House prices in GC?

[rf9rider]

We were over in PR last week, and had a look at a few properties for sale, was just wondering if any of you GC residents could say whats the property market been like for the last few years, ie; what percentage if any has your house price increased?
The estate agent did mention a figure but we would like another opinion to make sure!

[mary]

It depends what type of properties you are looking at. Last year we bought a new duplex for 200,000 euros but the bank valued it at 250,000 but there are others on the same complex for 220,000 that aren't selling. So house prices are only what the house actually sells for rather than what someone puts it on at.
Generally we arent influenced here by general prices in europe. Prices are high but if the brits cant afford them, then the germans may be in a buoyant market and if they cant then the scandi's can. There is always some country doing well enough to buy.
Access on the island has improved with the motorway and so house prices are rising with that but there has been alot of building work going on all over so that may mean a glut of housing.
Who knows really. Its a gamble. If you want to buy, then do it for your self. A 10 year plan could bring you a profit.
I'm not an estate agent and havent a clue and only report what i have heard or understand, but i hope that helps a little

[libbyo]

I recon that they are static. Good properties sell quickly at a fair price, the poorer location/internal/etc remain for sale for ages.

Think you wont loose a great deal, but not make a killing either. But if you have a place you enjoy.......

Libbyo :)

[J1969]

Well I guess it depends on whether you own or not !!My research indicates that prices have been dropping here for the last year.for Sale signs are staying up for ages. Rents are dropping. Unemployment has increased in the Canaries by more than the rest of Spain - keeping salaries in check here. tourist industry not doing too well. I've had the option of renting lots of new build flats, and working out the yield indicates very poor returns for the landlord.Prices have been kept up here by foreigners, who are now running out of money to purchase their additional properties in holiday places.so, I would not be optimistic about investment returns for the near future.But, its a guess and a gamble. Nobody knows the future - anybody to claims to know is lying.Purely an alternative opinion.P.s. I have absolutely no interest in buying property, even it prices drop 40%.

[vecino]

According to recent reports in the papers, the statistics show that Gran Canaria property prices went up by about 10% here last year. Certainly if you look in estate agents' windows, you'll definitely see prices rising, and in places like Vecindario, even though there's a huge amount of new build, you can really see how things are changing; a duplex will cost as much 40% more than it did 3 years ago. San Fernando and El Tablero are also seeing rises.
But in some of the older and less fashionable resort areas, second-hand holiday property can stick. If it has a less than up to date kitchen and either it or its neighbours are looking a little tired (and there are a lot of these), buyers will look elswhere, particularly when there's a hard sell on new-build apartments.
Holiday-makers frequently buy on impulse at top of market prices, and are then surprised when they don't make a big return. As anywhere, it's location, location, location and then how attractive you can make your property to a target market (German buyers often have different tastes from the British and so forth) that will make the difference as to how quickly you can re-sell and for how much.

[rf9rider]

Thanks all for your input,appreciate it.
We`re not out to make a killing on our property investment, just wanted a few figures other than from the Estate agent.
It would just be nice to know what the future house prices hold!
We`ll be over again in a couple of months to have another look around.

[mary]

Wouldnt we all like to know that. Its always a gamble where ever you buy

[shirley]

I agree with Mary,
its always a gamble.
The advice id give is THINK FIRST:
Why you are buying a property? and what for,? (Not just because the place seems nice) there is a lot more to it than that.
Generaly if you are buying to retire here later on yourself in it.Think wether you would be happy with the surroundings long term.And also your best bet then is new property,if you want to buy in a playa, so its not run down for when you retire, (depending on how long that is.) In the meantime you could rent it out , to family and friends or use one of the excellent companies there are on the island to do it for you.(To help pay the mortgage)
The true facts of life in the property world on the islands is that resorts get old hat, and everyone rushes to the new resorts opening up and the older ones then get left to rot and ruin. The same as the old apartment blocks do, everyone wants new and shining bright. As the saying goes (been there done that got the t shirt etc) The new ones prices do rise, and you do get a profit. If you buy off plan the price goes up every 3 months so when the development is finished you have already made a profit, if you get in from the start.then the resort takes off and you make some more.( Holiday property market is very fickle) But then it gets old so it depends on your age when you buy. If you are coming for good and
If you just want to live the canarian way and settle down like that, well go to the canarian property shops in vecindario or whichever community youd like to live in suburb wise, (Very cheap here.) A lot cheaper than in england for a good sized house Cheaper shopping as well.As the wages here are a lot lower than in england ,so the prices are lower where the natives live and work. But they do have a very good life particularly the children, on the beach every day after school.
Of course it also depends on your budget if you like a place rent for six months first( like Mary gave advice on elsewhere on the forum. (Very good advice) If you have to find work here and have already sold up back in england, rent first get your job, then look around, If you want to live in a resort and funds are limited,If the apartment block is well kept but the apartment itself is run down then you will get it cheaper, and can update it yourself, you will make a profit that way. Its not all doom and gloom on the property market here anymore than it is anywhere else in the world.
If you want to go Rural its totaly different i will answer any questions that anybody would like to ask on that one, As i have done it, bought the old wreck had access problems every problem that you can think off. too near the road for the laws on that here and so on. I still have not got access to a sewer as there isnt one yet in my neck of the woods, I just rent the hole in the ground off a neighbour that already has a hole built, as the laws now are that that you cant have one that isnt already built. Yes it is mind boggling, Rural wise. I have overcome everything though and am happy with my pile for now.:thankyou:

