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MALAGA CITY: Has been ranked as the happiest place on Earth by the Happiness Research Institute.
By Sally Underwood ESIDES the obvious attractions of buying on the Costa del Sol great weather, fantastic food, rich culture - are increasingly the potential investment opportunities of the area. The recent boom in house prices, with properties in Malaga alone rising in price by 11.1 per cent in 2018, as well as a raft of new developments, means the Costa del Sol remains one of the world’s hottest property destinations. Last year in Malaga Province, sales among international buyers rose by 5 per cent from the previous year, with an average of more than 2,700 transactions per month. Even further growth can be seen among the new-builds market, with sales increasing by 7 per cent last year, taking these types of transactions to 19 per cent of all property sales in the province. Meanwhile, visits to the province via Malaga Airport have also continued to in-
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Continuing to rise crease year on year, showing there is still potential for growth in the short-term let property market. In 2018, Malaga Airport received 19,021,704 passengers, a 2.1 per cent increase on the previous year. In fact, since Spain’s economy has been in recovery, the airport has attracted almost a further six million passengers a year. On top of its other charms, Malaga City was even ranked the happiest place on Earth by the Happiness Research Institute, whose research
21km of coastline at Estepona continues to attract major investment.
showed people smiled more on average in this city than anywhere else on earth. Perhaps this combination of potential investment returns and relaxed living is why experts have suggested proper-
ty prices in the area will continue to grow by between 5 and 7 per cent in 2019. While the British expatriate market is expected to remain strong, experts say the Costa del Sol will continue to draw in investors from around the world, including Belgium, the Middle East, the Americas, Scandinavia, the Netherlands, Russia, and Asia. One area of the Costa del Sol in particular is said to be increasingly up and coming among property hunters; Estepona. This 21-kilometre stretch of
coastline, as well as more than 100 square kilometres of fertile inland continues to attract major investment. Following a large-scale beautification project of the town’s centre, which saw upgrades to its parks, plants and streets, Estepona is becoming a mid to high-end property destination for second home buyers. This popular year-round destination has also caught the attention of several large developers, including Taylor Wimpey, who are planning to build between 350 and 400 homes across the Costa del Sol, Alicante, Mallorca and Ibiza. The company has set its sights on a €12.3 million investment in La Galera, Estepona, building 48 townhouses. The project could mean a big boost for Estepona; in total, more than 2,500 families from up to 30 different nationalities have acquired a Taylor Wimpey Spain home on the Costa del Sol in the last decade.
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Grow your wealth HEN it comes to choosing between buying your own home or opting for the rental market, it soon becomes apparent that both have their upside and downside. But there is little debate that buying is the way to go if you want to build your wealth. While renting can certainly alleviate many of the costs which go along with property ownership, buying a home can have positive monetary effects in the long run. While inflation is often seen as a dirty word, a real estate purchase makes it work for you. Not only will equity grow, but inflation means your monthly mortgage payments get smaller in real terms. On the other
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INVESTMENT: Buying property is a smart move. hand, rental payments are often subject to annual reviews, and they seldom come down. Putting money into rent means that money is gone - and a regular
monthly payment soon builds up to a very substantial sum. On the other hand, if you pay a mortgage you may lose the interest you have paid, but you get
to keep any gains in valuation the property may accrue. Of course, in the short term, buying a
home is usually more expensive than renting, but it can also provide you with greater financial flexibility and equity in the future. While changing up the bathroom or the paint on the wall in your apartment isn’t going to add any extra to your wallet when you move out, making upgrades to a home you own will have the very opposite effect. Renovations can certainly be unpopular while they’re taking place, but no matter how small or large, they can mean an easier sell and a higher profit when the home finally goes on the market. An apartment you rent
won’t offer opportunity for investment if you’re away from your home for an extended period of time, but a home you own may serve as an ideal investment property at some point in the future. With the success of Airbnb and unique modern housing needs which may only require a home rental for a short period of time, being able to use your house as a rental property can be a significant boon for earning money you would have otherwise been without. Buying a home can require a lot of number crunching in the beginning which rent does not, but it can also provide significant financial benefits down the road which might not exist without such a purchase.
