Spanish Hot Properties Best Ever Month August 2014

Luxury Spanish property in Costa de la Luz

Spain

I would just like to say a big thank you to all of those customers who have helped make 2014 a record breaking year for Spanish Hot Properties which culminated with August 2014 being the companies best ever month for new agreed sales in the history of the company.

To give you an idea of the breakdown of the clients that bought in August 40% from the UK, 15% from Russian, 30% from Scandinavia and 15% from mainland Europe. The most interesting stat is that 40% was from the UK a big increase and ahead of the 15% for 2013 for Spain as a whole. Finally they realise the recession is over but in reality most of the best deals have already gone but some opportunities still exist.

As to when prices rise again it’s clear that is already happening in prime location areas such as Mallorca and Marbella. Another question asked by our clients is a very simple one; can I lose money by investing in Spanish property now? The answer to the question is only if you buy badly natural economics say if you buy below the cost of replacement value eventually prices will rise. Also this summer in Marbella it was impossible to find a Hotel in August in the Marbella area and very difficult to find a holiday rental apartment so again you can work out the rest for yourselves.

The question for all of us is when a normal buying market will return where 50% of the properties sold are not bought by international buyers. Anyway once again a big thank you to all of you who have helped 2014 be such a great year for Spanish Hot Properties

Puerto Banus and Marbella Property Prices on the Rise

Marbella

Marbella Property in 2014

This may surprise a few of you who believe everything in the UK press but in prime location areas of Puerto Banus and Marbella property prices generally are more exclusive than they were 12 months ago and we can guarantee they will be more expensive in 2015 and not just in prime location areas.

Two developments in Puerto Banus that our clients really like illustrate this point. The first being Embrujo Playa where 12 Months ago the best priced apartment was 310,000€ and today as we speak the best priced apartment is selling for 350,000 Euros with other similar apartments higher than this price. The second example was a sale in December of last year in Bahia de Banus with an asking price of 499,000 Euros now the lowest priced apartment available is well above 600,000 Euros.

This just illustrates the problem on the ground and managing the expectation of our client who still believe they can buy at last year prices. Some clients expect prices to fall further but that’s not going to happen in Puerto Banus or Marbella.

In secondary locations such as Mijas Costa and Estepona prices have remained pretty flat but they will increase soon as buyers who can no longer afford to buy in Puerto Banus and Marbella have to look at second choices.

Moving forward the cost of land and cost of construction only mean that prices will become more expensive with anything built new having at least a price of 2500 Euros per square meter. When you compare that to some of the bargains that can still be bought at 1500 Euros per square meter one should think very seriously about buying in 2014 or spending more money in 2015

If you want any advice on how to take advantage of the last remaining great deals contact http://www.spanishhotproperties.co.uk/ and they will be happy to help.

12 Reasons Why Now is the Time to Buy in Spain

Dream property Marbella2014 has seen lots of positive news surrounding Spanish property with improvements in Spain’s general economic outlook, increasing sales to foreigners and signs that prices may now be at the bottom and already starting to rise in certain locations. This has led to a mood of optimism in the Spanish real estate sector with Solvia, the estate agency of Banco Sabadell, going as far as to raise the prices on 450 of its properties and its likely other banks will follow.

Here we list 12 factors why it might be the right time to buy in Spain:

1. Attractive prices: Prices have dropped around 40% on average and in some areas up to 70%.. The low prices decrease the risk when buying a property as potential downside is low to non-existent in most cases.

2. Choice: Oversupply has been one of the main factors forcing down property prices in Spain but it does have an advantage in that it provides a potential buyer with ample choice when choosing a property, with homes of all types available in all locations.

3. Positive economic data: Many economists are now pointing to signs that Spain’s economy is on the road to recovery with the Spanish stock market making impressive gains, unemployment dropping and government tax revenue increasing. This eases concerns of instability and insecurity.

4. Buyers’ market: Buyers are in a strong position in today’s market and can use this to bargain for lower prices although signs of prices having bottomed out could mean that this will not be the case for much longer.

5. Banks lending again: It is becoming easier to obtain a mortgage in Spain as banks regain their willingness to lend to consumers. High interest rates have been one of the factors driving customers away from mortgages over the past few years but new deals being advertised by banks include much more attractive rates of interest.

