confused property owners Torremolinos?!

What is going on these days. The Euro goes down, The pound seems to go up a bit. At least it does against the euro! The new British government takes measures. Spain cuts salarys of all workers in public service!

How does this all effect the value of my real estate in Torremolinos. Is the price of my property going down or up? Is it smart to buy a house or an appartment now?

The truth is..... Nobody knows! The pound going up against the euro is good ofcourse, specially for property on the Costa del Sol. But will it last? Nobody knows. Don´t forget that the Uk is having for example a deficit and national debt like Spain. Even higher! So what will that do with the pound on a long term? That´s very important specially if you decide to live in Torremolinos and have an british income.

The salary cut that the Spanish governmentgave top everybody working in public service doesn´t help the housing market in anyway.

Free advice: The financial and economic markets are very instable, so wait a bit and see how it develops. You can always rent a property in Torremolinos for the time being. rentals are cheap at the moment!!!

Public Wage Cuts, Lowers Growth Outlook and prizes of real estate

The following article is taken form the web. We think the conclusions are pretty obvious. have a look.

May 21, 2010 -- Spain approved the first public wage cuts since returning to democracy in 1978 and reduced its economic growth forecast for next year as the government tries to tame the euro region’s third-largest budget deficit.
Gross domestic product will grow 1.3 percent in 2011, less than a previous projection for 1.8 percent, and the government said the deficit will narrow to 6 percent of GDP next year from 11.2 percent in 2009. Wages for government workers will drop 5 percent in June.
“We prefer to have a conservative forecast at the moment, a conservative forecast that’s due not just to the deficit- reduction in Spain but also to similar processes in other countries,” Finance Minister Elena Salgado said in an interview with RNE radio today. The measures were approved at yesterday’s weekly cabinet meeting.
Faced with a surge in borrowing costs and calls from European Union partners to slash the deficit, Spain is reducing salaries and freezing pensions in a U-turn that prompted unions to call a strike. The cuts, the deepest for at least 30 years, were announced last week in response to the EU’s 750 billion- euro ($935 billion) aid mechanism for debt-stricken euro members.
“The measures are so unpopular, it’s the last thing you want to do, so it shows you really are serious,” said Michael Dicks, head of research at Barclays Wealth in London. “The worry is more how does the economy perform when you do 6 percent of GDP of fiscal tightening -- the rule of thumb is you’d knock 3 percentage points, at least, off your growth profile.”
Decree
Spain’s largest union, Comisiones Obreras, will probably call a general strike in protest, Efe newswire reported, citing Secretary General Ignacio Fernandez Toxo. No one at the union, which supported Greek workers in their strikes against austerity measures, could immediately confirm his comments.
Unions, which Socialist Prime Minister Jose Luis Rodriguez Zapatero has courted since coming to power in 2004 and consulted on measures that affect them, have already called a public- sector strike for June 8.
“If you’ve got strikes before you see the pain, before you probably see the economy contracting again, you worry about what that means six months down the line when the economy is failing to enjoy some sort of recovery and social and labor market tensions increase,” Dicks said.
Ratification Needed
The decree approved by the Cabinet yesterday goes into effect immediately and then needs to be ratified by parliament, where the ruling Socialist party doesn’t have a majority.
The budget plan has dented the government’s popularity, with the opposition People’s Party extending its lead over the ruling Socialists to 9 percentage points, according to a poll published by El Pais on May 16. Facing regional polls this year and a parliamentary election in 2012, Zapatero said this week he wants to make “those who have the most” contribute most to the reduction in the deficit.
Salgado would only say today that any tax hike would be “very specific” and may remain in place for the duration of the economic crisis. The measure will affect those with assets of more than 2 million euros, El Mundo reported.
Spain abolished in 2008 a wealth tax that charged a rate between 0.2 percent to 2.5 percent on assets above 600,000 euros and raised 2 billion euros a year.
Growth Forecast
The government’s new growth forecast remains more optimistic than those of the European Commission and the International Monetary Fund, which see the Spanish economy expanding 0.8 percent and 0.9 percent, respectively. Salgado, whose government initially responded to the global recession with one of the largest stimulus programs in Europe, has said getting the budget under control has to take priority over growth.
The extra yield investors demand to hold Spanish 10-year bonds rather than the German equivalent rose to 139.4 basis points today from 138.6 basis points yesterday. That compares with a 14-year high of 164 basis points on May 7, three days before EU governments hammered out a mechanism to stop contagion from the Greek crisis spreading across the euro region.
In return for that backstop, Spain and Portugal agreed to deeper budget cuts. Zapatero will also slash his own salary and that of cabinet colleagues by 15 percent, freeze pensions and scrap a 2,500 euro subsidy for new mothers. The government plans to cut the budget deficit to 4.4 percent of GDP in 2012 and 3 percent in 2013, in line with the EU ceiling.