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Rents continue to rise RENTS in Spain have risen by an average of 2.4 per cent during the first quarter of 2019. The average price per square-metre when renting a home now stands at €10.7 per month, according to a report by Idealista property website. Fernando Encinar, head of studies at Idealista, said: “During the first quarter, prices have been fairly weak across all regions, but in cities like Madrid rather than a slowdown there seems to have been a slight acceleration.” He is putting the responsibility for such rises at the doorstep of the government, saying: “The data confirms what we have been saying for years: the rental market is regulated without the need for intervention by the State and when the State acts it produces effects contrary to those desired.” In addition to price rises, the latest changes introduced into the market by royal decree have led, among other things, to rents signed in the last six months being governed by three different legislative regimes, depending on the day on which they were signed. In this sense, an extension of the duration of contracts has led to landlords being more choosy about tenants. This has made it harder for the most disadvantaged people such as single-parent households and pensioners to find affordable rented accommodation. Madrid and Cataluña are the most expensive communities to rent a home in (€14.5m2 and €13.8m2 respectively). They are followed by the Balearic Islands (€12.8m2) and below them are the Basque Country (€11.2m2) and the Canary Islands (€9.6m2). At the other end of the scale are Extremadura (€5m2), Castilla La Mancha (€5.2m2) and La Rioja (€5.9 m2).
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Buying ‘off-plan’ WITH a bouyant property market in Spain, people are looking for cheaper ways to buy their property. One way of getting a property for less is to buy ‘off-plan,’ which is estimated to give a 15 per cent saving over buying an existing property. Whilst buying property by this route may show a saving, there can be some risks involved, such as the developer going bust and failing to complete the building. This happened during the financial crash a decade ago. Safeguards are now in place, including bank guarantees (it is advisable to get your own in this respect rather than a group one). The developer is also now required by law to secure all the deposits they hold against a bank guarantee. The buyer should also com-
plete further checks to ensure that the developer has all the relevant permissions in place including the Building Licence issued by the local authority, that the land is actually registered to them and
that the developer has their own separate insurance against structural damage to the building. They will also need to get a Cadastral certificate, showing the land, the boundaries together with a planning certificate to show any planning restrictions, footpaths etc. Before completion, the buyer should also be issued with a Licence of first occupation by the local authority, which details compliance with the planning permission and that the building is habitable. Buying any property can prove problematic and it is always important to obtain the assistance of an accredited and independent lawyer before signing any contract and before paying a deposit.
OFF PLAN: Another option when buying a home.
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NO CONCERNS: Rental prices fell in Barcelona in 2018.
‘No property bubble’ E
X P E R T S have reassured investors there is ‘no rental bubble,’ after final figures for 2018 were revealed. Fernando Encinar, head of research at Idealista, said the rate of property price growth
was slowing, relieving experts’ fears that too much growth, too quickly could lead to a housing bubble. While property prices grew by a healthy 9.3 per cent in Spain in 2018 - and are projected to rise by a further 5 per cent in 2019 - this figure
is lower than the 18 per cent growth seen in 2017, which had led to some fears Spain was repeating the same pattern seen before its financial crash in 2008. In Barcelona in 2018, rental prices even fell for the second consecutive year by 1 per cent to
€17.30 per square metre a month. Similarly, rental rates fell by 1.5 per cent in Madrid in the last three months of last year. According to Mr Encinar: “The numbers prove what we have been saying at Idealista for ages; there is no
rental bubble. And if there has been, the data shows that it is deflating. Prices have risen throughout Spain in 2018, but this growth is already far from those of previous years.” He added: “In the coming months we will see rent prices stabilise
and enter a phase of plateauing or even more falls. In some areas there may be a tension in prices, but it will be based on a high demand that clashes with a lack of supply in those streets. But in general we expect a moderation of prices.”
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What’s your house worth? F you are looking to sell a property the first thing that springs to mind is how much to ask. Your estate agent should be able to give you an expert opinion on pricing and you can pay for a professional valuation too, but sometimes it is good for your peace of mind to settle on a figure you are happy to achieve independently, and see if they match. One of the best ways to determine the asking price is to look at comparable sales. There’s rarely a perfect apples-to-apples com-
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parison, so a pricing decision often relies on comparisons to several recent sales in the area. Here are five criteria to look for in a sales comparison. L o c a t i o n: H o m e s i n t h e same neighbourhood typically follow the same market trends. Comparing your home to another in the same area is a good start, but comparing it to homes on the same street or block is even better. Date of sale: It varies by location, but housing markets can see a lot of fluctuation in a short time period. It’s best to use the most re-
COMPARABLE SALES: Good way to gauge the value of your property. cent sales data available. Home build: Look for homes with similar architectural styles, numbers of bathrooms and bedrooms, square meterage and other basics. Features and upgrades: Remodelled bathrooms and kitchens can raise a
home’s price, and so can less flashy upgrades like a new roof or air-conditioning. Be sure to look for similar bells and whistles. S a l e t y p e s: H o m e s t h a t are sold as short sales or foreclosures are often in distress or sold at a lower price than they’d receive
from a more typical sale. These homes are not as useful for comparisons. If you want to make a sale in a timely manner, be realistic about the price you set. But remember, it is a lot easier to reduce the price to clinch a sale then to put the price up!
