Frequently asked questions About Valencia Property
Why is VP different to other agents?
Firstly, we are scrupulously honest. You will see through the descriptions on the site what the house is really like and we do not put houses on site that we do not have, never existed or were sold years ago but look nice. We work for the buyer exclusively usually and do not take bribes to give more prominence or push to a Valencia Property for sale.
How much will it cost me to buy a house in Spain?
The basic margins you should look at are adding 14-16% for purchases without mortgages and 16-18% for mortgage based purchases. (The Valencian government in its infinite wisdom recently increased tax due on property sales from 8% up to 10%. Stupid measure and we will see when they realise that and bring prices down!)
What is your area?
We work around the whole area in and around Valencia to about 20km to the North and South and 40km West. (No point in going east really!)
How much does VP charge me?
3% plus VAT with a minimum of 2700 Euros (For property under 90000 Euros). We are upfront with our pricing because we know that the service you get is worth much more. We have cut costs to the bone to give you the best deal in not just the area but in Spain, (We have no offices for example as we work from our homes). Do not be deceived by agents who donít charge you anything and tell you that they charge the seller nothing either. Compare house prices against other agents in the area and you will see that our house prices are the lowest. Sometimes we have houses at 10-20% less than some of our competitors. Ask me why in an e-mail!
On some properties we get a commission from the seller for marketing their property in the SPM and other channels. We charge the seller a 2% fee in these cases. However the work is still done on behalf of our buyers (Our client) to get them the best deal.
What about a mortgage?
It is very difficult to get a mortgage in Spain at the moment except on bank properties and the interest rates the banks charge are not competitive in my opinion. Far better to buy a property with an existing mortgage and take that on or get a mortgage for Spanish property from a bank in your home country.
Mortgage rates are currently around 4.5% for the first year. You should expect to pay about 2.5-4% in taxes, commissions and registry and notary fees when arranging a mortgage but should have very small redemption clauses, sometimes 0% but 1% maximum.
To give you an idea of repayments, over 25 years you would expect to pay about 35 Euros per 6000 Euros borrowed per month. Example therefore; 120000 Euros means repayments of 700 Euros per month over 25 years.
What support do I get?
We donít just sell you the house and then bye bye! We have clients who come back to us time after time because they know that we can arrange things for them in virtually any area within reason. We have contacts everywhere that can help make your life easier. And if we canít do it, we say we canít! We will help you along, again within reason, with most things you need to do but please donít ring us up to say ďIím lost, where am I?Ē two months after the sale, or insist that we come round at 11pm to repair a boiler for you on my parents' birthday Dinner! It isnít going to happen any more.
How far are we from the sea?
The majority of our houses are not on the coast. You get better value that way. However virtually all are within 30 minutes of both Valencia and the sea. There are a couple within the 45 minutes radius and if you drive really slowly I suppose we could say an hour but that is the maximum. More coastal properties will be coming in soon depending on demand.
and this Land Grab Law?
Total Red Herring but go to www.houses-for-sale-in-spain.net and do a search for Land Grab to read more.
What are the costs of having a house in the area?
Ongoing yearly costs are variable according to area, rateable value of the house etc, but on a 200,000 Euros house you would have the following more or less if you were living there on a permanent basis.
Council tax = 300 Euros yearly,
Refuse Collection = 60 Euros yearly,
Electric Bills = 100 Euros every two months,
Water = With pool an average of about 50 Euros every two months, without pool around 25 Euros.
Gas = Bottles are 10 Euros each but if you have town gas then look at 50 Euros every two months.
Telephone = How long is a piece of string?
If you are not here then costs change accordingly but you should budget approximately 120-150 Euros per month for maintenance if you need the pool looking after and gardening.
What are schools like and will my child settle in?
State schools are good in Spain without the majority of problems seen in the UK. Teachers are generally respected and it is rare to find problem schools outside the inner city areas. However that is not to say that you necessarily agree with the educational project. Independent schools are available in both UK and IB versions as well as Spanish independent schools. We can give you advice and talk to schools with you if you are coming to live here so that you can make an informed choice as to the best education for your children but ultimately the decision is yours remember and you only get one chance so you need to make the best decision for your child.
On the second point I donít know. It depends on the child. Usually children settle in quicker than adults and learn the language better but there are certain special cases. You really should think twice before bringing children with special needs as the support is not there in general and special schools in Spain for disabilities or learning difficulties were incorporated into the mainstream a couple of years ago.
Do I need a lawyer?
We recommend a handful of English speaking lawyers over here. If you are buying without a mortgage it is highly recommended to have a lawyer as the conveyancing process will be done by them in conjunction with us, ie we direct them for you. In the case of buying with a mortgage we suggest powers of attorney be handed over to a lawyer to stop you having to fly back out for the signing date at possibly very high flight prices because really the bank will do the checks on the house to make sure there are no debts etc, They will not lend the money if there is any problem with the property.
Costs involved are 400 Euros for powers of attorney and from 1200 Euros up to 1% of house value for the full monty of powers, conveyancing and legal representation in the buying process and following up on issues such as bill changeover.
How accurate are your descriptions?
The day we take the pictures we make copious notes and ask all the right questions of the owner. We aim to be as accurate (and as truthful) as possible on the site, however, we occasionally may get a detail wrong, so the best check is to take a physical look at the property yourself when you visit.
If something isn't the way we described it, ask us why.
How do I pay my bills?
On the day of the signing, the owners pass me details of their bills and we change them over to your name and make a direct debit into your bank account. We therefore need to be given your bank account details to make the change. Electric, water, gas and telephone are changed in this way. The Notary who signs the deeds is responsible for informing the local council of the change of ownership for local tax purposes.
Can you get me a job?
We are not an employment agency although we will help in giving you contacts and ideas that could help you on your way. We have found jobs and suggested vacancies for people before and we have passed work onto skilled trades people especially where they have an excellent track record of work done but we cannot promise you anything.
Whereís the catch?
There isnít one. Really. We do our best to find you a place, settle you down in that place and make your life here as good as it should be. We will tell you the truth as to why you should or shouldnít buy a place depending on your individual circumstances. We will make suggestions as to what you can do when you are here workwise and endeavour to put you in touch with people that will be able to help you on your way. You will not find better support.