Where to find secret Spain, self build advice, the Sugababes, and a tax warning for the Irish. Plus how not to fall out with your family and why we like yuppies. Who needs the World Cup?
News
Escaping British weather more important than profit
Laurie Osborne, In2Perspective
68% of Britons would like to buy property abroad, according to research from HIFX, the currency experts.
The study, carried out by YouGov, found that Britons rate overseas weather and lifestyles as more important than effective investment or making a profit when they pour their cash into properties abroad.
HIFX’s research found that almost two thirds of Brits (62%) see the main benefit of buying a property abroad as the chance to escape the cold and rainy UK weather. Half (50%) think it would be good to escape their stressful UK lifestyle of long working hours and high taxes and over a quarter (27%) would like to eventually emigrate and live abroad.
According to 2005 Office of National Statistics government figures the number of Britons owning second homes abroad now stands at 257,000. However, HIFX’s research shows that a further 29 million Brits would like to buy a property abroad and 11 million could actually own one within the next five years.
Surprisingly, desires to make a good investment or long term profit are low down on the list of priorities. People are three times more concerned about escaping the UK weather than making long term profit. However, worryingly one in four property buyers are also either unaware or unconcerned about fluctuating exchange rates and how this could increase the final cost of their property.
Spain remains Britain's top get away destination with 46% of prospective buyers aiming to buy there. However, far flung destinations such as Australia, Canada and New Zealand are also increasing in popularity. Our favoured type of property to buy would be a villa by the sea (49%), followed by a house in the countryside (19%); just 5% of buyers would consider an apartment in a city, including people wishing to emigrate suggesting that most Brits want their new home to be a complete escape from busy UK life.
Mark Bodega, marketing director of HIFX said: “There has been a shift from a second home being regarded as a luxury to it being something attainable by most people. In 1995, the average price paid for a second home overseas was 65% of the average UK property price. By 2005 it had fallen to 37% reflecting in part steeper house price inflation in the UK, but also the fact that second homes had become more of a mass market aspiration.
“The impact of growing prosperity, cheaper flights and the low cost of borrowing – even lower in the eurozone than in the UK – mean the trend for buying property abroad is expected to accelerate.”
Some may avoid ‘self-build’ like the plague due to fears of spiralling costs, unreliable workmen and it simply being far too time consuming. Most of these fears can be eliminated by employing the combination of a knowledgeable, specialist Real Estate Agent and an experienced Project Manager who together can transform a potentially daunting process into an exciting and financially rewarding experience.
Some common questions or concerns…
Where do I start?
With the plot. It sounds simple and obvious but actually choosing the right plot isn’t as easy as it looks. Many factors should be taken into consideration such as the location, orientation, views (sea? golf? mountain?), size of plot and permitted build volume, topography and suitability to build. Paul Rossiter, Managing Director of self-build specialist agency, Carrington Estates, comments, “Choosing the plot is such a vital part of the process as there are so many angles to consider. A reasonably priced plot may actually become a very expensive plot if the tricky topography requires levelling and the construction of costly retaining walls before build can commence. Conversely an expensive plot may actually give rise to a cheaper build if it’s as flat as a pancake or has topography which is suited to the style of property that you wish to build. Not only do we use our years of experience to help our clients choose wisely, but we also invite our preferred Project Manager to join us and give his expert opinion on the plot’s viability. This way the client can be confident in his/her choice even before they’ve paid a deposit. Lastly, Carrington Estates only deals with fully licensed and serviced plots so there are no hidden surprises.”
Why do I need a Project Manager, can’t I source the architect, workmen etc myself?
You could, but without prior experience and perfect Spanish it’s likely that you’ll find yourself in a bit of a maze. A Project Manager is there to manage your project, your concerns, your doubts and of course your budget. He is responsible for the project from inception to completion ensuring your standards of time and quality are met. Also, it means that you only have to put one telephone number into your speed dial to keep track of the whole process. Paul Rossiter comments, “We recommend Peter Wilkey of Johnson & Wilkey Asociados who are corporate members of the Association for Project Managers and of the Chartered Institute of Builders. Peter has been managing projects on the Costa del Sol for almost 20 years. His previous employers include Taylor Woodrow and Bovis and he was the Project Director for the highly successful Las Alamandas Development in Nueva Andalucía. Being bilingual, Peter can ensure smooth mediation between UK clients’ needs and expectations and Spanish practices and attitudes. He is an invaluable partnership for our business.”
