Some people seem to think that estate agents keep back the best properties for themselves or deliberately don't advertise bargains because... well... reasons! They assume that there are many, many more properties for sale than those they can find online and that if only the agent would release the details to them then they could pick up a bargain. They tell us when we say that what they are looking for doesn't exist at the price that, "They have seen the perfect place online". Really? So today we are going to look at the truth behind online listings or the little things you need to look out for in Spanish real estate ads so that you are not caught out by less than 100% clear descriptions.
What We Are Looking At
We are going to look at a few terms we have talked about on the blog before and also some things to look out for when you see a bargain that may mean that the property you are looking at is maybe not all that! If you see something considerably cheaper that the rest of the market then there is usually a reason and that reason might be something that you really don't want in a property you buy.
It's an interesting trend that we're seeing across Spain's housing market to a greater or lesser extent, in fact more than a third of properties under €200,000 in the cities around Spain now come with some kind of restriction attached.
What does this actually mean? Well, these aren't your typical ready-to-move-in apartments. We're talking about properties with limitations of various types. They may need major renovations, they might be tied up in legal issues, or they may have sitting tenants you can't easily move out even for your own private use.
The numbers are worth noting: 35% nationwide as a whole, 37% in Madrid, and 34% in Barcelona (where you'll find more options at the absolute bottom of the market, some as low as €50,000). If you look in Valencia City at under 200,000 Euros you'll find that well over half of the properties have some form of restriction applied.
Why is there this rise in the numbers of properties with restrictions though? Pretty straightforward, really. Since 2021, prices for homes have jumped around 40-50%. There just aren't many places under 200k in the city. As conventional properties have priced out more buyers, these restricted properties have become one of the few remaining entry points into home ownership especially for people willing to take on a project or wait out a legal situation, and younger people might just do that in the hope of sorting out the issue in the medium or long term. These properties aren't really feasible for what our clients at Valencia Property want, to move in now, but they are massively visible on property portals especially at lower prices.
Remember then, a bargain price usually means there's a catch. Make sure you understand exactly what restrictions you're dealing with before you commit. Let's look at some of those restrictions that you will definitely find at the lower price points.
Ocupada
It's squatted! Somebody is living there as if it is theirs but they have no legal title to the property "Sin título legal". You can get a squatter out legally but it takes time and money to go through the courts and you are never sure what the state of the property will be when you get it back and how long that process might take. You can also get a squatter out by contracting a company to get them out. This "harrassment" will cost you dear and probably mean any proper legal process will be delayed.
There is another way though, make them an offer they can't refuse. See below for that.
Nuda Propiedad
Bare property ownership in Spain is called "Nuda Propiedad". This is where you buy the property but the seller has the right to live there until they die. When you see these ads they will invariably include the age of the owner. The younger they are the cheaper the price (Or the bigger the discount) However, if an ad says the owner is currently 72 years old don't go thinking ah well they'll only be around for a couple of years! No Sir! The average age lived to in Spain for people who get to 72 years old is another couple of decades! It might be that the owner outlives you!
Nuda Propiedad can be a great deal if you are looking for a long term investment, perhaps for your kids for example, and you don't need the money now but remember a few things, you can't get a mortgage for a Nuda Propiedad and that time period could be a very, very long one.
I'm waiting for the story appearing in the news of a serial killer with the case being solved when the police realise that all of the victims had properties that passed into the hands of the same person. Because yes, if they die suspiciously by slipping on a banana skin placed at the top of the stairs in the building, you as the holder of the Nuda Propiedad can expect a very quick visit from the police.
Un Porcentaje Proindiviso
Sometimes you see huge discounts on a property and you think what a great bargain. And then you read the bit saying "una parte proindiviso" meaning it's not for 100% of the property. It might well be for 33% because there are two other owners, often the other kids who have inherited the property. You cannot do anything with that 33%, though you may get 33% of any rental accruing from the property. And you have to negotiate with the other two parties. You may get a discount off them too for their parts but equally true is that they may want to buy your part and get a discount on the value as they know you cannot do anything with it. And one more thing, the other owners have first dibs and can legally challenge your purchase to get it themselves for the price you are paying.
