Property sales tax halved on new purchases in Spain today

[CIM]

Breaking news that the Spanish Government have temporarily decreased sales tax on all new properties sold between now and the end of the year. Tax is being quoted as 8% in Mainland Spain so will now be 4% - a saving of 8,000€ on a new home costing 200,000€.

Nothing so far on what it is being cut by in the Canary Islands as sales tax is lower here at 5% + 0.75% on new properties.

[delderek]

I really cant see that making a whole world of difference to new property sales, maybe half price could help, but looking at the mainland, even the places reduced to half price are not selling. Who would put anything into euroland at this moment in time?

[CIM]

Well I see a lot of sales in Mainland Spain each and every week and have done plenty this year in Tenerife so people are never going to stop buying. The problem is of course too many new developments. It went nuts in Spain for new build and it was always going to be a problem. The developers were never going to stop or even slow down building until a crash or recession came along to force their hand.

Even today though I speak to developers who are too stubborn/stupid to reduce their prices enough to actually make their properties worth buying. We just negotiated prices down on a new development here last week but rather than knocking off the 30% we recommended they cut them all by 15% as they didn't want people to get the impression the properties were "cheap" or "urgent sales" even though 99% of potential buyers are looking for good value for money.

I dont know what planet some of them live on. They just sit on their portfolio whilst the interest free period on their mortgages runs out thinking there's going to be a miraculous turnaround. And some of the banks are just as bad....

At least the Government have done something to help and 8,000€ off a 200k property is certainly a bonus.

[delderek]

You may have seen some sales, but with nearly three quarters of a million new unsold properties in Spain, who on earth would buy now, unless they were half price or less, because if not now they will be in a few years.

[CIM]

You may have seen some sales, but with nearly three quarters of a million new unsold properties in Spain, who on earth would buy now, unless they were half price or less, because if not now they will be in a few years.

Many of them are - thats why they are selling...

[delderek]

Unfortunately hundreds of horror stories on uk tv, that because so few are occupied on new developments, communities are failing, with no maintenance, and very many are falling into "no go" areas with large numbers of squaters etc. So even at half price you would need to be very very careful, where you invest.

[CIM]

Tax on new sales is very high, now the Government have halved it - it can only help buyers and developers.

Yep some are really bad, some are really good and some are in between.
But you aren't going to buy a new apartment on an empty complex full of squatters unless you´re a bit thick are you?

A good example would be El Barranco here. It looks terrible and I think only two families live there - I wouldn't even list it... whereas another complex called Kalima in El Madronal came on the market last month and 16 units sold in the first week.

Of course there´s not much anyone is going to be able to do to make people buy the rubbish. Thankfully its not all load of rubbish and there are some good deals around - or at least investors seem to think so and are putting their money down and buying. For the rest of this year at least, these buyers will benefit.

[delderek]

Tax on new sales is very high, now the Government have halved it - it can only help buyers and developers.

Yep some are really bad, some are really good and some are in between.
But you aren't going to buy a new apartment on an empty complex full of squatters unless you´re a bit thick are you?

A good example would be El Barranco here. It looks terrible and I think only two families live there - I wouldn't even list it... whereas another complex called Kalima in El Madronal came on the market last month and 16 units sold in the first week.

Of course there´s not much anyone is going to be able to do to make people buy the rubbish. Thankfully its not all load of rubbish and there are some good deals around - or at least investors seem to think so and are putting their money down and buying. For the rest of this year at least, these buyers will benefit.

Yup, thats what is happening on the mainland, you say 16 sold,,,how many left? if a large number the community can never work, and maintenance etc won't happen, and in time if the position does'nt change, this is where the problems arise. No, you dont buy with squaters, but after a couple of years with only a few sold, its when the whole complex becomes run down and they move in, further adding to the downward spiral. My advice for what its worth, never buy on a new development at this time. Buy on a well established one.

[CIM]

I would disagree, I think a modicum of common sense can ensure you dont get caught out buying on what is obviously a dead complex. it is a mixed market and as such you need to do some research, find something that is very good value for money in a good area and avoid all the rubbish.

On Kalima, 21 were sold out of 35 by the end of the second week (and more since then.) Another 10 had sold previously meaning 31 out of 45 units have now sold and the last 21 buyers have made massive savings on some very nice apartments. There is no question mark whatsoever over the community as the majority have sold incredibly quickly, the others will also be sold and if any aren't sold the bank is responsible, as the legal owner, for paying community fees.

I saw a similar situation earlier this year on another complex. Units knocked down from 250,000 to 150,000€ and 15 sold in a month. There were only 30 odd left on a complex of 150, so again no issues whatsoever and they are still selling (sold two on there in the past month.)

