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

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.

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

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/

Why Do International Property Buyers Invest in Spanish Property

Buy property in Spain safely with Spanish Hot Properties

Buy property in Spain safely with Spanish Hot Properties

A simple and obvious question posed to me by a colleague today is why do people continue to buy Spanish property in such relative large numbers when on paper there are so many better places to make International property investments? We recently had a buyer who was about to pull out a sale and buy a property in Dubai instead. His reasoning was very simple the rental yields and investment potential was better than Spain. However he still wanted to pursue the sale in Puerto Banus, Spain. So the obvious question is why?

The truth is a very simple one in this recession with such brilliant property bargains to be had and so many amazing finance deals we have lost track of why people buy property in Spain. Yes people are looking for a great deal but in reality they are drawn to Spain and Marbella because of Sunshine, Location and most importantly lifestyle. The majority of our buyers say they are buying for investment but in reality they are not. They are buying for lifestyle.

A simple good example of this is two apartments in the same development with different prices means an investor will buy the cheaper unit because when he rents the property out he will get a better yield however the majority of our buyers will pluck for the more expensive one because it has a better view for when they use the apartment 3 weeks a year, clearly not an investment decision. I came to live in Spain because it was only 4 hours from my house in Andalucía to my meeting in London. This is something the more exotic destinations such as Barbados or even Dubai just can’t deliver. So when you are looking for a property bargain in Spain just remember the reason you’re buying, it’s for lifestyle not investment.

ARTICLE RESOURCES

Puerto Banus

Andalucía

8 Important Factors that Force Spanish Property Prices Down

luxury Villa in Marbella

Marbella Luxury Villas

With the Spanish property crisis continuing I thought it would be a good idea to take a look at the why property prices are so low and also see why these reasons don’t apply to luxury property sales in Marbella and Mallorca

1) Employment and expectations of finding a job: due to the unemployment rate in Spain (25%), most people are reluctant to commit themselves to buying a home. Obviously most people buying luxury villas in Mallorca or Marbella this is not a factor.

2) Financing: financing is non-existent in the real estate sector, and the granting of mortgage loans is unlikely to return to normal over the coming months due to uncertainty regarding the macroeconomic situation. In the current climate banks want to avoid any type of risk. Again the majority of buyers of luxury homes in Spain are cash buyers.

3) Interest rates: the euribor is at a record low level of 0.5%, which means that now would be a good time to take out a mortgage. However, the banks are applying ever higher differentials, a sign that they do not want to increase their property exposure any further. Again not a factor for cash buyers

4) Taxes and deductions: two factors which will push house prices down are the rise in VAT from 4% to 10% for new-build purchases and the end of home purchase tax deductions, which come into effect this year. However, falling house prices will offset the tax benefits which were available up until the end of 2012. So again not really an issue for would be high end buyers.

5) SOCIMIs and renting: the reform of Act 11/2009, which regulates SOCIMIs (listed real estate companies), has been approved with a view to incentivizing the house rental market. Furthermore, the government is currently pushing through a reform of the Lease Act, which shows that it is focusing on strengthening the rental market. According to Nick Stuart, the more rental housing available, the better for everyone and house prices will fall even further. Again this will have an effect but will be felt much more on the market below 600.000€

6) The stock of available housing: the more homes there are on the market, the lower house prices will fall. However, as Nick Stuart managing director of Spanish Hot Properties points out, the real estate market in Spain differs widely across local housing markets, and in some areas there is no stock of available housing, which means that this variable will be neutral with respect to house prices.

