Buying in the Canaries

[Eyja]

Happy New Year everyone. I am glad I was let in, I thought I had done something wrong and had been thrown off the site!

I have now been in Mogan for a month and in S. Agustin since, and am now looking for something to buy. Everyone keeps warning me, that is everyone except the real estate agents of course. I have been trying to go through the papers (Canarian) and can't really see anything about prices of houses going up or down, someone said that I should wait until most of the tourists are gone, then the prices would go down, but God in Heaven, when is that? Prices of houses in Mogán are going up according to some and others say that prices in PDI are going down. I need to be nearer the airport than Mogán, at least at first, but I don't know what to do. Renting is too expensive in the long run. Anything that anyone can add to horror stories, or much better to good stories? Is it true that your children will not inherit the property when you die? Here is one story I found on a bank site:

Lessons from one unhappy experience of buying a house in Spain


It is an unfortunate fact that the legal system in Spain is at times desperately slow. Anyone considering buying a house in Spain (http://www.euroresidentes.com/Property/buying_house_spain_tips.htm)is advised to find a good Spanish lawyer (http://www.euroresidentes.com/Property/spanish_lawyers.htm) before signing anything at all and before parting with any money.

David Wright has just started a new blog to share his unfortunate experience of buying property in Spain (http://www.euroresidentes.com/Blogs/property-spain/) with other people. See the first entry below.

Users interested in following his story as the final part unravels (and as, we hope, justice is finally done and the Wrights win the home and compensation they deserve) should check out his blog: Slow legal system (http://slowlegalsystem.blogspot.com/) where he intends to keep people updated with events as and when they happen.

Considering tourism and housing investment bring considerable amounts of wealth to Spain, the Spanish law system is appalling slow and expensive.
At the begginning of 2000 we enetred into a contract to buy a house, paid the 10% deposit and arranged a date with the notary and respective lawyers to complete. The seeler did not turn up and decided not to sell. THE BIG SURPRISE... he also would not repay the 10 % deposit never mind the penalty of 10%. Our only alternative was litigation. As we were not living in Spain at the time we left a deposit with a lawyer who told us that it would be a straightforward case.
Well our case was finally heard in the local courts some 18 months later and we "won" including costs. However, the seller chose to appeal on what I understand to be very flimsy grounds. Some 2 years later the case was reheard in the Regional courts of Malaga where the original decision was upheald. ie we "won" again. However, the seller again decided with his lawyer that an appeal was in order and so we have been waiting almost 2 years for the case to come before a judge in MAdrid's high court!!! We still do not have a date nor can the system give us an estimated date as to when the case will be heard.!!!
WHAT CAN fellow EURORESIDENTES (http://www.euroresidentes.com/euroresiuk/indexuk.html) learn from this? I believe the following:
1: Entering litigation is very expensive - even though we have "won" twice, we have still had to pay our lawyers fees and costs even though the costs were awarded in our favour. The amount equates roughly to 17% of the purchase/contract price!!!! per hearing. At this point we have paid almost 50% of the orginal house contract price, (deposit plus fees)
2: The seller continues to live in the property and with no penalty or change.
3: We have no idea of timescale as to when the High court can hold the hearing.
4: The so called filtering process that was supposed to be implemented to stop people using the appeal process to delay matters as a tactic does not function.
5: The seller is not obliged to pay the costs awarded against them IF they choose to appeal....SO APPEALING is a good tactic to frustrate.
6: So having a contract from a good lawyer and within the letter of the law, still does not really protect your rights in a timely manner. WHAT then is the point of a contract? it is only worth something to the lawyers in preperation for litigation!!!
7: Perhaps the law will one day help us to retrieve our deposit and costs or even the holiday home we wanted to live in and enjoy in the future. However in the meantime, it has only benefited the lawyers and the vendor.
8: So the law can still be seen as having no "teeth" and benefits the unscrupulous property owner/seller. TAKE GREAT CARE.
Finally, if anyone has any suggestions as to what can be done to improve the law or indeed speed up the process then let me know

[magic]

Hi

I have been doing some research into buying a property abroad and found this interesting site :-

http://www.crimeshare.cc/news.html

Worth a read

[mary]