Alquilada
This might also mean it's squatted. By definition it means that the property is rented out but oftentimes what the ad doesn't tell you is whether the tenant has stopped paying the rent, "Inquiokupa" as it's known in Spain.
Let's assume though it is just rented and the tenant is paying. Many times the ad will say how much the property is rented for and when the contract ends. That's good because you can work out the return now and a potential return in the future and you also get to know in theory when the property becomes available for you to use. However, it might be difficult if the rent is really low because when the end of the contract comes the tenant may refuse to go as they cannot find anything even remotely close to the price they are paying currently.
Con Cargas
If the property ad says "Con Cargas" then you might just want to run and run a long way away. Cargas can be something as simple as a mortgage and that's easy to sort out, but if an ad mentions Cargas then I can assure you now that we are not talking about just a simple mortgage. We may be talking various mortgages, embargos, debts to utility companies and the community, and even judicial charges or court judgements.
Now if all of those amounts come to a number plus the purchase cost that is still below market value then go ahead. However, I guarantee that usually they won't. And you might also find some nasty hidden little surprises along the way after purchase. Equally, the owner might be asking for a price which clears their debts so there is no negotiation available.
Derrama
A derrama is an extra cost coming up that the owner of the flat is currently or very soon going to be paying. It may be for repairs in the building of which the apartment you are buying has a stake, it may be for the installation of a lift or modernisation for accessability reasons. It may be because the ex-head of the community was a career criminal who managed to embezzle the last ten years' community money (It won't be that!)
Subasta
Oftentimes the price quoted looks too good to be true and yes,, unfortunately, it is. The amount quoted is the starting price for the auction, subasta, which will be taking place on such and such a date. In order to participate in the auction you need to deposit a percentage of that amount in the court to be able to bid. This is a great way of getting money tied up and then finding out that the system is rigged towards those who work with auctions every day.
Renta Antigua
Somebody is renting the property and has been since before 1985! They will be paying a miserably low amount in comparison with market values and they have the right to live there until they die. But here's the thing, any direct dependents, spouse, children still living at home and even parents dependent on the rental holder can take advantage of this contract and continue it after their death and ther contract can be passed on once or twice to those dependents. So if you want to buy a flat with renta antigua bear in mind that, just like Nuda Propiedad, they may be there a long time. However, at least they will be paying you a small amount of return on your investment until that day when you get to either live in it or rent it out at market value. Yes, on their death and the death of the rest of their direct descendents and dependents in that tragic accident that you had nothing to do with.
No Se Puede Visitar
It's squatted or has a tenant and they will not let you in to see it because... well, it's a mess probably. Would you buy something in a different country without knowing the area, without seeing the property and in the hope that everything will turn out fine? Nah, me neither.
Paying Off Someone to Go
I mentioned above, making them an offer they can't refuse and this can be for a squatter, a tenant or a tenant who has stopped paying. And no, I don't mean in the "horse's head in the bed" way.
I mean negotiate with the squatters or tenants to make a payment for them to go. It used to be relatively cheap to do this but these days prices can easily start at 15k or even 40k!! Worth it if you buy a place for 200k that's worth 500k and you can get immediately rather than sometime in the future but I'd negotiate the amount before buying it if I were doing it.
But... Is It Worth It?
Is it worth going through all of these potential pain points, the heartache, the legal issues, the nervously anticipating the death of your tenant, the obvious muder conspiracy plots, the negotiation and the nasty surprises that often come up with these type of deals? My answer is usually no. It's just not worth it.
Can you put a price on getting a property without any of the above?
Oh yes, actually you can! Market value with no restrictions. There's your answer.
Speaking Of Nuda Propiedad
Today we get to offer you one of them. An excellent house outside Gandia in the lovely area of La Drova.
Make sure you read the description well because this is not your normal Spanish property purchase. This is Bare Ownership (Nuda propiedad in Spanish) What does that mean? This is where you buy the property but the seller has the right to live there until they die. When you see these ads they will invariably include the age of the owner so let's not miss that out, mid-80s. For more information send us a mail and ask.
