While mortgages is the UK are still hard to find, buyers of property in Spain have had it much easier to fund their purchase in the sun, with some recent sales going through on 80% loan to value deals.
The difference can be put down to McBroon himself, both as chancellor of the exchequer and, latterly as prime minister. His was the “light touch” on the banking tiller that allowed the Mad Men to take on toxic assets and venture into hitherto uncharted banking waters. This brought about the taxpayer emergency funding to keep the banks in business and much face saving for the McBroons.
There’s been none of this in Spain, where a single authority, the Bank of Spain regulates with an iron fist, laying down strong lending rules and no venturing into fringe activities. Result, just a single bank bailout of a minor caja in Castilla La Mancha.
As in the UK, the resultant recession has brought about many repossessions, with an estimate 74,000 properties being taken back by the Spanish banks (about 4.7% of total assets). Recent estimates put the value of property repossessed and unsold developer stock being swapped for debt by Spanish banks at about €16bn (£14bn).
Despite that, the Bank of Spain, in a further boost of confidence in the Spanish property market, has relaxed provisioning rules for lenders in a move that could help some banks avoid losses next year and allow others to strengthen their capital ratios.
The Bank of Spain told all banks that they would no longer have to set aside the full value of high-risk mortgage loans - those for more than 80 per cent of a property's value - after two years of arrears.
Instead, they would only have to provision for the difference between the value of the loan and that of 70 per cent of the mortgaged property. In the case of a mortgage for the total cost of a new home, for example, banks would provision for 30 per cent of the property's value.
The central bank also warned banks to "update" their Spanish property valuations, which means the current sales of repossessions will keep prices down for bargain hunting Brits and other north Europeans for about another year.
Banks and their specialist brokers are offering new or newly homes priced at 15% to 50% below current realistic valuations and registering buyers from across Europe and North America on a daily basis. Sometimes there are five bargain hunters chasing the same property – not surprising with such discounts and generous mortgages built-in.
Showing posts with label discount spanish homes. Show all posts
Showing posts with label discount spanish homes. Show all posts
23 July 2009
1 May 2009
IMF report boosts Spanish property
The IMF’s latest verdict on the Spanish economy, which is overall better than the one it presented on the state of the UK, suggests there will be recovery in 2010 after a decline of three percent in GDP this year.
That’s good news, as is the information that housing starts are down 20 percent, and that many of the empty, newly completed homes could well finish up in the rental sector because the Spanish Government is offering young couples a useful rent subsidy.
Take away the housing surplus, and demand – more than 300,000 sales a year currently - should begin to drive up prices again to the benefit of existing owners and those planning to purchase a property in Spain this year. Current prices are 30-40 percent below the peak and are unlikely to fall much further because sales are getting brisker at the present level.
Would-be buyers, hanging on in the hope of cheaper prices, may just be a mite disappointed. “Cheap” means “cheap” and rarely reflects the premium aspects of a property which are location, location, location. “Cheap” away from amenities like beaches, decent restaurants, good access to transport, remains just “cheap”.
Conversely “good value” would be a price paid for a property that was well-built and came with all the attributes that would benefit the new owner and help them to sell it when necessary. “Buy to sell” is the mantra of US realtors, and they are the best in the world.
It is currently possible to marry “good value” with a “good deal” in the Spanish real estate sector, as developers come under the cosh from their development funding banks. They are being innovative in their new beefed-up marketing activities.
One of the leading established property sources in Spain has offers that include “try before you buy”, 90 percent mortgages, 3-year rental guarantees, 40 percent discounts, purchase in sterling, view trip cashback vouchers, legal security paperwork etc.
Unlike many in the property boom years, these deals are often underwritten by the very bank putting the pressure on the builder/developer to generate the cash to finance their loan.
Working together in that way adds a lot of credibility to the offers and an incentive to book one of the summer flight bargains from Ryanair or Easyjet and for buyers to see for themselves what great value for money they can bag for themselves in the New Spanish Property Market.