6. Rental yields: Annual rental yields are currently at an average of 4.7% and are rising. Many investors are starting to look at buy-to-let as a better investment than other financial products.

7. Bank bargains: Many banks have slashed prices aggressively to sell their real estate assets with discounts of up to 70% available. This situation will stay the same in the short term with banks still holding vast portfolios but will not last forever.

8. Cheaper to buy than rent: At the moment the average monthly payment of interest on mortgages is around ?250 which is less than the average cost per month of renting.

9. Entry of investment funds: This provides a sign of confidence returning to the Spanish real estate sector as investment funds have started buying up the country’s real estate assets and taking advantage of the current low prices. This is leading many individuals to plan on following these funds in securing a bargain property.

10. Benefits of ownership: Many people still see property ownership as preferable to renting. Buying a property is an investment in a saleable asset whereas rental is not and many see greater security in ownership for themselves and their family.

11. Prices already increasing in certain areas, especially prime locations such as Marbella, Puerto Banus, Mallorca and Ibiza.

12. Banks actually starting to increase the prices of their properties in the areas where there is huge demand

If you would like advice about how Spanish Hot Properties can help you take advantage of the property market in Spain then we would love to help you so please contact us directly.

Should You Buy Illegal Property in Marbella

Marbella

Marbella Property in 2014

On the face of it that’s a very obvious question to answer and from a legal point of view you should never buy illegal Marbella properties. However there are quite a few property transactions taking place for Illegal properties in Marbella and especially in the Elviria area so why?

First things first what is an illegal Marbella property? Very simply it’s a property that never obtained a first occupation license and therefore is illegal

Secondly what can happen to you if you buy an Illegal property without a first occupation license? The most important factor to bear in mind is you have to be a cash buyer as it’s impossible to get a mortgage on the property. The exception to this rule is where the bank already has a mortgage on such illegal properties and will transfer it to the new buyer. Now however the banks are a lot wiser and will not lend on such properties. The most important factor for buyers of such properties is when you come to sell you can only sell to a cash buyer so selling such properties can be very difficult indeed.

Thirdly why do people continue to buy such properties? The answer is primarily due to the fact that the majority of illegal properties are in the process of being legalized under the Marbella Town Hall plan (PGOU) with some exceptions notably River Gardens and Banana Beach that will in reality never be legalized. So at some point in the future the properties will be able to be sold without any issues. The other major reason people still buy such properties is the price that they can buy for and the location of some properties such as Los Granados de Cabopino which you just can’t buy at the prices they are currently trading hands for.

So should you buy Illegal properties in Marbella? The advice is obviously not unless you see such an opportunity that makes sense for you but most importantly you must be aware of all the shortfalls with the major one being that you may never ever sell your property in the future.

If you want advice in making sure you don’t buy an illegal property in Marbella then please feel free to contact us at Spanish Hot Properties

STOP your Spanish Property Search Now

Marbella

Marbella Property in 2014

Are you searching the internet for your dream property in Spain and already have so many wonderful properties to pick from? If so my advice to you is that your time would be much better spent searching for the right Spanish property agent who has your interests at heart but most importantly you must find an agent you can trust.

In Costa del Sol alone there are over 600 international real estate agent s but the truth is only 10 or 20 of them are what I would call totally professional in everything they do and from your point of view it’s very important that you end up with one of the top 5% of agents.

FOUR REASONS NOT TO GO OUT WITH EVERY AGENT ON THE COAST

1    In Costa del Sol we operate something very similar to the American MLS system this means that every property for sale in Costa del Sol, some 25,000 can all be shown to you by one agent. So there is no need to go out with multiple agents

2    Believe it or not it actually becomes much harder to make a decision when you have viewed different properties with different agents. In reality the agent can only give you advice on the properties that he has shown you but the less professional ones may well run down a property in the hope that you will buy from them. However if your exclusive to one professional agent who knows he is going to get paid no matter what then  they can sit down and actually help you make the right decision once you have finished your viewings.

3    The agents that are only local to a certain area will not be able to give you a professional overview of the whole area and what area is right for you. So picking an agent who has a proven track recording in selling properties in all areas of Costa del Sol is essential.

4    The likelihood is that it will be pot luck if all the agents who show you properties have the right professional qualities needed to make sure you buy safely and securely here in Spain and have the experience in dealing with international property buyers which is quite different to selling to local clients who have bought in Spain before.