How big shall I build?
Firstly, find out how much you are allowed. Each plot is classified with a maximum buildable square metreage, although there are sections of the property that do not count towards your permitted build volume such as basements and open terraces. However, most people find that their budget kicks in before reaching the maximum square metre size. Secondly, what is the property to be used for? Paul Rossiter comments, “If you’re building purely for your own personal use, then the size of the property will directly relate to your own family’s needs. If you’re building for investment then the size should generate the maximum resale potential, taking into account your initial costs. A 300m² build will give you a three to four bedroom property and a 400m² to 450m² build will give you a four to five bedroom property, both of which are highly saleable in today’s market.
Why do I need a basement?
Basically a basement is ‘free’ (i.e not counted against your build volume) extra usable space which can house storage, a laundry, home cinema, garaging, a gymnasium, indoor pool, whatever you fancy. For resale this extra space is not only useful but also adds a ‘wow’ factor. Peter Wilkey comments, “Sometimes the terrain can make the decision for you. If building on sloping land, the basement is practically built into the design and all you have to do is close it in and finish it off. On a completely flat plot, excavation work is required to create a basement and this may be an additional hassle and cost that you don’t want to entertain.”
What qualities should I build?
Again, this can be answered in two different ways depending on whether the property is for personal use or investment. Peter Wilkey comments, “The standard level of finishes, after budget and wish-list consultation with clients, can be assumed to be of a high level, comprising hot and cold air-conditioning in the main rooms, underfloor heating in the bathrooms, good quality aluminium windows, marble flooring throughout, a Jacuzzi bath in the master en suite and so on. If you are tailor-making the property for your personal use maybe you want to upgrade or adapt and swap marble for terracotta floor tiles or have Jacuzzi baths in every bathroom, that’s up to you. Fortunately each element from taps and interior doors to wall tiles and bathroom furniture is clearly defined and costed within our contracts. The contractor informs us when he has to order certain materials giving the client the opportunity to change their mind up to this point if they wish.”
The plot I have purchased is 4,000m². How am I going to keep up with the gardening?
Of course, the house takes up a certain footprint, but you would generally not choose to landscape all of the remaining land. Aside from the pool area, patios and enough lawn to kick a football around on (all automatically irrigated for convenience), the rest of the plot can be left natural and therefore free of maintenance. The larger the plot, the larger the natural areas and therefore the greater the amount of privacy and distance from your neighbours.
How often do I need to jump on a plane to come and check on progress and make decisions?
Answer? As much or as little as you like. Ordinarily the client will take a full involvement at the start and want to personally meet and give their wish list to the architect, see initial drawings in the flesh, choose bathroom fittings and so on. However, once the build process is underway, the information superhighway can take the strain. Peter Wilkey comments, “As a company we provide our clients with bi-weekly emailed reports pre-construction and then monthly reports during construction complete with photos taken on-site. The client barely has to come over during the 12 to 13 month construction period as we can update them remotely.”
How much is this going to cost me?
Johnson & Wilkey Asociados estimate a price per square metre of build which is all-inclusive apart from IVA (VAT). All-inclusive means all licenses, topographical surveys, architect fees, project management fees, ground works, build costs, installation of swimming pool, ten year quality control inspections and ten year construction guarantee ..… quite literally everything including the kitchen sink. Currently this price per square metre is coming in at around 1,600 euros.
There is a huge cost saving to be realised through purchasing a plot of land and then self-building in southern Spain. Instead of the developers lining their pockets by adding a huge mark up on the cost of the completed villa, the purchasers can achieve that profit for themselves immediately when they turn the key in the door of their newly constructed homes. There can be nothing more fulfilling than to be involved in the construction of your ideal home. Seeing it grow from an initial idea, to a detailed drawing and then through to construction, decoration and handover is exceptionally rewarding and it need not be a frustrating experience of delayed works and going over-budget if you surround yourself with a professional team led by a Project Manager.