Another in the Golf, same thing happened, 100,000€ off the prices and over the past year most of the empty units have sold and people are very happy with them. So long as you do some research on the area and use your common sense you shouldn´t get caught out buying on a dead complex. As such, you can have yourself a very nice, new property with a sizeable discount.

TRG was the same, liquidated and sold off - over 100 units... they have all sold in a year.

There will be places that never sell and should just be bulldozed but there are also some excellent opportunities as the developers eventually have to offload their remaining stock. A tax cut of 4% can only help and benefit.

[dixie4]

I quite agree that if you buy at the moment buy on a working established complex.

I had a look on the internet at the complex and the appartments that were offered recently.

I find it hard to believe that so many have been sold.

Plus just look at the place! how can you make a silk purse out of a sows ********?. No sorry the place is a no no including the green algae in the swimming pool.

[CIM]

Which complex are you talking about?

[dixie4]

I can not remember the name of the complex but it is all very blue. It looked terrible despite all the assurances by the bank to clean up the place. I do not believe that 16 units were sold in 7 days. Propaganda, it is so obvious on a white elephant or was it 'blue' elephant.
These are just my opinions no one get their knickers in a twist no offence intended.

[CIM]

Yes it was overpriced and the developer totally cocked up sooooo the bank took it over and SLASHED the prices - BOOM, loads of units sell... it seems a pretty straightforward concept to me. I dont bull**** and I do check my facts so I can assure you those numbers are real as are all the others I posted. Please dont call me a liar in one breath and then say "oh but its only my opinion - so chill" in the next. An insult is an insult and saying someone is a liar is saying someone is a liar.

I dont think the agent selling them would be too pleased either at your accusations that they fudged their sales numbers! Feel free to come along with me to their offices if you like and we can discuss it in person and clear the matter up.

It looked bad as it had been sat idle for several years. They sold, the figures are real as I had a client who missed out on a ground floor unit. If it hadn't been sold, they would have bought it - why would the agent tell me it had sold and lose a sale if it hadn't?? Just makes no sense so your wrong!!!

Simplifying the subject to "you should just buy on an established complex" is well - simplistic... You could buy on an "established complex" and have the whole place go to the dogs within a couple of years - it happens all the time. There are loads of established complexes that are a complete mess. It comes down to doing your research and making an informed decision.

[dixie4]

Whoa there CIM.

Totally over the top reaction to my post. It certainly has taken me by surprise. I would not have thought a person in your kind of business would have his or her feathers ruffled so easily.

Please read my post again.

I am not calling anyone a liar, I said I do not believe it as in Victor Meldrew says I do not believe it. The oldest trick in the book is to tell everyone that the items are selling fast, get yours now. In this case you insist that it is true, very good I am pleased for you.

I could not care in the slightest if 10 20 or 50 apartments have been sold it has no direct bearing on me. I personally have looked at this complex on the internet, it was so memorable I can not remember the complex name. I do not like the area or the complex and I am of the opinion that it could be years before there is a community here. So even though I have funds available for 10 apartments, here is not where I would invest.

I even say again no offence intended it is just my opinion.

[CIM]

I would not have thought a person in your kind of business would have his or her feathers ruffled so easily.
Er, you quite plainly called me a liar - I quite plainly sent you a big bag of STFU. My line of business etc etc has got nothing to do with that "reaction." I am on here as ME, not a company or website or anything else. I post as ME....


I am not calling anyone a liar, I said I do not believe it as in Victor Meldrew says I do not believe it.

No, you clearly stated
I do not believe that 16 units were sold in 7 days. Propaganda, You are wrong, its not "propaganda" and they were.


I could not care in the slightest if 10 20 or 50 apartments have been sold it has no direct bearing on me.
It doesn't matter if you care or not - you are voicing your opinion about it so I am replying to you and telling you that you are wrong - because you are.


I do not like the area or the complex and I am of the opinion that it could be years before there is a community here
I dont care what you like or dont like. The fact remains that a load of these sold very quickly. As did a load more on another complex and a load more on yet another complex....


So even though I have funds available for 10 apartments, here is not where I would invest.
What has that got to do with anything? Why would you even put that on here - "I´ve got lots of money..." ??


I even say again no offence intended it is just my opinion.
Opinion or not, you call someone a liar, they´re probably gonna take offence. If you ever think I am lying again feel free to chime in and announce it and I´ll happily put you right again.

Another thread ruined. A simple report about a tax cut...

[Happy Days]

Don't think anyone can say that CIM is a liar. 16 units have been reserved.