7) The creation of Sareb: the creation of Spain´s bad bank will not slow the downward trend in house prices, although it will not push them down either, in the opinion of the chief executive of a property valuation agency. In his view, the objective of Sareb will be the management and divestment of property assets, within a time frame of no more than 15 years. He added that Sareb will manage housing developments and land but will not sell homes to individuals. Instead, it will focus on institutional investors.  Again the reality is that very few desirable homes are repossessed in relation to the rest of the market.
8) Finally and most importantly it’s one word CONFIDENCE or currently the lack of it when that’s low coupled with bad international press for Spain then it’s always likely to dent house prices. However in relation to the luxury property market most people buying are very savvy and can see though these mirages or reasons not to buy.
So in conclusion property prices are likely to stay low for the a little while yet but we are already at the bottom for the luxury property market in Mallorca and Marbella

ARTICLE RESOURCES
Spanish Hot Properties
Marbella property

All Change at Spanish Hot Properties

SPANISH HOT PROPERTY LOGOlinked inSpanish Hot Properties has gone through some major restructuring over the last 6 months and we have changed from one site to 6 different sites but all under the name Spanish Hot Properties.

Each domain is designed to help buyers in their own languages and we now have the resources to look after those clients in their own language.

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

The most obvious one but this website caters for our biggest market, the English speaking one and covers all English speaking clients but especially those from Ireland and the UK.

http://www.spanishhotproperties.es/

The major reason for the change as we are a Spanish registered company it makes sense that the local market know we exist and know we have exceptional products if they want that higher level of service that they just won’t get from a local Spanish agent. Also the international property market in Spain is only 6% of the whole market so it’s a very big market to have a slice of.

http://www.spanishhotproperties.ru/

Another big part of our business with Russian speaking staff on the ground our Russian website is one of the few that has been professionally translated to a level that all Russian speakers can understand.

http://www.spanishhotproperties.fr/

The French speaking site really covers Belgium, France, Switzerland and some African countries but the majority of clients are coming from Belgium and France.

http://www.spanishhotproperties.de/

This is where our old .com site redirects to and just deals with the German speaking buyers from Germany, Austria and Switzerland.

http://www.spanishhotproperties.no.com/

This site not only deals with clients from Norway but for the whole of Scandinavia as most people from Sweden, Denmark and Norway understand each other’s language. This is another big market for us.

So whatever European language you speak we have the site for you and with Swedish and Dutch sites due in 2013 we more or less have every major European language covered.

Hopefully Spanish Hot Properties will be able to help you no matter what nationality you are.

 

 

Your Complete Guide to Buying Property in Spain

Buy property in Spain safely with Spanish Hot Properties

Quite simply Spain has something for everyone and is the chosen second home or holiday home location for all of Northern Europe. Whilst UK citizens make up about half of all international Spanish property purchasers there are still plentiful buyers of Spanish property from Scandinavia, Finland, The Netherlands, Belgium, Germany and Russia (to name but a few) who are attracted to Spain for its year-round sun, stunning scenery, brilliant golf courses, excellent transport and, most importantly, the Spanish way of life. Increasingly, more people are looking to change their lives and lifestyle. Spain is becoming not only a holiday home destination, but somewhere to emigrate tofor the long term. With the fantastic flight and Airport infrastructure you can travel directly to almost anywhere in the world from Spain at competitive prices. So, a businessman based in Málaga could easily live there and still run a successful business in Northern Europe.

How do I reserve my dream property?

Once you have found your ideal property then you will need to place a reservation deposit which is currently 6000 Euros. Deposit payment can be made by credit card or bank transfer and will be held in your name. Wedon’t recommend that you carry cash in your pocket but do ensure that this sum is readily available as a delay could mean your dream becoming another person’s reality. Payment of this sum fixes the price, confirms your intention to buy and means that the property is taken off the market and reserved for you and will stop you getting gazumped.

How do I obtain a Mortgage and what costs are involved?

If required. It is important to select the mortgage that is right for you,taking into consideration your personal circumstances. It might be that you prefer to raise capital in your home country before arriving in Spain. Do let us know if you require a Spanish mortgage so that we can advise you prior to your departure to bring with you all the necessary documentation and receive the expert advice you need. If you require a mortgage and prefer to use a Spanish lender you will usually be able to borrow up to 70% of the value of your property repayable over 10 – 30 years depending on your age. Generally your repayments must not exceed 35% of your net monthly income or joint monthly income if two people are applying. Costs involved can amount to 3 – 4 per cent of the amount you are borrowing. Spanish Hot Properties would also recommend that you consult our approved mortgage broker prior to your visit so they can help you ascertain what options would be available to you.