Irish property-owners in Spain who fail to pay local and other taxes there are being named and shamed by the Spanish tax authorities as part of a clampdown, reports Siobhán Creaton, Finance Correspondent of the Irish Times.
It is estimated that 100,000 properties in Spain are now owned by Irish investors who are liable to local and other taxes.
Some sources estimate that about 75 per cent of Irish people with Spanish properties may not be fully tax-compliant.
Spanish authorities have begun to put names and addresses of homeowners who have not paid local taxes - levied to cover the cost of local amenities, rubbish collection and other services - in the government's daily newspaper, the Boletin Official.
In addition, the authorities will also post these details on the internet, putting them on each Spanish region's website. This is aimed at targeting the greatest possible number of tax offenders.
If those named during this trawl still do not discharge their outstanding tax liabilities, the authorities will then publish a statement signalling their intention to register a legal charge over the property.
In some circumstances, this has led to the seizure of the property.
Elaine Higgins, managing director of IFG Spain, a company that offers legal and tax advice to individuals buying or selling property in Spain, said homeowners who ignore these warnings will face hefty penalties and interest charges.
She said that local taxes typically range from between €500 to €1,000 per property and are generally paid annually.
"If these aren't paid, homeowners will face penalties of up to 300 per cent of the amount due, plus interest and a 20 per cent administration charge," she said. "This can amount to a very large liability."
In Spain, the taxes are levied against the property, rather than against the owner.
Sometimes, Ms Higgins said, it can take three or four years before these bills are sent to new properties. The current owner is liable for the full amount.
"Some Irish homeowners may not even know that they are not tax-compliant, due to language barriers and unfamiliarity with Spanish legal and tax systems."
She added that IFG Spain has been monitoring Spanish government newspapers and websites and has found that a significant number of Irish and English property-owners are already listed.
She said that apart from local taxes, a wealth tax - calculated as a percentage of the value of assets held in Spain - must also be paid by homeowners there.
Sexy all-girl super group the Sugababes will headline the “Party in the Plaza” music festival, to be held at the Plaza de Toros in Marbella on the 11th of August 2006.
After five consecutive years of promoting concerts on the Costa del Sol, Miami- based concert promotions company, Awesome Events, is organising the two-day event, which will also feature popular Brit band Madness on the 10th August.
The event will herald a new era for the coast, which has traditionally promoted festivals and artists aimed at an older age group. However, this year’s high profile line-up denotes the changing tastes of a younger audience in Marbella, who seek more fashionable entertainment from the current music scene.
Tickets purchased before the 15th of August will also be discounted by €10.
Andalucia may have been invaded, but you can still find an exquisite home there, writes Nick West
Andalucia is widely thought of as quintessential Spain - spectacular countryside, beautiful beaches, white-hot days, tapas nights, flamenco, bull-fighting, the majesty of Seville, the beauty of Granada and the breathtaking Mesquite at Cordoba, all combine to create an entrancing land.
The problem is several thousand Brits got there first. Five years ago the campo, or countryside, was the domain of the intrepid foreigner - cheap, but unfashionable. Now everything has changed. Prices have risen exponentially, but, more remarkably, the spread of foreign buyers has reached further and further into the interior.
Large amounts of equity at home have spurred the Brits on, and the dramatic change in the Andalucian land laws - whereby new-build has ground to a halt - has seen the previously village-shy foreigners embrace the traditional Spanish townhouse. The major Costa Del Sol agents are now in towns such as Loja, Comares and Antequera; soon they'll be in Espejo and Cordoba.
So for many, the days of Andalucia as an attractive property buying market are long gone - or are they? If you want to buy property in quintessential Andalucia and want a bargain, draw a line between Malaga and Granada, and head for the halfway point, a little town called Alhama de Granada.
It is a well-kept Andalucian secret. A picturesque town of a mere 6,000 souls, it perches precariously and dramatically above a vast slash of a gorge that dominates the countryside. Known in Spain for its hot springs and once a famous Moorish stronghold, the town still attracts a dribble of Spanish visitors who wish to bathe in hot sulphurous waters which reach over 44C.
