| FAIRWAY VILLA, PHASE 1 |
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| Location: HACIENDA DEL ALAMO |
| Floor space: 225 sqm |
| Bedrooms: 5 |
| Purchase price 795.000 Euros |
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| RESIDENCIAL SOL Y MAR |
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| Location: COMPLEJO - LOS NIETOS - MAR MENOR, MURCIA |
| Floor space: 102 sqm |
| Bedrooms: 3 |
| Purchase price 219.000 - 259.000 Euros |
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| FAIRWAY VILLA - ALHAMBRA |
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| Location: TRAMPOLIN HILLS GOLF RESORT |
| Floor space: 138 sqm |
| Bedrooms: 4 |
| Purchase price 299.000 Euros |
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| VILLA LOS BELONES |
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| Location: LA MANGA CLUB |
| Floor space: 390 sqm |
| Bedrooms: 5/7 |
| Purchase price 795.000 Euros |
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| VILLA LOS MOLINOS |
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| Location: LA MANGA CLUB |
| Floor space: 100 sqm |
| Bedrooms: 2 |
| Purchase price 345.000 Euros |
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| CORAL 4 E, PHASE 2 |
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| Location: HACIENDA DEL ALAMO |
| Floor space: 111 sqm |
| Bedrooms: 2 |
| Purchase price 269.500 Euros |
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Partly Cloudy
Temperature: 8°C
Humidity: 71%
Wind: WSW at 11 km/h |
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NEWS
| MONEY FOR NOTHING |
September 29th, 2007 |
The Spanish Prime Minister, Jose Luis Rodriguez Zapatero, has announced
that from 1st January 2008 non-homeowners between twenty-two and thirty
years of age will be entitled to receive €210 per month for a period of
four years, which will go towards paying the rent.
The Prime Minister, together with the Minister of Housing, Carme
Chacon, announced this groundbreaking scheme at a press conference that
was broadcast live across the nation. President Zapatero stated that
all young non-property owners aged between twenty-two and thirty will
also be entitled to receive a one-off payment of €600 that is to be
used towards a deposit/bond on a rental property. In order to qualify
for the €210 per month for four years and the €600 down payment, you
must be aged between twenty-two and thirty, you cannot be a homeowner,
you can be of any nationality, although if you are from a non EU
country you must be able to prove that you have resided in Spain for at
least four years. This benefit is available for self-employed people,
the unemployed receiving benefit, employees and students as long as
they are earning less than €22,000 per annum.
The Spanish government has set aside a whopping €436,500 million per
year to cover the cost of this new scheme. Whilst this may seem like an
open chequebook from Zapatero it will probably earn the Spanish
government money. You may be scratching your head and wondering why,
the answer is simple - taxes. Two thirds of all second homes in Spain
are unofficially rented out and the Spanish government receives no tax
from this economic activity. In order for those who qualify to claim
their benefit, the money must be paid directly to the homeowner who in
turn will have to declare the rental income. Nice little earner!
News provided by www.informernews.org
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| A BUYER'S MARKET AND THE RIGHT TIME TO BUY? |
September 11th, 2007 |
A BUYER'S MARKET AND THE RIGHT TIME TO BUY?
There are more than 750,000 British people who own a property in Spain
and if the opinion polls are to be believed a further 3,000,000 others
would like to join them. The million dollar question is, when, is the
right time to buy.
There is little doubt that the housing market in Spain has changed from
the boom years of the late nineteen nineties and early two thousands,
when sharp, often city dwelling Spaniards were buying coastal
properties for very low prices, many have since sold for a hefty profit.
On the surface, this change can be seen in a negative light. However,
these sometimes ridiculous prices and profits created a scary unstable
market, which could never be mantained. Today's market is a buyer's
market, situated in a very stable buoyant economy and political system.
Houses in Spain are stil a very good buy, by European standards,
currently increasing in value at 10% pe annum and Spain is still the
favorite choice of the British, who are looking for a place in the sun.
