February 11, 2008 at 10:32 am #53638
A developer called Grupo Edimar, owned by Martinez Retamero, former President of the Betis football club (what is it with nouveau riche property types and football clubs?) is under investigation for allegedly mis-selling ‘tourist apartments’ as normal properties in a development of 308 flats in Lago de Almerimar, El Ejido, Almeria. The problem is that ‘tourist apartments’ (apartamentos turisticos) are use-restricted by law. They have to be rented by an appointed company to tourists 11 months a year, and I think you also have to pay VAT at 16% when you buy, as opposed to 7% for normal property. Tourist apartments might suit some people, but they have several big disadvantages that put off most buyers. There have been quite a few cases like this, where developers are alleged to have mislead buyers by not making it clear that they are selling tourist apartments. Just another thing you have to bear in mind when buying property in Spain.
February 11, 2008 at 11:07 am #78632
Heard that happens in the Canaries too!
February 11, 2008 at 12:05 pm #78637katy wrote:Heard that happens in the Canaries too!
Quite a lot of problems on Costa Blanca too.
Touristic appartments are very complicated. The main problems stems from the fact that many developers have built according to planning permissions “Tourist flats”, the cost of permissions is much less than for a conventional flat. There are all sort of complications as to letting, basically touristic flats can only be let for short periods to the same person ie 1 or 2 weeks. As they are sold to buyers who do not realise the difference between a touristic flat and a conventional flat, they either live in it permanently themselves or let it for long periods. The town hall finds out what is happening, and demands the difference between what was paid for planning permission for a touristic flat and what would have been the cost for conventional flats, this can be quite a large sum. Time will have passed , the developer is nowhere to be seen, who pays? The buyer of course.
There are many other complications with touristic flats, in the present climate probably better not to touch with a bargepole.
February 11, 2008 at 12:06 pm #78638
Tourist apartment do attract the higher rate VAT, as it is considered to be a business. If you registered for VAT than you can claim the VAT.
Most of these apartment comes with a so called guarantee. Please search this with a fine comb. Like all guarantees it comes with conditions. Two of the most common:
1) % guaranteed. This is already loaded on the price.
2) % guaranteed. As per the small print it will be % of the profit. The profit than gets manipulated with the opposite of creative accounting and as a result no profit gets made.
February 11, 2008 at 1:33 pm #78643
A further point is that the developer will usually insist on providing all the furniture, cutlery etc down to knives and forks, this is charged at about 100% premium over what anyone else could buy them for, the quality is very poor and as I say the price is anything but right.
The Spanish certainly know something about minefields when it comes to buying a property.
February 11, 2008 at 2:38 pm #78646
What about where a developer buys an existing tourist complex. Refurbishes it then sells the apartments as private apartments. Saw a few in Fuerteventura recently.
February 11, 2008 at 2:59 pm #78650
I think it depends on the classification of license and you may be thinking of an aparthotel, which sells the rooms and suites off, gives you a certain amount of use and allegedly gives you a percentage yield pa.
Bit like timeshare really!!
Again, one for your independant lawyer to double check
February 12, 2008 at 7:15 pm #78676
The corruption surrounding these apartments is even worse.
As I understand it planning permission allowed for the buildings of the complex to be built with 3 floors and an atico, in line with all the other properties in the resort. The buildings were eventually completed with an extra 2 floors! So now the complex is out of character with the other buildings along the beachfront. Also the four buildings of the complex are extremly close, so with the extra height the vast majority of the apartments are in complete shade all day. I really do feel sorry for those that have bought into this complex.
On another note the complex was empty for over a year after compeletion as I suppose the local council decided what to do (as if they couldn’t see an extra too floors being added during construction, idiots!!) Even today I think it is 95% unoccupied, or it certainly looks that way.
Here’s the complex, choosen with the best photos, but of course none from an actual apartment!! Where the sklyline would be filled with concrete.
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