- This topic has 11 replies, 4 voices, and was last updated 18 years, 7 months ago by
Anonymous.
-
AuthorPosts
-
-
March 30, 2008 at 5:54 pm #53813
Anonymous
ParticipantHi all,
Hubbie and I purchased an apartment and garage in Zeniamar Phase 7 in 2006. We love the area, have good neighbours etc but due to unforeseen circumstances in our home country we are contemplating selling. If we were “successful in selling we would just like to cover our costs that we purchased for in 2006. Question is in the current market would we even cover our costs and how long would a property like this take to sell? We don’t have to sell at the moment but it would help in achieving a goal we have set our mind on? I would like your opinions the good, the bad and the ugly!!!!
🙂
-
March 30, 2008 at 7:03 pm #80363
Anonymous
ParticipantWhere is Zeniamar ????
-
March 30, 2008 at 7:30 pm #80366
Anonymous
ParticipantHi Shakeel,
Sorry, a bit more information would have helped ok. It is an urbanisation in orihuela costa (south Costa Blanca) between punta prima and playa flemenca.
😳
-
March 30, 2008 at 7:44 pm #80367
Anonymous
ParticipantAngela you will be very lucky to break even ,if you bought in 2006. If you are able to sell reckon after lawyers fees,taxes etc your loss will be minimum 10% and could be 30%+, plus any differential on currencies.
The bad economic news is coming thick and fast as I suspected it would after the election here.
It is n´t only Spain that is in a mess as we know, so foreign buyers will be thin on the ground for some time.
It may be better to batten down the hatches and ride with the storm.
-
March 30, 2008 at 8:09 pm #80368
Anonymous
ParticipantHi 135yearswaiting,
Yes, it is bad also in ireland. Can’t afford to take 30% drop – might be time as you say to take stock.
Thanks for reply.
🙂 -
March 30, 2008 at 9:38 pm #80371
Anonymous
Participant“If you are able to sell reckon after lawyers fees,taxes etc your loss will be minimum 10% and could be 30%+, plus any differential on currencies.”
I agree that there is potential for a loss. However the loss can be mitigated to some extent by:
a) You can avoid, legal fee, after all its the buyer who has to be aware and not the seller.
b) As their will be a loss so no tax will apply, however the retention of 3% will create cash flow issue.
c) As she is from Ireland, she is € zone, so the currency exposure will not apply.
-
March 30, 2008 at 10:45 pm #80374
Anonymous
ParticipantHi Shakeel,
the retention of 3% will create cash flow issue
? Don’t understand what the 3% retention means?
-
March 31, 2008 at 12:46 pm #80380
Anonymous
Participant3% of the sale price is held back by the Notary. This is the perceived capital gains to Tax. Once the tax has been calculated and there is no liability in theory you should get back from the Spanish Tax
-
March 31, 2008 at 1:38 pm #80382
Anonymous
ParticipantHi Shakeel,
Thanks for that, not to big of a retention and good to know about it.
🙂
-
March 31, 2008 at 4:39 pm #80385
Anonymous
ParticipantIt, use to be 5% and has been reduced to 3%. The problem I have is to get the money back is a pain in the back side & you will have to pay a gestor (cheaper ) or a solicitor. Once they receive the money from the Spanish Taxman, they will sit on it and you will thjan have to chase them..
In short, welcome to Spain.
-
March 31, 2008 at 4:46 pm #80387
Anonymous
ParticipantWhy do you have to pay a Gestor??
-
March 31, 2008 at 6:03 pm #80390
Anonymous
ParticipantYou have to pay the Gestor for his services. If you can do it yourself than that’s fine.
-
-
AuthorPosts
- The forum ‘Property Questions & Answers’ is closed to new topics and replies.