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  • #46
    I have been following this thread for some time with interest.

    I must say that we bought our place without the use of "black money", the subject was never mentioned to use by our solicitor our builder or anybody. We did not need a mortgage, perhaps this makes a difference?

    Some people may consider us to be mugs but we are pleased to have paid for the property thru the bank without any cash being exchanged and are happy that we will have no nasty shocks in the future.

    Before we completed on the property someone we met asked if we were taking a carrier bag full of euros to the notary and we were totally puzzled as to what he was talking about, thought he was a bit strange

    Magenta

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    • #47
      black money/undervaluation

      I have added this same post elsewhere on this site - so don't think you're going bonkers.

      my question/observation revolves around this:

      are those people who are paying cash saying that their deeds show a valuation which is actually the amount of money which has come out of purchasers hard-earned minus the cash element?

      if so, I would suggest that those folk who pay be bank transfer also have their valuation reduced by the same amount.

      or are they saying that thier deeds show an amount which represents a standard undervaluation then less a further amount to represent cash payment?


      so is the question really - should we allow undervaluation to take place? there are some instances documented where deeds have ultimately shown full 100% purchase price.

      thus - is the cash not really a red-herring which needs to be considered more for personal security purposes than to the effect it has on your deeds?

      liz

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      • #48
        Lizzy, it's not really anything to do with personal security (although there are better places in the world to wander around with tens of thousands of euros in cash than Torrevieja).

        When people buy in Spain (and I'm going to generalise here) most of them leave their heads at home. Think of all the work you put in when you move house in the UK, the estate agents, the viewings, solicitors, financiers, contracts etc. It's all planned in meticulous detail, and the buyers tend to be wary of everyone. Compare this to the way that people buy in Spain: a few days on an inspection trip with a single company taking you to show homes representing the properties that theyplussavedsavedsaving

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        • #49
          Well, having read your points Doc I can only say that we British do try to do things the right way and we are not stupid, we are savvy enough to know that there is always a price to pay for saving money especially on this scale.

          We changed our solicitor from the one appointed by the agent because we did not trust them and picked one out that was recommended by several other people. We told the solicitor that we did not want to pay some money up front in cash and they agreed that the best thing was to demand the builder declare the full value. Unfortunately it is not quite so simple as that because even though the solicitor told the builder this he still refused to declare the full value and what were we supposed to do then, lose the money we had already paid up front as a deposit he he stood his ground and refused to do it?

          We reluctantly paid the amount in cash as the solicitor was not suggesting we do anything else as he would not budge mand unfortunately we english do suppose that a solicitor gives us sound legal advice.

          We, like many other buyers from England try to stay within the law. Unfortunately there is only so much you can do from the UK end and you rely on your solicitor to represent and carry out things in your best interests. In our case the builder did increase the valuation slightly but still did underdeclare to the tune of 20,000 euros.

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          • #50
            Hi JWhite.

            Yes, there will always be some who do the legwork and the research, and try their hardest to do the right thing. As you point out this isn't always easy, and isn't always possible. I guess the problem is that the builder will typically want to set all the properties on a particular development at the same level, and to allow one purchaser (or a small number of purchasers) to buck the trend would highlight the fact that something wasn't quite right. I did say I was generalising, but I still believe that the majority of buyers go along with paying a cash element because they are simply unaware of the CGT implications further down the line.

            Hopefully those reading this forum will be a little better availed of the facts in their future purchases, and can then make their decision in full knowledge of the possible consequences. I'm not trying to preach right or wrong.

            Best wishes,

            Chris.

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            • #51
              I have always had a black and white position on this - I will NOT pay cash. My decsion.

              The events of thsi week with DVA - 15 arrested so far - make me even more sure that it is the correct decision.

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