The history of Alhama de Granada can be traced to the very beginnings of civilisation in the Iberian peninsula - Phoenician, Roman, Visigoth and Moorish influences all fuse with the architecture of the medieval Catholic kings. In the 14th century, Alhama and the neighbouring fortress of Loja were generally considered the keys to the Moorish kingdom of Granada and their capture went a long way to ensuring the overthrow of the last Moorish ruler, Boabdil of Granada.
Today Alhama is a mix of ancient and modern as it looks out over some of Spain's most spectacular scenery. In winter, the majestic view to the snow-capped Sierra Nevada is uninterrupted; in summer, the locals spend evenings and weekends relaxing around the vast and beautiful Bermejales lake, a mere 5km from town and reached by a road lined with poplars and towering Mediterranean black pines.
The sierras of Tejeda, Almijara and Alhama make up a vast natural park. It gets a lot of sunshine, but at an altitude of 900 metres the air is fresher and the temperature a few degrees lower than the coastal areas, making it altogether more comfortable in the sweltering summer. The landscape is in places rugged and craggy with deep ravines; in other areas almond groves cover the hills. It's a region peppered with prehistoric caves and formidable mountains such as the highest peak, La Maroma at over 2,000 metres.
With the shiny new Ryanair-serviced Granada airport a mere 30 minutes away, the coast only 45 minutes, and the large estate agents currently nowhere to be seen, by my reckoning you have about six months to make hay.
I viewed a five-bed house in the little village of Cacin, 8kms from Alhama, with room to build a pool and views of the olive groves for a mere £80,000. Smaller village houses go for as little as £40,000. If you are truly determined to find something special, there are magnificent 18th- and 19th-century houses overlooking charming little squares boarded up and just waiting for a purchaser.
In the Plaza Constitution there are two such three-storey houses with ornate iron balconies, superbly made wooden shutters and majestic 12ft double doors, lying idle, just waiting for someone to lovingly restore them.
But the keys to Alhama are the lake and its proximity to Granada. A vast blue expanse of crystal clear water surrounded by pines and gentle sandy beaches, this is where the locals spend their summers swimming, boating and barbecuing in a totally unspoilt natural environment. And as one local estate agent said to me, the Brits just don't seem to realise it's there. And Granada, with the spectacular Alhambra, offers not only sophisticated urbanity and history but winter sports on the Sierra Nevada ski slopes.
If you want a lakeside view, you can have it and it won't break the bank. You'll pay more than if you're buying in the villages, and you won't get as much house for your money, but what a location. By my reckoning, if you live an hour from a UK airport, door-to-door, you can go from home in the UK to Spanish lakeside house in five hours.
In addition, in Alhama you're not going to get the hard sell. The local agents are few on the ground; they're part of the community and wish to stay so. They get few clients, so treat them and their vendors with the utmost respect. Deals are always there to be done. Their commission varies between 2 and 5 per cent, and cash is always welcome in Andalucia. One word of warning; if buying land, use a lawyer to check what the regulations are, because most new building is now prohibited. But apart from that, who says the Spanish property market is over?
Price: € 235,000 Location: Mijas Golf (Show me Mijas Golf on the map)
Beds: 2 Baths: 2
Built Size: 86 m2 Plot Size: 0 m2
Townhouse, Residencial, Furnished, Fitted Kitchen, Parking: Street, Pool: Communal Pool, Garden: Community, Facing: West Views: Golf, Mountains. Features: Air conditioning, Built to High Standards, Community Garden, Community Pool, Conveniently Situated for Golf, Conveniently Situated Schools, Full of Character, Fully Furnished, Good Rental Potential, Landscaped Gardens, Lounge Dining Area, Marble Floors, Satellite TV, Sought After Area, Stylish Accomodation, Sunny terraces, Tastefully Decorated, Well presented.
Additional Notes:
This beautifully kept, end terrace townhouse is set in one of the most attractive communities in the area. The community boasts four swimming pools and numerous andalucian courtyards and fountains. The house itself has a West facing terrace with great views , a fully fitted kitchen, two bedrooms, a bathroom and a guest cloakroom.
Peace of mind is part of your purchase - all Hiperprop sales consultants are accredited
What's on
Event info supplied by
Botanic Gardens
Are you a bit of a secret Monty Don? Or like me a houseplant serial killer. Well go and admire the 5,000 species of tropical plants and other delights on show at the Jardin Botanico Historico La Concepcion in Malaga.