Our conclusion is that this measures will lower house prices even more. also on the Costa del Sol and Torremolinos, because there still isn´t a bigger demand for real estate by foreigners. The housing market will stay a buyer market. Be patient when buying a house or an appartment in Torremolinos

Spain Is On The Brink Of Financial Collapse Because Nobody Pays Taxes

Spain threatens the strength of the euro currency union far more than Greece, given the much larger economy. And it turns out that, just like Greece, Spain has a horrendous tax-dodging problem. Which means lost tax revenue the Government has to borrow money for.
For Spain, such tax shenanigans center around the property market where reportedly half of landlords evade taxes.
Bloomberg:
Owners are asking for payment in cash from tenants to avoid tax on 2.5 billion euros ($3.5 billion) of earnings annually, the Gestha union of tax inspectors estimates. An increase in rental properties nationwide hasn’t generated any more tax revenue.
The Spanish government, seeking to pull the country out of its deepest recession in 60 years, needs all the money it can get right now. The slump was triggered by a crash in the housing market and has left Spain with the highest budget deficit since at least 1980. Taxes go unpaid on income equal to about a quarter of gross domestic product, Gestha estimates.
...
Encinar, whose company lists 360,000 properties for rent and purchase, said Gestha’s estimate that 54 percent of landlords are ducking taxes “falls short of the true figure, which is set to grow further.”
So let's see, as a back of the envelope calculation, $3.5 billion a year for the last ten years would mean $35 billion in government expenditures which required debt to finance versus using tax revenue. Given that a $35 billion dollar European bailout for Spain, today, would make headlines and likely remove market concerns regarding Spain's financial situation, stories of lax tax enforcement show how Spain only has itself to blame here.

Real estate agents in Torremolinos

Hereby a selection of real estate agents in Torremolinos. It is not possible place them all. The following estate agents will show only a small amount of all the properties in Torremolinos.

Have a look and see what they offer.

An agent which is listed below doesn´t mean it is a quality real estate agent. The list is just to provide some help. So judge yourself about there quality.

Solanina
Danza Invisible, La Nogalera,
29620 Torremolinos (Málaga)

Universal Inmobiliaria
Avenida Palma de Mallorca 27
29620 Torremolinos (Málaga)

Inmocostadelsol
Avenida Carlota Alessandri, 150
29620 Torremolinos (Málaga)

Intercostainvest
Calle Las Mercedes 13
29620 Torremolinos (Málaga)

The real estate agents above all have websites in English.

Buying property with no real estate agent in Torremolinos

Just like almost everywhere in the world. There are nowadays lots of possibilities to find real estate in Torremolinos, Costa del sol, Spain. Besides local news papers like El Sur or El Sur in English The main search source to find your property is internet of course. The following websites can give you an impression what properties are for sale in Torremolinos.

Comprarcasa.com
www.mundoanuncio.com
idealista.com

It is always smart to have a look with a professional. Don´t try to buy real estate without help.

Top 3 mistakes made by real estate investors

Real estate investment is perhaps one of the most lucrative forms of investment today. Especially on the Costa del Sol and Torremolinos, because the renting out possibillities are great. But it is also equally risk bound especially when one is not well versed with the trends and nuances of the real estate market.

Knowing the most common mistakes made by real estate investors will help one steer away from making similar mistakes and ensures good return on investment.

Bankrate.com has put together the top 10 mistakes after speaking to established, full-time real estate investors and other professionals involved in real estate investment such as bankers.

1. Not planning ahead
Lack of a proper plan is the biggest mistake made by novice investors. Finding a house after forming a proper investment strategy is the right way instead of looking for a house to fit the plan. Many make the mistake of buying a house because it seems to be a good deal and then try to see how they can fit it into their plan.

Instead of buying a house and thinking one can plan in due course, investors should concentrate on the numbers and try to make offers on multiple properties. This will ensure a good property that not only matches their investment model but also works out well with the numbers they had planned for.

2. Believing you can make money quickly
The second major mistake that real estate investors make is to think it is very easy to get rich in real estate. This is only a myth. The reality is that investing in real estate is a long-term project.

3. Doing it single-handedly
To become a successful real estate investor, one needs to build a team of professionals to assist in deals. This would ideally include a real estate agent, an appraiser, a home inspector, a closing attorney and a lender.

So before buying your spanish real estate in Torremolinos at the Costa del Sol....have a look first at the ten most common made mistakes at Bankrate.com

Cannot pay the mortgage of my property in Torremolinos!

cannot afford to keep the mortgage payments up on a property. What possibillitys are there for real estate owners. What bank is flexibel in Torremolinos and what bank is not.

First of all there is a option called ´Dacion en pago´ whereby you come to an agreement with the bank for them to keep the property in return for canceling your debt. While it seems like an attractive solution, there are several points to bear in mind before considering it as an option:

1. The banks are not obliged to offer you this option and it will vary significantly from bank to bank and even from branch to branch.

2. It is an agreement, therefore even if they agree to take the house in lieu of payment of the mortgage, they may not agree to cover any taxes that are due.

3. Even if they agree in principal, it can take many months for them to formalise the agreement.

It can be a very good option if you get agreement from your bank as although you would ownership your property, you would not be put on the bad debtors list. Some banks also let you remain in the property on a rental basis, so that you would not even have to vacate. If you default on the payments or have your house embargoed it could prove very difficult to get any credit in the future.

The first step would be to speak to local bank in Torremolinos, where you have the mortgage, to ask about all the options that are available to you, including the ´dación en pago´. If it is not an option, they may offer other alternatives that will help make the mortgage payments more affordable.

I have heard that Unicaja in Torremolinos is one of the most flexibel banks when it comes to difficulties with your mortgage or your property.

I hope it doesn´t happen ofcourse and that you all will live long and happy in your choosen real estate in Torremolinos or elsewhere on the Costa del sol.

Spain posts housing sales increase as 'investor confidence returns'

More positive news about the housing market in Spain. I would say, spain is a big country. This doesn´t say much about the situation on the costa del sol or Torremolinos. I will try to find some recent figures about the current real estate market in Torremolinos. But have a look at the next article.

Spanish property market has posted its first rise in house sales for three years, it has been announced.

Figures revealed by the Ministry of Housing show that sales in the country were up by 4.1 per cent year-on-year during the fourth quarter of 2009 and could represent a return in interest to the economically-troubled destination.

