Buying in the Canaries

[Anonymous]

Hi, this is my first post on the website and I must say how interesting it is to read the negatives as well as the positives.

I’m currently viewing property in the Canary Islands with a view to buying.

My question relates to the regulation of companies in Spain such as estate agents, builders, mortgage brokers etc.

Does anyone know of any websites where I can find out if a company is regulated properly?

I know about SA and SL but anyone can set up a company.

Thanks

Phil

[Anonymous]

SA & SL does not mean a company is regulated.! Far from it , in my experience. 🙁

[Anonymous]

I bought in the Hipoclub development in Playa Blanca this Summer, and so far, it looks good.

I suggest that, rather than try to guess which estate agents, lawyers etc are going to act in your best interest, do your own legwork.

Following the usual advice, I found the area of the Canaries I liked best then drove around developments myself, and did as much research as possible, both locally, and by reading all the forums on this site. You can always find a cheap internet cafe to refresh your research whilst you are there

I chose a large development, which was about 2/3 complete, and where building was still going on apace, and the sales office was busy. We looked around a couple of properties and were impressed with the quality. What gave us confidence was the girls in the show house sending us out on our own to find existing residents to ask them what they thought.

Aside from a few complaints about teething troubles and Spanish bureaucracy, the people we met were delighted with the development and the developer. Also, I was given recommendations for independent lawyers they had used successfully, and for the best banks to get mortgages from.

So, I suggest you choose somewhere you like, and engage existing residents in conversation to find out the real story on purchase, loans, the developer, and local issues. I found most people are delighted to share their experience, and you get an impartial, warts and all, picture.

PS I now find that my Spanish bank manager has just bought a similar house round the corner from me!

[Anonymous]

Thanks for the responses, Clare and John. I’m planning to head out mid October got a few ideas and based on your comments will definitely be doing a lot of driving around.

I’ll keep you posted if anything interesting or unuasual occurs on my travels.

Phil

[Anonymous]

I’m spanish

Well, these things mean the way the company was created

SL means that is created by a few owners
SA means that the company have shares (not necessarily in the market). It also gives more garanties in case of problems.

My advice…. don’t buy. It’s not a good moment to buy in Spain. We are in the top of the hill with a more than probably bubble burst

It doesn’t matter with wich kind of company you do that…. Buy any other place…. Cyprus? Croatia? Madeira?

[Anonymous]

Most countries in the world are in a “property bubble” at the moment. Spain is at the top of the hill but overall it is better placed to withstand property slump. Bulgaria, croatia etc have all been talked up by agents and developers these will have the biggest bust. Spanish property boom was fuelled by a desire to live in the place or spend holidays there. The Croatia type resorts are fuelled by greed because the prices are cheap (and will probably be cheaper in a couple of years). The punters will soon be back in Spain.

[Anonymous]

Back to Spain?

The bubble in Spain wasn’t fueled by people coming to Spain. The bubble was fueled by low interest rates and easy earnings…. I explain it
Spain was in a very bad economical position maybe 15 years ago… interest rates rounding 13%.
In 4 or 5 years in Spain, coming into EU, interest rates came down from 11% to 3%… that means that prices thar were extremelly low mainly because of difficulties in loans, starting to grow at 17% per year. People was that properties were increasing their price and everybody wanted to buy
Things are changing now… interest rates can’t go lower, and in a short-mid term the interest rates will go maybe 2% upper.
The amount of money in mortgages is so high in Spain, that this will become a real problem for the economy of the country.
Believe me…. cities like Madrid are more expensive than most of german cities.
In Spain we are building 700.000 houses per year! the same amount than France, UK, Germany and Netherlands all together…. we are 43 millions… these countries are around 200 millions.
Believe me…. things are coming very bad for spanish real states

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