As far as i'm aware house prices are in a different league here. If the brits stop buying then the germans step in and if the german pull out then the scandis step in. Its more dependent on the prices in their country and wether people have spare money.
We have had alot of building on the island over the past few years and there seems to be alot of property around at the moment, for sale.
We bought a proerty at the beginning of 2005 for our clinic. it ws all fairly straigh forward although we had to jump through alot of hoops to ensure that all was legal and above board to open a business there.
The spanish are renowned for building bits on their houses illegally, so make sure that you get everything throughly checked.
We used Ana Maria Quitana as our lawyer. She is the American Consulate and does the lawyering side of things along side. She is very very picky and will find anything wrong, if it is there. But she doesnt come cheap.
if you use an agent - use someone you have been recommended.
Dont assume that things will run as you would expect them to in your own country. laws and rules are different here.
We have rented for the past 2 years and plan to rent for at least another year. We found this was best for us until we were sure how or where we wanted to live. like yourself, you have found that you need to be nearer the airport - so you were lucky that you hadnt bought in Mogan.
i hope that helps a bit and good luck with your purchase.
By the way - try www.canary-property.com (http://www.canary-property.com). Julie and Sheena will look after you.

[libbyo]

I can vouch for www.canary-property.com They are great and expain everything all the way along the road. Its a tricky project buying in a country whose language is not your own, and whose laws are different. One thing you really do need to do though is to get all the paperwork double checked, by your own side especially checking for depts on your property, and unless you are skilled, get a survey done to check your dream home will not become a dream rubble all to soon.

It is worth it though


Good luck

Libbyo :)

[mary]

As Libbyo said - check debts on the property - anything outstanding payments, bills, mortgage repayments etc are pased onto the new owner. So make sure that that is all checked and the previous owner has paid everything. At the time of signing, the notary checks that everyone is happy but you must have it all checked first.
As far as wills - make sure you have one. things do not automatically pass onto your family when you pass away.
Joint mortgages arent very common either.

[libbyo]

Just be warned be ware, dont expect it to be as you are used to. It is Ok though.

Libbyo :)

[2-islandangie]

We had a good chap who represented us here in PDI. His name is Pritzco we had a few minor hiccups at the last minute. The particulars from the agents stated that there was a television,microwave & safe. But when we arrived back here to complete the purchase they had gone. Also the Vendor had been notified (3months before we viewed the place)that he had to replace the door with a firedoor to comply with the regulations.This had not been done.
Also he had not paid the "Rates". We raised these points & it was dealt with in the notary's office the money was deducted from the purchase price. But you do need to be on the ball & have a good lawyer.

[MARCUS]

Well i would reccomend buying a property over here.I have purchased 2 so far in my time on the island.You have to buy at the right price! It is bloody difficult to get cheap bargains as they hardly ever turn up!I can honestly say (out of experience) that there is loads of money to be made if you can by right.But yes you need a good Lawyer!
Interesting point though that the other day i went to the town hall to pay my yearly tax(200 euros approx)now i bought my last property 6 months ago.They informed me with the Local police by my side("my friends "viewers:huh: )That any Local tax before i signed for the property,is not my responsibility and therefore told not to pay it,it is the previous owners debt and not mine.
Surprised in the moment,i took my 200 euros(rolled notes viewers)and ran out of the town hall like a "robbers dog" and was never to return..........

Marcus x

[libbyo]

Now there is a result Marcus. Dont supose its in writing for the future tho is it!

Libbyo :)

[mary]

Joint mortgages arent very common either.

You can get joint mortgages - we had problems when we bought the clinic but that was because we were running a business from our house and the business was in Dr Pauls name - nothing to do with joint mortgages

[shirley]

If you just remember that it is totaly different than england,
and that you cant (do it yourself) unless you speak the launguage and know the laws here.

