Property prices in Spain have never been so low for half a decade and it’s safe to say that now is the time to buy because it won’t be long before the property prices start to climb back up.
Russian, north European and, lately British buyers, are taking a new look at the many bargains from Spanish bank repossessions and distressed sellers and sales are running at 1,000 homes a day.
Brits and Russians are fed-up of the way things are going domestically with their Governments helpless to stop the job and pension losses and decline in standards of living. Many people have had enough and are looking for that traditional antidote of Spanish sun, sand and sangria with a fresh tonic of legal property bargains.
As the UK fills up with immigrants (legal and otherwise), many of whom are looking for that free house and hand-outs from our over-generous, afraid-to-upset-anyone Government… some Brits are desperately trying to get out. They have seen the Government-generated debts being clocked up on Sky News screens at a terrifying rate of £150 million a day and the IMF warning of a total of £140 billion needed to be repaid at some stage in the future.
UK property values are down nearly two percent a month, year on year which is reflected in shrinking spending power and savings of your average British family. Pensions, funded by shares values, have plummeted by half and the McBroon Government state pension increase this week is “like spitting in the wind”, said one poor pensioner. Where’s the interest on savings from the useless banks that probably caused the recession in the first place?
Anyone with equity in their UK property or people with a decent amount of savings should be looking at the option of buying property elsewhere. Spain at the moment is starting to become the favourite once again!
So if you are unsure about you future in the UK, start looking for Spanish property - now is the time to buy, don’t wait too long before you visit this website for some great bargains.
Showing posts with label property prices. Show all posts
Showing posts with label property prices. Show all posts
6 April 2009
28 February 2009
Why the Spanish property bubble burst
As the dust settles on the mired property markets of Europe people are beginning to question how and why such a seemingly strong investment proved to be disastrous for many investors and families.
In Spain, the reason for the Sunshine State’s property bubble and its subsequent collapse, are being discussed and the answers provided make a lot of sense and carry warnings about the future behaviour of Governments, banks, developers and property professionals.
The conclusion so far from various debates by academics and industry insiders seems to suggest the Spanish economic miracle was a mirage, because the country was dedicated to building homes that people would not have wanted to buy had they known how little they would be worth in the future.
A house is only valuable as something in which to live. And if no one wants to do so, then it is not worth anything. Spanish, British and other north Europeans have purchased flats under construction or which will be visited only a few days a year, not because buyers were eager to consume housing, but because they thought they were a store of value for the future.
Furthermore, many banks and building societies provided big loans to developers and builders, many of whom cannot repay the loans and if they are allowed to go bust, could lead to bankruptcy for banks and cajas (building societies). Municipalities have enjoyed unsustainable revenues due to land reclassification and the waste to which they have become accustomed is over.
Cars and other consumer items that households bought during the property boom years were mistakes as they could not afford to buy because they were not as rich they thought. This led a complete distortion of the fabric of the Spanish economy.
Finally, as this kind of unsustainable activity has stopped, the economy has entered recession, although there are now a lot of well-priced bargain homes from Spanish banks and anxious, must sell owners.
Why did two successive Spanish governments and the Central Bank of Spain, despite numerous warnings on over-priced housing, not attempt to stop the bubble?
First, because the construction sector is labour intensive, which is important in a country with a high unemployment rate. Secondly, because an increase in the value of housing benefits the average voter, who is the owner of his home. And thirdly, because the real estate sector generates substantial revenue for the public sector at national, regional and municipal levels.
For example, in 2004, it accounted for 60% of the budget (excluding liabilities and current transfers) of Valencia and 50% of Madrid.
Lessons for the future? The best counter measure for house price inflation has got to be accurate price monitoring and production of benchmark prices at every level of the market. The Spanish Ministry of Housing has not been a reliable, accurate source and the replacement source, the National Institute of Statistics not much better.
Recently, the property registries themselves have been publishing the notarised transactions and the figures from TINSA, the big valuations company have been accurate and true reflection of prices gained from the frontline by their 3,000 frontline valuers.
There has to be increased planning credibility to avoid the disasters of the Valencia Land Grab and homes bought in in good faith being threatened with demolition because in retrospect the “planning permissions” granted by dodgy local mayors were more about revenue than community.
And Brit buyers should commit to a property in Spain only if they want a holiday home at a realistic price and to have lots of family fun and cool-out time while seeing an investment return over a number of years.