As stated above Spain has a very buoyant economy, with one of the
fastest growing of any of the big European countries and a very stable
political system. The Spanish stock market grew by 30% in 2006 and the
Spanish created the greatest number of jobs in Europe. This combined
with a slow rise in interest rates, both shows and predicts stability
within the economy. This must be one of the primary indicators to
consider when considering investing in a foreign country. When we look
at the Spanish property market we see a very complex picture. If we
were to believe some of the less than accurate reports in the British
press, we could be forgiven for thinking that the housing market in
Spain was in an appalling state. In fact the picture is very different
from region to region. For example the difference between the
properties demanding the greatest prices and those reaching the lowest
is fifteen fold. The houses in and around Cataluna are fifteen times
more expensive than Cuenca.
Te prices in the region of Murca are still quite low, at an average of
1,613 euros per square meter. Where one bed roomed properties are
sellng for an average price of 133,000 euros, two bed roomed, 180,000
euros, three bed roomed, 237,000 euros, four bed roomed, 277,000 euros
and a five bed roomed at 329,000 euros.
These are the average regional prices. But, in Puerto Mazarron, right
on the coast, probably due to temporary glut of houses caused by an
unprecedented building spurt, the prices are 14% below the regional
average. Bargains can still be found here and slightly inland, in the
beautiful Alama de Murcia where the prices are on average 28% lower
than the regional average. Where the houses are harder to come by, for
example in Leiva, five kilmeters from Mazarron town the houses command
59% above the regional average. There is a clear message in these
figures, do your homework and get knowledgeable Estate agent before you
buy.
Why you want to buy is also a crucial factor in where you look. Are you
an investor or do you want a home for some or all of the year? For both
investments and low cost entry into housing market, you could do
well to look inland. There are still some very good investments to be
made in the new golf complexes which are being built in large numbers
in the Murcia region. You can buy off plan at some very competitive
rates, particularly in the upper end of the market.
The companies, who are building these graded development complexes,
often around golf courses, have been listening to the buyers, they have
ticked all the boxes, providing a complete package, for as little as
155,000 euros for a two bed roomed property.
For low entry costs into the housing markets, to provide a home or for
rental potential, restoration is still viable. It is still possible to
buy a dilapidated townhouse in rural Murcia for 35,000 euros renovating
and sell it for 140,000 euros. Bargains like this can still be found in
Mula, Jumillia and Yelca, among other places.
Buying property in a Spanish city is also a very viable investment
which is as yet relatively untapped. Spanish cities have a huge rental
potential because unlike most European countries Spain has a very small
rental stock at about 15%. In Spanish cities there are a lot of people
chasing a few rental properties and there are still a lot of properties
in need of renovation.
Over the past view years the DIY retrail sector has moved into Spain,
cutting the cost of renovation and making renovation much easier.
Its not just prices that influence the choice of country, when
considering investment or major lifestyle change. The infrastructure of
the country is of vital importance and here Spain fairs better than
most. Spain seems of the time to be 'works in progress'. The
improvement in the Spanish road systems is the envy of Europe and the
new links from to the Costas in Murcia to the already establisshed road
network, makes travel to and from the numerous airports, with ever
cheaper airfares, all the easier.
Access to health care and local goods and services are also important
to the would-be buyer. Spain has an excellent health service which all
European senior citizens and children have free access to. Their cancer
care, particularly its early detection and prevention systems are the
envy of many of their European partners. Workers in Spain whether
employed or in business are also given free health care.
On the Costas, where the majority of the British live, there are
numerous British and Spanish businesses who employ English speaking
staff. Plumbers, painters, builders, architects, the list goes on and
even if you have little or no knowledge of Spanish there is little you
cannot achieve.
In short, Spain still has a lot to offer, when it comes to both
investing and living the dream. It's a buyers market and the property
is still relatively cheap and bargain can still be had if you look in
the right places. It's a modern liberal democracy, with economic and
social stability. It has a modern health care system, a modern
infrastructure and a long established and well tolerated international
community.