You can check up in the land registry on (AMADORES BEACH) for any debts on the property that you are thinking of buying at a cost of (last time i went there) 3.79 euros. You ask for a (note simple )on that property . Pay your money and wait about one week depending on how busy they are. That will tell you any debts on the property. If they cant produce any paperwork for you then that property is not registered at all and youd have to buy it on a( private contract )with the owner.BUT BEWARE: it might not be theres to sell it to you, If you want to buy on a private contract you can register the property yourself later, but believe me it is very complicated and a long drawn out process and can sometimes take years to do, You can pay a deposit of 10 percent to the owner and make an agreement that they get it registered and you will give them the rest when they have done so.But never do that unless you do it through a solicitor who has checked up on the old private deeds first
and DO ALWAYS take his advice no matter how much you love the property. If the property is not registered it does not mean to say that the house is an illegal one , It might just be that the family selling could not be bothered to register it, or could not afford to,As it is not just a matter of a bit of paperwork, everything has to be checked on it by the catastro. (land tax office) measurements of land and property has to be registered with them also.It does take a long time as i said sometimes can be many years depending on the situation of it. The local town hall has to look at it and so on as well, It has to go through many departments. ( stamp stamp and yet again stamped)thats how it is here. So when you find that old wreck and it is not registered, think on ,It might be possible
FOR YOUR DREAM but then again it might not be, many old houses being sold off belong to many members of one family, They all have a share in it and all have to get together to sign over ownership to you. It can be done. But then after that planning permission for renovation can take another year of your life. If you are young no problem.You have the time for your dream. If you are older well!!I use a lawyer who is from mainland spain, (so he knows all the spanish laws) makes it a bit quicker ,someone in the know here, he also speaks perfect english and is now settled on this IsLand and his office is in san fernando. On new build last dec i know he charged someone 1000euros to deal with the sale for them and that included accompanying them to the notary on the day of sale, it also covered all the notarys fees and so on which he dealt with on there behalf,
but of course it didnt cover the tax you have to pay to the town hall on the purchase price of the property. It is not possible for anyone to tell you exactly what all the fees are up front as here they have a different way (its so much for each piece of paper they have to deal with and then the time on top) so im told. But generally allow 10percent on top of the purchase price and it will not be far out and that includes the purchase tax to the town hall as well.and you might pay less than 10percent but it is never more than that.(Anybody who wants to use this lawyer email me for his details) Just Glad to help.

[shirley]

PS Even if you are buying through an estate agent who says they will do it all for you
They can miss some things (they are only human after all.)
IN SPAIN YOU HAVE TO LOOK AFTER YOURSELF:
It is far better to have a lawyer look at all the paperwork BEFORE you part with any deposit. As that deposit is a hell of a lot of money to lose, if you lose it, JUST ASK YOURSELF can you then still afford to buy a house here?
well then dont part with it until a lawyer has had the deeds in his hand first and advises you to go ahead and pay that deposit.
Be like the canarians are. Manana Manana and take your time dont be rushed, dont be pushed, JUST THINK would you buy a property in england without a lawyer? well no you wouldnt would you.? So dont do it here then. If you do it by thinking first, do it as you would do in england, then you wont become a victim putting your horror story on here and youll love it here and be happy like i am.

[mary]

http://www.expatica.com/source/site_article.asp?subchannel_id=83&story_id=27308&name=Illegal+building%3A+The+expat+nightmare

Interesting article from Expatica

[shirley]

Glad you found this mary and put it on, How true. What causes most of the problems like this is that the land to the builder (IS VERY MUCH CHEAPER) to buy unless it already has planning/building permission.So far greater profits for him. After that the price of that land if far higher.The costs of planning and getting the licence to build are not cheap, It takes a long time on buying cheaper land to get the permission and all the paperwork correct, (Before you start to build on it).BUT: this is what a decent honest builder will do. Some builders take a chance that the land will change to building land in the local plans for that area.in the future,(They can not get planning permision until it does,) and so therefore they are illegal building sometimes it does sometimes it doesnt. This is a NO NO way of buying land, Unless it is clear in the escritura of that piece of land that it is urbanisation land.Then a decent builder /developer wouldnt touch it. You need a lawyer to ask to see the escritura for the land that the apartments or houses you are thinking of buying are going to be built on Also get that piece of land checked out for planning permission given in the local town hall for the proposed development on it. Any lawyer you are thinking of using, check that they are a bonefide qualified lawyer as well, (Many are not) THE REAL LAW HERE IS THE NOTARY:But with a genuine qualified lawyer doing the leg work for you you should be ok.The laws are different here for architects as well, Once the development has been drawn up the town hall will not give licence to build unless those drawn plans have been through the school of architects, (for checking on the architect) first before they recieve them that can take a whole month and sometimes longer.

[richt71]

Why do people stop doing things they would do when buyinga property in the UK?
There was a horror story on one of those buying abraod shows recently ( can't remember which one) were a couple had bought something in mainland Spain but saved the 80 euros on a survet cos the seller said it was needed. Of course after buying it they noticed some major movement in the house. After calling in a surveyor it became obvious the whole house need very costly underpinning that they couldn't afford!
Felt sorry for them on one hand but on the other hand they'd been incredably stupid by not spending next to nothing on getting the survey before buying.

