Thanks to Graham for getting in touch with us regarding his enquiry.
We love to help people wherever we can and we hope that when he is in a position to buy, Comaskey is the first place he will turn to!
Rather than email Graham directly, with his permission, we turned these questions into a short blog post.
Hope many of you get some advice from this that can help save you stress and money when you are buying a property in Spain yourself!!
Sent: 14 June 2017 12:06
Subject: Expert opinion needed!!!
I recently met someone from Comaskey Spanish property at the Place in the Sun Show in London and currently receive your newsletter and regularly peruse your website. I am not currently in a postition to buy (still waiting to establish final budget) but wondered if you could let me pick your brains a little in order to narrow my search criteria.
i have a couple of questions that you may be able to help me with. My long term plan is to buy property in Spain somewhere to eventually retire to but in the meantime I would like some rental income to cover community costs etc. while we use it for occasional visits.
1) Are there certain areas on the Costa Blanca / Murcia where property has a better record of being holiday lets? I realise there are a lot of people doing exactly this, so wondered if there were areas I should concentrate my search on. I wondered if golf makes some property a better option out of season?
So first things first, yes there are super rental areas and less rent-able area. Always, always we advise clients who are thinking of buying a property in Spain to purchase the worst house in the best area, rather than the best house in the worst area, if you know what i mean.
Take the Costa Blanca… People want to come here..
* Its family friendly.
* The Cost of living is low, way lower than other regions in Europe. You can have a beer for a euro and a Chinese meal for 8 euro!
* The climate, well I shouldn’t have to tell you about the Spanish climate!!!
* The beach is a huge attraction for families as well as singles.
* Golf, we have half a dozen word class golf courses and although this might not be your thing, golfers are renters and they tend to have money to spend. Also the golf season is 9 months long, so a golf property, in the right area will always rent.
* The two airports of Alicante and San Javier mean accessibility is always easy here. (compare that to Croatia or Florida).
* It is safe here (thank God) and there is no terrorism like we have seen in Turkey and Egypt.
So if you are looking for a property to rent, it has got to be the Costa Blanca.
You could buy a detached villa up a mountain somewhere, sure. However, when it comes to renting it, do people really want to travel two hours from the airport or an hour to the beach? Maybe some do, but you dramatically reduce your rental success by being in the wrong area. Look at Villa-martin La Zenia, Cabo Roig, Playa Flamenca for example if you want to guarantee yourself a rental return. Maybe check out the websites for short term property rental on the Costa Blanca- there are loads. Try to rent a detached villa in La Zenia for August… You cant, they have all been rented months ago and for well inflated prices. That could be you, earning that rental return.
We recently started looking at Alicante property. Alicante is a bustling Spanish city, with some really beautiful new builds, especially in the San Juan area. Maybe this is an option for you, it would make perfect retirement property yet will give you a very generous rental return in the meantime.
Torrevieja town is so rent able and its very inexpensive to own a property there. We sell apartments in Torrevieja form as little as 50,000 euro. We also have bank repossessions which come with finance for that sort of money too. However, dont jump at the first one you see – many developers call their development something like Torrevieja Vistas, when in reality the property maybe be 20 KM away form the town of Torrevieja, making it less desirable to rent it. Always check with us before you make a decision like that, and if it sounds too good to be true….
2) I am not sure whether I should be concentrating on new build or older properties, it crossed my mind that new build would probably be easier to let out (more appeal) but I would greatly appreciate your thoughts on whether this is a consideration.
Thats not really a thing Graham. I personally live in a detached villa with a pool in Cabo Roig, beach side. The problem is that most of those properties are older- Mine is 25 years old in fact. The style then was very Spanish which we love, but I understand others prefer more modern. The area we live in is quite small so there is simply not enough room to build a community of new build property. We do not rent ourselves, however since 2011 whn our first son was born we do home exchange. Literally we travel the word and stay in other peoples homes, drive their cars, use their house as if it was their own, while they travel to Spain and do exactly the same in Cabo Roig. We´ve been to Toronto, Dublin, Amsterdam, Billund in Denmark and we get offers ever single day that would blow your mind. People from Manhattan, Costa Rica and Cape Town in the past week have offered to come to our home and allow us to go there and nobody cares that our Spanish property is 25 years old.
So for me, there is absolutely no more attraction for a holiday letting new build property rather than a second hand home. Its all about the area. Cabo Roig has a marina, a beach, a church, supermarket and numerous cafes and bars, all within walking distance of our villa. Thats what people want.
3) in fact, are there any benefits / negatives with purchasing new build properties in Spain as opposed to buying second hand homes?
Sure, pros of a new build property in Spain:
Its new, (sounds obvious!!) so you are the very first person ever to sleep there- a nice feeling.
If you buy your new build property early in the build process, you can pick the tiles, the bathrooms, the kitchen etc in a style to suit yourself.
Very often if you buy a property off plan, by the time its ready, there will be someone with less patience than you, ready to move into that property and offer you a handsome profit if you agree to allow him to buy it. (always check with is first, as some Spanish Builders have banned this practice).
Lets say you want an extension, finished basement, private pool or more in your new build property. If you order it now before completion, it is a lot cheaper for the builder to add these things rather than adding them on a a later date.
The Spanish banks are loaning money for new developments easier than they are for resale property. We can guarantee you a mortgage on advance of putting your deposit down of up to 70% LTV.
Paying in stages can be a lot easier than coming up with the full cost of the money in one go.
Reselling the property tends to be easier, the newer it is.
Cons of new build property in Spain.
They tend to be slightly more expensive than resale properties.
We at Comaskey often have new build property for sale slightly off the beaten track- there is very little front line to the beach new property on the Costa Blanca for example- most of this ground has been built up years ago.
You got to watch some builders. Even now, we see buyers go directly to builders thinking they might get a better deal. Its quite the opposite On behalf of our buyers we can negotiate free white goods, flat screen TVs and in one case last year a Belgian buyer got a free pool to go with his detached villa. If you go directly, the builder just wont do it (why would he) and worse still, on completion you can end up with quite the snag list!
Sometimes what you see on the plans may be different to the actual finished product. Always speak to your agent sand look at other developments the builder has completed in the past.
There can be delays. You mention you are interested in renting your Spanish property- what if completion for your new build is pushed back 8 weeks and you have already taken deposits for rental during these 8 weeks?
You can find yourself waiting for the infrastructure even after the property has been built. A golf course promised to be completed at the same time as your new property can take 12 months longer than we hoped for.
Thanks very much for your help with this I look forward to hearing you expert opinions.
No problem Graham- all part of the service.
I think that if you are serious about buying property in the Costa Blanca, you need to come over here and take a look. Its very important that you choose the right Real Estate agent in Spain to deal with- we think thats us!!! We have 3,000 successful deals completed and we know every builder in the region. We can tell you which ones are slow, which ones offer real after sales service and which ones are to be avoided.
We also sell a load of resale property so while you are here we can show you both- most agents either concentrate in one or the other.
If there is anything else we can help with, please just ask. As soon as you are ready to buy, we will be here ready to help you.
Kind wishes and see you in Spain soon,
Thanks to Graham for getting in touch with us regarding his enquiry.