"you´ll need at least 40k in the bank before i can start showing you properties"

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spanish_lad
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"you´ll need at least 40k in the bank before i can start showing you properties"

Postby spanish_lad » Sun Apr 28, 2019 6:00 pm

We have been looking at buying a house.. We found one recently in the campo near Alhaurin / Villafrano.. €116k with a pool..

When i contacted the agent he was pretty blunt.. "if you havent got 40k in the bank you are wasting my time"...

no wonder spanish children live at home till their 40´s.. I would bet theres not many people in spain (not counting marbella :think: ) who could say that they have over €40,000 in the bank as savings...


What a depressing situation. We have been giving our landlord half of our wages for the last 3 years, my girlfriend has been renting for 10+ years herself, we looked at an online calculator and with a 10% deposit the mortgage is only 350-400 euros a month .. we would be so much better off with our own house.

Anyone got any clues? I´ve already looked down the sofa but meh.. 3p and and a half a mars bar.
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Re: "you´ll need at least 40k in the bank before i can start showing you properties"

Postby elusive » Sun Apr 28, 2019 7:48 pm

Same as the uk. You need rich parents/grandparents to get on the market

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Re: "you´ll need at least 40k in the bank before i can start showing you properties"

Postby maureenscot » Sun Apr 28, 2019 9:35 pm

If you present him with your mortgage guarantee and proof of deposit maybe he will relent. If not, you may have to try another agent

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Re: "you´ll need at least 40k in the bank before i can start showing you properties"

Postby costakid » Mon Apr 29, 2019 8:13 am

Bizarre on properties of that value. Normally proof of funds is only needed on mega properties to stop time wasters and window shoppers.
I would look at another agent.

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Re: "you´ll need at least 40k in the bank before i can start showing you properties"

Postby elusive » Mon Apr 29, 2019 8:20 am

It is funny cause normally agents will show you any old rubbish. Especially a property style and an area you have told them you arent intrested in!

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Re: "you´ll need at least 40k in the bank before i can start showing you properties"

Postby Free at Last » Mon Apr 29, 2019 8:41 am

Is it because of mortgage lending limits? Looking online it seems to suggest that banks will only lend up to 70% of the value of the property (even for residents) - and then, of course, buyers have to find an additional 10/12% on top of the purchase price for transfer tax, legal and notary fees. That would account for the €40k in the bank figure, even on a property of €100k or just over.

Obviously it will be different in areas such as the South of England where property prices are very high, but my family's experience doesn't match elusive's views that young people in the UK can only get on the property ladder if they have rich parents or grandparents. Both my sister's sons have bought their own homes with no financial help from parents. The elder stayed at home until he was 30 to save a large deposit and bought a 3 bed detached house last year as his first home (as a sole buyer) and the younger originally bought a small terraced house as his first home then traded up to a 3 bed detached last year. They are in Greater Manchester. They can, however, get 90% mortgages and don't have to find the 10% buying costs on top.

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Re: "you´ll need at least 40k in the bank before i can start showing you properties"

Postby Unicorn » Mon Apr 29, 2019 9:38 am

I was talking to a friend who works in a bank in Marbella and she said that they have altered the criteria for British people buying with a mortgage, upping the deposit amount etc., because of the uncertainty of Brexit and worries about the Pound Sterling

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Re: "you´ll need at least 40k in the bank before i can start showing you properties"

Postby knowal » Mon Apr 29, 2019 10:23 am

Approach the seller directly, you've nothing to lose.

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Re: "you´ll need at least 40k in the bank before i can start showing you properties"

Postby elusive » Mon Apr 29, 2019 7:28 pm

Free at Last wrote:Is it because of mortgage lending limits? Looking online it seems to suggest that banks will only lend up to 70% of the value of the property (even for residents) - and then, of course, buyers have to find an additional 10/12% on top of the purchase price for transfer tax, legal and notary fees. That would account for the €40k in the bank figure, even on a property of €100k or just over.

Obviously it will be different in areas such as the South of England where property prices are very high, but my family's experience doesn't match elusive's views that young people in the UK can only get on the property ladder if they have rich parents or grandparents. Both my sister's sons have bought their own homes with no financial help from parents. The elder stayed at home until he was 30 to save a large deposit and bought a 3 bed detached house last year as his first home (as a sole buyer) and the younger originally bought a small terraced house as his first home then traded up to a 3 bed detached last year. They are in Greater Manchester. They can, however, get 90% mortgages and don't have to find the 10% buying costs on top.
yeah i agree of course its possible to buy if you can do as above. Ie stay at home and be able to save up money into your 30's and be able to get a big morgage based off what you earn if your lucky enough to have an income and stability to be excepted for one. but its pretty much impossible to get on the ladder as a young person which is what my comment was really based on. Its a sorry state affairs when unless you get a nice hand me down you have to keep living at home and then get saddled with a big debt into your 60's just to "own" your own home.
Last edited by elusive on Tue Apr 30, 2019 3:33 pm, edited 2 times in total.