[shirley]

:ph34r: Very True richt.!! It amazes me.

[shirley]

In january of this year. THE EIGHT YEAR RULE applied on all areas of gran canaria. Every eight years all areas are looked at and the laws changed. As to wether its building land or rural land, If you owned building land that you hadnt had plans passed for building on,Because you were just having it for future investment, and its been changed to rural land, You had about six weeks to place your objections in. And vice versa.It wasnt only land it was properties as well, as to what changes you could do to it. And all of this also depends on the area it is in,For example; you can not just buy an old house and change it into a shop or bed and breakfast.It depends where it is, And what the local laws have down for the area it is in, and wether part of that house was for commercial use in the first place. You can not just change a house into two apartments and sell one of,If the land size was designated at what size property could be built on that land in the first place and what kind of property, then the escritura can not be split into two properties to enable you to sell one of them off
(It is very very complicated.)So before you buy that piece of land or property, You need to know, AND SEE with your own eyes, exactly what will be allowed and what will not be allowed, Everything is in the local town hall about that land or property.( Every property and piece of land already has the rules made out for it) Every piece of land is already mapped out by satelite with a photograph of it in the town hall, so youll know whats yours and what isnt. All it takes is for Your lawyer to go up to the town hall and obtain copies, for anything at all to do with that land or property. (JUST LIKE THE LOCAL SEARCHES THAT ARE DONE FOR YOU BY YOUR SOLICITOR IN ENGLAND) But you have to get yourself a (QUALIFIED) lawyer and ask him to do this for you. (BEFORE) you part with any deposit, (The deposit you pay here goes (direct) to the owner of the property or the land,) there is (no clients account )in your lawyers bank holding your money till the final sale day. IT DOESNT WORK LIKE THAT HERE.And when you pay after signing at the notary. That final balance goes straight to the vendor also on the day.
It is against the law here for any developer to use buyers deposits, and use that money to construct with, He should hold that deposit until final sale day in case anything goes wrong, Sadly that is not the case with some developers.Especialy if they are constructing without planning permission, just hoping that they will get it in the end.
The Decent developer buys the land with his own money, The bank will lend the developer the money to construct with ,Taking that land as security for the bank (ONLY) (if all planning permission and certs have been given.) if its illegal build then the developer will sometimes have to use the customers deposits to build with.As the banks wont fund him (that does go on but it is against the law here)
There can be no full electricity supply given by any electricity company on these islands. Unless the builder /developer has been given. THE FINAL DE OBRA CERTIFICATE by the local town hall. They cant get this certificate if they have not got the full planning permission in the first place to build .ie: (illegal builds) so there for NO full electric supply (still on builders low voltage supply so not enough electric to supply everybody).
The electricity companies are very long winded, on putting every bodys own personal meters in, but customers sometimes do hold it all up by not supplying there passports and escrituras on time for the change over from builders supply to full private supply to each apartment. (That the electricity co needs in the first place to get the job done.) (copys will do )DO EVERYTHING HERE AS YOU WOULD DO IN ENGLAND. but remember it is (not a lawyers job here to hold your deposit for you till final day at the notary) (AND IT IS UP TO YOU WETHER YOU PART WITH IT OR NOT ) And it is also (UP TO YOU) how much you will part with for the deposit. INSIST ON ONLY 10 percent and by cheque. do it right and youll have a lovely life anywhere in spain. DONT BE A DREAMER.

[shirley]

PS.Here in G C, Some new constructions do have a 10 year guarantee on the main structure of the development, Cement samples are taken right through the construction process (By an independant company )who then supplies the guarantee of that structure by insurance. Similar to the nhbc 10 year guarantee in england.( This has to be paid for to that company by the builder/developer) Check if there is that guarantee on any newbuild that you are thinking of buying into. (That will make you feel safe).

