Nearly 4000 Belgians bought a second home in Spain in 2017
The time when it was possible to afford a second residence in Spain for a pittance is long gone. The real estate market has regained strength in major cities and tourist areas. But the Iberian side is still as attractive. One thing is certain: anyone who is ready to invest will get what they pay for.
The excitement is palpable. Eric and Catherine are just coming back from Ikea with their purchases and are waiting for their garden installations that the Leroy Merlin brand must deliver to them shortly. The Belgian couple has just taken possession of their second residence: a villa with four facades with swimming pool, offering two bedrooms, two bathrooms, and - Last but not least - a solarium upstairs.
The occupancy is very fresh. "We haven't even spent a night there yet, says Eric, cheerfully. You discover the place almost at the same time as us.” Practically... because although their building is part of an island of homes sold on plan, Eric and Catherine set foot on the ground before buying it. The couple of young quinquas got their hands on a Showhouse, a fully furnished show house, located in San Miguel de Salinas, on the Costa Blanca. “Everything is there as presented during the visits,” enthuses Catherine. The furniture, the bedding, the decoration, even the artificial flowers placed on the tables and consoles that dress the villa. The cost of this fully furnished home: 345,000 euros, to which were added 10% VAT and 3% notary fees, registration fees and others.
The comfort of new buildings
Eric and Catherine are among the 3,914 Belgians who chose to invest in Spain last year. A figure that increased by 21% over one year and by 725% over 10 years! Belgians are now the fourth largest foreign buyer, after the British, French and Germans. They are also the most likely to turn to new real estate, which now represents 26% of acquisitions made by our compatriots.
“Until a few years ago, Walloons wanted to get their hands on typical Spanish houses, which is less and less true today. Traditional houses are thus gradually being abandoned in favor of apartments and villas that meet the latest standards of modernity. In fact, promoters have been aligning themselves in recent years with the tastes of foreigners. Now, real estate projects incorporate open kitchens, large windows and spacious terraces. While the constructions intended for the Spanish will favor an adjoining kitchen and small windows, in order to guarantee maximum freshness.
“The difference in the purchase price between the new and the old is also not huge, while the costs to be incurred to bring the electricity up to standard, install a bathroom or a modern kitchen are significant, de facto increasing the final bill, notes the Belgian agent. However, in many cases, existing houses are ideally located in pleasant neighborhoods.” In Orihuela Costa, for example, a coastal city located in the province of Alicante and very popular with vacationers, “it is difficult to buy on the first line (Hear here: facing the sea, Editor's note) because old Spanish houses sell for between 500,000 and 600,000 euros, and they have to be completely renovated.
Average budget
The average budget to acquire a new basic property in Spain? Between 240,000 and 300,000 euros.” The square meter is negotiated between 1,000 and 1,500 euros. Of course, you can find an apartment for 180,000 euros that is located 5-10 minutes from the sea by car but you will not find anything around. There are no miracles. When prices are low, there is a reason... “
The best quality/price ratio?
The Costa Blanca is the region that currently offers the best value for money. Not to ruin this pleasure, the sun is present all year round (325 days/year) and the temperatures are more than pleasant (an average of 16°C in winter and 25°C in summer). The “White Coast”, along with the island of Tenerife, was the region with the highest number of sales to foreigners last year, 41%. Something that works in its favor: it has two airports (Alicante and Murcia). "The proximity to the airport (Which should be served by a low-cost airline, Editor's note) remains a decisive element in the purchase, recognizes Johan Conix. Before the crisis, that didn't matter.” But now, Belgians want to be able to easily come and spend a few days, or even a weekend, in their second home. This is confirmed by Eric who invested in San Miguel de Salinas: “It's super easy. By flying on Friday around 3 pm, we are at home in the evening. It takes one hour to drive from Alicante airport.”
We differentiate between the north and south Costa Blanca (above or below Alicante). The first is generally more expensive than the second. The mountains go down into the sea. The houses built high up offer magnificent views and the villages are very pleasant.” In the north, new projects are quite rare, says the real estate agent. But there are (existing) villas starting at 350,000 euros. In addition, you have to count 250,000 euros for an apartment, a price that will be increased by the costs generated by a renovation that is sometimes very necessary. When a customer comes to us with a budget of 250,000 euros, we point them instead to the southern Costa Blanca. He will get more for his money, and will be able to invest more easily in new homes. “It is in fact in the south - a region that is flatter than the north - that developers have begun to build according to the tastes of foreigners”, specifies the real estate broker.
