I was in on the crest of the wave in 1999. Then, every UK city and town had weekend exhibitions at which potential clients could browse, discover; and buy. I once counted 65 properties abroad display ads including 135 notices of exhibitions in just one of the Daily Mail?s Thursday editions.
W.H Smiths and similar newsagents had special property / lifestyle abroad sections displaying over sixty titles. There are just a few survivors.
In 2007 I predicted similar exhibitions but instead of property sales stands there would be scores of stands taking bookings for holiday lettings. It never happened but it will; you mark my words. A revolution in tourist tastes is taking place.
Whereas property sales have plummeted holiday home rentals is showing a plus 20% year-on-year increase. My own web site is now generating more revenue from holiday home rentals than from house sales. I reckon the change will be permanent. For some, not all, renting will be more cost effective than is buying.

Hi Mike…

I am sure we had some posts on this a while back…. as its a complicated situation for Spain Rent and Buy… as the stats show there at even keel with competition Buy/Rent….

I mentioned the Tax law the Spanish government want to bring in after the Summer Break were there be inline with the rest of 26 EU Countries and thats tax rent prices as the Hacienda has noticed that in some places villas etc are being rented from ?250k to ?400 not to mention holiday quick money lets…

I am not sure of the in’s and outs of this law but its heavly criticised on what it would do to the rent market…

We have to wait and see…

My opinion if its valid Rent is a good option however always take caution when renting make sure before signing the dotted line that the owner of the property is finacially stable as weeks or months EVEN DAYS! down the line you do not want a knock on the door to say you have hours to move as the property is being Repo’d…. This is on the news daily here in Tarragona that Tennants have hours to get there stuff and leave as the landlord cannot afford the repayments etc so it is always good to throw caution to the wind!

Buying I would not buy in Spain not until the Land Grab issue is resolved the EU Government has asked the Spanish government to resolve this issue currently Spain is not receiving any Loans or Grants until issue is resolved….
Also with la crisis and illegal builds its best to wait for about 3 years if you can wait that long…

Mac

Good points you make and yes, likely we have crossed paths before as we are both hyer-active :o) I think the natural trend will be for matters to settle in a regularised way, so owners are better protected, if they do need to take action against abusive tenants.
The point you raise about tenants being summarily evicted if the property owner fails to meet the mortgage obligations is an interesting one. As I was under the impression that the law protects tenants, very much as it does squatters in the UK (remember that place?), I wonder if that protection ceases in the event of repossession? One for my legal advice team I think.

Tennants are fully protected agreed I watched a tv prog thats on Telecinco about landlords having problems with tennants that do not pay there was one tennant that did not pay for 6 months etc Land lord knocked on the door the police came and removed the Landlord for tresspassing!

There is protection for the tennant what I was trying to get at is the Decent tennants that work hard etc as the La Crisis has hit many home owners in the pocket the law does not cover Tennants if the Owner is repo’d….

With the squatters thing (I call them low life Scum) the law is alot quicker in the UK now to get Balifs to remove them…
In Spain I do not know how they deal with them know doubt with respect and red carpet treatment?

Anyway i stick to my guns and say Renting is best way for the next 2 to 3 years until everything has setteled..

Quote from our own ‘Spanish News’: June 27th,

“Property tenants in Spain which don?t pay their rent will find it harder in future. A new law has been passed by Congress that will allow a property owner to evict tenants in less than 15 days once the tenant has been given 15days for a voluntary leave after not having paid the rent.

“The new law aims to offer better security and guarantees to property owners and tenants in order to increase the supply of properties on the rental market.”

I am all for that law….. It will clear the system of bad tennants also bad tennants will think twice doing it again!

BUT!!!!!! will the law be inforced? as like the smoking ban law is not inforced!

Mac

Whether it is enforced or not? The law is the law so if an owner passes the problem on to his solicitor and he proceeds as he must then the law must take its course. There’s no selectivity about it.

Good!

The law will protect landlords if they have agreed a legal contract with their tenants and paid their taxes where due.

The land grab is an important issue but does not affect every property and thus is not a reason not to buy.

ROB1305 - 21 July 2009 08:33 PM

The land grab is an important issue but does not affect every property and thus is not a reason not to buy.

Granted….

though over 8 to years ago PP government then did a Survey of Spanish owned land (Excuse me if this is wrong info)
and then they took what was then rightly theres (Land Grab)

Now the PSOE wants to do the same thing… Hence one of my reasons is not to buy…

The EU have stopped Grants and Loans to Spain in a way they hope that they sort out the land grab (Which I personally doubt they will)

Thats Why me personally will not buy for another 2 / 3 years and build up the money I have saved and earn pissy spanish interest on it…..

😊

Mac

I have just received yet another (UK) press release, revealing the increase in rental properties available, which coincides with increased demand. As a business and enthusiast for the property markets (boring huh?) I have to live with reality. Sure, sales are down but rentals are up year on year. In an increasingly mobile market which coincides with difficulties in obtaining mortgages it is hardly surprising.
Likewise the related issue: holiday-lets. Again the two ‘interested parties’ coincide. Owners want to rent their holiday homes to make their purchase more cost effective.
Holiday makers are smartening up to the fact that renting a holiday home, where and when being their choice; it is a no-brainer when set against holiday home ownership. For the price of even a modest holiday home you get a lifetime of delightful holiday-lets, without hassle.