They might find, as the IMF did, that life's looking a lot better in sunny Spain.
That’s good news, as is the information that housing starts are down 20 percent, and that many of the empty, newly completed homes could well finish up in the rental sector because the Spanish Government is offering young couples a useful rent subsidy.
Take away the housing surplus, and demand – more than 300,000 sales a year currently - should begin to drive up prices again to the benefit of existing owners and those planning to purchase a property in Spain this year. Current prices are 30-40 percent below the peak and are unlikely to fall much further because sales are getting brisker at the present level.
Would-be buyers, hanging on in the hope of cheaper prices, may just be a mite disappointed. “Cheap” means “cheap” and rarely reflects the premium aspects of a property which are location, location, location. “Cheap” away from amenities like beaches, decent restaurants, good access to transport, remains just “cheap”.
Conversely “good value” would be a price paid for a property that was well-built and came with all the attributes that would benefit the new owner and help them to sell it when necessary. “Buy to sell” is the mantra of US realtors, and they are the best in the world.
It is currently possible to marry “good value” with a “good deal” in the Spanish real estate sector, as developers come under the cosh from their development funding banks. They are being innovative in their new beefed-up marketing activities.
One of the leading established property sources in Spain has offers that include “try before you buy”, 90 percent mortgages, 3-year rental guarantees, 40 percent discounts, purchase in sterling, view trip cashback vouchers, legal security paperwork etc.
Unlike many in the property boom years, these deals are often underwritten by the very bank putting the pressure on the builder/developer to generate the cash to finance their loan.
Working together in that way adds a lot of credibility to the offers and an incentive to book one of the summer flight bargains from Ryanair or Easyjet and for buyers to see for themselves what great value for money they can bag for themselves in the New Spanish Property Market.
They might find, as the IMF did, that life's looking a lot better in sunny Spain.
30 April 2009
Brits missing out on Spanish house bargains
Spain's property market, completing a year-long readjustment that has seen house prices fall progressively to, typically, 30% below their previous value, is now offering amazing bargains for the savvy investor.
Sales are becoming brisker and one Costa Blanca agent hit the jackpot with a five-a-day sales record. Banking giant Santander, who had swapped developer debt for developer finished property, sold 350 of the key ready homes to its staff in no time at all and some developers concluded useful discounted sales runs by increasing prices of the next offerings.
That’s cheeky, but who knows what price levels will be like two years down the line. This level of confidence, with sales now running at 1,000 homes a day, has not yet been seen in the UK and other European markets so far.
Spanish property has suffered along with many other western European sectors, and has seen a fall off in the number British buyers looking for homes after a drop in the value of the pound. Now surviving developers and their banking partners are gearing for the return of Brit buyers.
However, property experts believe that UK residents are missing out on excellent property investment opportunities while investors from Russia, Scandinavia and the Benelux countries are snapping up incredible property deals. Some Spanish property firms have seen a massive increase in enquiries from UK investors since February. It is mainly from investor groups, who appear to be the only ones with funds available for multiple units.
But Brits, seeking a holiday home or future place for fulltime living, can bag their own bargains if they work with a reputable property firm offering genuine, fully legal bargains from partner banks who are happy to provide up to 90% LTV mortgages.
Not all of these repossessed and must sell properties are “cheap” because that does not allow for prime location, condition and access to airports, beaches, leisure and other amenities such as bars, restaurants and shops. They are definately the best value, specifically the brand-new, key ready apartments and villas, being sold at huge discounts by developers being pressured on their development loans by the Spanish banks.
UK buyers may decided that a good tan and relaxed lifestyle in Spain is better than being Browned-off” by the McBroon fiscal chaos and ratched-up taxation needed to remedy Britain’s economy over the next decade or so?
Sales are becoming brisker and one Costa Blanca agent hit the jackpot with a five-a-day sales record. Banking giant Santander, who had swapped developer debt for developer finished property, sold 350 of the key ready homes to its staff in no time at all and some developers concluded useful discounted sales runs by increasing prices of the next offerings.
