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The cost of buying property in the Canaries fell by 9.8 per cent while Balearic Islands prices grow up

islas baleares ibiza 300x203 - Balearics Keeps Property Prices UpAccording to recent data, demand for Real Estate in Spain's Balearic Islands is growing strong. Many people who choose to buy a property in Spain's Balearic Islands do so because of the aspirational nature of the archipelago.

Despite the Balearic Islands' appeal to overseas buyers, the value of homes in the archipelago - and on the Canary Islands - has fallen during the economic crisis that has hit Spain and other European nations.

The most recent figures published by Tinsa revealed the cost of buying a property in either the Canaries or Balearics fell by 9.8 per cent between March 2012 and the same month a year earlier. However, this is still below the average national decline of 11.5 per cent during the same period. 

Home mortgages fell 47.1 per cent, 22 consecutive months of decline 

Spanish Mortgages 300x199 - Spain Mortgages Biggest Drop Since 2004The number of home mortgages fell 47.1 per cent in February over the same month last year. This is the biggest drop since the statistics published in 2004. With 26,415 credit arrangements, this indicator marks 22 consecutive months of decline year-on-year, according to data released on Tuesday from the National Statistics Institute.

The drop in the number of mortgages granted on residential property was 9.4 per cent compared to January. The average loan amount was 104,868 euros, which is 14.6 per cent less than a year ago and 2.2 per cent less than the previous month. Cancellation of mortgages fell by 16.6 per cent.

The decline in mortgages registered on a property (total loans including rural properties, urban farms and houses) was 42.4 per cent, and the average loan amount came to 112,179, which is 12.5 per cent less than the year before. Changes in mortgage registrations reached 32,588, an increase of 4.8 per cent.

Changes on Interest Rates

24.9 of mortgages changed their interest rates. The percentage of fixed-rate loans fell after the change in conditions (from 9.3 per cent to 4.1 per cent of the total) since most of these loans were referenced to a variable interest rate.

All communities in February showed negative year-on-year variations in the constitution of mortgages, especially La Rioja (-70.8 per cent). Basque Country registered the highest average amount mortgaged, with 169,482 euros, followed by Madrid (153,671 euros). 

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Four things you need to consider when buying a property in Spain

house - Buying a House in SpainBuying a house is no easy task, let aside completing the transaction in an unknown country. Here are some tips to help handle the situation correctly:

1. Expenses: You need to take into account unavoidable extra expenses when buying a house in Spain. These include the services of legal advisors, translators, taxes, possible mortgage expenses and, most importantly, the services of a notary. The notario is the person responsible for drawing up the deeds (escritura), the tax due (registro catastral) and the registration of the names of the new owners in the Spanish property register (registro de la propiedad). and tax register (registro catastral); he charges fees to the vendor and purchaser, according to a fee schedule set by the government.

2. Translators: Contact a local translation company and pay for your own translator.

3. Exchange rate: If you want to avoid having to check exchange rates daily, consider paying for the services of a professional exchange company that can get the best deal for you however you want to pay.

4. Legal advice: Take care and get legal advice before signing any documents. In the case the construction of the property has not been started  at the moment you buy it, you will need to get proof of planning permission and plans of the property itself. 

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Millionaires choose Spain for holiday homes. Top cities: Mallorca, Marbella, Madrid and Barcelona

Pollenca 300x199 - Spain Amongst the Most Attractive Places to Buy a Holiday HomeThe Wealth Report published by Knight Frank and the City Private Bank highlights Spain as one of the most attractive places, amongst the wealthy, to buy a home in which to spend their holidays.

The study distinguishes between the options for investing in second homes among wealthy Americans, Latin Americans, Europeans (including Russians), Africans, Arabs and Asians.

Among the world’s wealthiest, Spain comes out as the fourth preferred country to buy a holiday home in, after the United States, the UK and France. Among Latin America’s richest, Spain is the second favourite, only behind the United States, and the fourth best destination for European millionaires’ holiday investments, after the UK, France and the United States.

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Marbella sees an increase in applications for opening licences

marbella - Commercial activity grows in MarbellaAccording to an article published in Sur In English.com, a total of 88 applicantions for opening licences were processed in Marbella between December 2011 and January 2012, 70 per cent were for new premises and the remaninder for businesses which had undergone a change in ownership. This shows that, in spite of the economical crisis, Marbella is still a safe value.

This figure is 50 per cent higher than in the same period of the previous year, the Town Hall’s Commerce department confirmed. “What this reveals is that the small business sector remains active in Marbella. Even though many businesses have been forced to cease trading, almost immediately another one opens up, either in the same premises or somewhere else", says the councillor José Eduardo Díaz.
 

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