Should I use a Spanish Lawyer?

Probably the most important step is to instruct a Lawyer. We recommend that you select someone with local knowledge who speaks your language. Spanish Hot Properties believes using a Spanish Lawyer is a must. Your lawyer will carry out numerous checks to ensure that your chosen property is indeed owned by the person selling it and that it has been marketed correctly. Your lawyer will also ensure that there are no undeclared debts owing on the property and that all service bills and taxes are paid up to date. Using a lawyer safeguards your investment and means that when you receive ownership of your property you will not inherit any outstanding debts.

What costs are involved in buying a property in Spain?
The purchase taxes vary depending on whether you buy a new build property or a resale:

New Build property:
• Stamp duty – 1.5% of the purchase price
• No transfer tax
• VAT, at 4% (reduced from 8% in 2012) Due to increase to 10% on 1 January 2013
Resale property
• No stamp duty
• Transfer tax – 8% of the first €400,000 and 9% on over €400.000 and 10% over €700,000.
• If buying with a mortgage besides the normal costs, it will also be necessary to pay stamp duty on the mortgage liability amount at 1.8%
Additional costs
• notary fees which may range from 300 – 1.000€ depending on the price of your property
• fees to register the property of about 60% of the notary charge.These amounts will will be around 10% to 11% of the purchase price.

What is my budget?
This is the most important question you should ask yourself before you begin your property search. Work out your budget and then deduct 10% buying costs from that budget. Now visit the home page of our website and go to our specialized property search and check out the various properties on offer. Alternatively you can contact us with your budget and somebody from the Spanish Hot Properties team will send you a selection of the best available properties for your budget.

What if I still can’t decide?

That’s one of the easier question to answer just contact Spanish Hot Properties and one or our dedicated team will only be too pleased to discuss your own situation in
detail and give you the correct advice to put you on track on for your Spanish property search. We will also be able to help you with any specific questions with regards to living in Spain and any other general questions that you may have.

We hope you have found this article helpful and below are some useful authority links if you want to investigate further.

Property in Spain

Buying property in Spain UK goverment advice

Spanish Hot Properties Now in Six Languages

We are really pleased to announce that we have completed the final part of Phase two of our complete website overhaul. Whilst most of the work on the website has been at the back office to accommodate local and international agents who are sending us more and more clients the front end has the addition of two very important languages Norweigan and French. This now brings the final total of languages up to 6 after English, Spanish, Russian and German
At Spanish Hot Properties we fully appreciate the changing and diverse Spanish property market and no longer can an International property agent rely just on UK clients. In 2008 60% of all International property purchases were bought by UK citizens but in 2011 that dropped to 18%. In Alicante Russians are now the number one buyers of Spanish property.
With the six languages at our disposal we now in reality cover all of Western Europe and most of east. For example most Danes and Swedes speak Norwegian and most of the eastern block has some understanding of Russian or German. This is important for vendors who know that they have every opportunity to sell their property if they put it up for sale with us.
Property buyers from Norway make up about 5% of the market but when you add Sweden and Denmark into the equation its closer to 12% so this will help enormously in increasing awareness and sales from this part of the world.
Property buyers in France and Belgium actually make up the second largest group of buyers behind that of the UK, However that is a little misleading as that would include a lot of sales in the Tarragona, Girona and Barcelona regions just over the French border. However most Belgium citizens who buy will be looking in Costa del Sol.
We hope that all our new visitors from France and Norway appreciate our site and service standards just like our other visitors. For more information about Spanish Hot Properties just call us or fill in a contact form on the site.

France

Norway