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‘Don’t leave your brain on the plane to Spain’

In this week's instalment of My Spanish Career, The Local talks to real estate agent Graham Hunt about surviving Spain's property crisis, why the country's new home rental law is so confusing and whether Spaniards really lack an entrepreneurial spirit.

'Don't leave your brain on the plane to Spain'
Hunt has set up numerous Spanish businesses in real estate, communications and website development. He is currently juggling five projects, two businesses, three blogs and fifty-five web domains.

How did you end up coming to Spain?

I'm originally from just outside Liverpool but I've lived in Spain for half of my life now. I came as a student and I never left.

How did you end up working in Spain’s property market?

I bought a house in Valencia some years ago and I was shocked by the service offered by the local real estate agents.

It was when I helped a British friend choose a house here that I realized there were very few English speaking estate agents who could cater to the needs and desires of foreign property buyers.

There was a gap in the market as Spanish estate agents were only focusing on national buyers.

So I went about setting up my own business, Valencia-Property, which proved a success until Spain's housing bubble burst.

How were you affected?

We went from 55 sales in 2005 to 8 in 2006. The next year was even worse — three sales.

Our nine company employees had to leave because there was simply no business. I found myself discouraging potential buyers because prices were simply too high at the time.

How did you weather the storm?

I suffered a sports injury which kept me housebound for some time. I made the most of that time to teach myself internet marketing as a way of helping to get the business back afloat.

I also started uploading videos in which I give prospective buyers 100 tips on purchasing a property in Spain.

They've been invaluable in building a relationship with buyers prior to coming to Spain and viewing the properties they’re interested in.

We’ve been doubling sales for the past four years.

Are Brits still the main foreign property buyers in Spain?

They are, but UK sales have only recently started picking up again. I've been selling more and more properties to Chinese and Russian buyers but also Americans, Swedes and other nationalities.

What’s your view on the new law which will potentially grant residency to non-EU citizens who buy a property in Spain worth over half a million euros? Will it help rescue Spain’s ailing property market?

Contrary to what most people think, I would have set the bar at €160,000 like the government had initially planned.

I mean, who buys a second home in another continent for half a million euros apart from criminals? Not many people I can assure you.

Then there’s the fact that the vast majority of Spain’s two million empty properties are not going for that price.

It won’t make a difference. You only have to look at the number of sales of €500,000 homes by non-EU citizens bought last year to realize that.

As someone who’s a self-made businessman in Spain, would you be able to tell our readers if there is a lack of entrepreneurship here as is often claimed?

Not anymore there isn't. The days when the Spanish would aspire to work in the civil service as a means of living a comfortable life are long gone. There are a growing number of people who are coming up with ingenious ideas to beat the crisis.

The problem is having to pay €260 a month to be an autonomo, or self-employed. It strangles a company at birth.

I've helped plenty of young Spaniards with great ideas set up businesses in the US and the UK. It was always with ease because of the lack of red tape.

What do you think of the government's plan to stop homeowners from renting out their properties to tourists?

There's a lot of confusion surrounding the matter because decision powers have been devolved to each individual region. There are even different sets of rules between different Canary Islands!

So for example in the island of Fuerteventura, you’re not allowed to use the word "holiday" to advertise your property, but you can do otherwise.

In the region of Andalusia you have to own three properties before you can register any of them for rental.

The government sees it as a way of cracking down on tax evasion but they haven’t even taken into consideration that only 30 percent of tourists coming to Spain stay in hotels.

It could have a profound effect on tourism and not the one they're after.

What are your main tips for foreigners looking to buy a home in Spain?

Again, I offer a whole range of advice on YouTube but if I had to round it up I'd say top priority is to do your homework before coming. Don’t leave your brain on the plane.

There are some brilliant deals on the market now that house prices have dropped by 40 percent but you still have to plan ahead if you don’t want to get caught out.

I always advise people to get an independent lawyer who speaks both Spanish and your mother tongue to ensure he will represent your interests and explain everything clearly.

How about tips for expats looking to work as real estate agents in Spain?

Thirteen of my ex clients decided to pursue a career in property in Spain after meeting me, but after the crisis only one was left.

It’s not an easy way to make money but it’s nigh on impossible if you don’t speak fluent Spanish or gain inside knowledge.

You can’t leave it up to the lawyer to inform you of what’s going on with a project or deal.

You have to keep your ear to the ground at all times.

Would you say now is the right time to start a new life in Spain?

I've always said that if you've got work and money, Spain is a great place to live. Then again, you can’t expect to be given a job so you have to set up your own business and give it time.

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LIFE IN SPAIN

EXPLAINED: How to buy a boat in Spain

Considering buying a boat to enjoy life to the fullest in Spain? Here's a breakdown of costs, legal requirements, financing options and useful tips to factor in before purchasing a bowrider, a day sailer, a yacht or any other 'barco'.