[shirley]

PS: please dont think that you can do as you do in england and just do a place up knock it about and alter it
The reasons why the rates are nothing here is that they collect the rates a different way,
IE; if you want to rip your kitchen all out and replace it all new, if you dont ask permision off the council, then you are commiting an offence because they want a one off tax off you for allowing you the permission
(this is how they collect the rates in here) so that when you retire you can always afford to pay your rates and dont have to downsize to a cheaper house, And dont think that you can do it on the sly,
The local police have a man in each area looking to see if there is any building work going on and if you can not show him your licence to do the work Then you will pay a hefty fine . You will be denunced.for not paying the tax they decide that you will pay to be allowed to do alterations on your property.The tax is quite reasonable and is a one off, compared to paying what you have to pay in england every year of your life.:veryangry:

[vecino]

Sorry i don´t agree with you . You have also to get planning permission in the uk for building work . There is NO problem changing kitchens what are you talking about ??


PS: please dont think that you can do as you do in england and just do a place up knock it about and alter it
The reasons why the rates are nothing here is that they collect the rates a different way,
IE; if you want to rip your kitchen all out and replace it all new, if you dont ask permision off the council, then you are commiting an offence because they want a one off tax off you for allowing you the permission
(this is how they collect the rates in here) so that when you retire you can always afford to pay your rates and dont have to downsize to a cheaper house, And dont think that you can do it on the sly,
The local police have a man in each area looking to see if there is any building work going on and if you can not show him your licence to do the work Then you will pay a hefty fine . You will be denunced.for not paying the tax they decide that you will pay to be allowed to do alterations on your property.The tax is quite reasonable and is a one off, compared to paying what you have to pay in england every year of your life.:veryangry:

[shirley]

PPS.
Vecino has it spot on. But the reason why there is a glut particularly in Vecindario . Is that these properties in the suburbs are badly needed for the canarians themselves. They have a better quality of life here now housingwise, Than they ever did before we all came along for the sunshine,Also they are all getting left money in wills from there relatives who suddenly became rich overnight RESORT LAND SOLD that was worth nothing to them before we all came along.
You can not disinherit your children here the law is that you have to leave them a third of your estate even if you dont like them. A story i was told (wether it is true or not i dont know). in mainland spain a man had 3 sons
he left Two of them that he liked fruit fincas, and the one he didnt like he left miles of scrubland by the sea. Fruit wouldnt grow there with the salty air .That scrubland in now known as BENIDORM. All these apartments new build in vecindario get sold out off plan. According to the biggest building block maker on the island in the north.(I do have a mind to get round to checking that out when i have the time to.) When you go shopping in the atlantico centre. You dont see a poor canarian and they all do have top of the range cars parked up there. HA HA its all the bars and restaurants they now own also, Well they do give us all a good time when we visit them. But Good luck to them i say.
I bought my house off TEN FAMILIES they all owned a piece of it.(Thats another story)

[mary]

you are supposed to get permission for any works done on a property, inside and out. I suppose doing a kitchen can be questioned but it depends on what you are doing - changing walls, moving plumbing usually needs permission.
Also you are not allowed to make a noise (DIY,hammering type noises) after a certain time in the evening, on Sundays and fiesta days - considering the amount of fiesta days we have, that cuts down your options too.

[J1969]

Shirley, Its not that rosey in the garden!!All those apartments definitely do not get sold off plan. Lots of them remain unsold. Why the "for Sale" signs otherwise.Poor Canarians driving expensive cars - Well, getting a 7 year loan for the purchase helps alot. And this is normal. Your typical 50-70 year old may have accumulated property and land at rock bottom prices over the last 30 years. But their sons and daughters are generally struggling to make ends meet. In real terms their salaries are not increasing and their cost of living continues to rise significantly.

