Hi - Aussie interested in bargain Spanish property

Hi!
My Aus property is on the market and I'm looking to pick up an affordable property in Spain.
I'm not sure what forum is most appropriate to ask forum members what their experience has been like buying in Spain.
So I'm doubling up my hi I'm a newbie thread with asking the question on where I should post this question

 

@Casteller is in Spain and would have some knowledge.

pinkboy

 

Spanish market is very different to Oz market. I have bought two properties here, one is down, one is up. A summary of major differences to Australia:
* No access to historical sales prices. This info is private.
* Very low interest rates, 1.75%, much more readily available now than in the peak of the crisis.
* No property expense deductions if you are not EU resident. You are taxed 25% on the gross income, not even interest expenses are deductible, so if you need a loan and are not EU resident it is a pretty rubbish investment (The British kicked themselves big time with Brexit in this respect, I suspect a lot of them don´t even know this but they will soon enough...).
* Very high transaction costs, about 13% (stamp duty 10%). You can do some of the conveyancing yourself, I did, else it would have cost over $2500 euro.
* Fantastic tax deduction of 60% of net income for Spanish residents (at the moment, these concessions get changed every year), so this is great for me, not available to non-residents.
* You need a NIE, pain to get, bureaucracy.
* Prices are much cheaper in the south than in Barcelona where I am.
* Spain has one of the most advanced (but complicated) tax evasion detection systems in the world, fines for avoidance are horrendous, like "lose-the-whole-asset" horrendous. They have been taken to the EU court over the excessive fines, but they do seem to work, people declare much more now.
* Beware the spruikers.... they prey on foreign buyers who think Spanish property is "cheap" and pay 50% too much for it.

this is one forum.. there are others
Spain Expat Forum for Expats Living in Spain - Expat Forum For People Moving Overseas And Living Abroad

aussiemillion - Iĺl send you a msg if you want more info.

 

Another point... tenants have a lot of rights, it is hard to evict them without good reason. Even when they stop paying the rent it can take a year to get them out. Squatters also have rights.
A property with a tenant in it will be much cheaper (/unsalable) for this reason. I would never buy a property with a tenant in it.

Also tourist licences are not issued anymore in some places (Barcelona) and so airbnb is not possible. But the medium term letting market (2-11 months) is still legal and attractive.

 

Maaateee. That was 10x better info/advice than what I've come across from nearly 2 days of research. You're a legend, thank you. Did you know all of that going in and still decided to buy? (I gather you're living in one and the other is an investment?)

I'm feeling like its all a bit too much trouble as an investment. If I knew I was going to stay there 5 years or so I'd be more inclined to buy.

I'll have a look around anyway. You mention medium term letting market - I noticed kyero.com had some on offer - is this a good place to go through?

 

I just saw a graph on the news somewhere with different countries property prices - and looks like Spain was starting to turn up.

Will see if I can find it.

 

Why Spain?
Why foreign property?
Is it for investment or for your new home?

Whats the plan?

 

Couldn't find the article I was thinking of, but this website has a graph and you can see different countries property prices which shows a similar trend to that article. Peak - big drop, now uptrend. (This website only has data to last year - so could be different now)
http://www.economist.com/blogs/dailychart/2011/11/global-house-prices

 

Well originally it was just going to be an extended holiday to Spain as I like the place / it's cheap. I then noticed property was relatively cheap. It seemed like a win banking the profit on my aussie property and moving to spain where property has been hammered - and the cost of living is low.

As an update - it turns out my UK Working Visa doesn't allow me to spend anymore time in Spain above the shengen visa (90 days) - so I won't be here long enough to go through with it.

 

Do you understand the intricacies of the Aussie market? Yes/No?
If not how do you anticipate mastering the Spanish market? One which is in a different language.
Cheap doesn't mean profitable.
Plenty of money to be made in the Aussie market.
I think your playing with fire..

 

I would love to get an apartment somewhere like Seville but more to live in for part/most of the year than as an IP