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Re: "you´ll need at least 40k in the bank before i can start showing you properties"

Postby Manchesteral » Mon Apr 29, 2019 10:47 pm

Have a look at idealista, they have an online mortgage calculator which, if you put down 10k they will give you a 20 year mortgage at €435 pm (if you meet their criteria) personally if any estate agent spoke to me in that fashion he would get a mouthfull of invective and possibly a slap !

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Re: "you´ll need at least 40k in the bank before i can start showing you properties"

Postby Manchesteral » Tue Apr 30, 2019 10:15 am

Another comment on the above subject:
I have said often and loudly that i will never become a Spanish resident, however as my marriage has now broken down I have been rethinking my future and there is a possibility that whilst I may never become tax resident in Spain there remains the possibility that I will buy a small property on the mainland and keep something in the Uk.

I have been researching the Torrox area recently and I am theoretically impressed (I haven't actually visited yet, but soon) one thing that impresses me is the apparently very cheap prices (in some cases) of property in Torrox pueblo, some as little as €50.000.

Is it not possible Spanish Lad, that you downgrade you desires and go for something cheaper and easier to maintain.

Do you get tax relief on Travel expenses ?

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Re: "you´ll need at least 40k in the bank before i can start showing you properties"

Postby katy » Tue Apr 30, 2019 12:24 pm

SL why not ask at a bank how much you are able to borrow and how much deposit you will need. Avoid mortgage brokers.

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spanish_lad
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Re: "you´ll need at least 40k in the bank before i can start showing you properties"

Postby spanish_lad » Fri May 03, 2019 4:57 pm

Manchesteral wrote:...property in Torrox pueblo, some as little as €50.000.

Is it not possible Spanish Lad, that you downgrade you desires and go for something cheaper and easier to maintain.

Do you get tax relief on Travel expenses ?
If you can find me something with a garden (2 dogs) under 30 minutes from the airport cheaper than 100k I would go and look at it tomorrow. 117k is the cheapest we have found so far.

I get no expenses.. where we live is not the owners fault :lolno:

I´ve seen some super cheap houses - like you say, from 25,000 upwards - that need reform. some apartments for 40,000+ that we could live in and work on, but with the 2 dogs and 3 cars and a shed.. we need a garden. The pool was just an added bonus.
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spanish_lad
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Re: "you´ll need at least 40k in the bank before i can start showing you properties"

Postby spanish_lad » Fri May 03, 2019 5:03 pm

Manchesteral wrote:Have a look at idealista, they have an online mortgage calculator which, if you put down 10k they will give you a 20 year mortgage at €435 pm (if you meet their criteria) personally if any estate agent spoke to me in that fashion he would get a mouthfull of invective and possibly a slap !

Thats where I got my figures from - the mortgage is cheaper than our rent.

you need 15% of the purchase price as a deposit (to pay fees etc) but the mortgage that you can get on a campo property is only 60% of the bank valuation (or catastral, whichever is lower) so could be only 60,000€ and then you need the difference in savings too - thats where the figure of 40k comes from, 15k deposit and the difference of 25k for example.

its a load of depressing facts and figures that make us feel stuck in this situation.

what makes it worse is that "technically" i have 70,000€ of capital tied up in my parents house since my mum passed away, but i would never want to use that as a garentee incase we loose our jobs and cant pay, my dad would loose the house due to the debt.
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Re: "you´ll need at least 40k in the bank before i can start showing you properties"

Postby Manchesteral » Fri May 03, 2019 8:28 pm

Spanish lad, the following comments may appear rude and condescending, they are not meant to be, but, having done my own calculations on this it would appear that there are only two solutions to this situation (1) both take second jobs and just save, save, save or, and this one will hurt, sorry, (2) lose the dogs, two of the cars and the shed. This is the only way out I can see of your problem given the circumstances, I hope you get lucky though and life smiles on you, my son was in the same position as you some years ago until I gave him some money so what you say is absolutely true inless you get some inheritance it's a bustard to get on the ladder, good luck to you both :-)

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Re: "you´ll need at least 40k in the bank before i can start showing you properties"

Postby elusive » Sat May 04, 2019 10:42 am

I think is prob about compromise. No way your dad could sell up and you could put the money in one pot and buy something together? Or lots of dogs live in apartments aslong as theres somewhere local they can be walked.

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Re: "you´ll need at least 40k in the bank before i can start showing you properties"

Postby spanish_lad » Sat May 04, 2019 4:40 pm

oh well.. nevermind. back to the savings plans :lol:
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