[mary]

Buying off plan is sold as a good idea and in principal it seems a good idea. My understanding of it is - a builder has some land and plans to build 10 houses on it. Sells the 'house's and asks the buyers to give him 40% of the asking price. The builder can then go to the bank and ask for a loan to build the houses as he has a guarantee of buyers for the houses.
The buyers can then, either pay the full amount for the houses once they are built or (if its in the contract) sell their share on.
If you buy off plan - or from plans before the foundations are even built or a bit later, you are taking a risk. The builder may go bust, the houses may not turn out as nice as was originally thought etc etc. But the price you pay will be low because of the risk. The house prices will increase as they get built and others can see more in reality what the places will be like.
Some contracts stipulate that a place cannot be reassigned to a different name during this building time - ie sold onto someone else - so check the contract carefully.

There are various places on the island that have these opportunities ie. Vecindario. It can be good but you have to have the money available for that original deposit and be able to forget about it for a year or so. Choose your place carefully because iif you cant sell it on will you be able to afford to pay the full amount and is it somewhere that people may want to rent it from you. Even in this case, its location location location.

[vecino]

In fact, the rules are much the same as the UK. If you're doing significant structural work on a house in Britain, inside or out - such as taking out a supporting wall - you need a building license and an inspection, and there are tight regulations on wiring etc. The fact is that people in the UK often ignore these rules (at their peril - things have a habit of popping up when you sell). And homeowners often ignore the rules here too - with the same risks.
The rules on noise are much the same as the UK too.


you are supposed to get permission for any works done on a property, inside and out. I suppose doing a kitchen can be questioned but it depends on what you are doing - changing walls, moving plumbing usually needs permission.
Also you are not allowed to make a noise (DIY,hammering type noises) after a certain time in the evening, on Sundays and fiesta days - considering the amount of fiesta days we have, that cuts down your options too.

[shirley]

To get a licence here for any changes you wish to make to your property is entirely different to england. First of all you have to employ an architect
who draws up the plan. For the renovation or just alterations. Then the architects plans have to be submitted to the council to approve of them and work out how much it will cost you, and then they work out the percentage that you will pay to the council in tax. They decide how much it will cost you and how much tax you will pay them. (You have no say in that at all.) Then you have to pay that tax up front before they will give you the licence. And that is after they have gone through all the laws in the area that your property is in to decide wether they will allow you to do it or not. If you need a complete rewire of your property unelco will not give you a full supply until the council has been and inspected the property to see that you have done only work according to the architects plans if you have done extra or not according to the plans. You will not be issued a completion certificate to take to the electricity company to give you a full complete supply, the architect will also not sign the job as finished, and you will be issued with a notice to comply, until you do you wll be in a mess for electricity and be fined until you comply. Hence all the problems of people buying apartments and the supply failing on them all the time. The builder is at fault and cant get his completion certificate to get his full supply of electric for everyone. So now you know on that one why? You cant use all 4 rings cos all the lot cuts out on everyone

When a builder buys a piece of land to build on, if he builds and sells within 5 years he has to pay a lot of tax on that land. If he keeps the land and waits five years before he builds and sells any of the property that he has built on it, He saves paying that tax, So what he does is put you on a contract to buy and asks for monthly payments towards the cost of the price of the apartment. You will not own the property until you have signed with the notary.but he lets you use it as your own.and you pay the difference later when you actualy get in front of the notary to buy it. Before then you are actualy only renting the property.
Decent builders will pay there tax on the purchase of the land and not avoid it that way.Its a loop hole for the builder in the tax laws.You own nothing unless you have been and signed with the notary.NEVER BUY A PROPERTY WITHOUT A SOLICITOR, Also always check the builder out to see if all there licences are in place to build (or it might not get built). your solicitor will do that for you before you pay any deposit. The normal here is 10 percent although some deposits are 20 percent. There is no law on that, they do what they like. But whatever deposit on a new site that you are asked for will tell you straight away wether the builder is using the customers money to fund his building or not. If he is doing that smell a rat it means that the bank wont fund it and that he is very tight for money. sometimes it works out ok but most often than not it wont. Some ask for a large payment every 3 months thats a bit iffy as well, although i know people who have paid that up front as building progresses have lovely apartments now that they are happy with.
Heavy noisy machinery on building sites can not be turned on in any neighbourhood before 9 oclock in the morning.You can not even have work done privately on your house on a spanish national holiday its against the law, you cant even do it yourself.
The police here are employed by the town hall (and police any building matters )even come knock on your door and give you your licence to build and you sign with the police for that.The Guarda Civil are employed from Madrid. Please dont ask me how? the town hall knows what your renovation will cost.They just do. there prices for materials youll need and labour at spanish rates of pay. Is what THEY DECIDE. You can do what you like but believe me the fines are heavy if you do and you can be left in a mess of your own making with no way out of it It is best going the correct way about things at all times Particularly if your fund are limited.