Speaking to Overseas Property Professional, many developers and agents reported that they had experienced a rise in the number of sales and enquiries they had dealt with surrounding the popular European destination.

Alfredo Milla, director of international investments at Mediterranean, told the property website that there was a feeling that the economic climate was improving.

"We believe that the confidence is returning to the international buyers as they can see the great offers that are now available in Spain.

"With a lot of European countries predicted to leave the recession this year there is not so much financial fear."

Meanwhile, the National Association of Estate Agents International has recommended that buyers invest early in the country to take advantage of bargain properties.

Current exchange rate GBP and falling prices attracting investors to Spain

Property searches are up for Spain as investors look to capitalise on falling prices and favourable exchange rates, it has been claimed.

According to British newspaper the Financial Times, many agents have said that price falls in Spain are drawing investors back to the country.
I found the next article on the net. If i look around at the property market in Torremolinos, then I really doubt the next article. I would say be carefull to invest in the current real estate market.

Furthermore, thanks to a strengthening GBP, Spain has become eight per cent cheaper for Brits in the last 12 months.

The number of people searching for properties in Spain in particular rose by 48 per cent in the same period, while they were up 341 per cent since December 2008.

Ann Wright, of property website primelocation.com, told the paper: "Interest in overseas property has shot up in recent months.

"The encouraging signs of recovery in the UK property market and economy and the resulting upturn in consumer confidence appear to have had a knock-on effect on the overseas market."

National Association of Estate Agents International recently suggested individuals looking to buy property in Spain should do so in the early part of 2010.

Keep your Torremolinos property warm in winter

Spain in the winter is warmer than England. Especially Torremolinos at the Costa del Sol has a mild climate in winter. The days are generally sunny, although the evenings can be cold. If you have a north or east facing home, you’ll probably need some form of heating between November and March.

South-facing properties are cosy in the winter, but can be unbearably hot in the summer, even with air conditioning. As it’s easier to warm a house up than cool it down, I prefer to heat the place in the winter and enjoy the coolness for the rest of the year.

If your property has air conditioning, this can also be used as a heater. However, it’s not all that efficient in a large room, and it can be expensive to run. And if you have breathing problems or suffer from asthma, air conditioning can exacerbate your difficulties.

You can buy slim, panel radiators which are economical to run, but they are mainly for background heat. Oil filled radiators are more efficient, and again are economical to run, but are rather bulky and unattractive.

Electricity in Spain is much cheaper than in England, but if you have a large property, you could find yourself with a hefty bill in March. It may make more sense, particularly if you are on a pension which has already suffered from the weakness of Sterling against the euro, to look at ‘pay as you heat’ options.


Paraffin heater
Why not try a paraffin heater? If the thought of the rusty, smelly old heaters of your grandparents’ days puts you off, think again. Go to Brico House, or any other hardware chain, and you’ll find a stylish range of heaters from as little as EUR 90. Twenty litres of paraffin will cost between EUR 38 and 45. It burns with little or no smell, and we anticipate 20 litres will last us for a month. Our living room is quite large, and we like to be cosy, so I’m more than happy with that outlay.
Bottled gas heaters
Another option is bottled gas heaters. These are on castors, so can be moved from room to room. Again, there are some attractive models available for around EUR 70, though you’ll have to pay more if you want a heater with variable heat controls.

Calor gas in England is expensive, but cost only around EUR 15 in Spain. A bottle should last at least 4 weeks, so it’s an economical option. Buy your first bottle from a Ferreteria (Ironmongers). You’ll have to pay about EUR 40 deposit on it, and you’ll also need to show your passport or some other form of identity. (No, I don’t know why, so don’t ask!)


Log fire
Many Spanish homes, even new builds, have open fireplaces, so you may fancy having a log fire. Wood burning stoves in Spain are very reasonable, starting from around EUR 600, but I would recommend trying a log basket and open fire first, as a wood burner may make your room too hot. Depending on your taste, you can pay anything from EUR 30 up to EUR 300 or more for an individually made cast iron log basket.

Ask your neighbours where you can buy logs; maybe several of you can club together to share a delivery and save some money? Ballaster’s, on the CV951 between San Miguel de Salinas and Torremendro is self service. Drive onto their weighbridge before and after loading your logs, and pay around EUR 1 per 10 kilos. Check local community website business directories and the classifieds in the English press for your nearest suppliers.

Better still, collect your logs from a forest near you and dry them out ready for burning. In Spain, people tend to dump wooden pallets on waste ground, and you can help yourself, so there’s another source of free firewood.


I hope I’ve given you some options for keeping warm in Spain without having heating bills which make you hot under the collar. Keep cosy!

Real Estate Agents in Torremolinos

If you are considering buying property in Torremolinos, Costa del Sol, Spain then you will be looking for a list of Torremolinos estate agents so you can look at their websites and get an idea of what type of property your money can buy you in Torremolinos.

Torremolinos is one of the best known package holiday resorts in Spain with thousands of holidaymakers flocking here every year for its beaches and wild nightlife.

Estate agents located in Torremolinos will also be able to help you find property in towns, villages, urbanisations and developments close to the Torremolinos area. These include: Playamar, El Pinar, La Colina, Los Alamos, La Cizana, Parador Malaga Golf, Guadalmar, Cerro del Toril, La Carihuela, Solymar, Torre Bermeja, El Pinillo, Arroyo de la Miel and Punta Negra.

Estate agents in Torremolinos operate differently as opposed to countries such as the United Kingdom. In the United Kingdom you have to trawl from one estate agent to the next and each has their own unique properties for sale. This is very time consuming.

Torremolinos estate agents and inmobiliaria have their own unique properties for sale but they can also show you other properties on sale from other Torremolinos estate agents.

