GOING IT ALONE IN SPAIN

With prices for villas and apartments now very high in Spain, buying land and building yourself is an alternative option, reports Shane McGinley.

Given that the average property price in Spain is now €240,000 and increasing at approximately 11% per annum, it is no surprise that more and more people are considering the lower cost option of buying a plot of land, known in Spain as a parcela, and building their own property.

BUYING LAND

A number of agents and companies, such as 1Casa, are offering a wide selection of plots, some with planning permissions and building permits included. “We have seen a significant rise in interest from buyers of land only. People are still keen to find their very own piece of Spain but not everyone can afford the increasing property prices – buying a plot of land with a view to building your own property in the future is a cost effective option for many,” says Cristina Sanchez of 1 Casa.

LAND PRICES

When it comes to the cost of buying land in Spain it obviously varies depending on the province. Prices range from 40 to 120 Euros per square metre and building costs range from approximately 300 to 700 Euros per square metre depending on the quality and location.

While the option is not entirely hassle free it does mean that you can choose your own location, choose the design and finish of your home and you can be assured the quality of the materials and workmanship are good. When buying abroad there are a number of considerations to bear in mind.

LOCATION

Decide which province you wish to live in; do you want to be near to a village, town, the beach or the mountains? Check what access is like; are there good roads, how far is it from the airport? Is there any public transport?

RESEARCH

Check what the average prices are in the area and talk to locals as you do not want to get ripped off because you a foreigner.

LAWYER

Get a good Spanish lawyer. They will be able to help you check the land use status, sort out taxes, get a building permit and arrange a build contract.

PLOT

Make sure to choose the right plot. Spanish property law contains some differences depending on the province. Approach the urbanismo department of the local town hall with your lawyer and view the Urban Plan. This will tell you if the plot has any building restrictions in place, is in a green zone or has any public access routes. Also remember to check future plans for the area as this may affect your property positively or negatively.

SURVEY

This is standard practice in Ireland and should also be carried out on your land in Spain. Also get a land surveyor to measure the exact number of square metres of the plot and compare this to the land register to ensure that the official measurements and boundaries match up.

OWNER REGISTRY

It is not uncommon in Spain for some plots to be inherited by more than one party. Check to see if the vendor is the only person with the rights to sell.

EXPENSES

Make sure you have budgeted for costs such as architects fees (from 6-10% of the build cost), aparejador (project manager who oversees the build) fees (1-2%), building permit (4-5%), the declaration of new building (0.5%), safety study (0.8%), geological report (1% if required) and a first occupation permit ( 0.5%). Depending on location there may also be the cost of extending utilities such as water, electricity, gas and telephone lines.

MONTSERRAT

The Carribean Island of Montserrat is an exciting emerging market for property investors.

Maeve Kennedy beside the Soufrière Hills Volcano in Montserrat.

Four new mainstream and specialist operators and an airline have added the Caribbean island of Montserrat to their brochures for 2007, which will increase its tourism levels and its value as an investment location.

The tour operators include diving specialist Divequest, nature specialist Birdquest, Irish company Quest Beyond and mainstream operator Jetlife. From November 2006 Excel Airways is introducing a new charter flight from London to nearby Antigua, which is only a twenty minute connecting flight from Montserrat.

EMERALD ISLE

Known as “The Emerald Island”, because of its ancestral link with Ireland, Kerry woman Maeve Kennedy bought a villa there 23 years ago. Maeve divides her time between London, Ireland and Montserrat and first went to the island 27 years ago on holiday. She had previously lived in Africa in South Africa and Zambia and wanted to try a change in the West Indies. The climate, flora and fauna were similar to Africa, Maeve found, but the people were friendlier and the island has never become overly touristy, she believes.

IRISH CONNECTION

Maeve Kennedy’s villa in Montserrat, which she bought 23 years ago.

Maeve reports that the island has a very obvious Irish connection; the Montserratian accent is very much like the Cork or Kerry accent; you will hear people say “never do anything at all at all” and the phone book is filled with names like Ryan, Fagan, Farrell, Meade, McNamara and Murphy. First names such as Irish and Dublin are also common. Montserrat was once a musical hang out for the likes of Boy George, Bob Geldof, Sting and Paul McCartney and with more tourist operators showing interest in the area the island is quickly recovering form the volcano that ravaged the island in 1997.