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OU’VE probably heard the rule: Save for a 20 per cent down payment before you buy a home. The logic behind saving 20 per cent is solid, as it shows that you have the financial discipline and stability to save for a long-term goal. It also helps you get favourable rates from lenders. Indeed, in Spain most banks require a minimum 20 per cent deposit before giving a mortgage. However, there are other lenders who will give up to 100 per cent loans, if you shop around. There can actually be financial benefits to putting down a smaller down payment rather than parting with so much cash up front, even if you have the money available. The downsides of a small down payment are pretty well
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When not to pay a deposit
Make sure you explore your financing options. ne of the first considerations, when buying a house in Spain is the type of community you want to live in and the type of property. For those of you who want the urban lifestyle, near to chic restaurants, nightlife and incredible culture, then, like the vast majority of Spaniards, you should consider buying or renting an apartment. The flats in Spain tend to be larger and more open than apartments, than those in say, England and the majority will have a balcony or terrace to enjoy the fresh air. For people who want to live a more isolated lifestyle, with a back to nature feel, then the houses of the ‘Campo’ (or countryside) should be a consideration. Given that the majority of the local population tend to be very sociable people, they do not want to live such an isolated existence and therefore bargains can be found. Beware though, there are strict rules as to the amount of building permitted on any given plot of ‘agricultural’
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SMALL AMOUNT: Can lead to a larger investment.
Town or country the choices in Spain land and there can be problems if people have extended their houses or if you want to at a later date. In these properties access to facilities may not be available. So there is no guarantee that the property will
have mains water, mains sewage, electricity or telephone, let alone the internet. In some houses, they do not have a telephone line and no internet signal. Shops and medical facilities can also be a trek away and could in-
volve a long drive just to get a loaf of bread. For people who want the luxurious ‘villa’ lifestyle then there are many available, the majority, however, are on urbanisations often high above the towns. These urbanisa-
VILLAGE HOUSING: Alternative locations.
known. Over the years you will pay more in interest, and don’t overlook you will probably have to pay higher mortgage insurance premiums. You’ll also be offered a lesser loan amount than borrowers who have a 20 per cent down payment, which will eliminate some homes from your search. On the other hand, with home prices rising - anywhere between 5 to 14 per cent a year on the Spanish costas in 2018 - the increase in equity is the same whether you put down 20 per cent or less. If you’re looking at your home as an investment, putting down a smaller amount can lead to a higher return on investment, while also leaving more of your savings free for home repairs, upgrades, or other investment opportunities. Of course, your home payment options aren’t binary. Most borrowers can find some common ground between the security of a traditional 20 per cent and an investment-focused, small down payment. Your trusted estate agent can provide some answers as you explore your financing options. tions, of more modern housing, will generally have access to most modern facilities, but may still be somewhat removed from bars and shops. You may also find that the only Spanish neighbours you may have will only live in their villa during the summer holiday period. Many expats of various nationalities tend to live in such communities, so it will not be unusual for a person to have a multitude of nationalities surrounding them. The other alternative location is to live in a village or small town. Living in such places is different from most English equivalent places. The facilities are far better, with bars, public swimming pools, doctors and pharmacies located in most villages. There is a real sense of community and a chance to integrate with the local Spanish community, which is great for those that want to learn the language. Against this, the majority of houses in the villages will tend to have little or no garden and the rules regarding the installation of swimming pools are strict and prohibitive.
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OME is the p l a c e where most people take their safety for granted. But it is often the scene of serious accidents, some of which prove fatal. Statistics tell us that more than half of these fatalities are the result of falls, of which the majority affect those over 65. But other causes include fire, poisoning (from gases and vapours, as well as from drugs and household chemicals), suffocation choking, drowning and electrocution: a horrifying catalogue of disaster. At a less serious level, millions of people each year require medical assistance even hospitalisation for injuries suffered in
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Staying safe in the home SAFE HANDS: Make sure your home is proofed against danger.
The home is often the scene for serious accidents.
Safety outside WELL-MAINTAINED roofs including tiles, chimney stacks, television aerials, gutter systems, loose masonry, crumbling concrete or brickwork, these are the things that can become airborne in heavy winds and become projectiles, potentially lethal or can cause an immense amount of damage. Well-planned access in good condition; non-slip, level pathways at the correct dimensions, riser heights and steps built with solid material. Adequate, well-sited outdoor lighting, you can buy solar-powered light kits, easy to install for under €10 and they last a long time. Glazed doors with toughened or laminated glass can help avoid injury if they get broken. Glass should have some sort of decorative treatments (such as opaque or patterned glass) even if just a band across at eye level and at a lower level for pets and children, some people use decals (stickers). Storage should be adequate for flammable fuels, well ventilated and account for local regulations. Lock-
the home. But fatal or not, many of these accidents could certainly have been prevented. So the first thing you should do when moving into a new home is to take a look at safety. Making your home a safe place is your responsibility. Prevention means planning at the beginning: choosing home furnishings and equipment for their ‘safety qualities’ the flame-retardant paint or upholstery fabric, for example, the gas valve date checked, is the gas bottle housed outside or ventilated. Properly tested electrics, including appliances. Non-slip floor finishes and so on. Some imports may not have the appropriate safety components built in, therefore they should be checked. You shouldn’t have to sacrifice good design for safety; truly good design incorporates safety into its dimensions.