If you want to buy a property in Torremolinos - the two estate agents will split the commission so the property you want to buy won't cost you anything more.

Try going to a Torremolinos estate agent that you can feel comfortable with. Explain as specifically as you can what sort of properties and features you are looking for. View some properties and you should find that by the end of the day the agent will have more of an exact idea what to show you next as you give valuable feedback. Now if you started the next day with a different Torremolinos estate agent you would be back at the start of the process again.

If the Torremolinos estate agent shows you unsuitable properties then don't waste your time - go to another agent in Torremolinos and start again. Look for a Torremolinos estate agent that takes time to listen to what you are looking for and who does not just try to push inappropriate properties for sale.

Remember to go on your instincts. Buy what YOU want to buy. Of course you should listen to advice from the Torremolinos estate agent, they know the local area and know the Torremolinos property market inside out but ultimately it is your decision on whether to buy a property. Don't be swayed by an agent who is looking to influence you unduly in order to make the sale.

Estate agents in Torremolinos will view a property and give a guideline at which price to market the property however ultimately the owners decide at which price to sell the property for and some unrealistically overprice their houses.

Estate agents in Torremolinos charge different commissions, expect typically to pay between 3% and 5%. If you are looking to sell your property in Torremolinos then we recommend going for an estate agent with an office in a busy location.

A Torremolinos estate agent with an office demonstrates a degree of credibility and ensures they will have passing traffic. They will naturally also have an Internet presence also.

Many estate agents in Torremolinos will also have houses and apartments for rent in Torremolinos. Do consider a long term let or rental in Torremolinos or rent a villa or apartment in Torremolinos as a way to get to know the area first.

Most Torremolinos estate agents should also be able to help you with these services: finding apartments for sale or rent, villas and houses for sale or rent, townhouses for sale or rent, selling your property, letting your property, information on the local area such as amenities, facilities and schools, new build properties and resales, cheap bargain properties including repossessions and distressed sales, property maintenance, valuations, luxury properties, property finding services and arranging mortgage financing, Some agents will also handle commercial property such as shops to let or lease, bars and restaurants for sale and land for sale.

Renting a house. What to know

If you don´t want to buy your Spanish home in Torremolinos, while living abroad, it´s wise to rent a house first. There are as many houses for rent as for sale. Most real estate agents in Torremolinos try to survive by renting houses. The next article will give you some basic information you really should know before renting your dream house in Torremolinos at the Costa del Sol.

Rules for renting a home

Rental contract

The following provisions shall be contained in the rental contract:

* Details of landlord and tenant

* Description of the property

* The contract term

* Amount of rent and payment terms

* Any other legal provisions that the parties agree

Rental contract may be made before a notary and recorded at the Spanish Property Registry (Registro de la Propiedad).

These are only general guidelines and not definitive statements of the law, all questions about the law's applications to individual cases shall be directed to a lawyer in Spain

The contract time period

Both parties will need to agree to the term for which the property will be rented. You may rent the property for a long or a short term. The distinction is very important as Spanish law provides with less rights to short-term tenants

Short term rental contracts

Short-term rental contracts (contrato de arrendamiento de temporada) require that the tenant vacate the property when the contract ends. This type of contract is normally used for holiday letting.

The short-term condition must be specified in the contract, which duration may run for up to one year.

Long-term rental contracts

You can settle a long-term rental contract, which duration exceeds one year.

If the contract does not exceed five years duration, it will be renewed automatically upon its expiration for periods of one up to a five years term, unless the tenant is not willing to renew it. The landlord is obliged to accept these renewals, except when he had previously stated in the contract that he needs to recover the property for his own use before running the 5-year period.

After the five years' term, the owner may rescind the contract, provided that he had given the tenant 30 days' notice before the end of the contract, otherwise the contract will be automatically renewed for three years, unless the tenant refuse this renewal.

When the contract does not provide its duration, rental contract will run for one year.

The deposit

Upon signature of the rental contract, tenants are required to pay the landlord a deposit (fianza) equal to one month rent payment, in order to guarantee that the property will be returned to the owner in the same state as before the occupation.
This deposit cannot be used to pay the rent to the landlord.

This deposit will be returned as the tenant moves out, assuming that the property is in good conditions.

After five years of rental contract, rental increase will require an increase of the deposit.

The rent

The amount of rent is agreed between both parties. Normally rent is monthly paid seven days before the end of the month. On no account must the landlord ask for more than one month rent to be paid in advance. Payments should be made as stated in the contract.

Tenant shall receive a written receipt justifying that the rent has been paid, unless it is accredited by other means such as proof of payment through bank transfer. Make sure you get these receipts or any proof of payment as these constitute an implicit contract.

During the first five years, rent will be increased or reduced according to the consumer price (inflation) index (Índice de precios al Consumo - IPC). After that period, rent will increase according to what both parties agreed when signing the contract.

About the expenses

Although expenses produced for daily use of the property, such as community fees, or real estate tax (IBI), must be paid by the landlord, tenants may be required to pay them when it had been expressly agreed by both parties in the rental contract.

Tenants must pay gas, electricity and telephone bills, unless otherwise is agreed.

Inventory

Tenants may be required to sign an inventory of the property contents (furnishing, fixtures and fittings…) and the state of them.

It is important to check this carefully, as every item outlined on the list shall be returned when you move out in the same order as listed, otherwise you might lose your deposit.

Repairs in the house

The landlord must make all necessary repairs to keep the property in a fit and habitable condition, however landlord is not responsible for repairing any damage caused by the tenant.

Tenant shall make those small repairs on account of the property daily use.