EXPLAINED: How to buy a boat in Spain

Spain has around 8,000km of coastline, and access to the Mediterranean, Atlantic, and Bay of Biscay. For boat enthusiasts, you’re spoilt for choice in Spain.

But it’s not just as simple as picking out a boat, buying it and setting off into the ocean.

There are several decisions you’ll need to make first, rules to follow, administrative hoops to jump through, and then maintenance costs on top of that.

Types of boats

The first thing you’ll need to consider is the type of boat you want to buy.

Generally they can be split into two broad categories: motor boats and sailing boats.

Motor boats are the most popular type of boat sold and offer the greatest variety of options because they include pretty much everything from smaller more affordable power boats to huge luxury yachts.

As such, you could get a smaller motor boat, say for day trips of fishing on the coast, for as little as €10,000, whereas yachts, as you can imagine, can cost millions, depending on the size, power, design and quality of the boat.

According to several Spanish maritime sources, buying a used boat that you can live on in Spain can cost anywhere between €13,000 and €150,000.

Spanish website topbarcos.com has hundreds of boats listed for you to get an idea of what’s available in the second-hand market, as well as a page for new vessels.

Sailing boats are the more environmentally friendly option and require the most skill to sail, and include light sailboats, catamarans and trimarans. Again, prices vary from €5,000 to over a million, depending on the size, type of sail, material and quality of the boat.

Once you’ve decided on the type of boat you want and found one you’d like to buy, you’ll need to consider any potential legal requirements.

A woman sits next to a yacht in Puerto Banús luxury marina in Marbella. (Photo by JORGE GUERRERO / AFP)

What are the legal requirements when buying a boat in Spain?

  • The correct nautical qualifications for the type and size of the boat you want to buy. There are different types of nautical licences to sail different boats in Spain, such as the PNB (Basic Navigation Skipper), the PER (Recreational Boats Skipper), the PY (Yacht Skipper) or the CY (Yacht Captain). Each has specific limitations in terms of length, power, distance from the coast and the type of sailing you can do.
  • Compulsory civil liability insurance that covers possible damages that you may cause to third parties with your boat.
  • Have all the necessary documentation for the boat, such as the certificate of seaworthiness and (essentially an MOT for the boat, showing that it’s in working order) and the navigation permit.
  • You’ll also need to pay the corresponding taxes on the boat purchase, such as VAT (21 percent), the special tax on certain means of transport (12 percent) or the transfer tax (4 or 6 percent, depending on the region).

READ ALSO: How do I get my boat licence in Spain

What other factors should you keep in mind before buying?

Think about what type of navigation you want to do, how often, with how many people and what your budget is. 

Don’t go with the first boat you see. Search and compare different models, brands, prices, conditions etc and don’t forget to keep an eye out for scams.

It’s a no-brainer but try the boat before you buy it, don’t just rely on photos or descriptions. Request a test ride to check the condition and navigational operation of the boat. 

If you do not have much experience or knowledge of nautical matters, it’s advisable to hire a professional to accompany you throughout the purchasing process. It could help you avoid possible legal, technical or administrative problems that arise.

They will also assist you with checking the condition of the boat’s interior: the carpentry, the engine, the electrical installation, the tanks, bilge, kitchen, bathroom and other compartments.

Here is a list of dozens of Spain-based brokers (as they’re called) or nautical companies that can assist you. 

Crucially, they will also be able to give you an informed assessment of what price you should be paying for the boat you’ve chosen. 

How can you pay for a boat?

Unless you have enough disposable income to pay for it cash, you probably want to know what kind of financing is available to you. 

There is the nautical mortgage (hipoteca náutica), which mimics the system for property mortgages, including the need for a down payment and embargo conditions in non-payment situations. 

Nautical credits (Créditos náuticos) also exist, which again are not too different from regular loans, including fewer notary costs than nautical mortgages and fixed interest rates. 

And lastly, nautical leasing is also an option, which is when a company acquires a boat and rents it to a customer for a certain period of time (normally between 4 and 15 years) and usually with an option to buy at the end of the contract.

Don’t forget the upcoming maintenance costs

If you manage all that and buy the boat, you’ll need to maintain the boat and pay costs to do so. These include:

The mooring: ie. the place where the boat is left when it is not in use. The price of mooring depends on the size of the boat and the location of the port. It can range from around €100 per month to several thousand.

However, be warned, in Spain these aren’t easy to come by. The Association of Industries, Commerce and Nautical Services (ADIN), estimates that Spain has only 107,894 moorings for 229,000 boats.

You’ll also need to pay for periodical technical checks that must be carried out on the boat from time to time to check its condition and operation. Again, the price depends on the type and size of the boat and the services contracted. It can vary from around €200 euros to several thousand.

Regularly cleaning the boat to avoid dirt, rust, algae, and parasites damaging the boat can also be quite costly. It can vary from as little as €50 for smaller boats to several hundred for bigger ones, and most experts recommend it should be done every 4-6 weeks.

READ ALSO: How to live on a boat in Spanish waters

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