Why does the owner want to sell in this way? Firstly, they love living there. However the owner (singular) has three children and he doesn't want them to have issues of inheritance when he shuffles off this mortal coil, he wants clarity on his affairs now. Therefore, he is offering a considerable discount to market value on this property (Current market value around 420k) for someone willing to help him sort out those affairs and take a punt on how long he may be staying around.
The property in question has four bedrooms, two and a half bathrooms, plenty of other rooms and is a high quality build as a German builder put it together to German construction standards. The large plot of 1100m2 has parking facilities, an office style shed, a huge swimming pool and lovely views of thew surrounding mountains. The property is set in the stunning mountain scenery of Gandia just 15 minutes from the town and a few minutes drive to the delightful small town of Barx.
As an investment it's a great house as you get a large discount on market value and as a future home in the Valencia region you won't find anything at a comparable price that offers so much but bear in mind a few things here:
1) No mortgage available as banks won't give them on bare ownership. (You'll be able to get one when you take possession)
2) You can't move straight in.
3) You don't know the time period for when you will take possession.
However on the positive side:
1) You get a huge discount
2) The value of that investment is rising as we speak
3) The value of the bare ownership rises as time goes by and the owner gets older.
4) The current owner takes care of the property and the costs while still there.
A Rare Group Photo
Some of the Valencia Property sales team were treated to a meal last week by our colleagues and friends at Mortgage Direct. If you have ever read our Google reviews you will often see the names of David, Paul, Jess and Gavin mentioned for their commitment and professionalism (And bad jokes). Well, here they are last week along with Katherine and Bozena from Mortgage Direct and myself (Graham in case you didn't know who wrote this) If you ever wanted to put a face to a name now you have a chance.
Property of the Week
Here is an outstanding home in the pretty town of of L’Eliana, totally private, perfectly renovated and maintained but maintaining the charm and warmth of a rustic mediterranean Villa, its independent corner plot and total privacy amongst the leafy lanes of Montesol brings all the conveniences of the town but provides a peaceful countryside feel, well connected, well appointed and given its build and plot size, good value for something rather unique. Read more and see more images by clicking here.
Stepping Stone Rental of The Week
Want to step just outside the city centre and experience life the Nazaret way? If you’re looking to set down roots in Valencia, this ground-floor home offers a glimpse into real neighbourhood living; laid-back, welcoming, and full of local charm. You’re only moments from the city centre, yet surrounded by a small-town feel that makes it easy to slow down and feel at home.
The space is thoughtfully and uniquely decorated, with personality woven into every corner, while still offering all the practical comforts you’ll need for everyday living. Step outside to the large private terrace, an ideal spot for hosting friends, enjoying long outdoor meals, or simply relaxing throughout the day. Two city bikes are also available for your use, making it easy to take a quick ride to the nearby beaches or explore the area like a local.
Perfect for those seeking comfort, character, and a sense of real Valencian life during their stay.
If You Liked This...
Then of course you'll like more of our writing about Valencia and property, and maybe our podcasts too. Just click on the images below to find out much more.
Good Day Sunshine
A south-west facing suntrap to guarantee the rays from mid-morning on, this apartment is situated just across the street from the Central Park which is very handy as there’s bugger all green space in the rest of Russafa, but you do have 151 vintage clothes shops with high street prices, so there is that.
You won’t find any small dark box rooms masquerading as a bedroom here, every room is a decent size with the apartment feeling far bigger than the 120 sqm it is listed at. It has been recently renovated as you will see in the photos and the building itself isn’t even 30 years old.
Located at the end of one of the most popular thoroughfares in the neighbourhood, if you can ever tear yourself away from all the Vit D soakage you’ll be doing here, then you’ll find restaurants, bakeries, cafés and bars (and stupidly priced vintage shops) galore here to while away the hours. For those of you thinking of coming here with the kids but wondering about schools, the British school of Valencia is quite literally on your doorstep and one of the few international schools that aren’t located outside the city limits.
A Russafa property that is a good size, with a good distribution i.e. no rooms in the middle that will never see daylight, and zero work needed before moving in. That’s a pretty sweet deal if you ask me.
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