Mary has got things right she seems to know quite a lot

[shirley]

The builder can never borrow money to buy the land in the first place, he must have his own money to buy the land. The bank will then lend the builder the money for the building on that land taking that land themselves as security on the loan but they pay that lent money in stages as the building goes up and they do expect to see sales happening as it goes along. All should be ok on that as long as the builder spends that loan money( on that particular site )and does not rob peter to pay paul or go and buy some more land with it and then leaves himself short to build the first site.
Its all to do with good financial management of the company and decency towards there customers.
Get you lawyer to check out the financial viability of the building company.

[shirley]

As mary says it is location.
Buying one of those new apartments in vecindario.
works a different way. You are asked for a monthly payment every month
whilst the building is progressing. Then you switch to a mortgage as soon as you have got the keys and signed with the notary, then your monthly payment will be a lot less than you were paying monthly before and more affordable.
There can be (several )reasons why you are asked to pay this way

But that is the Canarian way of buying . (One reason.) it is to do with the Black money.
What the town hall and Catastro say your house is worth is not necaserily the price you will pay for your property. wether it is new build or old property. But what they say it is worth is what will go on your escritura
(deeds) And that is (officialy) all that you have paid for your property
come to sell then, that price on your deeds is taken up again as what you paid ,and is taken off the price that you sell for, The difference then is your profits. Then you will be taxed on those profits. and that tax is called PLUS VALIA. now the seller pays this (not the buyer,) but sometimes the buyer will be asked to pay this for the seller as the seller doesnt want to pay this tax. As Mary says WATCH your contract you might be paying this tax without knowing it.
There can be (several) reasons why you are asked to pay more than 10 percent deposit ALWAYS REMEMBER THIS it is mostly always written into the contract( whatever )deposit you pay.That if you cant come up with the rest of the money. Then you lose that deposit, So never pay more than 10 percent.Personaly i wouldnt as it is a risk new build or old property.

[shirley]

A lawyers job here is different to england, His job here when you ask him to act for you is to obtain the deeds, obtain the nota simple,(to check for any debts on the property) And to go right back and check on ownership
and to see that the laws here are upheld on the sale to you. He does not handle any of your money (unless you ask him to) He will also act as power of attorney for you and sign for your property with the notary if you cant be here to do it for yourself.Estate agents( are not qualified in the spanish laws,) so they do not know everything that a spanish lawyer would know, to keep you and your money safe. They can handle your purchase for you the same as any lawyer here can. But they will not know everything that there is to know on keeping you safe. Most estate agents will work with your lawyer on your behalf. If an estate agent keeps on insisting that you do not need a lawyer. (Dont purchase through them.) As a decent estate agent would not object to you using a lawyer ,yes it is cheaper as some estate agents might suggest to you not to have a lawyer as they can do it all for you. (But dont fall for that one). Budget for a lawyer within your purchase at all times.
The law of spain is the NOTARY he does not handle any of your money either, He is paid by the state as a government servant to uphold the law between both parties. He is THE REAL law here and what he says goes.
Everything will run smoothly on the day of signing if you have had it all checked and dealt with by a lawyer first. The notary does check also with the land registry on the day of sale before he has you sign anything.that there are no debts on the property. Your money is held by you or should be, unless you have given it to your lawyer to hand it over for you, BLACK MONEY. Yes to pay it or not to pay it? well if you like the house and are determined to have it,And the owner of it wants it that way. THE DECISION IS YOURS ,( you will save tax and so will the seller to you.) Im afraid a lot of the time this is how it works here. This is why you pay one amount in cash and one amount by cheque. (The amount on the cheque is the official price you have paid for the property.)Basicaly it is against the law to rob the taxman this way, but that way is rife here. There is talk of NEW REGULATIONS for estate agents recently and of stamping this practise out. Personaly i dont believe things will change at all on this subject. some spanish owners will not sell to you any other way. The spanish owners i bought off never even brought the subject up. I paid by cheque the full price asked to pay. How all this comes about is because the valuation on any property in the town hall is (always lower )than the asking price. Its abit like in england if you were say to buy in wilmslow or alderley edge, as i once did, You will pay a higher price there than in some areas, But when you look at the insurance valuation for that property to rebuild it ,should it be raised to the ground. You will find (the same difference.) That it would cost far less to completely rebuild it (than it has for you to buy it) Its snob value for where you want to live you pay it or live in a cheaper area, the choice is yours. I have also bought properties in cheap areas, where i paid less for them than the insurance figure to rebuild. So then ive known that should i sell once ive renovated it i will be making good profits on it, A bigger percentage than i would have done paying snob values. (Sorry for using the word snob i just cant think of any other way to put it) As for prices as a general guide. Think what you would pay in england in the south near the sea for a property(and you are not going to get the weather that you will here) And you will then see that the prices here are far cheaper than in england by the sea.( Well thats the way i look at it anyway) And as some other members of this forum say.( You will not lose.) Its the decisions that you make yourself on how you go about buying a property (that gets you in trouble,) KEEP YOUSELF SAFE by going the sensible way about it. This is spanish law here and who knows best about spanish law?? well a spanish lawyer of course ,its the only way.(It really upsets me to read the horror stories of peoples dreams being smashed)Id like to see less of them if any at all. Its the same with buying from a builder, Use a spanish lawyer.And good luck to all those taking the plunge, Id never go back to england now and i wish id come here years ago long before i did.