Urgent maintenance repairs may be undertaken by the tenant in order to avoid serious and immediate damages in the property, these must be made previous notice to the landlord, repair costs will be returned to tenant.

The landlord must give the tenant three-months notice of the landlord's intent to undertake repairs affecting to health, hygiene and comfort in the property. In this case tenant may renounce the rental contract within 1 month from the notice. If the tenant decides to stay, he may get a reduced rental rate in relation to the dwelling rooms that cannot be used because of the repairs.

Do note that the above are only general guidelines and not definitive statements of the law.

Sale of the house rented. The tenant's right of pre-emption

If the landlord wants to sell occupied property during the life of the rental contract, the tenant has the right of pre-emption (derecho de tanteo), which means that he could buy the property in priority to other purchaser.Landlord must first offer the property' sale to tenant , who will have 30 days to reply. If the landlord does not make this offer, or the property is sold at a lower price than the offered one, the tenant could, within one month following completion, have the sale annulled and purchase the property for the price declared in the sales' document.

Pre-emption rights' renunciation agreement will be valid only for rental contracts that exceed five years time period.

No pre-emption right can be applied when the rented house is sold together along with the rest of properties that form part of the same building.

If you buy an occupied property, you acquire the rights and obligations of the vendor, and therefore, not until five-year validity period of the rental contract has been completed, may the rental be terminated.

These are only general guidelines and not definitive statements of the law, all questions about the law's applications to individual cases shall be directed to a lawyer in Spain.

Landlord/tenant's subrogation in favour of third parties

The parties of the rental contract may be substituted for another person, who will acquire all rights and obligations of the old tenant or landlord.

· The landlord may be substituted when he sells the rented property to a third party.

* The tenant may be substituted when he got divorced or died. In such a case his descendants or spouse could stay in the property up to the termination of the rental contract.

Can the tenant let the property to a third party?

Previous notice to landlord, the tenant may sublet a portion of the rented property to another person for the same period he had contracted. Landlord must always give his written consent to tenant.

The rent that the third person shall pay to the original tenant must be lower than that stated in the rental contract.

Taxes

Landlord is liable to pay income tax at a rate of 25 percent, assuming that he is a non-resident whose Spanish property is rented.

You can deduct maintenance expenses from your Spanish income tax.

Having the rental contract rescinded

a) The landlord may rescind the rental contract when the tenant:

* Does not pay the rent or deposit.

* Rent the property to a third party without the landlord's consent.

* Deliberately causes damages to the property.

* Undertake repairs without landlords' consent.

* Causes serious nuisance to the neighbours.

b) The Tenant may rescind the rental contract when the landlord:

* Fails to make the necessary repairs to keep the property in a fit and habitable condition

* Disturb the tenant's dwelling use

Taking action before the Spanish courts

Many problems may arise when renting/letting a property. You may disagree with your rental contract duration, the rent increase, tenant refusing to move out, tenant failing to pay the rent…

Normally, disputes regarding to rental are processed through ordinary civil proceeding (procedimiento civil ordinario).

You should report your complaints to a lawyer who will conduct your formal complaint, going to court when necessary.

21 April 2009

Article by iAbogado Servicios Jurídicos SL (Madrid, Spain). Visit www.SpainLawyer.com for more original content like this.

10 reasons to buy real estate in Torremolinos

In the next article you can read ten personal reasons why I bought my property in Torremolinos on the costa del sol, instead of somewhere else in Spain.

1) Best climate in Spain. Soft winters and summers are less hot then most other coast area´s in Spain. See weatheronline.com
2) Torremolinos is the closest coastal resort to an airport. 10 minutes by train.
3) Torremolinos is only 20 minutes away from the city center of beautiful Malaga.
4) Even in summer it is easy to find a quiet spot on the beach.
5) Torremolinos is very diverse when it comes to property. from small houses to big buildings with penthouses. it´s easy to find the house of your dreams.
6) Torremolinos is way more spanish then for example Benalmadena or Fuengirola. So less drunk English, Germans or......
7) Because Torremolinos is closer to airport, city center of Malaga etc. values of your property is more stable then other resorts at the Costa del Sol.
8) Torremolinos stays lively all year round. Altough it is way more quiet in winter then in summer, you won´t have the feeling you live in a ghost town during the winter period.
9) Torremolinos has all facilities you can imagine in town or close buy. Movies in English, biggest swimming pool on the coast, a lively community center ect.
10)YOU HAVE THE FEELING YOU LIVE IN SPAIN. Not like Benalmadena or Fuengirola, where you live in sunny Great Britain.

THis was my personal top ten. feel free to comment!

Spanish mortgages are getting better

The current economic crisis has forced the Spanish banks to find ways to allow their clients to survive the difficult situation many of them find themselves in. The result has been the introduction of much more flexible and affordable mortgages.

Until recently it was hard to get anything other than a traditional repayment mortgage in Spain, unlike other countries who offered a much broader range of financial products.

This is particularly true for expats, who are limited to the traditional high street banks that may speak their language, or to those they are introduced to by estate agents or developers. With a little investigation however, it is actually possible to find interest-free mortgages, multi-currency mortgages and flexible mortgages amongst others.

For example, Oficina Directa offers what they call an a la carte mortgage where you only pay the interest for at least five years, then start paying off part of the capital repayment (6 percent to begin with) on an increasing scale. You can choose to pay off some of the capital if you find extra cash, or pay none if you are having a particular difficult year.

ING lets you pay off extra capital with a minimum of only EUR 1,500 as opposed to other banks who place a minimum of the equivalent of 12 months payments. This allows you to reduce the size of your mortgage without any penalties and reduce the monthly repayment or lifetime of your loan.

