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.

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

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