[coolcreen]

This is an excellent thread for anyone considering buyin property in GC. Shirley, you lengthy contribution and depth of knowledge on this topic is very much appreciated

[richt71]

Buying off plan is sold as a good idea and in principal it seems a good idea. My understanding of it is - a builder has some land and plans to build 10 houses on it. Sells the 'house's and asks the buyers to give him 40% of the asking price. The builder can then go to the bank and ask for a loan to build the houses as he has a guarantee of buyers for the houses.
The buyers can then, either pay the full amount for the houses once they are built or (if its in the contract) sell their share on.
If you buy off plan - or from plans before the foundations are even built or a bit later, you are taking a risk. The builder may go bust, the houses may not turn out as nice as was originally thought etc etc. But the price you pay will be low because of the risk. The house prices will increase as they get built and others can see more in reality what the places will be like.
Some contracts stipulate that a place cannot be reassigned to a different name during this building time - ie sold onto someone else - so check the contract carefully.

There are various places on the island that have these opportunities ie. Vecindario. It can be good but you have to have the money available for that original deposit and be able to forget about it for a year or so. Choose your place carefully because iif you cant sell it on will you be able to afford to pay the full amount and is it somewhere that people may want to rent it from you. Even in this case, its location location location.

Mary don't want to seem funny but buying off plan means that you usually purchase as the builder is about to start. He usually owns the land and has the money to build. However it's less risk for the builder as the buyer usually pays in stages so that there's no long lag at the end of the property doesn't sell.
40% discount is not something I've ever seen offered on off plan. A very wealthy business associate of mine was recently delighted to get a 20% discount by agreeing to buy off plan 176 appartments for £25m!!
Usual off plan discount is 5%-10% with the odd 15% offered unless you're got silly money like my business assocaite then I guess you have more power!! :ohmy:

[mary]

I didnt say 40 % discount - I said 40 % of the asking price - as a deposit.
This was a deal that we were offered for property in Fuertventura and the property was about 80,000 euros completed.

[richt71]

I didnt say 40 % discount - I said 40 % of the asking price - as a deposit.
This was a deal that we were offered for property in Fuertventura and the property was about 80,000 euros completed.

Oh sorry Mary. I misread that. Actually that's quite high as a deposit. It's usually between 10 and 20% as the first payment. Of course they can ask for what they like.

[mary]

Yes you are right - the deposit was 5,000 to secure the deal and then 3 monthly payments but you could sell on at any point and the idea was that as the buildings got nearer to finishing,people would be more confident and so be prepared to buy - at a higher price than the starting amount

[shirley]

richt71

Has your friend got any silly money to throw around in playa mogan????

[debbieduck]

WOW SHIRLEY, you really know your stuff on this subject.Hats off to you.......:thankyou:

[richt71]

richt71

Has your friend got any silly money to throw around in playa mogan????

Dunno Shirley but he has bought complexes in main land Spain that he's sold on to investors. Next time I speak to him (which is once a year usually!!) I'll ask him.

[shirley]

Thank you debbieduck. But it really is only commonsense really,
We all have dreams coming here. But the reality is so much very different
You have to live the same as where you came from, or you will be back on that plane faster than you arrived here, With your dreams all smashed to pieces.

[shirley]

THanks richt71 (thats a thought ) to get all our lot sold more quickly
But i actually meant for (my pocket). A GAL LIKES TO MEET A BILLIONAIR NOW AND AGAIN ha ha . I can dream.!!!

[shirley]

OOPS posted to debbie duck on the wrong place. about smashed dreams. it was about coming to live here.