So if you take my advice and want to find one real estate company that will take care of everything for and most importantly one you can trust what things should you look out for to make sure you end up with best agent possible

FOUR KEY POINTS TO RESEARCH YOUR AGENT ABOUT

1    Without doubt the number one point for me is that the agent in question has a proven track record in selling to international clients. By this is in a position to explain to you the full buying process in Spain, The pitfalls of buying certain types of properties.

2    A professional agent should be able to introduce you to the right professional people such as Lawyers, Architects and Accountants.  However they shouldn’t be in Cahoots with these professional people. For example at Spanish Hot Properties we have Lawyers in Spain page that recommends 4 different Lawyers who we know would never let our clients down.

3    Check out their testimonials either on their company Facebook page as these reviews are made by real people and if necessary actually speak to the person who gave the testimonial. In reality the agent will have no problem arranging this if the Testimonial was for real in the first place. One of our problems is our Testimonials are too good and people don’t believe our clients could be that happy.

4    Brand name, most of the best agents very much care about their image and brand name so if you pick a company with an established brand it is more likely to be one of the professional ones.

If you’re about to buy in Spain for the first time and invest your hard earned money into Spanish property it’s very important that you surround yourself with the best professional people possible and finding the right agent to work with you can trust is without doubt the number one factor for you buying in Spain safely and securely. So don’t leave it to chance and make sure you make the right choice when choosing your real estate agent in Spain.
Good luck and if you decide to choose Spanish Hot Properties I will only be too pleased to help you.

ARTICLE RESOURCES

Spanish property for sale in Spain

Lawyers in Spain

Investors Take Positions as the Property Market in Spain is Set to Rebound

SPANISH HOT PROPERTY LOGOlinked inIf we haven´t hit the bottom yet, we will very soon. This opinion sums up the prevailing view expressed by several leading Spanish real estate agents including Nick Stuart Managing Director of Spanish Hot Properties and Simon Jones marketing director of Sundream Estate.

According to a recent report from Knight Frank, a property consultancy, international investment fund firms could invest up to 14,000 million euros in the Spanish property market in 2014, and they are particularly keen on acquiring offices and hotels but this is small fry when compared to the big Investment and Pension funds who have recently bought substantial assets from SAREB (The bad bank of Spain)

Andrés Escarpenter, managing director at Jones Lang Lasalle, thinks that Spain is currently experiencing a spring thaw, although this is not necessarily based on an improvement in key economic indicators such as GDP, inflation, or the rate of unemployment. He went on to point out that adjustments in house prices have triggered a surge in investor interest. And how far have property prices fallen? On this point there is a diversity of opinions. Santiago Aguirre, Chairman of Aguirre Newman, estimates that prices have fallen around 50% in general terms, although this figure may vary, depending on the particular sector of the market.

However, in general terms, the experts are confident that as soon as the economy starts to rally, house prices will start to go up again. Several reports published over recent weeks predict an upturn in prices. For example Caixa Bank thinks that house prices will start to recover in 2015. This opinion is shared by the rating agency Standard & Poor’s, which also believes that prices will improve in that year. This is a view shared by Spanish Hot Properties and a message that is reguarly sent to all it’s clients.

There are several reasons to be optimistic about the housing market. One is that the total stock of housing has begun to fall, as a result of increased sales of completed homes and a slowdown in the construction of new build homes. Sales are highest in coastal areas of Spain while in other areas, where there is a shortage of available housing, developers are beginning to renew their activities. Banco Sabadell alone has 60 housing developments currently under construction.

In short, the sluggish Spanish real estate sector is beginning to stir and investors, such as international investment fund firms, are showing renewed interest in the market, although no large investment deals have been completed so far. Spain is once again considered to be a good place to invest, although this change in the trend is not based on economic indicators, but rather on a shift in investors´ perceptions, and how they view Spain. For this reason the main challenge now is to ensure that property continues to be seen as an attractive investment option for a long time, so that investors do not decamp to other countries such as Greece, Italy, China or Latin America. According to the experts.

If you would like to know more about how you can take advantage of the Spanish property crisis then contact http://www.spanishhotproperties.co.uk/

Will 2014 be Your Year of Spanish Property Regret or Ecstasy?

