Spanish Property Resale or New?

Each has its own advantages and disadvantages, described here to help you decide which type is for you

Legal or Not?

In theory, the more recent the construction, the more chance there is that the building has been passed by the local authority as being properly constructed and having planning permission for it to be there. It should also be registered, which is not always the case. As usual, you can’t generalise and some new houses are still being built illegally, particularly in rural areas. See my article on rustic houses. Each case should be looked upon as unique and every case should be checked out by professionals. Buying off plan can have its problems, where in some cases, developers have not even got planning permission before offering properties for sale and the taking of deposits.

Which is Cheaper?

If you are comparing like for like, then in most cases, a resale property will cost you less. Why?

Firstly new properties can be subject to massive agent’s commissions which are usually not refunded if you try to go direct. Our company has been regularly offered 20% commission by developers, if we were to push our clients towards their new golfing paradises. We don’t of course, as we are totally independent. If our client was adamant in wanting such a property, we would negotiate to bring the commission down to an acceptable level, or hopefully to nothing.

Secondly you are likely to have to pay for connections of services, landscaping and just making the place habitable. It is not uncommon with new Spanish houses to have wires sticking out of ceilings with a bulb fitting on the end. Degrees of equipment vary immensely, but in a buyers’ market, you should be able to negotiate some extras in with the price. You probably wont get mirrors or any fittings in the bathroom apart from the ones that make it work. Re-sale properties are more likely to have such luxuries as light fittings and soap dishes, although it has been known for owners to take it all with them. Make sure you get an itemised list of what is staying and make sure these details are included in the proceedings.

ThirdlyPrivate sellers are more likely to negotiate lower prices, depending on their circumstances. Builders and developers are traditionally greedy, although the present market must be making them think if they are going to pay their bank loans off in the near future.

Is it Built Right?

The older, resale properties may not be as thermally efficient, may not have draught proof windows and doors and have more chance of being built sub standardly, (if that is a proper term). Only a survey will tell you about these things, and I would always recommend one, unless you are a building expert yourself. (There are lots of those!). You should at least get a phone line though, and if you read “Telephones Can Be Frustrating,” you will see what can happen if you are waiting to get one in your new house.

Dodgy Ground

I am not referring to settlement or landfill sites but the cost of doing groundworks, particularly if you are buying on a hill or mountain side. The cost of building retaining walls, drives, walls and other structures can easily be as much as the cost of the house construction, so if you are buying new, you had better get these things in with the price! Self builders beware!

Apartments

In my opinion, the later the construction, the better. Old apartment blocks can have problems, including bad insulation and that includes noise. They tend to look untidy if not impeccably maintained and some of them definitely are not. You may have new friends in the form of cockroaches, which are common in older large buildings and are very difficult to eradicate. The general appearance and standards of the edificio should be apparent however. Just watch out for the seedy ones, you can’t miss them!

White Man Speak with Fork-ed Tongue

The good thing about re-sales is that you can inspect, examine, probe and generally know what you are buying, if you take the necessary steps. The builder who says he will put a palm tree in later, or is waiting for the arrival of your boiler, or is going to fix the snagging list, usually stretches the truth a little, particularly if you hand over the dosh first. Don’t sign anything until it is all done, or it never will be. Also ensure that the certificate of occupation is in force and you are not waiting for services until it is. You should not move in to a house that does not yet have one!

When Can We Stop Living on a Building Site?

When it’s all finished and I mean all. Spanish construction often starts with the houses and then the infrastructure and services are added at a later date. Also make sure that you are not paying for the future road and street lighting to your property. If you buy a second hand property that has not been “urbanised” then you could be in for a bill if it happens.

Not All Gloom & Doom

Please don’t be put off by these problems. They needn’t be problems if you do your homework properly. Or leave it to an professional who knows other professionals, who will look into all these things and steer you clear. Like Me.

Mike Pick, Homesearch Costa Blanca

Tags: , apartments, new properties, re-sale properties, villas