Is now a good time to buy? I think so.
PROPERTY & GOLF NEWS, JULY - AUG - SEPT 2007
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| THE NEW MORTGAGE LAW |
September 10th, 2007 |
The reform of the Mortgage Law is not yet a reality since it must first
pass through the Council of Ministers and, subsequently, through the
Spanish Congress but it is expected to bring about important changes to
the current mortgage legislation.
The change, which is highly necessary since the law has not been
reformed since 1946, proposes alternatives with respect to the notary
and registration fees as well as the commissions for cancellation,
subrogation, and novation – these will be reduced by up to 40%.
The new regulations will also allow more sophisticated products to be
put on the market such as reverse mortgages and combinations.
In general terms, the most important changes to the law can be summed up as follows:
- 40% reduction of the notary and registration fees for cancellation, subrogation, and novation.
- Implementation of reverse mortgages for persons over 65 years of age.
- Reduction of the commission for premature loan cancellation to 0.5%.
- Expert appraisers will have to be more independent.
- Banks will have to provide detailed information about their products.
The reform seeks to improve the Mortgage Law of 1946 and the changes
should coincide with the increases in interest rates that have been
occurring since the start of the current year.
While being practically unheard of in the UK as far as mortgages are concerned, these processes are common in Spain
There are some of differences between Spanish mortgages and those
offered by banks and Building societies in the UK. Take a look at the
processes known as Subrogation and Novation which, while being
practically unheard of in the UK as far as mortgages are concerned, are
common practices in Spain.
First, a word of warning; although the terms Subrogation and Novation
exist in English, they have opposite meanings in Spain, which leaves
room for confusion. Strictly speaking, under English law, a subrogation
is where your rights are transferred to another party under a contract,
but the actual contract remains with you (for example, if you claim
under a contract of insurance when your car is stolen, your rights to
that car are then “subrogated” to the insurance company should it later
be recovered). A novation under English law occurs when there is a
complete substitution of one party in a contract for another without
creating a new contract. For example, halfway through the agreed term
you transfer your mobile phone contract to another person and the
original terms and conditions continue to apply while the new party
assumes your obligations for the remainder of the term the contract is
then said to have been “Novated”.
In Spain it is the opposite and a subrogation occurs when one party
takes over a contract of another, what we would call a novation under
English law. You are most likely to come across subrogation when
purchasing a property on which you require a mortgage, as you would
literally take on the responsibility of repaying any existing mortgage
the current owners have for the remainder of the term together with all
the terms and conditions they originally agreed to. The mortgage is
simply transferred completely into your name.
While this may seem a peculiar practice if you are used to the UK
market where you would simply take out a new mortgage in your own name,
there is a good reason for it in Spain; to lesson the tax burden.
Spanish tax can amount to as much as 3,600€ on a mortgage of 200,000€,
even before administration expenses are added. However, if you are
simply taking over responsibility for the repayment of an existing
mortgage (subrogation) and not creating a new one, then this tax has
already been paid which in turn may mean substantial tax savings for
you.
News provided by www.costacalida.com
|
| FOREIGN INVESTMENT IN SPANISH PROPERTY UP BY 19% |
September 10th, 2007 |
Figures from the Bank of Spain reveal that foreign investment in
Spanish property increased by 19.2% in the first 5 months of the year
compared to the same period in 2006. The amount invested by Spaniards
in property outside of Spain almost doubled over the same period.
The total amount invested by foreigners to the end of May was 2.252
billion Euros, almost the same as the amount invested in 2005, though
still significantly below the 2.925 billion Euros invested in the peak
year of 2003.
How does one reconcile this increase in foreign investment in Spanish
property at a time when the market is clearly turning down?
One explanation might be that many of the off-plan sales made in 2004
and 2005 are only now being recorded as investments as buyers take
possession of their properties and complete the purchase before notary.
This is the moment when the investment is recorded in the national
accounts.
