Illustrates that what you dream to buy overseas may not realistically be the best investment for the future.

Shattered dreams v Mediterranean sea views; what your estate agent should (not) have told you...  by H Savage

I had been considering the purchase of an overseas property for at least two years prior to my purchase in Spain and having subscribed to magazines and read the property supplements avidly, had considered many options in Europe and further afield. I had two principal reasons for my search: firstly to acquire a home in a less expensive environment as life in the UK is becoming unaffordable, and secondly to provide a holiday home/second source of income until such time as I could leave full time work.

I had been tempted by a number of overseas investments but had been nervous about pursuing them as many seemed very speculative. Several visits to friends on the Costa Tropical and in Murcia then caused me to re-think my historic aversion to Spain: a perception created over many years by its party image. It met several key criteria: accessibility, culture, a language I can cope with learning (not sure I could manage Bulgarian), cost of living and most importantly a lifestyle, people and set of values that I am very comfortable with.

The, as yet, unspoilt Costa Tropical became my primary target due to its wonderful climate and vegetation and its proximity to the sea, the culture of Granada and the mountains where I could indulge my addiction to skiing. My local friends lived in a cortijo [#1] and ran a fruit farm and I was impressed with their quality of life. As a lover of old buildings I therefore decided to look for a similar though smaller property.

My first port of call was naturally the internet and I identified a number of seemingly marvellous properties that appeared to meet my criteria perfectly. Having made several viewing trips it soon became apparent that all was not as it seemed. Misrepresentation was rife in terms of location, condition, and most importantly, planning [#2]. Many were so remote that even SatNav wouldn’t help to find them again. Many appeared wonderful: immaculate conversions of high quality that were in fact only classified as animal sheds. Naturally, I was assured that proper planning permission would be no problem given a few years……….. 

What had begun as an exciting new dimension to life became hideously stressful and just as I was about to give up… along came Tropicana! I was initially a little irritated and out of sorts  as Martin wouldn’t take me to see any properties until we had had a full discussion of my requirements in the office. After all, I knew what I wanted…..didn’t I? Clearly, I didn’t. Martin took the time to talk about the background to the purchase, my lifestyle and requirements and for a number of very good reasons suggested that a finca or cortijo was absolutely not a good idea. Who would manage the land, the fruits, the farm, in my absence? Who would fill the water tank, check the irrigation system for leaks, clean the pool? Who would manage the property for holiday lets? All these points and more he raised with me until my head swelled.

However not to be completely negative and leave me too disheartened, he had one property in particular that he felt ideally met my requirements, we went to view it and within minutes of arriving I was completely in love with it. Whilst a new property, it is in a quiet established area, thereby meeting my need for traditional elements. It needs little maintenance and is very secure so can be left for extended periods without worry and it also has a magnificent view of the sea! 

What joy! An incredibly easy and happy ending after so much stress. I was so reassured and delighted by the professionalism of Martin and the team at Tropicana. They do not deal with any properties whose provenance is unsound or that do not have the necessary permissions. Our discussion included valuable advice on the costs and processes involved in the purchase of a property in Spain, and I was introduced to a wonderful English speaking lawyer who not only made the purchase very straightforward for me but has continued to be of great help over the last two years, ensuring that he attends management committee meetings in my absence, and that I get my Spanish tax bills paid on time[#3].

Equally, Martin and Tropicana have also been of superb continuing support, helping with the purchase of furniture and equipment and arranging for various works and alterations to be carried out. Jessica has been overseeing its let for the past two years and I am updated with any issues or concerns without delay. I can honestly say that I have never encountered such amazing after-sales care and I am eternally grateful – without them I would have been unable to change my life.

NOTES:

[#1] Cortijo or Finca – is a popular yet confusing description for a Spanish country property. The real distinction between a cortijo and a finca is that a cortijo is a farmhouse (which may or may not be for agricultural use), while a finca is a country house or estate that produces olives,  avocadoes, chirimoyas (custard apples), mangoes, etc for commercial profit. However the word finca is also used to refer to an urban property; for example in each nota simple the finca number is the identifying code for the property in the ascribed town’s land register – that is finca number 54027 of Almuñecar.
An “apero de labranza” – commonly known as apero or almacen – is a country tool store or shed that can be converted to make a small habitable country property. Buyers should be particularly cautious when purchasing this type of country property as it may be almost impossible to change the property qualification to a house... and this will have an effect on any valuation for mortgage purposes.

[#2] Permission to build or to extend a country property in Spain can be very misleading for buyers both in terms of what can be achieved locally and what can be legally built and registered. In some instances to make this dream a reality then you may even have to give up residence in your host country, take Spanish residence and become a self-employed farmer simply to guarantee the permit to build. In some instances too, I have heard cases where the provincial authorities Cultural ministry have declared some country properties in ruin as a historical monument, and consequently these can not receive permission to be converted or extended.  For more detailed information see the section on X in the Buyers Guide.

[#3]  As a newly built and registered property the first bill, apart from the transmission taxes and registration fees when purchasing, to arrive was the community fees. These were set up by standing order on a quarterly basis. Just this year, almost 3 years after my initial purchase, I now pay IBI (town hall municipal taxes) and also my lawyer arranges my (Patrimonial) wealth tax return annually. This not only gives me peace of mind, but also ensures that I am registered within the Spanish tax system so as to avoid possible problems in the future.