The lure of the sun
Another destination very popular with foreigners, especially for its sunny promises: the Costa del Sol. Life there is more mundane than elsewhere. However, the region suffered greatly from the crisis that shook Spain 10 years ago: too many homes were built there. Even today, while the Spanish real estate market is recovering everywhere else, construction is only picking up slowly, especially as the authorities are taking their time to issue the permits necessary for the construction of new projects. “We built too much before the crisis, often in any way,” acknowledges Johan Conix. In Marbella, to obtain building permits, which should be delivered in four months, you have to wait two years.” Property prices are also more expensive on the Costa del Sol, not only because of the reputation of the region, but also because its landscape is very mountainous, requiring more complex construction techniques.
Golf courses and country clubs are attracting more and more
Today, foreigners attracted to Spain want a property that is not only relatively close to the sea, but also other infrastructures such as the golf clubs that abound along the coast. In addition to the climate and the sea, the region of Alicante, for example, offers around sixty golf courses within a radius of 100 km. Several Resorts large-scale projects are currently being developed in the region and attract many Belgians.
The Las Colinas golf and country club, in San Miguel de Salinas, is an emblematic project. This 330-hectare resort offers an 18-hole golf course (par 71), nestled in the heart of a green zone. “Activities are organized all year round,” says Francisco Morena Pérez, Sales and Technical Director from Las Colinas. It is a Resort low intensity. A maximum of 1,500 properties will be built there. At present, 420 have already left the ground. If we follow the current pace, the project could be finished within five to six years.” A safe bet, according to the operator. “The owners did not record any losses during resales at the height of the crisis,” assures Francisco Morena Pérez.
What is the budget to be able to afford accommodation in this club? The entry threshold is 246,000 euros for a two-bedroom apartment. Count 437,000 euros for a three-bedroom penthouse. The most expensive villa, on the other hand, flirts with 4.3 million. Here, 85% of the buyers are Belgian. In particular thanks to Azull, a Belgian real estate agency that has bet heavily on Las Colinas. You can also meet Scandinavians, French, Danes, etc.
Further south, the Manga Club, in the Cartagena region, offers three 18-hole courses around which 2,500 homes are distributed over 560 ha. Everything is there: a five-star hotel, a business center, supermarkets, supermarkets, two shopping centers, two shopping centers, twenty restaurants, a tennis club (where the Spain-Paraguay Fed Cup took place last weekend), a soccer field (where young people from Chelsea come to train during the summer vacation), a bank, a shopping center and even a gas station.” Here, you have to count on a minimum of 300,000 euros for an apartment two. rooms for resale, and 350,000 for a three-bedroom apartment “, indicates Johan Conix.
Hiring the services of a lawyer
This is an essential step when buying real estate in Spain. A notary alone is not enough. In Spain, this is limited to the drafting of the transfer act and the registration of this act in the property register. The lawyer, on the other hand, takes care of all the necessary checks (does the property have all the licenses? is it debt-free? etc.). He requests a NIE number from the administration (which allows the Spanish tax authorities to be kept informed of a possible purchase) and two numbers if you are buying as a couple. He is responsible for opening a mandatory bank account (water and energy costs, which are due to the tax authorities, etc., are directly debited from the account). If you want to acquire a new property, a reservation - for which you must pay between 3,000 and 10,000 euros - must be made with the promoter. You then have one month to think. If you finally decide not to commit, you lose your deposit. If you confirm your decision, the lawyer draws up a purchase contract. You must then put on the table a deposit of the order of 20 to 50%. The promoter then requested a bank guarantee, which was issued a week later. At the end of the process, the lawyer draws up the notarial act.
A loan in Spain or Belgium?
“We advise our customers to have half of the purchase price, explains Johan Conix. We see that 90% of them do not need a loan. According to our statistics, only 10% took out a loan in Belgium or Spain. "The cost of borrowing is more attractive in Belgium but the purchaser will have to mortgage a property owned in our country. Logically, he will prefer to mortgage the Spanish property and will therefore turn to Spain to find a mortgage. This will be less advantageous and a variable rate will often be applied. “But the advantage is that it is possible to review the rates free of charge in Spain,” continues the real estate agent. Same for the repurchase of the loan. Thus, many Belgians who have borrowed in Spain repay the rest of their due when pension time arrives (and the payment of related benefits) or on the occasion of an inheritance.
Source: Trend Trend
Excerpt Trends Tendances 26/04/2018
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