Doncella Beach Luxury

Doncella Beach Luxury

It’s my personal belief that 2014 will be a defining year for UK citizens who will either buy in Spain in 2014 and will have taken advantage of the Spanish property market crisis or 2014 will mark a year of regret as they will have missed a once in a lifetime opportunity to buy a home below replacement value.

To substantiate my point of view we need to look at situation we currently find ourselves in

THE FACTS

Well the news from last Thursday that four of the country’s 17 regions, including the Madrid comunidad area, posted property price increases in the third quarter compared with the same period a year ago.

In a press release, the country’s development ministry said property prices in Madrid, with over 10% of Spain’s population, rose 0.32% on the year. The biggest increase, at 4.8%, was posted by the Balearic Islands, led by Mallorca. The other two regions with higher property prices, Navarre and Extremadura, are also among the country’s smallest.

In Spain as a whole, the ministry said, property prices fell 4.5% on the year and by 0.5% from the second quarter. This is the slowest pace of decline since early 2011, when the country was sliding towards a double-dip recession that it only left behind in the third quarter of this year.

PRIME LOCATION AREAS HAVE PRICES ALREADY RISING

Prime location areas in the best parts of Marbella and Puerto Banus have already seen price rises this year. To back this up I would like to give you 3 examples of clients who bought with me in 2012.

The first client placed his reservation deposit on 7 March for an apartment in Las Mimosas de Banus with a purchase price of 399,000€ now the lowest priced unit for sale in that development is 501,500€. So this client could now sell and make a profit including the buying costs as well.

The second client put his reservation deposit down in May 2012 on a 3 bedroom apartment in Playas del Duque, Puerto Banus for 600,000€ and now if you can find a 3 bed unit with sea views below 700,000€ you are doing amazingly well, some are closer to 800,000€

Finally the third client put their reservation deposit down in May 2012 in Marbella del Mar a frontline beach apartment in Marbella for an price of 420,000€ and once again you won’t find anything similar for under 500,000€

SO WHY DO YOU HAVE TO BUY IN 2014 ?

The one thing the UK press cannot do is escape the facts and the facts are that in areas that international property buyers want to buy we have hit the bottom of the market and prices area already on the rise in key location areas.

It’s my view that if you don’t buy in 2014 you will have two major problems moving forward. The obvious one that prices will be substantially higher in 2015 but just as important there may not be any properties that you want to buy. The truth is that in Costa del Sol there is a huge shortage of good quality 3 bedroom apartments between 200,000 and 300,000 Euros.

Another factor that will push prices up in 2014 is the Golden Visa for property purchases totaling 500,000€ or more. This will see a huge increase in sales above this price to Citizens from the Middle East and China with an increase in Russian sales as well.
Also with such demand from so many European countries vendors will be able to hold out for their price much more easily. In Europe alone you have over 20 nationalities looking to buy in 2014.

We are now at the bottom of the market so if you want to buy a property in Spain and are in a position to do so you should make it so.

So the simple question for all you would be property buyers in Spain out there is will 2014 be your year of regret or your year of ecstacy?

If you like to discuss this article further or need any help in taking advantage of the market in 2014 please contact me at Spanish Hot Properties

ARTICLE RESOUCES

Spanish Hot Properties

Puerto Banus

3 Tier Spanish Property Market in Costa del Sol on the Way

Marbella

Marbella Property in 2013

With news that nearly every project on Costa del Sol is selling or sold out its very clear that there is a huge demand for new properties even  if they are more expensive than resale properties. Due to the shortage of land in good locations especially in and around Marbella and increased building costs we are going to be seeing properties in 3 distinct price categories as we come out of recession.

Currently we have two very distinct types of properties with the first being prime location in Marbella and Puerto Banus which actually is now more expensive than a year ago and a mixture of discounted key ready new developments, distressed sales and bank repossessions that are selling below market value but more importantly below the cost of construction.

The reality as the majority of the good stock is taken for the market we are going to see properties in three price brackets and this is already illustrated in La Cala de Mijas. Here you can buy a bargain 2 bed apartment key ready new development at 145,000, a high quality 2 bedroom apartment in Oasis de Mijas for around 220,000 and a super brand new 3 bedroom apartment at starting prices of 339,000 through to 600,000. Three beds in Oasis de Mijas sold for between 275,000 and 300,000 but as you can see there is still a price differential. And the location is vastly superior for Oasis de Mijas.