That’s cheeky, but who knows what price levels will be like two years down the line. This level of confidence, with sales now running at 1,000 homes a day, has not yet been seen in the UK and other European markets so far.
Spanish property has suffered along with many other western European sectors, and has seen a fall off in the number British buyers looking for homes after a drop in the value of the pound. Now surviving developers and their banking partners are gearing for the return of Brit buyers.
However, property experts believe that UK residents are missing out on excellent property investment opportunities while investors from Russia, Scandinavia and the Benelux countries are snapping up incredible property deals. Some Spanish property firms have seen a massive increase in enquiries from UK investors since February. It is mainly from investor groups, who appear to be the only ones with funds available for multiple units.
But Brits, seeking a holiday home or future place for fulltime living, can bag their own bargains if they work with a reputable property firm offering genuine, fully legal bargains from partner banks who are happy to provide up to 90% LTV mortgages.
Not all of these repossessed and must sell properties are “cheap” because that does not allow for prime location, condition and access to airports, beaches, leisure and other amenities such as bars, restaurants and shops. They are definately the best value, specifically the brand-new, key ready apartments and villas, being sold at huge discounts by developers being pressured on their development loans by the Spanish banks.
UK buyers may decided that a good tan and relaxed lifestyle in Spain is better than being Browned-off” by the McBroon fiscal chaos and ratched-up taxation needed to remedy Britain’s economy over the next decade or so?
28 April 2009
Expert who may have got property figures right...
Governments and so-called experts have opinions and hunches but often are proved wrong within a short space of time – as shown by the fantasy budget produced by the McBroon Government in the UK and trashed by latest GDP figures, clever economists and the IMF concerns on the UK economy.
That got many Brits thinking about the dark years promised under the McBroons and the decades of high taxes to balance the books. Many of them made the obvious ontrast with living in a sunnier place with a brighter future, such as Spain. This, despite UK media reports on Brit pensioners stretched on their UK pensions paid in Spain.
Strangely the coverage didn’t include any criticism of the McBroon’s financial mismanagement and wrecking the once-strong sterling exchange rate and devaluing the pension by 45 percent or a net 16 percent allowing for lower living costs in Spain and the mortgage repayments that are now effectively lower. Mortgage interest in Spain has gone from rates of 6.25% in September to 3.25% today.
Gonzalo Bernardos, a professor of economics at the University of Barcelona believes that demand for property is tempered by the cost of mortgage borrowing. With interest rates declining, the clever prof. expects sales to pick up.
'There is a fundamental variable. People buy homes in response to mortgage costs, which have gone from rates of 6.25% in September to 3.25% today. We are talking, in general terms, of a fall in mortgage repayments of 40%,' he explained.
Likewise, property values have fallen by up 40% and the savvy buyer can find plenty of good bargains in prime locations. We are not talking “cheap”, but good value homes that can be expected to grow in value over three to five years of happy family holidays, rental income or fulltime living for the buyer.
So 40% lower price property, funded by 40% lower mortgage repayments, located in a country with 30% lower living costs is a formula that many McBrooned-off Brits will applying to their own finances and family aspirations.
Professor Bernardos believes that there will be more property sales in 2009 than there were in 2008. He lists five reasons why this is likely:
Lower interest rates, property prices now at 2003 levels, Spanish banks lending more, the return of property investors attracted by the bargains, and many people who were thinking of renting deciding to buy instead using the low mortgage rates.
However, the window of opportunity is short as “Sales will start to rise in 2009, whilst prices will stop falling in most places in Spain by the end of 2010,' he said.
That got many Brits thinking about the dark years promised under the McBroons and the decades of high taxes to balance the books. Many of them made the obvious ontrast with living in a sunnier place with a brighter future, such as Spain. This, despite UK media reports on Brit pensioners stretched on their UK pensions paid in Spain.