Tel 952 252 148 (closed Mon)
Nueva Andalucia Feria
Eat too much, drink too much and then go on some fairground rides, yes its Feria time. Nueva Andalucia's feria runs from Thu 20 - Sun 23 at the fairground and the church square.
Antequera Blues festival
Antequera celebrates blues, jazz and flamenco music with its 18th annual festival. The festival runs until the 29th - for more info visit http://www.antequera.es/
Horseracing
The Costa del Sol racecourse is back on track (sorry!) following a change in ownership and have a full summer calendar of meetings, every Sarturday night through the summer, first race at 10pm.
Is it a bird? Is it a plane? Is it worth watching? Go see, VO versions at Plaza Mayor and Cinesur Fuengirola.
Check out our cinema guide.
Valencia Land Grab, could it happen on the Costa del Sol? Apparently not. Read this article
Spotted in Marbella - Ex Big Brother contestant and now aspiring club DJ Kate Lawler, spinning the discs at Banus' TIBU club. England footballers Rio Ferdinand, Jermaine Jenas amongst others, celebrating teammate Ashley Coles' stag night. Also seen was Lisa Murphy, ex-squeeze of Irish toe-tapper Michael "feet of flames" Flatley, attending the Water Angel Charity Ball.
Online Guide - Ben Johnson tells us about his new simple, step by step guide to buying property in Spain, covering everything from lawyers to mortgages. Have a look - http://www.propertyguidespain.com/
Do your sums - Spanish Property Doctor, Mark Stucklin tells us why we should be careful when buying to let on the Costa del Sol. Read his Sunday Times Article
Now for the usual dross...
We can dance, we can dance - 80's Video Jukebox
Remember the 80s? My young co-worker doesn't. But then he doesn't know who Steve Wright In the Afternoon is.
What a decade he missed. Red braces, hair gel, "mobile" phones, really bad music. It was great. Billy Ocean, Carribean Queen anyone?
I realise that I no longer have my finger on the pulse of youth. Ahh so what. Adam van Huet sent me this 80's nostalgia treat: http://www.milinkito.com/los80.php
Someone has done their homework - there are over 1500 music videos from the 1980's. Good work. My favourite? Neneh Cherry. I had a crush on her. And Paula Abdul.
Birthdays and anniversaries and other potential headaches
If you live abroad for any period of time, the issue of birthdays and other important dates of friends and family back in the UK will no doubt crop up. Less an occasion to celebrate, more an opportunity for you to show your loved ones how callous and insensitive you are by forgetting them.
Be the social pariah no more - with the 3 simple steps to family harmony:
2) Then send them a personalised birthday card without having to get off your behind. We like Moonpig - pick your card, write your message, they post it from the UK. Perfect.
3) And if you are feeling really flash order some flowers - Interflora deliver flowers and gifts the very next day. Brilliant.
So, brownie points all round and no more awkward apologies at the next get-together. Genius courtesy of Gary Ingram.
68% of Britons would like to buy property abroad, according to research from HIFX, the currency experts.
Some may avoid ‘self-build’ like the plague due to fears of spiralling costs, unreliable workmen and it simply being far too time consuming. Most of these fears can be eliminated by employing the combination of a knowledgeable, specialist Real Estate Agent and an experienced Project Manager who together can transform a potentially daunting process into an exciting and financially rewarding experience.
Irish property-owners in Spain who fail to pay local and other taxes there are being named and shamed by the Spanish tax authorities as part of a clampdown, reports Siobhán Creaton, Finance Correspondent of the Irish Times.
Sexy all-girl super group the Sugababes will headline the “Party in the Plaza” music festival, to be held at the Plaza de Toros in Marbella on the 11th of August 2006.
Andalucia may have been invaded, but you can still find an exquisite home there, writes Nick West
Remember the 80s? My young co-worker doesn't. But then he doesn't know who Steve Wright In the Afternoon is. 
If you live abroad for any period of time, the issue of birthdays and other important dates of friends and family back in the UK will no doubt crop up. Less an occasion to celebrate, more an opportunity for you to show your loved ones how callous and insensitive you are by forgetting them. 