Multi-currency mortgages have received a lot of interest because of their low interest rates and while previously reserved for business clients, they are much more accessible to individual clients.


The benefits are that you pay for your mortgage in another currency with a lower interest rate with two of the most popular being Japanese Yen and Swiss Francs. The figures make them appealing as they could reduce your monthly mortgage payments by a third in some cases. (Note however, multi-currency mortgages are also considered very high risk mortgages because of possible exchange rate fluctuations).

Spanish bank account

You need a Spanish bank account, as the utility companies will only connect you to the services if they can set up a direct debit with a Spanish bank for payment. Most banks in Torremolinos have english speaking staff nowadays. Some banks may also produce statements in English on request.

Don´t buy debts when buying your house in Torremolinos

In Spain, debts are attached to the property, not the person, so ensure that your lawyer obtains proof that the vendor has paid all his obligations, including community fees if the property is on an urbanisation, and all utilities and taxes. Also ensure that the property is free of mortgages. It may be boring, but ask to see all the receipts.

Paying a deposit for your new home.

Don’t pay a deposit when buying your house in Torremolinos or another place on the costa del sol... unless you are certain this is the home for you. In Spain, once you hand over a deposit, you are committed to the purchase. If you withdraw later, you’ll lose your money, which is typically 10 percent of the asking price. There are plenty of properties on the market, so don’t part with any cash until you’re certain you’ve found the right apartment or house for you.

Buying a house on rural land

Be aware of the infamous Valencia Land Grab Law (LRAU) of 1994. Introduced to prevent rural landowners standing in the way of necessary expansion, the law in Valencia was badly drafted and has been used to compel householders to either surrender part of their land or contribute towards local infrastructure. Your lawyer should ensure your planned property is not affected by the LRAU, but one method of avoiding problems is to buy in an urbanised area, either in a town or village or on a purpose built urbanisation. The LRAU only comes into effect when there is a need or wish to reclassify rural or coastal land as urban for development, usually due to lack of other available land. Homes built on land originally classified as urban are unaffected.

Buying a house on the beach??!!

You might fancy a home on the beach, but be aware of the 1988 Ley de Costas (Law of the Coast). Spain wants to halt the overdevelopment of its coast, and many home owners face the prospect of having to seek permission to remain in a home they purchased in good faith years before the law came into effect. Coastal land is public land, and many builders went ahead without the necessary permissions. Even if permission was granted, local authorities may decide they want you out. You can take your case to the European Court, but you may not win, and who wants that hassle anyway? Also, with rising sea levels due to global warming, who’s to say your beach house won’t be an underwater hotel for the fishes in 50 years time?

Buying your house off plan

Unless you’ve set your heart on a shiny new build, don’t buy off plan at the moment. Several builders have gone out of business, and even the well established ones have curtailed their building until things improve. You could be waiting years for your home in the sun.
If you do buy off plan, ensure your builder is well established. NEVER BUY FROM A BUILDER WHOSE HEAD OFFICE IS A PORTAKABIN. It’s likely he hasn’t bothered to obtain all the necessary building permissions, and by the time you find out, he’ll be miles away with your hard-earned cash. Do your detective work and visit other sites operated by your chosen builder to verify the quality of build. You may get a 10 year builder’s guarantee on completion, but that’s not much use if he goes out of business, is it?

A LAWYER??? YES or NO???

Choose an independent lawyer. (Abogado)

Your agent may make recommendations, but an independent lawyer will make serving your interests his only concern.

Your lawyer should also ensure that you receive translations of all documents connected with the purchase. DON’T CONSIDER COMPLETING THE PURCHASE WITHOUT A LAWYER.

Again, ask around!! be sure his fee is reasonable and the lawyer has a good reputation and experience in real estate!

Choosing a real estate agent in Torremolinos

More and more people are buying a home in Spain, whether as a retirement home, holiday home or investment. With prices falling daily as people panic over the credit crunch and the weakness of sterling against the euro, now can be a good time to buy, but hey, - be careful out there! This is the Costa del Sol in Spain!

How to pick the right real estate agent!

Anyone can set up as a real estate agent in Spain, as there is little or no regulation. Choose a long-established agent who has a reputation to uphold. Every day, inexperienced and unscrupulous agents are closing for business. You don’t want anyone to disappear with your dreams and your cash, do you? Ensure your agent is fluent in Spanish, so there are no nasty surprises in store. Ask around about the real estate agent you want to pick out!!!!!!!!!

Where to buy in Torremolinos

If you decide to go to Torremolinos it is wise to know the town before you are going to buy something. most neighbourhoods have ther own caracter. The old town near town hall is for example way different then Playa Mar or carihuela. El Pinar is quiet with Villas, the center is busy with bars and terraces.

Torremolinos is pretty big. don´t go crazy scrolling all of the neigbourhoods.

Map

Spanish real estate jargon

spanish real estate jargon gives you some help with spanish words. Try to learn some before buying your house or appartment at the costal del Sol, Torremolinos. You will find out that even foreign real estate agents are used to use some spanish words during the process of buying. good luck studying.