However because the development was taken over by the bank, what always happens is what’s happened here. Special prices for the best units, offered to friends of the bank and then to friends of the estate agents contracted to sell the development - Visa Verde. This ensures a quick start. So in my opinion - the rest of the units available don't seem to offer the same price VS. size and location. There are still some units available that could be better value than most comparable property in the area - but I very much doubt they will continue to sell at 16 per week.

[CIM]

There were 21 sold last time I checked. Haven't seen an up to date price list for a couple of weeks though.
I sold a new build on Thursday - one day before the tax cut :(

[dixie4]

In that case we agree to differ.

All the best,

[Jimandsi]

They'll soon be giving them away - that's if anyone want's them. :crylaughing:

"Spanish home sales fell 41% in April to June from a year earlier, official figures have shown."

http://www.bbc.co.uk/news/business-14835957

[bonitatime]

Not sure how this is breaking news as I translated it last week or the week before and then the Canarian Weekly translated it but there you go.
I still think it is a good thing that the government are trying to get the housing market moving.

[YOUNG GOLFER]

They'll soon be giving them away - that's if anyone want's them. :crylaughing:

"Spanish home sales fell 41% in April to June from a year earlier, official figures have shown."

http://www.bbc.co.uk/news/business-14835957

Could i just ask you why on earth you would think that was funny jimandsi.....many people are out of work lost their homes due to this recession and sales even in the UK have been hit....but to make fun of this i find a tad sad mate.

Also noticed you don't seem to be so negative on other forums mate.

[Happy Days]

Think Jimandsi just comes back here 'cause he likes the fishing...

And he doesn't seem to bad at it either! ;)

[Jimandsi]

"Property sales tax halved on new purchases in Spain today" is the title of this thread and I found an article from a fairly reliable source (the BBC) that is relevant to the subject.

We all have our own opinions as to whether the property market is booming or declining and also as to whether this recession is a good or bad thing for the world economy.

However, I prefer to look at the argument from ALL possible angles and ignore the so called "experts".

[TOTO 99]

Still not overly funny or worthy of the "crylaughing" smiley Jimbo.

[CIM]

We all have our own opinions as to whether the property market is booming or declining and also as to whether this recession is a good or bad thing for the world economy.

However, I prefer to look at the argument from ALL possible angles and ignore the so called "experts".

Although the so called "experts" know a heck of a lot more than you about the property market here and in mainland Spain - hands down... At least their opinions are based on research, experience and facts whereas some of the negativity being spouted is just plain drivel from people who wish they could afford to buy something - but can´t (even when prices have dropped.) Not naming any names but it is pretty obvious who they are - poor miserable things :sorry:


Still not overly funny or worthy of the "crylaughing" smiley Jimbo.
He uses his cry laughing smiley when he is trolling and wants to annoy people and elicit a response. It is usually on a thread about a subject he has little or no knowledge of. Sad....

[Red Devil]

Although the so called "experts" know a heck of a lot more than you about the property market here and in mainland Spain - hands down... At least their opinions are based on research, experience and facts whereas some of the negativity being spouted is just plain drivel from people who wish they could afford to buy something - but can´t (even when prices have dropped.) Not naming any names but it is pretty obvious who they are - poor miserable things :sorry:


He uses his cry laughing smiley when he is trolling and wants to annoy people and elicit a response. It is usually on a thread about a subject he has little or no knowledge of. Sad....

I have recently sold an apartment in Tenerife that was in a good position on a good complex.
I was very happy with the price I got for it - I wasn't desperate to sell (fortunately) so my asking price was reasonable, not ridiculously low and it sold immediately.
My agent, who I have no reason to disbelieve, told me they are still very busy as there are purchasers wanting to buy their own place in the sun from all over Europe, including Eastern Europeans.
Long term I really don't see how you could fail with a property in the Canaries with the climate and reasonable flight times.
Mainland Spain is different, lots of over building took place and there isnt the year round tourist industry there so they cant be lumped together as one entity in any discussion about property prices.

[TheBloke]

I await his return.............

[CIM]

I agree, we were very busy from the start of the year - lots of sales. They have kept coming in through April, May and June There was maybe one quieter month amongst those and I expected July and August to slow down quite a bit but actually did a good number of sales in both. September and October always pick up and have done so again this year. Lots of people due to come over for viewings and a good amount of property coming up for sale at realistic prices.

I was talking to a couple today who had looked at a development in mainland Spain that I do mortgages on. But for them, Winter sun was just too big of a factor for them so they have plumped for Tenerife. Well priced properties ARE selling and there are plenty of people making enquiries, viewing and buying.

I expect property in residential areas to continue falling in value as demand is very low now (due to unemployment, inability to raise credit etc) but for good quality properties in the resorts, the demand is still strong although buyers are expecting more for their money.