Strangely the coverage didn’t include any criticism of the McBroon’s financial mismanagement and wrecking the once-strong sterling exchange rate and devaluing the pension by 45 percent or a net 16 percent allowing for lower living costs in Spain and the mortgage repayments that are now effectively lower. Mortgage interest in Spain has gone from rates of 6.25% in September to 3.25% today.
Gonzalo Bernardos, a professor of economics at the University of Barcelona believes that demand for property is tempered by the cost of mortgage borrowing. With interest rates declining, the clever prof. expects sales to pick up.
'There is a fundamental variable. People buy homes in response to mortgage costs, which have gone from rates of 6.25% in September to 3.25% today. We are talking, in general terms, of a fall in mortgage repayments of 40%,' he explained.
Likewise, property values have fallen by up 40% and the savvy buyer can find plenty of good bargains in prime locations. We are not talking “cheap”, but good value homes that can be expected to grow in value over three to five years of happy family holidays, rental income or fulltime living for the buyer.
So 40% lower price property, funded by 40% lower mortgage repayments, located in a country with 30% lower living costs is a formula that many McBrooned-off Brits will applying to their own finances and family aspirations.
Professor Bernardos believes that there will be more property sales in 2009 than there were in 2008. He lists five reasons why this is likely:
Lower interest rates, property prices now at 2003 levels, Spanish banks lending more, the return of property investors attracted by the bargains, and many people who were thinking of renting deciding to buy instead using the low mortgage rates.
However, the window of opportunity is short as “Sales will start to rise in 2009, whilst prices will stop falling in most places in Spain by the end of 2010,' he said.
24 February 2009
Spain property Brit investment favourite
While the UK property market remains mired by the recession and the lack of confidence in the McBroon government and it’s cohort banks, British buyers are continuing their long love affair with Spain.
For yet another independent survey has revealed Europe’s Sunshine State is still the favourite destination for British buyers looking to invest in overseas property.
Director of the online investment portal, Property Abroad, Les Calvert, believes that the country's strength as a tourism destination means it will remain the ideal location to make a foreign foreign purchase.
His comments come on the back of a survey by the Spanish Property Owners Guild, which revealed that prices could drop 15 per cent over the coming year. Mr Calvert said: "Spain is still the most popular destination with overseas property buyers and that is almost completely undeniable.
"In the current economic climate, most people are buying-to-hold for the economic recovery and I would recommend buying a property in Spain … more so now than I would have a year ago."
Specifically, he identified the island of Tenerife as a Spanish region where prices have continued to increase, despite the global economic climate.
Leading specialists for Spanish bank repossessions and other bargains, PropertyinSpain.Net is reporting prices are increasing in Huelva province, a little known area of Costa de la Luz, where strong demand is encouraging local developers to edge up their asking prices.
Spokesman, Kevin Barnett said: “We see this as an early green shoot of recovery for the Spanish property market which is bottomed out with our best deals offering up to 50% discounts from banks and must sell private vendors.”
For yet another independent survey has revealed Europe’s Sunshine State is still the favourite destination for British buyers looking to invest in overseas property.
Director of the online investment portal, Property Abroad, Les Calvert, believes that the country's strength as a tourism destination means it will remain the ideal location to make a foreign foreign purchase.
His comments come on the back of a survey by the Spanish Property Owners Guild, which revealed that prices could drop 15 per cent over the coming year. Mr Calvert said: "Spain is still the most popular destination with overseas property buyers and that is almost completely undeniable.
"In the current economic climate, most people are buying-to-hold for the economic recovery and I would recommend buying a property in Spain … more so now than I would have a year ago."
Specifically, he identified the island of Tenerife as a Spanish region where prices have continued to increase, despite the global economic climate.
Leading specialists for Spanish bank repossessions and other bargains, PropertyinSpain.Net is reporting prices are increasing in Huelva province, a little known area of Costa de la Luz, where strong demand is encouraging local developers to edge up their asking prices.
Spokesman, Kevin Barnett said: “We see this as an early green shoot of recovery for the Spanish property market which is bottomed out with our best deals offering up to 50% discounts from banks and must sell private vendors.”