[shirley]

All those apartments (everybody must have noticed) going up around the atlantico shopping centre, Well the spanish have a different way of selling to spanish workers than they do have to us foreigners, its a very helpfull way to them, In england say you get an 80 percent mortgage, well you have to come up with 20 percent deposit. (That you have to save up for first,) What they do here is split that 20percent up into monthly payments
that the buyers have to pay everymonth whilst the building is in progress. (Once they have obtained the mortgage,) They then sign and agree to pay the balance in this way during the progress of the building construction, once its finished and they have paid the 20 percent, Then they go on to the normal mortgage payments.for the 80 percent that they owe, It is far cheaper than paying any rent here,At least they cant dip into there savings once its paid over, and they do end up owning there own home.Obviously they have to have parents willing to support them letting them stay at home while they do this,Some have to pay there rent as well as this monthly payment each month and have to work twice as hard to get the money.But once they are on the mortgage (as mortgages are far cheaper here than they are in england) They have an easier time of it, and their mortgage payments monthly are far cheaper than even the cheapest rents the canarians pay in there own towns here.(I have just had all this explained to me today) by a canarian man who is buying this way in his home town, of La -aldea -de- san nicolas.

[Barbie]

To me buying a house anywhere would have been scarey. You just have to get the right advice. It took 2 months for me and my bf to buy our house including paperwork and sigining the deeds. We saw the house in April and we signed for it in June last year.

We didnt move in til September as we wanted to totally refurb it, but it didnt take as long as you all may think.

:blush:

[J1969]

Shirley,Once again........It is far cheaper to rent property in gran Canaria at the present time. I believe this situation will continue for the forseeable future. Rents are continuing to drop on an annual basis. Land prices have dropped in recent times also.This isn't fiction. If anyone can be bothered to work out the numbers involved, it becomes very apparent.

[shirley]

Barbie, Glad yours went smoothly,
But if you go back in the posts on here, not so for other people, I have just pointed out why, and where things can go wrong for some,
You must have had the right people helping you to buy, And of course you must have bought a house in the right situation, people buy from myself and my partner, and it always goes very smoothly for them, sometimes even quicker than yours.And we are not estate agents, We are builders and developers, selling what we have developed and built, (New properties.)
Everything we do is done by the law here.We love this island and here we will stay for the rest of our lives.I wish you a very happy future here and in your new home.

[shirley]

J1969
Hmmmm interesting! Where are the land prices dropping?

[vecino]

I agree Shirley . From my buying experience the opposite is happening. Maybe I´m lucky .
Where are your figures and facts from - for land prices JI969?


J1969
Hmmmm interesting! Where are the land prices dropping?

[J1969]

the herd always agree with each other.Just investigate the facts and you might be surprised. the facts are all readily available from government and through the internet.My rent equates to no more than about 2 - 2.5% yield - how many mortgages can beat that! Capital appreciation in Gran Canaria has been non existant for 18 months.Every week I monitor rental rates - the sort of places that interest me were 650e last year. this year they are 550- 600 e.My canarian brother in law wanted to purchase a flat recently, ecpecting a 120% mortgage, to cover the cost of buying, and a new car (lol). the bank's surveyor came up with a valuation 10% lower than he was willing to pay. That was 2 weeks ago.the number of buildings being bulit dropped 20% between 2004 and 2005. Land prices dropping is also common knowledge.Where I live at moment, loads of empty flats. Signs everywhere offering sale or rent.Unemployment up in Gran Canaria.So........a real healthy market then !!

[shirley]