Abogado – lawyer or solicitor
Apostilla – an official stamp on the document which certifies the signature
Ayuntamiento – city or town hall
Ático – penthouse
Baño – bathroom
Bodega - winecellar
Contrato privado de compraventa – contract of sale
Comprador – buyer
Calefacción – heating
Calidad – quality
Campo – in the country
Casa – house
Cocina – kitchen
Comedor – dining room
Ciudad – town
Cuarto -room
Dormitorio – bedroom
Ducha – shower
Dúplex – maisonette
Escritura – Notarised deed of sale
Escalera – stairway
Finca – farm or townhouse
Gastos – fees or expenses
Granja – farm or farmhouse
Hipoteca – mortgagee
Honorarios – fees
Huerto – orchard
ITP – transfer tax payable when buying a re-sale property
IVA – VAT
Inmobiliaria – estate agent office
Impuesto - tax
Lavadero – utility room
Lujo – luxury
Muebles – furniture
Nota simple – property registry information
Notario – notary who handles all the conveyance work for property sales
NIE – tax identification required by all foreign property owners in Spain
Primera copia – signed original of the escritura or a certified copy
Puerta – door
Piscina – swimming pool
Parcela – building plot
Piso – apartment, or floor of building
Pozo – well (of the water type)
Precio – price
Pueblo – village
Propiedad – property
Rústica – rural or agricultural
Reformada – modernised
Río – river
Salón – lounge
Se vende – for sale
Trastero – storage room
Urbanización – community development
Vendedor – seller
Ventana – window

More legal information

The next article gives you more legal information you need, before buying a second hand house or a new development in Torremolinos or Spain in general. This is crucial information before buying real estate in Spain.Below are some of the things you need to consider when buying a property in Spain:

Prior to viewing houses in Torremolinos.
Prior to arriving in Spain, you should make sure that you have at your disposal sufficient funds to cover the reservation sum. The absolute minimum required is normally € 3.000 to € 6.000 but may be greater for higher priced properties. The reservation sum may be paid with a credit card or cash. A cheque if drawn on a foreign bank may take up to ten days to clear by a Spanish bank.
If you do not have the means to lodge a reservation sum immediately you may risk losing the property to another party who has the reservation sum ready to lay down. There are virtually no exchange controls in Spain which means that, whether resident or not, you are free to obtain a loan or mortgage against your property in any currency and from any bank in the world. Spanish banks are quite willing to lend to non-resident purchasers of Real Estate. You will need:

A photocopy of your income tax returns
Three months salary slips
A bank reference
A breakdown of assets and liabilities
Last three months bank statements
If self employed, statements of accounts
Negotiating the purchase

Once a suitable property has been chosen the purchase terms and price will need to be negotiated with the seller. You may wish to make your offer subject to mortgage or Lawyer approval, or vary final completion dates, or the method of payment. The salesman who was good at finding the property may not be as good at negotiating the terms of sale with the owner. Ask to speak with the senior sales person or sales manager in the company and discuss with him the formation of a team to negotiate and carry through the terms of your purchase. The sales person may at this stage feel it of benefit to bring into the team a recommended lawyer to assist in the negotiation making sure that any offer meets his legal criteria.

Choosing a Lawyer

There are many excellent local Lawyers in Spain who are fluent in your language. A Lawyer will provide the legal guarantees for the purchase of the property ensuring that Spanish legal requirements are met and that the property is bought free of encumbrances, charges, liens or debt and up to date in all its payments of local contributions and community charges. The lawyer may also assist the sales team in difficult and complex negotiations with the owner. Using a Lawyer from your home country will substantially increase your legal costs and almost certainly delay the sales process.

Formalizing the offer

Once there is a verbal accord between parties the next step will be to formalize the offer terms of purchase in writing. Funds should be lodged in a local bank account or with your Lawyer in order to show the seller that there is a real intention to purchase. It is normal practice in Spain to include with the offer a sum of money to reserve the property until exchange of private contracts.

Exchange of private contracts

Upon acceptance of the offer by the owner the next step in the sales process is to exchange private contracts of sale or to sign an option to purchase. This may take place within two weeks following formal acceptance of the offer or sooner. Your Lawyer will have completed his searches and investigations of the property and will have arranged with the owner the procedure for the cancellation of any outstanding debts. The private contract of sale or option will reflect all the agreed terms of the offer and sale and set out the date for final completion at the Notary. It is customary practice at this stage to pay ten percent of the purchase price which normally is non-refundable should the purchaser not complete.

Final completion at the notary

A sale is formally completed in Spain when the public title deeds of purchase are signed before a notary, the final payment made, and possession given to the buyer.

Registration

Once signed, the notary will fax a note of the title deed to the local land registry. Your Lawyer will also pay on your behalf all the relevant transfer taxes associated with the purchase and will handle the formalities of registration of your title deeds. Final registration of the deed may take up to two months. Similarly, your Lawyer will arrange for the transfer of accounts with the local suppliers of utility services such as water and electricity and organize payments through a local bank.

Costs involved in purchasing a property

There are in principal three fees and two taxes to pay when purchasing property in Spain. As a rule of thumb, you should budget the combined total of these amounts will be around 10% of the purchase price.

The fees are as follows:
Legal fees: Minimum of €600 or 1% of the purchase value whichever is the greater plus value-added tax (I.V.A) currently charged at 16%.
Notary fees: the scale is fixed by law and may range from €300 for lower price properties to €841,40 for higher priced properties.
Property Registry: as a rule of thumb is 60% of what the notary charges.
The taxes

Transfer tax (ITP) at 6% or, when buying from a promoter, developer or habitual trades, IVA at 7% or 16% plus Stamp Duty at 1%. The IVA rate of 16% is applicable when purchasing parcels of land, commercial premises, or garage spaces.

Plus Valia:Normally payable by the vendor but it may be stipulated that the buyers pays. This may range from a few thousands pesetas to as much as several million pesetas on larger properties with a lot of land. Who pays this will be discussed in the negotiations and in consultation with your Lawyer.

Read here about you social security number

Where to start. About your N.I.E.