20 January 2009
Spanish homes attract bargain hunters
There is still plenty of interest in prime Spanish property as savvy buyers eye up the bargains along the Costas that are on offer from banks, must sell developers and hard-pressed private vendors. Sales of 1,000 homes a day are still being recorded by Spain’s National Institute of Statistics (INE).
Sales peaked in 2007 at an astonishing 600,000 sales a year, more than France, Germany and the UK combined and have declined since then due to over supply and the international credit crunch. Currently, sales are running at around one third less than the regular 50,000 a month.
The latest activity levels in Spain’s housing market fell by 37% in November 2008, compared to the corresponding month in 2007, according to according to INE. Figures show that 32,792 residential properties were sold in November, down from 51,753 a year ago. On a year to date basis, 11 months to September, sales are down by 33% for the country as a whole, compared to the same period last year.
In the most popular areas like Costa Blanca, Costa del Sol and the Balearics the falls are greater, probably due to developers resisting big price reductions, a stand that is expected to collapse this year as funding banks put the pressure on to sell off the homes started 18 months ago and now nearing completion.
With 1,000 sales a day the Spanish property market is clearly still offering good value for local and international buyers and there are still low cost mortgages available to British and other overseas buyers. Prices are back to the levels of nearly five years ago and there are bargains due to Spanish bank repossessions or because of developers’ new dash for cash as their development loans become due.
The best deals are within 800 metres inland of the Costa Blanca beaches, where a heady mix of key ready completions (with extra spec and incentives) and prime site resales (fully furnished with appliances and established neighbourhoods) can be snapped up at prices 50 percent below current valuations.
This coastal strip is attractive with sandy beaches and ranged behind are bars, restaurants, shopping and public open spaces that are the essentials of holiday and full-time living. Specialists like www.propertyinspain.net have 1,000s of properties in these areas which they define as “beachside” because the beach is the biggest influence on the location and asking prices. There are also bargains in “golfside” locations, with rentability almost as good as “beachside” apartments.
Bargain hunters are registering daily with the website and they receive useful advice and fact sheets on how to secure the bargains, some of which come with guaranteed 80% mortgages because of their excellent loan to value ratios.
Some Spanish banks are offering interest rates to Brits planning to buy in Spain and saving up for their deposits a generous 5.40% interest on three month deposits.
Sales peaked in 2007 at an astonishing 600,000 sales a year, more than France, Germany and the UK combined and have declined since then due to over supply and the international credit crunch. Currently, sales are running at around one third less than the regular 50,000 a month.
The latest activity levels in Spain’s housing market fell by 37% in November 2008, compared to the corresponding month in 2007, according to according to INE. Figures show that 32,792 residential properties were sold in November, down from 51,753 a year ago. On a year to date basis, 11 months to September, sales are down by 33% for the country as a whole, compared to the same period last year.
In the most popular areas like Costa Blanca, Costa del Sol and the Balearics the falls are greater, probably due to developers resisting big price reductions, a stand that is expected to collapse this year as funding banks put the pressure on to sell off the homes started 18 months ago and now nearing completion.
With 1,000 sales a day the Spanish property market is clearly still offering good value for local and international buyers and there are still low cost mortgages available to British and other overseas buyers. Prices are back to the levels of nearly five years ago and there are bargains due to Spanish bank repossessions or because of developers’ new dash for cash as their development loans become due.
The best deals are within 800 metres inland of the Costa Blanca beaches, where a heady mix of key ready completions (with extra spec and incentives) and prime site resales (fully furnished with appliances and established neighbourhoods) can be snapped up at prices 50 percent below current valuations.
This coastal strip is attractive with sandy beaches and ranged behind are bars, restaurants, shopping and public open spaces that are the essentials of holiday and full-time living. Specialists like www.propertyinspain.net have 1,000s of properties in these areas which they define as “beachside” because the beach is the biggest influence on the location and asking prices. There are also bargains in “golfside” locations, with rentability almost as good as “beachside” apartments.
