Reply To: New Buyer

#81002

Anonymous
Participant

Hi Graham,

A rough guide to prices for 2ha of land in Galicia / Asturias, will depend very much on where it is and what’s on it. If it’s urbanisable, then it could cost anywhere in the range of 120K to 2M euros, whilst at the lower end, say a Finca Rustics, could cost between 50K and 250K euros. Don’t forget that on top of the purchase price, you should allow 12% for legals and taxes.

If you’re also looking for land that is mostly wooded, then there’s a very high probability that to do anything on that land, you may well have to involve the Spanish equivalent of the Forrestry Commission – as certainly around our way, they often have to give approval to works happening in an area that is heavily wooded.

1000 euros renovation costs, sounds WAY WAY too cheap, if the property needs renovating. As ‘spanishlawyer’ has pointed out, you may need to add on costs of licenses, architect and insurances. At the moment, in my area, licenses are taking 47days to turn-around.

If renovating, then there’s a high probability that you’ll need some familiarity with stonework or more likely, rubble walls.

You don’t necessarily need an architect (from the collegio) for your due diligence, as there’s another type called an Arquitecto Tecnico, who is often able to survey and cost out materials required, in addition to sorting out licenses, insurances etc.

With regards to a pool, much of Galicia and Asturias has hard rock only a short way under the surface; so if you happen to be located on this type of land, then build costs may well be above what you’re expecting.

In terms of living costs, you can make them as ‘rich’ or ‘poor’ as you see fit – with all that land, you’ll be able to grow your own vegetables and slaughter your own animals – lovely blood pudding in Galicia / Asturias !!!! The huge differential that used to be there between the UK and Spain, has rapidly diminished, if I were to guess, I’d say it still clocks in at 20% cheaper – and rapidly diminishing.

The Spanish arm of UBS did a comparison of salaries and prices with other countries (2006), using New York prices as a reference point (figures are relative to NYC=100). I quote some stats for your reference, and they should be treated as a vague indicator (and some fun).

Take Home Salaries: New York=100, Madrid=64 , London=96
Amount of minutes you’d have to work to buy a Big Mac in that country.
York=13, Madrid=19 , London=16
Amount of minutes you’d have to work to buy 1kg bread in that country.
York=16, Madrid=15 , London=5
Amount of minutes you’d have to work to buy 1kg rice in that country.
York=8, Madrid=8 , London=5
Cost of Clothing: New York=100, Madrid=82 , London=89
Cost of Electrical Equipment: New York=100, Madrid=133 , London=141

There’s loads more, but that’s enough to bore anyone – interesting that the Big Mac has replaced the Mars Bar as the world’s common currency.

Hope this helps.