[Carolm]

We are in the process of buying a property which had been repossessed by the bank , then sold on to a speculator.  Will we have to pay the higher rate of property tax levied on new property, or will it be deemed as second hand?

[Mark Stücklin]

This will be a resale, with ITP transfer tax not VAT at 10% on mainland Spain and the Balearics. (Canaries have a lower rate of VAT).

ITP varies by region. Where are you buying?

[Carolm]

we are buying at Corvera golf, not far from the new airport.  

[Mark Stücklin]

Murcia. I think ITP there is now 8% but you’ll need to check all this with your lawyer.

[Carolm]

Thank you for your help.

We were unsure of the tax rate because although it had been sold on by the bank to a speculator, the property has never been lived in, so no certificate of 1st occupation(or whatever it is called these days).

[Mark Stücklin]

Hi Carol, it doesn’t matter that it’s never been lived in, what matters is how many times it has changed hands. You only pay 10% VAT when you buy a new home from a developer.

Covera Golf looked to me to be in a bad way when I was last down there a couple of years ago. I think the developer went bust and the creditors repossessed the development, which didn’t help. Are things improving?

[Carolm]

Hi

Sorry for the delay in replying.  The state of play at Corvera is improving.  Property is selling well there because of the discounted prices.  Having spoken to several residents, the communities seem to be organised and well run, the gardens and pools well kept.  As more people are now moving in , making the area feel more ‘lived in’,  things are improving all the time.

The golf course is another matter,  I can’t see the situation improving in the near future.  When the new airport does eventually open , perhaps someone will be interested in opening it again.

Thanks for your advice in your previous messages.

[Mark Stücklin]

So is the golf course now closed? It was still open when I last visited.

Corvera has a good location and it’s a shame the developer was crushed by the crisis.

[Carolm]

Yes the golf course has been closed for some time and is overgrown.

The properties were not selling because of this,  but the low prices the banks are asking now has revitalised interest and are selling well.

We have spoken to a few people who bought off plan, a penthouse for instance, which had an asking price of 0ver 220.000euros at that time, are now selling for 44,000euros!  Okay, no beautiful golf course view at this moment in time, but hopefully in the future it will be revitalised.  The Urbanisation gardens are well kept and the pools kept clean.

We felt at these prices it was worth a punt!

• Best Wishes

 

 

[Mark Stücklin]

Thanks for the update. Yes, at those kind of discounted prices it’s hard to resist. I hope you haven’t be caught by the fall in the pound?

[Carolm]

Luckily, our funds are already in euros.

[Mark Stücklin]

@Carolm

I read in the Spanish press that Corvera Golf y Country Club, S.L has gone into administration this January. Have you heard anything about this as an owner at Corvera? Do you know how it affects you?

Mark

[Carolm]

Hi
Yes it is true that after two years of trying , Mr Rizo, (Corvera Golf and Country Club) has been declared bankrupt. The entity can now look forward to an easier time dealing with the Administrator , Mr Rizo has been difficult to deal with, to all accounts. Presumably, the property still owned in the complex by Corvera Golf and Country Club can now be sold, to pay moneys owed to the Community. As a new owner I am not fully aware of the whole past history, but all I’ve spoken to feel the future is looking brighter now that Mr Rizo has no longer any control. Carolm

[Barbara Ingenbleek, Euro Economics]

You have to ask the question to the selling company.

[Author]

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