Problems Buying Property on the Costa Blanca? Naaa

There has been a lot of bad press in the UK about property purchase in the Valencian region and it is true to a certain extent that a minority of buyers fall foul of unscrupulous dealers, but is this any different to anywhere else? The phrase “leave their brains on the plane” comes to mind, as many buyers in the past have not even taken legal advice when buying. It really dosen’t have to be like that…

Like any large or small investment, you need to be selective, employ the right people to advise you and take all possible precautions, so that you don’t pay too much, or end up with a property which gives you problems in the future.

Some People Don’t Like Paying

A parallel exists in the Financial Services Industry, where investors would rather pay commission often amounting thousands over a five year investment period, for advice, rather than paying a fee up front. Which do you think would be the most unbiased advice? Financial advisors are monitored by the FSA or similar bodies, so advisors should not in theory choose the products with the highest commissions. The same punters however, accuse advisors of doing so; even though this way of working is encouraged by them.

Don’t Come Crying to Me!

Although I may seem heartless, I have little sympathy with people who will not take advice unless it is free, or given to them in bars by barrack room lawyers, or by estate agents who are “really helpful,” only to find themselves in the dung. Those who refuse to pay for professional help ask for trouble, particularly in Spain, where regulation is minimal as regards property. It is true that the Notary now takes some responsibility to see that there are no outstanding bills etc., on your property, but they don’t really care if you get good value, pay excessive commission, or are told a crock of s**t about its letting potential or future value.

Leave Your Heart at Home

You may see a house which you or your spouse or partner really loves and it is decorated how you like it and you can just move in etc., Many people will buy, driven on this impulse. It is important to like your future home, but you have to stand back and investigate it properly. Look at others that meet your criteria and don’t rush. There have been buyers who come to Spain on a weekend visit and are pressurised into buying a new house on a development, without even checking what is available elsewhere.

Head Em Up and Move em Out

An acquaintance of mine was a part of this marketing machine in Denia and confessed to us that he had to keep his clients with him all the time, so that they did not walk down the road and see the same property for less money. So that’s why they are so hospitable and look after you so well! Not that there was anything wrong with these new properties, apart from the inflated price.

How Much!!??

You can also find widely differing prices for the same resale properties in different estate agents. Commission may be agreed at 5% but it is common for agents to “add a bit on,” that bit being sometimes more that a bit, if the market will wear it.

Exchange Rates

If we were in the euro, we wouldn’t have to pay for exchange and run the gauntlet of money market speculators. But there you are, blame Blair or whoever is the PM at the moment. ( I don’t think of such things). The recent drop in the pound’s value against the euro is not affecting any other european buyer, so the effect on prices here is minimal. What is affecting the market here is that less people are buying and it tends to be the people who want to live or holiday here, rather than the speculators, who have wandered of to Monrovia or Sciatica or some place in the desert. I am told that people in the UK are leaving in droves (The natives) and a favourite place to go is Spain, for reasons explained elsewhere. How do you get round the ER problem then?

Buyers’ Market

For the price of a one bed flat in London, you can still buy a three bed villa on the Costa Blanca, so what are you complaining about? If you now live in less affluent areas, you still have comparable buying power here. If you manage to sell your property in the UK for a reasonable price and then come here, you can shop around, make offers and benefit from the slow market. You should be able to find good value for money and if you only have 200,000 euros, don’t go looking at mansions on the headlands.

You Need Advice,

I would say that wouldn’t I? That’s what I get paid for. Yes, I charge for my services, because as they say on the adverts, “because I’m worth it.” You could save my fee and come here six times, before finding the right property after trawling through the misrepresented ones. You could spend more unneccessary time organising the purchase, negotiations and move. You could buy a dog, or a property with poor insulation, or a septic tank that doesn’t work. It’s up to you.

Mike Pick, Homesearch Costa Blanca

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