Spanish buy to let mortgage

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    • #52577

      This is in responce to Inez breaking us the news that buy to let mortgages
      are to be introduced in Spain

      Did you tell them the understated before they enter the market.

      1) The legal disbalance between the landlord/tenant rights, heavely bias towards tenants. I dont think the tenants will give you letras and the landlords will be willing to pay for the Notary fee on the letras.

      2) How does the landlord get rid of the tenants ? Where the courts can take you upto 36 to 48 months to do so. (will the banks allow a moratorium ) If you are lucky. As the tenants will pay some money to the Courts to stall and the cycle starts again.

      3) Will the non resident landlord be allowed to off set there expenses ?

      Landlords are not a means to social housing. They expect a return on capital. As there is fat chance of any capital appreciation for say 4 to 5 years. The rental yeilds should be atleast around 10%. to cover void periods, wear & tear, agency commission, and needless to say a big margin by the greedy banks.

      Finally, if the banks are thinking of holiday letting there is over supply. The Estate agents cannot be trusted as they pocket the money with duplicate invoicing etc, plus Spain is very expensive now, There are cheaper holidays to be had in Croatia, Bulgaria, Montenegro, Morocco etc.

    • #68602

      The holidays in the places you mention may be cheaper but would you really want to spend your leisure time there ❓ I certainly would not.

    • #68604

      I & you may not want to spend our holidays there. Generally people just want a break in the sun/sand.

      How many people have you come accross who vists historical/cultural site in Spain ? Many dont even bother out of the Hotel pool

      I, am sorry if I am generalising but people just want cheap drinks/cigs etc and a tan at the lowest possible cost.

      This is how Spain got its reputation in the early 60/70s, You my not remember when women were not even allowed to wear a bikini on Spanish beaches. I am sure at that point of time people would have been saying the same about Spain i.e. would one like to go there.

    • #68605

      Hi Shakeel, add to that the tenants on their personal tax declaration forms have to plut the property details and number to allow the tax authorites to claim tax on the gross rental income which for non residents is 25%. This has been in the main cash paid of course and not declared!

      To be honest when I was offered this I laughed so much that I could only make the points of oversupply, tenants running out with debts and the low return!

      Should have had this years ago – unfortunately here in Malaga it is tourism only, with no industry except a service one hy do people have to be here!?

      One of the reasons for my discussions with you on friday.

      Also BBC1 wednesday 7.30pm UK time has a programme highlighting 1500 (only?) Brits caught up in the illegal build scandal and demolition orders.

      This will kill the market here for a number of years!

    • #68612

      Hi Inez,
      A Country with a small population can relay on service sector to under pin its economy.

      With spanish Population of nearly 50 million it cannot do it. Spain has been blessed with wondeful landscape/weather. However what it fundamentally lacks in order to be ecomonically strong and diversed is

      1) Lack of economic vision.

      2) Dislike for wealth creation.

      3) Grossly incompetent civil service.

      4) Grossly incompetant legal system

      5) Unfriedly tax regime.

      6) Out of date employment laws.

      7) premative banking system. Akin to money lenders of the banks of Venice/constantinople.

      7) Above all lack of accountabilty at all levels.

      In view of the above where do you think the diversification of the economy will come from ?. Spain had a golden opprotunity after Francos death and with the highest number of youth population in the OECD countries and later grants/funding availible from EU.

      As at today they have wasted this opprtunity unlike countries like Cheq republic, slovenia, and other Nordic Countries.

      I love the Country and the people (but not for business) I see Spaniards doing very well for themselves in UK/USA/Canada.

      Why not in their Country ?

    • #68614

      I think the Spanish are relying on the fact many foreigners have bought and invested here – if they cannot sell they will keep paying the community fees and more importantly the yearly rates!

      The retirement market and luxury of the second home in the sun as well will contribute to the coffers.

      In time the balance will redress itself Im sure and everyone ill be happy. However its anyones guess how long this will take.

      The socialists in now are making the labour laws more biased on the part of the employee – it was this sole factor that stopped Ford and other large manufacturers setting up in Spain in the nineties. Had this have happened then we would see an underpinning in the economic climate and properties would be required to accomodate the workforce.

      As it is there is a high population of `homeless`who are not being provided for. There are good incentives in place for developers to build VPO homes and it seems likely empty 2nd homes are to have their rates inclreased if the property remains empty. There are also incentives in place for owners to let to the unemployed or underwaged, apparently with guarantees in place, but my initial investigations show they do not go far enough to protect the landlord yet.

    • #68615

      Hi Inez, In todays time you cant underpine the economy of the costas from Service charges ( Gastos de commindad) or from Council Tax only.

      Typical Spanish.

      a) The existing labour laws is affecting the economy and they want to slant more towards the employee ?????

      b) Why should the people whose properties are empty for personal reason or due to lack of confidence in the legal system pay more in Council tax. Surely these people are not a burden on the council as they do not use the facilities which they would have if they lived there full time.
      Infact they should get a discount ( dream on )

      In so far as affordable properties go. The courts should order the dodgy developers to build them as a punishment for their ill gains. Making sure that they dont miss use the Valencia type of land grab situation.

      I think we can write on the subject and the contents would be larger than War & Peace.

      In so far as . rely Relying on Couni

    • #68617

      Shakeel – you know that, I know that and everyone reading this forum would know that!

      Welcome to the Spanish mentality!

      And its not even sunny today, very cold and windy, Im hiding in the basement studio aay from the football with the fire on full, a blanket on me but at least Corrie is on in a bit.Hey ho – back to the office tomorrow

    • #68620

      I thought the weather was good!!!!!!!!!! thats why you are on the net on a Sunday.

      You must be the only one in Spain that is looking forward to Monday. I should take a large brandy.


    • #68634

      Hi Shakeel – well I took your advice – had a large brandy and here we are monday. Its raining cats and dogs and still very cold. We had snow on the mountain tops here last week.

      And I Have to go out in it now! Boo hoo

    • #68744

      Shakeel your writing style is soooo like somebody who used to post on Valencian based forums.lollololol? 😀

    • #68747

      Hi Latchy,
      I can assure you that who ever this person is, its not me nor have I ever heard of this website until now.

      When you say style, what do you mean. Vocablury used, speaking my mind with no prisnors taken, shooting from the hips etc etc.

      To the best of my knowledge my father was not a sailor. It seams that you may have found my unknown brother/sister that I have not known

      cheers anyway.

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