Mila, Author: Hondon Valley Homes - 19 years Consecutive Villa Sales in the Hondon Valley

We have great pleasure in uploading the very first edition of our weekly Vlog series we have called Two Minute Tuesday.

Each week we will chat about the topics that are important to our clients both buyers and sellers using simple to understand and jargon free language.

In this first episode Steven talks about what we hope to achieve in this series of videos and to get the ball rolling we will also upload several more episodes before we revert to the weekly upload schedule.

Super fast wifi internet in Hondon Valley

When I first moved to Hondon de las Nieves in 2006 the fastest internet speed was 2mbps and not long after the speed doubled to a massive 2mbps. This was our fastest available speed until 2008 when it doubled overnight to 4mbps.

It was not until 2010 with the introduction of competition to the only provider that speeds started to edge upwards again, 4 , 6, and then 8. For most people this is adequate. Enough for YouTube and Skype but not if like me you need to upload large data or video files.

With the introduction of Movistar adsl and vdsl in 2013 speeds lept forwards to 12mbps on adsl and a lofty 30mbps on vdsl. The downside however was the upload speed that remained a miserable 1mbps. When uploading one of our videos of a villa we would need to walk away from the computer for about an hour whilst it uploaded.

Then Ana came into my life.

And then everything changed when I received a call from a lovely lady called Ana.

She explained that the company she worked for are now installing 5G internet connections in the Hondon Valley and that they are currently offering speeds of…………. 100mbps upload and download and that this will improve over time to 300mbps up and down in the near future.

The speedtest below gives you the answer. The speedtest was conducted during the day with 3 other computers connected as well as various smart devices running at the same time.

If you are interested in upping your internet service, please email me and I will forward details of their introductory offer with 3 months free.

SAFE BUY SPAIN – to protect you, our client

Safe Buy Spain is an organization that was initiated by a group of like-minded real estate professionals on the inland Costa Blanca South and Murcia regions of Spain. Disillusioned by the lack of regulation, ethics and professionalism shown by many unregistered agents the SBS was started to act as a common voice of established, legal, tax paying agents.

The SBS members work to a higher standard with levels of integrity, ethics, professionalism and unrivalled local knowledge deserving of clients who are making life changing decisions when deciding which agents to choose when purchasing their property.

The SBS is a non-profit group and unlike other similar organizations does not charge members a fee for joining. Membership of SBS is based on the real estate agents references from clients, their time in the industry, their legal status and most importantly of all their impeccable reputation for offering first class service to their clients.

This community of agents and their support network will uphold the highest standards and this initiative has been backed by banks, insurance companies, finance companies, lawyers and architects.

Members of the SBS all subscribe to the following mission statement and code of ethics.

At all times act with honesty, transparency and fully within the legal framework covering the buying and selling of property within Spain.
Promote best practice and a code of ethics amongst all members
Act as a common voice of the established subscribed real estate professionals in Inland and Coastal Alicante and Murcia.
Enhance professionalism and ethical conduct at all times.
Offer clients at all times the best and impartial advice available to them.
Ensure that all resale properties listed for sale are checked to ensure conformity to regulations and ensure that all documentation is in order and available for buyers lawyers.
Ensure that all new and off plan properties conform entirely to the laws governing the build and sale of such properties.
Ensure that all client monies are held in governed client accounts or escrow accounts and full transparency and traceability is observed.
Have written consent with the vendors to list the property for sale, to advertise and market the property in an accurate and honest manner.
Provide an independent network team of trusted real estate industry professionals, bankers, lawyers, builders, tradespeople and architects that are at the disposal of our clients should they be required.

Hondon Valley Homes are delighted to be one of the founders of this initiative and following a deliberately low key roll out in early 2018 we will look at a slow, natural expansion initially through our areas into new territories to ensure the highest standards are set amongst agencies throughout Spain.

To check the certification of any agents displaying our logo or a similar logo, please visit our website at www.safebuyspain.com

Two Minute Tuesday

One of the most important jobs we have as agents is answering our clients many and varied questions.

Vendors may have purchased their properties many years ago and many aspects of the property sale have changed considerably since they purchased. It is part of our job as their agents to ensure they are furnished with all the correct information, so they are aware of exactly what is expected of them, their lawyer and the property in order to ensure a speedy and issue free sale.

Buyers obviously need even more assistance than the sellers. We want all of our clients to be fully armed with the facts and figures so that they can buy with assurance that they have asked the correct questions and are in possession of all the information that they may need when making one of the most important decisions they are ever likely to make.

We spend several hours of each day responding to enquiries and questions pertaining to the buying and selling of villas and we wanted to come up with a solution that meant our clients have access to the information they need 24 hours per day 7 days per week, 365 days per year.

Each Tuesday we will upload a new video, just a couple of minutes or so (in truth normally 3 or 4) answering one of the many questions our clients both vendors and purchasers frequently ask. It is simply myself (Steven) talking directly to you giving you the same information we would be giving you if you were sat in our office.

In combination with our Frequently Asked Questions page, our Blog and our free downloadable Ebooks we believe we will have the best informed clients possible and this can only be mutually beneficial for all concerned.