Well i am not part of any herd, (I have my own mind,) I am looking at land every other week and have been doing so for the past 5 years. Even on bartering (and always getting the price down) we are still having to pay increases in the price of land here. Less buildings going on.? JEEEZ take a look at vecindario, Miles of it all new going on, And more on the planning tables as well to come through yet, Down from there 3 new lots going up in Pozo izquirdo, nice place BUT THE WIND THERE, so yes the prices are a bit cheaper there. Theyve NOT GONE DOWN its just a cheaper area to buy in thats all, like there are some areas like that all over the island.Now take a look at Tauro.3 Private sites going up there.(On top of the anfi timeshare lot there )And believe me not cheap at all. Playa Mogan. 1 site already started, another large one just getting through the planning stages, and my own smaller one JUST WAITING FOR THE LICENCE TO START IT. round abouts october it will be. And afraid they cant be cheap here (because the land wasnt cheap) In the valley of Mogan. 1 lot ongoing now, Ours there to be on line next year, Cheaper there than the playa mogan because we got the land cheaper there, But not as cheap as we would have got it 2 years ago. Lots more land available this year changed from the RUSTICAL law to the URBANISABLE status. So more plans at drawing stage now than ever before in Mogan. Owners of land here have waited 8 years so they can cash in on there land and sell it, And believe me they are doing now and not cheap either.A BANKS SURVEYOR DOES: always give a lower valuation than the selling price. Its the way it is here (As a safety point for the bank)(a bit the same as in england in some circumstances.)the valuation on the property in the local town halls is always lower than what one actually pays for property here as well. (THATS SOMETHING ELSE) Just ask anyone who bought a new propery in gran canaria in say the last even just 2 years, or even the investors, who bought at planning stage just to sell on when it was finished, How much theyve made on there investment. (I have not had one complaint on that) Ill give you an example. At planning stage in playa del cura, the su emenencia apartments.( NOTHING TO DO WITH ME BY THE WAY). Cost 165.000.00 euros about 3 and a half years ago they are all exactly the same, can you buy one now for that????????????Look in the estate agents! You cant.more like 235.000.00 aroundabouts. You have to be actively in the market place to know. Government statistics are not accurate.Capital apreciation here is booming! In most new build areas.Rents?well i dont know about that, anywhere else but in Mogan they are goin higher all the time, and in meloneras as well, most places .i know of. In the last 18, months ask any Bar
owners on amadores beach about there rents, Theyv gone up 1000 a month and are going up again currently.

[shirley]

Also on the big industrial estates, more and more warehouses being built, and opening up, Wholesale warehouses to supply all the businesses on the island. The biggest block manufacturer on the island has also just built /finished this last year, A lot of locals,to rent out even a bank couldnt wait for them to be finished they (are all taken now) On the main gc1 through arinaga area. And he tells me his block making factory just cant cope, And they are making blocks (24 hours) the plant never stops all night and all day.And now they have just started a factory up on fuerteventura making the blocks for there.But Gran Canaria IS THE PLACE
the best island with everything you could wish for on it.He says that himself although his grandfather lived on Lanzarote, And he has to go to fuerteventura a lot, And he has lived and worked on tenerife.when he was younger.He has even married an english girl.he met on tenerife, And he still says this is the best island to live and work on.And he is Canarian.And he says BUSINESS IS BOOMING HERE!

[mary]

Banks do value properties higher - sometimes. Our house was on the market for 200,000 but the bank valued it at 250,000. Mortgages are usually 80% - but 80% of the valuation price, so in effect, we had a 100% mortgage of the asking price. Our house needed a kitchen, light fittings etc put in. But, there are properties on the urbanisation, that have theri new kitchens etc that are on the market for 230,000 that are not moving.

[shirley]

Hmmm Mary, Yours probably got valued higher to take account of the kitchen.(And increase in value once the site is established), Because they know its worth more with one in Not all spanish builders put kitchens in, (We do complete with appliances,)(It is a funny market) in some places.All in all valuations are based on the (area )the property is in and per square metre per property and based on the land value per square metre of the area it is in, And also different banks give different valuations,(not much difference between them though,) we always get our sites valued x 3 and go off the middle one to find our selling price,If we didnt wed come unstuck on banks giving a morgage on them, they will after all only lend what they are worth (Thats our experience here)And lots of them built together does create a glut at first, in a tourist area. (There are selling times of the year) nothing much moves in the summer period at all. People mostly just come for holidays then (Most selling done starts around end of sept start of october and lasts until easter). Then you also have the people who have bitten off more than they can chew, they buy end up with a mortgage that they cant afford once back in england or wherever, with a mortgage there as well, and thats when they have to sell cheaper to get out of it. And then you get the bank subastas, (Repossesions) They sell them cheaper as well, just to recoup the mortgage money back.(On people who couldnt afford to keep two places going, one here and one back in the country where they live,) (All in all overall its a five year period (if bought once fully built )to know how much you have made on a property) investment wise.But i honestly dont know of any area, where properties have ever devalued at all.(New build,) Except ones built about 20 to 30 years ago, that now need renovating back up again, (In puerto rico and playa del ingles.)People are funny, they get fed up of areas that are already established, they want New up and coming areas it is no different back in your own country, Its always off with the old and on with the new area, Right now, its all Meloneras and playa Mogan, people are looking at. Plus Tauro. (A good tip if a development is already finished,) (completely) go in the local banks and ask if they have any subastas, coming up on that site, People dream when they come here, They dont think that they will ever be made redundant from there jobs back home, But it does happen and then they cant afford to pay two mortgages.Or to keep a holiday home going here, as well as their home back where they live permanently.So sometimes you can get cheaper than the going price, (its sad,) but someones loss is always someones gain,In the property market.And price also always depends on the quality inside the apartment, what you have done to it since you purchased it. If somebody bought off plan, from the start, once it is built, then they can sometimes afford to sell it cheaper than the going market price, (as they have already made a good profit on it.)There are Many reasons why some sell cheaper.On the same site once they are built.It doesnt mean to say that all the others have devalued.Banks just wouldnt lend the higher price in the first place, (They are the real intelligent ones here on the going values.)