In Marbella and Puerto Banus this situation is only going to be more exaggerated as lots of different investors look for land or projects to finish that just don’t exist on the open market and it’s only a matter of time that banks begin to realize the true value of the assets they are holding.

So what will happen when we have a three tier market? If we take a look at Costa Blanca where new build is 10-15% more expensive then it’s clear that Russians and Scandinavians will pay the difference but UK citizens tend not to. However there is a cash difference in Costa Blanca of say 90,000€ compared to 80,000€ i.e. only 10,000€ but that’s likely to be at least 50,000 in cash terms in Costa del Sol.

There will be buyers for all three price points the real question is how many at each price point and how it will affect the market as a whole. Our view is it will just make a distinct choice for would be property buyers and focus the distinct choices between Costa del Sol and Costa Blanca.

Spanish Property Internet Sales in Costa del Sol, What has happened?

Doncella Beach Luxury

Doncella Beach Luxury

The reality is that in 2013 Spanish property sales are on the increase and in large numbers but the number of internet registrations and enquiries are down and the quality is very poor compared with 2012. So the obvious question is why?

I could see something different was happening as early as January 2 this year. December is normally the quietest month of the year and January normally one of the busiest. However this year where we normally see a tenfold jump in enquiries it was very minimal. Also agents sending us clients from their own website and portals had the same problem less enquiries and very poor quality enquiries. By poor I mean clients with unrealistic expectations as to what their money could buy them, especially in Marbella. This has carried on throughout the year and right now it’s even worse. Interestingly it’s across all languages except French where the enquiry levels are actually up and are of a vastly higher quality than the other languages.

The number of visitors to our various websites has actually increased but the registrations haven’t but sales in the market place have so where are those sales coming from?  They are coming from 3 major sources number one is other international agents who recommend their clients to us. Secondly are existing clients of ours and thirdly referrals from clients who were very happy with the service they got from us when they bought. Internet enquiries are a distant 4th. Having spoken to a lot of fellow agents this is very much the case. There is also another factor in that a lot of people have already bought and taken advantage of the market so they are obviously no longer looking.

The big question is how much longer will this continue for and what does the small real estate agent in Spain do now they can’t get clients from the internet?

Interesting times ahead.

ARTICLE RESOURCES

http://www.spanishhotproperties.co.uk/

Cash is King in Spanish Property Bank Repossession Market

Property in Costa del Sol

Spanish Property in 2013

If you are considering buying a Spanish Bank Repossession who will surely find how much cash you use in the transaction will affect how much the bank is prepared to accept which is totally contrary to resale property purchases and those properties bought directly from the developer.

If you’re buying from a distressed vendor the only thing they consider is what they physically receive for a property so if you’re buying with cash instead of a mortgage your cash isn’t that big a thing to the property owner. The only exception to this is if the vendor is under a timeline to sell and his property could be repossessed if it’s not sold within a month in this case this owner will need to find a cash buyer for the property. The same principal applies to properties that are owned by a developer here the price the property is sold for will be dependent on the outstanding mortgage the developer has on the property and the reality is he will not sell it below that price as he would have to pay the difference. Again the developer isn’t concerned if its cash or mortgage he just wants the maximum he can get for the property.

However all these rules go out the window when buy bank repossession in Spain because the bank will always want cash. There was one Spanish bank that was the exception to that rule in that they were always prepared to lend up to 110% finance on their own properties to maintain their valuation or outstanding debt for the property but will now for the first time consider reducing their valuation of properties for cash buyers. Put very simply cash is king and if you’re a cash buyer then it’s Spanish Banks where you will get the best deals from.  The only issue is that is does the bank actually have a property you want to buy. The banks own a lot of stock no one wants to buy and normally when they have properties people want to buy they are snapped up pretty quickly especially villas.
However if you do find the right property and you are a cash buyer then you will be able to achieve a discount on the property that a buyer seeking a 90% mortgage would not be able to negotiate.  Even if you only had 50% cash you can be pretty sure the bank would give you some discount for that compared to a buyer seeking a 90% mortgage.

As stated above cash is king when looking to buy a bank repossession in Spain and if you want some help or further advice on how to take advantage why not give me a call at Spanish Hot Properties.

ARTICLE RESOURCES

Bank repossessions in Spain
Spanish Bank Repossessions