The first step when you decided to buy a house or move to Spain for a period longer than 3 months would be arranging a NIE identification number.

•An NIE code is essential when buying property, opening a bank account, starting a business, use short-term employment agencies or receive social security benefits

•The NIE number is both a Social Security number, and a tax identification number

•Applications for an NIE can be made at a police station with a foreigners department which can be found in the most towns of 100.000 or more inhabitants. Foreigner department in Torremolinos is at nacional police station at calle skal. Right in the center.

To obtain the NIE go the police department Oficina de Extranjeros in calle skal you are intending to be registered and ask for necessary papers. Like most offices it is overcrowded and only attend visitors in the morning hours until 1 p.m. So first collect an application form for NIE and fill it in at home.

•You will need the number repeatedly filling in various paper forms as well as to identify yourself through internet sites like online banking.

Make copies of all the documents you will need to supply with the form and return other day early in the morning so you will be ontime to get a number and file the form. The office will then indicate when you can collect your NIE. Normally it will take 2 weeks to 1 month.

Residence card

As of March 2007 EU citizens do no longer need a residency card Extranjería). European Union citizens are issued with a certificate stating their name, address in Spain and NIE. You can always apply for such a certificte at a later stage.

Pensioners who are retiring to Spain still require a residence card. Consult with a local lawyer on this matter.

Citizens of non-EU countries must have a residency permit. It should be applied for within 30 days of arriving in the country. The application should be addressed to the Foreigners' Office (Oficina de Extranjeros) or, depending on where the nearest office is, the local police station.

Non-EU residents are allowed to stay in Spain for a year on an initial permit (residencia), which can be renewed, and lasts up to 5 years.

Before departure for Spain a Visado de Residencia must be requested from the Spanish Embassy of the home country.

Social Security Card

If it is the first time you have worked in Spain you must obtain a personal social security membership number. You can arrange this yourself or your company can do it on your behalf.

Consequently, you will obtain the social security card (tarjeta de seguridad social), which must be presented at the corresponding health centre to be assigned to a doctor and obtain a health certificate.

Registration at town hall

If you wish to prove that you live in Spain you may register with the local Ayuntamiento (local council). In order to do so you only need to present the rental contract for your accommodation or an electricity or water bill, etc. to prove that you actually live there. In many cases being registered means paying less communal fees or getting reduced price membership to town sport facilities etc. It will also enable you to vote in local elections if you are an EU citizen.

Our advice!! Take a trustable and bilangual specialist let him or her inform you about your specific situation it cost you a bit, butt will help you a lot.

Buying a house in the Financial crisis. Smart or Stupid??

Currently we are in one of the biggest financial crisis ever. Spain is doing even worse then most EU- members. Is it wise to buy a house now?

First of all we can tell you it is not easy to get a mortgage in this time. Specially spanish banks are very difficult. Most banks will say no on forehand. One of the most flexibel banks is IBER CAJA. They still give 80% of taxation value.

But even when the bank gives you the loan, what will happen with the real estate market? does it go up again soon or will it go down further?

Spain and the Costa del Sol are two different topics. The two housing markets do funcion in different curves. Expectation is that Spain as a whole will suffer long time and so housing prizes will go down further the next few years. On the Costa del Sol is more or less the same expectation, but with one difference. Northern europeans do influence the property market big time. So an economic recovery in the north of Europe, will have a positive effect on the Costa del Sol and Torremolinos. Is the economy in northern Europe not recovering on the short term, The south of Spain could be worse then the rest of the country.

Buy now or later?
There are still lots of houses way too expensive, but if you take your time and have a good look around in southern Torremolinos.there are lots interesting offers on the market. We would say yes you can buy something, but be careful!!! If it is a real estate investment for a long time. Good! If your short time future is less secure. DON´t. Wait a few more years to buy your house in Torremolinos, because it is almost sure, that prices won´t go up big time.

More economic information about Spain and information about real estate development have a look on Wikipedia. Good article!!

Why buy a house in Torremolinos??

Why should you buy a second home or even maybe your first home in Torremolinos? On the Costa del Sol are more posibillities. For example Benalmadena, Fuengirola or Marbella....

The towns mentioned above are all big tourists resorts in Spain, Costa del Sol. Same climate, beaches and shops for everybody.

What makes Torremolinos different:

1) Closest resort to an airport, it´s only ten minutes by train.
2) Torremolinos is a lively town with 60.000 inhabitants. That means all year round activity. Some places at the Costa del Sol can be dead boring in winter.
3) Torremolinos is way more spanish then for example Benalmadena or Fuengirola. More then 50% of all tourists are spanish.
4) Torremolinos and Malaga are practically one city. It is more or less 20 minutes by train to the lively and historic center. Marbella, Malaga is almost an hour.
5) Choosing your property in Torremolinos is easy, because it is a very divers town. It has some high rise with beautiful views, a lifely city center, or quiet outskirts with villas. Do you prefer autentic old town, touristic (foreigners) Carihuela or a small bungalow on the cliffs above the beach. Lots of choice in real estate!!!
6) Torremolinos is having the biggest and longest beaches on the coast with palm bushes. You can always find a quiet spot.
7)After all, it is a matter of taste ofcourse.

Have a look over here at some real estate agents or inmobiliaria (spanish for real estate agents). Decide for yourself ofcourse which town suits you!!

Real Estate Torremolinos

This blog is for every body who is interested in buying a house in Torremolinos, Costa del Sol, Spain.

We will give you information about the local market, tips, ideas and other useful suggestions.

Ideas from reader´s point of view are very welcome of course.

We are not a real estate agent or an inmobilliaria in Torremolinos and we dont sell anything.

More to follow soon