We hope you enjoy them and if you wish to get involved you can email us and ask for your question to be featured on one of the future editions of TMT. [email protected]

2018 – What is instore for the Spanish Property market

There were general elections in Germany, Holland and France. Political uncertainty in these countries was expected to have a detrimental impact on potential buyers and we already had certain clients delaying buying trips until after the outcome of the elections was known.

Then back in the UK a snap election was thrown. The UK market had been very nervous post Brexit and a general election would add to the confusion about the direction the UK was going and again potential buyers were “waiting to see” what was goint to happen.

With a cautious start to the year forecast, it was a surprise to all that January was such a great month

As it transpires all elections went the way they were generally forecast to go and there were no major upsets (USA excluded) and the uncertainty soon dissapeared and the buyers literally flooded back in……. and so it continued with villa sales remaining high throughout the year and even the traditionally quiet times for sales in August (everyone is on holiday) and November-December (thinking about Christmas) were far better than previous years.

2017 was a great year for Hondon Valley Homes and La Montanosa Villas with sales exceeding our record year of 2016 by 10% on gross volume but 15% on total number of purchases. We found that footfall was down by 15% (number of client viewings), however the clients that came obviously purchased.

We said goodbye to some great friends in 2017, but we welcomed many many happy buyers to the area to start their adventure in the sun.

We have started the year off in fantastic fashion. A sale on the coast originally agreed prior to Christmas has been confirmed with deposits paid and contracts signed. Another sale in Urb. La Montanosa, in Hondon de las Nieves at the very end of the year has had contracts signed and depost paid this first week of the year and yesterday we agreed the sale of a stunning villa in Lel to German clients with one of our network of trusted collaborators. The year has started with a bang….. no slowly easing yourself back to work at HVH and LMV.

January, February and March have been our best on record with an amazing 6 sales in a 72 hour period in March and we are now actively sourcing new properties to replenish the portfolio.

With no political issues (yet) that can effect the buyers confidence either in mainland Europe or the UK we are receiving many enquiries daily for a wide variety of properties.

We project that in 2018 the resale market will continue its long and sometimes slow recovery from the crash 10 years ago. The right properties in the right areas will continue to sell strongly. A well presented property in the right area with the correct documentation and well priced should expect a relatively quick sale in the Hondon Valley and surrounding areas. The exchange rate is showing tentative signs of recovery and 1€ = £1.20 is not as far off as it once looked.

The off plan market will continue to burgeon. We have developed excellent relationships with some of the finest builders, developers and architects in the area and there is a mini boom in off plan – self design properties in both country and Urb. locations. This we fully expect to grown at an exceptional rate in 2018 following huge success in 2017.

We are delighted to have been chosen to be the only agency to market an exciting new development of Hondon villas which we will be releasing very shortly.

As a company HVH has always been at the forefront of pushing the industry in terms of standards expected of us by our clients both vendors and buyers. This we will continue in 2018. We were the first to really raise the game regarding the photographic quality of our listings using professional photography equipment and the first to video properties for our clients. Now that some agents have caught up a little it is time to take the next step. Again we will have some amazing news over the next few months and take some huge steps forward in what we are able to do for our clients. These are changes that we started working on in the summer of 2017 and we will see the fruits of our labour soon.

At the end of 2017 a group of like minded agents and ourselves also launched the SAFE BUY SPAIN initiative. Disolutioned by some of the methods used by so called respectable agents and the proliferation of up-start agencies that have appeared, we decided to start the SBS. This will be a non-profit group where like minded agents with similar high professional standards, morals and ethics will be able to guarantee our clients top levels of service whichever SBS member they should choose to work with. To date we have obtained the backing of national banks, lawyers, finance institutions, architects and professional persons. Following a soft launch at Chrstmas 2017 we expect this group to become a powerful ally of purchasers and the agents as it develops.

So 2018….. the early signs look promising. One thing is for certain…… The sun will keep shining on this beautiful part of the world.

Swimming Pools…. Everything you need to know!

Without doubt the first question all your friends and family will ask you when you tell them you are buying a property in sunny Spain is “DOES IT HAVE A POOL”?

If you are purchasing in a community or an apartment block you may find that you have a communal pool, however if you are purchasing a country villa some do and some do not and if you are buying a new build or off plan you may need to decide if you want a pool or not.

There is the cost to consider, the mess whilst it is being built, the ongoing upkeep with cleaning and maintaining levels…….. these are all costs that must be taken into consideration, however the first time you jump into your own pool on a hot and sunny afternoon to cool off… It was worth every penny.

Building a pool in Spain is a very common practice. The builders, architects, planners, town halls all have great experience, so make use of it.

Firstly solicit the opinion of your friends and neighbors. Who built their pool, what did it cost, how happy were they with their builder, did they finish on time, hidden costs, what was included in the price and Would They Recommend Them?

Armed with this information you can then invite the recommended builders to come and quote for the work. A good builder will also make recommendations on pool size, terrace size, location, orientation, salt or chlorine, auto or manual ph, glass or sand filter, cold or solar shower. The builder will tell you what is included in his quotation such as architects fees, planning application, license fee and end of works certificate.