Safety indoors able outside storage for tools, paints varnishes, weed killers, etc is also a must. Those with upper storey windows up to 900mm from floor to ceiling should have safety catches or fixed vertical bars if they don’t have security grills (rejas), ideally they should be removable in case of an emergency. Electricity sockets should be heavy duty weather proof exterior grade. Balconies should be checked. They are made from concrete with a steel reinforcing bar. If the metal isn’t covered sufficiently by concrete or some waterproof barrier applied, water and carbon dioxide will attack the metal causing it to rust and expand up to eight times in size. Balconies can and do collapse. Clean chimneys don’t catch fire. Make sure a certified chimney sweep inspects your solid fuel venting system annually and sweeps and repairs it whenever needed. Your sweep may have other maintenance recommendations depending on how you use your fireplace or stove.
PLANNING and maintenance are preventative measures. Heating systems and electrical supply need extra focus. Ventilation is important and needs to be free from obstructions - anything that emits carbon dioxide and sulphur dioxide always needs its own closed systems. Sensors for carbon monoxide and fire detectors should be installed in proximity. Gas bottles that leak in a non-ventilated space can ignite from something as simple as turning on a light switch, causing an explosion. The regulators have a date stamped on them and need to be changed. Electricity supply should be installed by professionals. Appliances certificated and maintained by competent installers. Ample sockets should be fitted in rooms to avoid trailing cords. Floors should be non-slip and easy to clean. Dirty floors can attract unwanted insects which carry hundreds of different pathogens, including Salmonella, Staphylococcus, E coli. Buying online is so easy now days -
just be mindful of the safety certification authenticity: fire-resistant for furniture, fabrics and even wall coverings is required. Any medicines should be out of reach and locked away. Cleaning products, detergents, lighters and matches all should be unreachable or locked away from young children and never use a bottle or container that originally had contents meant for consumption for storing harmful liquids. Food storage should be adequate to keep out insects like pantry moths and be cleaned regularly. Packets, once opened, should be resealed they will find a way in and lay their eggs. Why do you see in, some Spanish villages, bottles of water on door steps and CDs hanging in rows in front of windows and open doors? Plastic bottles on the door step are placed there to stop dogs marking their territory and then other dogs doing the same and CDs are hung by string diffracting sunlight to deter flies and birds that carry fleas become disoriented.
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Work-ready space OME buyers’ wish-lists these days often include space for an office. A computer is virtually as common a household item as a TV, and if you add a printer into the mix, then a workspace nook becomes an essential. Thanks to modern technology, working from home is increasingly the norm; it is more than possible to be permanently based on the Spanish costas while not earning a living locally. Many retirees who locate here also find they need work areas, especially anyone involved with running a local club, society or charity. To be as productive as possible, and to take full advantage of all the benefits working at home brings, it helps to have a decent home office. The first step for creating a workready area whatever the available space which promotes efficiency, but at the same time blends with the rest
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of the property, is to think about priorities. This means considering the most basic needs, starting with musthave office items depending on the nature of the work: lamp, printer, filing cabinets, telephone, and so on. There should be an electrical socket conveniently close by. The space should also ideally offer some level of privacy from the general activity of family life. It might be necessary to get creative to end up with an attractive home office blending functional and decorate elements, and which doesn’t occupy too much space. There has to be room for a desk: turning the kitchen table into a work area is far from ideal. One idea is to build your own desk using filing cabinets at the base and a wood or laminate countertop as the top. Just as vital is a comfortable chair, ideally one both supporting and aesthetically pleasing. A bright, pat-
HOME OFFICE: Working from home is increasingly the norm.
terned cushion could add just the right touch of homeliness. Storage space can be an issue in smaller properties, but again in most cases something for keeping files and papers will be an essential. Custom-made shelving could well be the best solution, or how about a vintage wooden box or two. Baskets and colourful organisers also create the order you need. Bearing in mind the amount of time likely to be spent in the work space, probably one of the most essential considerations when planning the
area is light. An appealing corner of the home with plenty of natural light is perfect, but if not possible then good lighting which doesn’t create computer screen glare is important. A colourful geometric rug adds an extra dimension, and a potted plant or two adds a splash of natural colour. The overall goal is to end up with a space which doesn’t look like a conventional office, but provides a personalised, calming and inspiring working environment.