Buying your Spanish Property in Valencia
You may have heard about the Americas Cup arriving in Spain in 2007. A lot of hype surrounds the planned event with sellers promising houses to double or triple in value in a couple of years.
Ignoring the hype, property prices typically increase here 30% to 70% every couple of years. Demand for property in the Valencia Region is soaring as more and more savvy British buyers are choosing to make Valencia their second or even first home. To this, add the thousands of people who are selling up on the Costa del Sol, looking for somewhere where they can breath and get value for money.
Valencia has excellent road, rail and air links. You can fly into Valencia for less than a UK rail fare to London. Flights as low as 99p are available depending on when you book and where you want to fly from.
Getting back to house values and the Americas Cup: The Regional Government themselves have predicted a 30% rise in prices just because of the "Americas Cup Factor". Compared to southern parts of Spain, the Valencia region offers fantastic value for money, unspoilt beaches and plenty of breathing space.
Resale Properties
Properties range from apartments in towns or even Valencia City itself to traditional town houses and luxury villas. Every property can differ vastly from the next. Demand is pushing up prices, and houses are selling fast.
Resale properties come with no warranty and many were built as weekend homes, usually built by the owners themselves. The standard and quality of workmanship will vary from one house to the next. Some houses will have been loved and cared for, some will have been neglected. There are real bargains to be had as well as real "fixer uppers".
Advantages of resale? - well prices are lower (but not necessarily cheaper) and your house might come with a large plot of land or a beautiful established garden. There is plenty of choice although the best houses sell very quickly. As an investment, resales usually always are a good buy. If you want to put in a new bathroom or kitchen then it can be done, and usually for less than it would cost you in the UK.
Advantages of New Build? - You'll get a new property with warranty and built to the latest building standards. You'll benefit from new and quality fixtures and fittings and you'll be able to move in and not worry about having to fix or change a thing. Generally speaking, new builds offer better value for money.
Land Grab (LRAU)
This has received widespread attention from the UK press. Its Spanish title suggests it should prevent widespread and unregulated development but it seems to work in favour of the developer, the local Mayor, and nobody else.
You can protect yourself by buying on land classified as "urban" or even better on an established development which was "urbanised" a long time ago. Generally speaking if you buy in a non urbanised area or on a new urbanisation without roads, lighting etc then you run the risk of being affected.
Your house might not be in danger but you might be expected to pay thousands of Euros for a new road, mains drains and street lighting outside your property.
Any good side to this? Well Urban land costs more. You'll pay more for a house on an Urbanizacion than one built on rural land. Property values after an area being "Urbanised" will rise. Some people are happy to contribute to the cost of new roads, sewerage and street lighting.
Will this law change? - The Valencian Regional Government are already re-drafting the law. The E.U feels the proposed changes don't go far enough. Only time will tell if the Regional Government bow to pressure and make substantial reforms to the law.
Remember, if in doubt and before purchasing a resale property, you can always check with the local planning office ("Urbanismo del Ayuntamiento") and see if your property is covered by proposed development plans.
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