Bargain hunters are registering daily with the website and they receive useful advice and fact sheets on how to secure the bargains, some of which come with guaranteed 80% mortgages because of their excellent loan to value ratios.
Some Spanish banks are offering interest rates to Brits planning to buy in Spain and saving up for their deposits a generous 5.40% interest on three month deposits.
9 August 2008
Is now the time for value property investment in Spain?
Like so many property markets around the world, Spain is struggling to recapture the heyday of years gone by. For a decade it was the only market over which British holiday makers and property investors became excited...
Until, in 2006, the emergence of other residential markets in Europe, combined with the ongoing credit crunch, brought Spanish property to a juddering halt. The growing number of unfinished developments as more developers go to the wall, will see future investors showing extra caution.
This is reminiscent of the market a decade ago when the property sector was dogged by unfinished properties and bad investment advice. It is now being mirrored in some of the so-called emergent markets where the early bargain prices have been replaced by new offers - often in the same price bracket as Spain.
Canny buyers have decided they have had enough of “cheapo” property in countries that, after the initial flush of bargains, are destined to remain niche players. Buying a place nobody wants to rent is a bad investment anywhere in the world, in a place few people want to go to, it’s a disaster.
While Spain may have thousands of unsold properties, and some being bought for a fraction of the original price, it remains the holiday destination of choice for most Europeans seeking sun, sand and a solid, modern infrastructure. Spain offers all that, on top of decades of warm welcomes for tourists and a support industry dedicated to giving every visitor a safe and happy time.
It was thus during Spain’s first property crisis of the Nineties, from which emerged the decade of property boom. History may be about to repeat itself as the ‘panic selling’ scenario is the first stage of a recovery and, currently, could mark the bottom of the market.
Like so many investment markets it is often the time to look again when there is evidence of panic selling as there are clearly savvy buyers gearing up to take advantage during the ongoing recovery. A 30 percent discount is a flying start in the rental market and can represent a worthwhile equity gain when everybody else decides it is time to buy…
Spain will always be a very important market to the UK ex-pat community and while the currency exchange rate is not helping in the short term there is no doubt that some investors are on the prowl for value investments at distressed prices.
Spain has been the strongest market for the longest period of time and one worth keeping a very close eye upon.
Until, in 2006, the emergence of other residential markets in Europe, combined with the ongoing credit crunch, brought Spanish property to a juddering halt. The growing number of unfinished developments as more developers go to the wall, will see future investors showing extra caution.
This is reminiscent of the market a decade ago when the property sector was dogged by unfinished properties and bad investment advice. It is now being mirrored in some of the so-called emergent markets where the early bargain prices have been replaced by new offers - often in the same price bracket as Spain.
Canny buyers have decided they have had enough of “cheapo” property in countries that, after the initial flush of bargains, are destined to remain niche players. Buying a place nobody wants to rent is a bad investment anywhere in the world, in a place few people want to go to, it’s a disaster.
While Spain may have thousands of unsold properties, and some being bought for a fraction of the original price, it remains the holiday destination of choice for most Europeans seeking sun, sand and a solid, modern infrastructure. Spain offers all that, on top of decades of warm welcomes for tourists and a support industry dedicated to giving every visitor a safe and happy time.
It was thus during Spain’s first property crisis of the Nineties, from which emerged the decade of property boom. History may be about to repeat itself as the ‘panic selling’ scenario is the first stage of a recovery and, currently, could mark the bottom of the market.
Like so many investment markets it is often the time to look again when there is evidence of panic selling as there are clearly savvy buyers gearing up to take advantage during the ongoing recovery. A 30 percent discount is a flying start in the rental market and can represent a worthwhile equity gain when everybody else decides it is time to buy…
Spain will always be a very important market to the UK ex-pat community and while the currency exchange rate is not helping in the short term there is no doubt that some investors are on the prowl for value investments at distressed prices.
Spain has been the strongest market for the longest period of time and one worth keeping a very close eye upon.
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