. Is it best to get a spanish mortgage or do it through a UK mortgage broker (although there is a limited amount of UK conmpanies who deal with mortgages abroad). Need some advice please....

Include me on any advice you get anywhere else please, if you don't mind PL. Its a consideration....

No probs Bucks - my mates just bought an apartment inPdB and he is doing everything through the Spanish option, yet another guy is doing everything through the UK - as much as he can anyway.....
 
I bought a place last year in Cala Vadella. I also used to be a mortgage broker and am now a property investor so i looked into it a much as possible.

There are so many things to consider like

Interest rates, lower in the Eurozone at present but who knows in the future
Do you earn enough proveable income in the uk?
Will you be sending out money each month to cover the mortgage or sending large lump sums? as charges are about £25 + the exchange rate changes.
Will you get paid/earn any money in Euros
No where near as many british lenders lend in ibiza as they do on the mainland.
Are you going to buy offplan or older properties? offplan often want you to use their own lenders.
Spanish lenders don't like the idea of interest only loans
Is it going to be let out or left as a holiday home?


I got a 80% mortgage and just borrowed another 18% for renovations so i effectivly got an 98% mortgage at a rate of about 3% variable over 25 years.

If you want to borrow more than you can show you can afford ;) it is easier than the UK. Although spanish banks don't do self cert loans they don't check too much. I now have debit cards and a visa and mastercard in spain. My bank does internet and telephone banking in english.

Bank managers in ibiza are like they used to be in the uk 20 years ago with alot of power to approve things without asking HQ.

I bought my place officially for 60% of the purchase price and paid the rest in cash. The bank manager held the cash at all times and although this is illeagal this is the done thing in ibiza. this saves both you and the vendor tax.
 
JT - I cant thank you enough - that's exactly the sort of info i needed... not too sure about the property being a holiday let, more interested in just living there myself most of the time, then closing up if and when back in the UK. You certainly have given me enough to think about/look into - thanks again!
 
I don't let my property as it's my second home and i don't want any old pikey messing it up.

If you need any more info pm me and i'll be happy to help.
 
Puppylover, buckley,

My advise would be to wait. Those last years real state just went up up and up and yesterday the OCDE (sorry, don’t know the translation in English, it’s an European organism) said that the real state in Spain will grow up a bit more but then there will be a big crash. So, probable now is not the best moment to invest on here....
 
silvia said:
Puppylover, buckley,

My advise would be to wait. Those last years real state just went up up and up and yesterday the OCDE (sorry, don’t know the translation in English, it’s an European organism) said that the real state in Spain will grow up a bit more but then there will be a big crash. So, probable now is not the best moment to invest on here....

That's interesting news, because I was talking to my friend who bought an apartment in PdB, and he reckons (through information from alocal businessman) that the prices are gonna rocket upwards again over the next 18 months - that's why I was thinking of buying sooner rather than later. Think i will get him to re-check that info. Thanks Sylvia
 
silvia said:
Puppylover, buckley,

My advise would be to wait. Those last years real state just went up up and up and yesterday the OCDE (sorry, don’t know the translation in English, it’s an European organism) said that the real state in Spain will grow up a bit more but then there will be a big crash. So, probable now is not the best moment to invest on here....

What's the latest on this Sil please? Thanks
 
Buckley said:
silvia said:
Puppylover, buckley,

My advise would be to wait. Those last years real state just went up up and up and yesterday the OCDE (sorry, don’t know the translation in English, it’s an European organism) said that the real state in Spain will grow up a bit more but then there will be a big crash. So, probable now is not the best moment to invest on here....

What's the latest on this Sil please? Thanks

We are waiting for the bomb to explode.

The prices in Catalunya (my region) increased around 20% in the last six months, but it's evident there are more and more "on sale" adverts in the streets 8O
 
silvia said:
Buckley said:
silvia said:
Puppylover, buckley,

My advise would be to wait. Those last years real state just went up up and up and yesterday the OCDE (sorry, don’t know the translation in English, it’s an European organism) said that the real state in Spain will grow up a bit more but then there will be a big crash. So, probable now is not the best moment to invest on here....