[vecino]

All i can say is that i´m no herd Mo mooo LOL !!! and from my end land prices are UP. Sorry you seem to be having a negative time with things.


the herd always agree with each other.Just investigate the facts and you might be surprised. the facts are all readily available from government and through the internet.My rent equates to no more than about 2 - 2.5% yield - how many mortgages can beat that! Capital appreciation in Gran Canaria has been non existant for 18 months.Every week I monitor rental rates - the sort of places that interest me were 650e last year. this year they are 550- 600 e.My canarian brother in law wanted to purchase a flat recently, ecpecting a 120% mortgage, to cover the cost of buying, and a new car (lol). the bank's surveyor came up with a valuation 10% lower than he was willing to pay. That was 2 weeks ago.the number of buildings being bulit dropped 20% between 2004 and 2005. Land prices dropping is also common knowledge.Where I live at moment, loads of empty flats. Signs everywhere offering sale or rent.Unemployment up in Gran Canaria.So........a real healthy market then !!

[Barbie]

Im no cow either!

I have my own opinions. One of them is that this thread is very negative and seems like one big advert.

Depending on where you want to buy, depends on the price duh! For example some places in Puerto Rico will be expensive because of the location but not the state of the property.

In Arguineguin there are a lot of canarians whose houses have been passed down for generations, and the ones that are always up for sale are the ones in Loma Dos, which are to be fair very nice with pools and great sea views. So you will pay a lot for those houses anyway. I just think its all to do with having a good eye for property and bargains.

I will say, for the people reading this and wanting to take the plunge and buy property here, look into it well, but dont be put off by the negativity of this thread and there are lots of good estate agents and developers out there, they are not all in it for scamming. And they dont all take their time getting the paperwork sorted. Good Luck.:blush:

[shirley]

It started out with a bad story for someone, It ended up with a discussion over wether, Prices were going up or down. It has both negative and positive comments. On both subjects, Its always something that the public thinking of buying like to read about. Some paperwork takes a long time, some doesnt, Depends on if you buy a house with all the paperwork up to date, Or not up to date. Everyones opinion counts and is valid from there point of view, But from a positive opinion, This has been a usefull thread to have been involved in for me anyway from my point of view.

[vecino]

The value of a property does not always correspond to its price. How many times have you bought in the UK J1969 ? I have bought and sold many times here and in the UK . Suveyors often value lower than the value thats so normal both in the UK and here . if you buy a house in the wrong place then you have a problem.

.And here are some FACTS in Spainsh ( land prices have gone up 170% in the past 7 years & construction has grown by 37% in 2005 )
http://www.canariasahora.com/portada/editar_noticia.asp?idnoticia=78809&idtemageneral=1

[shirley]

My findings exactly Vecino, Else i would be out of work, The amount of land that we are being offered now, even complete, with proyecto. (planning permission already obtained on it) That you could actualy start building the day you signed for the land, Is unbelievable, (We have enough here in mogan) to be going on with and more being offered to us all the time. (We just couldnt afford to buy it all.) No matter how profitable it would be to us.And people are buying in the new resorts. Regards vecindario, All those apartments there going up are needed for the workers, And they are selling , And even us foreigners are buying them. Foreigners who just want to live ordinary lives, amongst the ordinary people here, Just like they live ordinary lives in the suburbs in england.
Not everybody can afford to buy in the resorts, They just want out of the bad weather countries to live and work here, With similar lifestyles (except for the weather of course) here. I once worked in an estate agents in a resort. The amount of people who came in, Just looking to buy a property in the suburbs amongs the canarians.( But we didnt have any only in the resorts.) I felt bad about that ,just an ordinary life here they wanted.I sent them to look in the spanish estate agents in vecindario.They did that and bought around there, at the prices they could afford.