My builder suggested building a seat in the pool steps. There is no better place to sit and have a cold drink or my partner sits here for hours reading a book. He also recommended LED color changing lights which added 100€ to the total cost but wow does the pool look great.

When you have settled on the builder they will come back with their architect who will make all the drawings to be submitted to your local town hall (Ayuntamiento). The architect will advise you on where you are allowed to put the pool on the plot in ration to borders as well as orientation for the sun etc. The architect will be familiar with all the technicalities of each Ayuntamiento and how to approach the application.

Do not try and cut any corners. Falling foul of the planning process will cost you more in the long run.

Once planning has been submitted and approved your build can get underway. Things tend to move very quickly. The diggers move in and the hole is dug with a single day as long as they do not come up against bedrock.

Once the whole is dug the iron work (reinforcement) and bricks are installed then the concrete (gunnite) is sprayed then the pool back filled then smoothed and waterproofed. Then the tiles are fitted, electric, pumps and systems.. Lots happen in a short time. The only slow down is whilst they are waiting a few days for the concrete to set.

Meanwhile your terrace concrete is laid. My builder gave me a cost per m2 for tiling, however I chose my own tiles, which were slightly more expensive and paid the difference.

Finally when the pool is finished….fill it up. Remember that you may not be allowed to use tap water, so again check. You may find it is not only quicker but cheaper to order the water by a tanker (75€ for 12.000lt).

Your builder will leave you with copies of all the paperwork for the pool. A copy and receipts for all licenses and permissions, the pool project and the end of work certificate to say the pool has been accepted and passed by the authorities. With this in hand you can now register the pool with both the land registry and catastral who are responsible for informing the town hall about what you have on your plot and how much council tax you should be paying. Your annual property tax (IBI) will increase slightly, but you will not be back taxed and fined if you do not register.

This paperwork can be done by the architect, your gestor or your lawyer. They will do it faster and easier than you.

Auto fill: Do you want the pool to top itself up with an auto fill or do you manually want to top the pool up with a hose. I went for auto fill and occasionally disconnect it so I can monitor water usage.

Depth: Do you need a deep end? My pool is the same depth. You can always touch the bottom, the pool is warmer, easier to clean and it is safer if you have youngsters in the water

Pool lighting: Go for LED lighting. You can manually change the color, the colors can cycle through. Worth every penny.

Auto ph and salt system: I personally chose these with my pool. The computers monitor the levels and dose accordingly. I simply clean the pool as and when required. The auto systems level out any chemical peaks and troughs and ensure optimal levels. Much better for sensitive skin, young and old alike and dyed hair.

Costs: I have lost count of how many times I tell my clients to set a price and stick to it, and yet I am just as guilty as everyone with allowing costs to build without keeping control. I specified better terrace tiles, led lights in the pool, led lights around the walls, I had the walls redered around the pool, up speced the pool surround, changed the design of the pool house, added salt system and auto ph system.

Capital Gains Tax – For Residents

In this article in collaboration with lawyer Michael Davies we explain the tax situation in which a fiscal resident qualifies for non-payment of capital gains tax:

The first thing is to be able to prove to the notary prior to sale (via your lawyer) is that you are a Spanish tax (fiscal) resident. It is important to differentiate between being a tax resident and having residencia. These are two entirely separate entities, as the residencia which is issued by the police and does not prove that you are a tax resident of Spain. If you only supply a residencia at the notary, they will consider you to be non-fiscal resident and charge you 3% of the sales price as a retention tax. This is time consuming and somewhat confusing to reclaim and can take anywhere between 6-18 months to reclaim.

In order to prove your fiscal residency your lawyer will contact the tax authorities and request a document, which confirms your fiscal residency. This document can then be used at the notary and you will not be charged retention tax. The tax office in Spain will only issue this document if you have been declaring your taxes in Spain each year. Even if your income is too low to pay taxes, you still need to declare this to somebody. Remember if you live in Spain for 183 days or more you should declare taxes in Spain.

It is advisable when meeting your lawyer prior to even selling your property to be aware of the tax implications, as this will have a bearing on the costs of selling your property.

There is an exception where a total or partial exemption from capital gains tax is possible:

If you sell one property to purchase another of the same or higher then you can claim 100% exemption from capital gains tax. In order to benefit you need to have been a fiscal resident for the last 3 years and filed returns. If the property you are purchasing is lower in price you can claim an exemption percentage of the capital gains back.

If you are aged over 65 years of age and you sell you main home where you have lived for the last 3 years you can claim back 100% even if you do not reinvest. If one partner is 65+ and the other younger then you can claim the exemption in relation to half the price.

You will be surprised how many vendors we visit who are not aware of the tax implications of selling their property. Regardless of your income, you are still legally obliged to make a return each year.

This article is for information only and should you be concerned with your fiscal situation pertaining to the sale of the property, we strongly advise that you seek the assistance of a qualified lawyer or gestor.

Two Minute Tuesday is online!