What's the latest on this Sil please? Thanks

We are waiting for the bomb to explode.

The prices in Catalunya (my region) increased around 20% in the last six months, but it's evident there are more and more "on sale" adverts in the streets 8O

Cheers Sil. So you wouldn't advise a buy a property in Ibiza just yet still.

Any ideas on long term (say 6 months) rents for 1/2 apartment in Ibiza - somewhere coastal hopefully?
 
Buckley said:
Cheers Sil. So you wouldn't advise a buy a property in Ibiza just yet still.

Any ideas on long term (say 6 months) rents for 1/2 apartment in Ibiza - somewhere coastal hopefully?

Don't know Buckley, I think Ibiza is extremly expensive, as most big resorts, but don't forget that lots of dirty rich people has invested in there so small investors like you and me look like joke down there :?

About renting a flat, it will be easier and cheaper if you rent the whole year. Local people tend to make big business renting properties to holidaymakers (my friend's dad rents a villa for 8 near Sant Jordi and gets about 10.000€/month).

Anyway, this is a good site for renting/buying in Spain: www.idealista.com (in the left corner there's a small english flag ;) )
 
silvia said:
Puppylover, buckley,

My advise would be to wait. Those last years real state just went up up and up and yesterday the OCDE (sorry, don’t know the translation in English, it’s an European organism) said that the real state in Spain will grow up a bit more but then there will be a big crash. So, probable now is not the best moment to invest on here....

It's the same here. Tha last 3 years it went thru the roof, I more than doubled my money on my last property, and that was in 3 years.

But now it seems to be levelling. My Bank manager, who is also a family friend, who is also the brother of one of the biggest developers here, has said to hold tight as a crash is inevitable. My fiance has been selling properties 6 years has suffered the last 6 months. Theres alot more to be had here at sensible money. eg 3 years ago 200,000 pounds would only buy you a small apartment here. Now it can buy you a small villa with land and pool.
But according to my Bank manager (he seems to get it right most of the time) the islands wont suffer to the extent of the mainland as land will always be at a premium. And the rental market will always be stronger on the islands.

Also Spain is trying its hardest to get away from the 'black money' side of things, but it still seems to be going on.

As My Grandad used to say `its better in bricks and mortar´.
 
If you can afford it you may as well go for it, you'll wait forever if you keep waiting for some will it-won't it scenario. Fluctuating property prices may be a concern if you're doing it for profit, but if you buy somewhere to live, when you sell it you're going to need somewhere else to live so you won't have any real money anyway, just money to spend on another house. If you are buying in the same place, if your current house has gone up or down in value, the new one will probably have done the same so you are no better or worse off in reality.
 
weloveliam@space said:
[Theres alot more to be had here at sensible money. eg 3 years ago 200,000 pounds would only buy you a small apartment here. Now it can buy you a small villa with land and pool.


Where's that? 8O 8O 8O 8O
 
PL a lot of Estate Agents in England now have agents that they work with abroad. Who Tom works for have got a Spanish office and some of the people who work in the English office have bought thru them cos it makes it a lot easier. I'd check to see if any of the Estate Agents in your area offer similar option.
 
silvia said:
weloveliam@space said:
[Theres alot more to be had here at sensible money. eg 3 years ago 200,000 pounds would only buy you a small apartment here. Now it can buy you a small villa with land and pool.


Where's that? 8O 8O 8O 8O

Javea/Denia/Moraira alot of the Costa Blanca really, why does that sound cheap ??
 
Barbie said:
PL a lot of Estate Agents in England now have agents that they work with abroad. Who Tom works for have got a Spanish office and some of the people who work in the English office have bought thru them cos it makes it a lot easier. I'd check to see if any of the Estate Agents in your area offer similar option.

Which one does Toms office work with ? Any here on the Costa Blanca ??
 
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