Now would seem an ideal time to grab a bargain, enjoy the fulltime or holiday lifestyle that comes with it and spend years immersed in the sunshine and culture of Spain...
In Spain, the reason for the Sunshine State’s property bubble and its subsequent collapse, are being discussed and the answers provided make a lot of sense and carry warnings about the future behaviour of Governments, banks, developers and property professionals.
The conclusion so far from various debates by academics and industry insiders seems to suggest the Spanish economic miracle was a mirage, because the country was dedicated to building homes that people would not have wanted to buy had they known how little they would be worth in the future.
A house is only valuable as something in which to live. And if no one wants to do so, then it is not worth anything. Spanish, British and other north Europeans have purchased flats under construction or which will be visited only a few days a year, not because buyers were eager to consume housing, but because they thought they were a store of value for the future.
Furthermore, many banks and building societies provided big loans to developers and builders, many of whom cannot repay the loans and if they are allowed to go bust, could lead to bankruptcy for banks and cajas (building societies). Municipalities have enjoyed unsustainable revenues due to land reclassification and the waste to which they have become accustomed is over.
Cars and other consumer items that households bought during the property boom years were mistakes as they could not afford to buy because they were not as rich they thought. This led a complete distortion of the fabric of the Spanish economy.
Finally, as this kind of unsustainable activity has stopped, the economy has entered recession, although there are now a lot of well-priced bargain homes from Spanish banks and anxious, must sell owners.
Why did two successive Spanish governments and the Central Bank of Spain, despite numerous warnings on over-priced housing, not attempt to stop the bubble?
First, because the construction sector is labour intensive, which is important in a country with a high unemployment rate. Secondly, because an increase in the value of housing benefits the average voter, who is the owner of his home. And thirdly, because the real estate sector generates substantial revenue for the public sector at national, regional and municipal levels.
For example, in 2004, it accounted for 60% of the budget (excluding liabilities and current transfers) of Valencia and 50% of Madrid.
Lessons for the future? The best counter measure for house price inflation has got to be accurate price monitoring and production of benchmark prices at every level of the market. The Spanish Ministry of Housing has not been a reliable, accurate source and the replacement source, the National Institute of Statistics not much better.
Recently, the property registries themselves have been publishing the notarised transactions and the figures from TINSA, the big valuations company have been accurate and true reflection of prices gained from the frontline by their 3,000 frontline valuers.
There has to be increased planning credibility to avoid the disasters of the Valencia Land Grab and homes bought in in good faith being threatened with demolition because in retrospect the “planning permissions” granted by dodgy local mayors were more about revenue than community.
And Brit buyers should commit to a property in Spain only if they want a holiday home at a realistic price and to have lots of family fun and cool-out time while seeing an investment return over a number of years.
Now would seem an ideal time to grab a bargain, enjoy the fulltime or holiday lifestyle that comes with it and spend years immersed in the sunshine and culture of Spain...
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.”
1 October 2008
Spanish homes prices puzzle
House prices in
On an annual basis, Spanish house prices fell for the first time in over a decade during the second quarter of 2008 and data pointed to sharper declines once new homes begin to lose value, according to the National Statistics Institute (INE) in its first housing report. Amazingly, the report also found that new homes gained in value over the last quarter.
The decline, compared to a 2.8 percent increase in first quarter prices, was driven by a big fall in the value of existing homes between April and June, the INE reported. Overall, house prices have fallen 0.7 percent in the first six months of 2008, according to the INE survey. However, separate Housing Ministry data shows only 0.3 percent fall in second quarter prices - the first they have recorded since the early 1990s.
Analysts agree the INE index is more realistic than Housing Ministry data, which showed prices rose 2 percent year-on-year in the second quarter. Resale properties are leading the lower prices, down 4.9%. We are all surprised the INE reported new homes gained in value 5.3% in some areas between April and June.
House prices in
So resale Spanish house prices are declining by 4.9% while new house prices are increasing by 5.3% and there is an overall decline of 0.7%? Compared with the
In reality, the highest ever Euribor rate of 5.5% is causing an increase in Spanish bank repossessions and as the loan to value ratios tend to be modest by
Because of the relatively low numbers of Must Sell property, the impact on the national statistics, is minimal, but can be expected to rise as the high interest rates – still lower than those in the
Subscribe to:
Posts (Atom)