Nevertheless, the figures do seem to suggest that foreign demand for
Spanish property has picked up significantly since last year, even
though property professionals report that the market is still very
slow. By the end of the year we should know whether foreign demand has
rebounded, or whether these figures can be explained by some other
factor. oreign investment in Spanish property up by 19%
News provided by www.spanishpropertyinsight.com
|
| NEW AIRPORT WILL “TRIPLE" VISITORS TO THE REGION |
August 22nd, 2007 |
The Regional Government gave an important boost tothe infrastructure of
the region this week with the signing of a contract for therunning of
the new airport granted to Aeromur for aterm of 40 years.
The President of the Autonomous community stated that the project would
be agreed by this autumn, and the works would begin in the first
quarter of 2008.
Once the third phase of the project is completed, the new airport will have the capacity to handle 14 million visitors.
Aeromur is a collaboration between CajaMurcia, Caja Mediterráneo,
Cementos La Cruz, Grupo Fuertes, Grupo Monthisa, Inocsa and Sacyr S.A.
The important benefits that the
new airport will bring to the region include economic growth and for
future years will give a sound base for developing and consolidating
the tourism sector for Murcia.
According to the first studies for the new airport, due to open in
2010, and situated close to the town of Corvera, will bring an increase
in the Gross National Product for the
area of 8%, and will almost triple the number of passengers arriving in
the region. It will also increase international tourism by up to 40%.
The airport "will be a huge driver to the Murcian economy, and a key
part of the infrastructure which defines the tourist model developed
for the region."
The project will be executed in 3 phases. The first stage will begin in
the first quarter of 2008 and is forecast to take two years. This means
that the first flights to the airport will begin to arrive in 2010.
According to the forecasts from air traffic control, the initial capacity of the airport will be 1.5 million passengers.
The second phase, from the year 2015, will bring expansion to allow up
to 8.4 million passengers, with the ability to cope with 4,500
passengers per hour at it´s peak.
Finally, by 2030, the airport will be able to cope with the huge stream of visitors
arriving, forecast to be as many as 14 million per year.
The total budget for the project is over 265 million euros, with the
bulk of this, 202 million being spend for phase 1. By 2010 a further
29.5 million will have been invested, and finally 33.5 million for the
final phase.
The new airport will create around 20,000 new jobs for the region
whilst in the construction phase, and 1,300 jobs once it is running,
which again is very good news for the economy of our region.
News provided by www.reporternewspaper.com
THE REPORTER (No. 74)
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| AVERAGE PRICE TO RENT A HOME ROSE IN 2006 |
July 12th, 2007 |
The average price to rent a house was 7.20 euros per square meter per
month in 2006, giving prices a certain stability, as the increment over
2005 was only 0.60 %.
According to the Housing Minister, in a presentation of data for the
Spanish housing market, there were 1,791,475 homes rented out in last
year. This was increased by 11 % since 2001.
Rental homes accounted for 11.4 % of primary residences in2001,
and the precentage has stayed more or less the same, as for 2006 the
figure was 11.25 %. Statistics show that approximately one in every
four homes built in the last 2 years is destined to become a rental
property.
According to the figures, the most expensive places to rent are Madrid
(11.38 euros per m2), the Basque Country (9.92 euros per m2), and
Navarra at 7.95 euros per m2. At the other end of the scale, the
cheapest rental propertys can be found in Galicia and Extremadura, at
3.29 and 3.91 euros per m2 respectively.
THE REPORTER (No. 7)
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| AVERAGE HOUSE PRICES RISE 7.4 % IN FIRST QUARTER |
July 12th, 2007 |
The price of the average new home in Spainish cities rose by 7.4 % in
the first quarter of 2007 compared to the same period in 2006 according
to the Sociedad de Tasacion. For the first six months of this year,
average house prices rose by 2.7 % in all the provincial capitals,
except Vitoria where it fell by a little over 2 % compared to last year.
In 13 provincial capitals, the average prices rose by over 10 %, and Zaragoza was the city to show the biggest rise at 15.2 %.
THE REPORTER (No. 72)
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