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Closing the Deal in Spain

SpainHouses.netMay 10, 2012August 5, 2019Leave a comment

Closing: How to Make Sure Things Go Smoothly

When you buy a house or an apartment, there are several steps: You decide how much money you can spend; find a property you like; make an offer; negotiate an acceptance; sign a contract; line up your financing, and then close on the property.

So, in some sense closing is what you’re working towards. It’s the point where you sign the papers that make the home legally yours, and it’s usually when you get the keys.

Let’s take a look at key tips when closing:

1. Legal advice: Take care and get legal advice before signing any documents. A lot of property in Spain is sold before building has even started, in which case you will need to get proof of planning permission and plans of the property itself, and often foreign people sign contracts thinking they are expressing a formal interest in building plans whereas in fact they are legally binding themselves to a house sale.

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New Push to Uphold Spanish Banks

SpainHouses.netMay 9, 2012August 5, 2019Leave a comment

According to an article reading in El País, the government may inject public funds into the banking system if this is necessary to save the banking system.

The government had guaranteed not to give money to the banking industry which is struggling in the wake of a collapsing ten years of housing boom.

"If it was necessary to reactivate credit, to save the Spanish financial system, I wouldn't rule out injecting public funds, like all European countries have done," Mr. Rajoy said in interview with Onda Cero radio stations.

On the other hand, an official at Spain's finance ministry said measures that are expected to be approved by the cabinet on Friday will include guidelines to remove impaired real-estate assets from banks' balance sheets.

The segregation of toxic assets is seen as key to completing the clean up and calming investors.

The Spanish finance ministry official explained that the government and central bank are studying a specific cleanup plan for Bankia SA and Banco Financiero y de Ahorros SA, which could include a total change of their management. Newspaper El País said Monday the government also plans an injection of state funds via convertible bonds with a rate of about 8 per cent.

Sources: El País, Wall Street Journal.

Balearics Keeps Property Prices Up

SpainHouses.netMay 3, 2012March 31, 2020Leave a comment

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

According 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.

Spain Mortgages Biggest Drop Since 2004

SpainHouses.netApril 26, 2012August 5, 2019Leave a comment

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

The 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).

Buying a House in Spain 1

SpainHouses.netApril 19, 2012August 5, 20191 Comment

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

Buying 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.

Spain Amongst the Most Attractive Places to Buy a Holiday Home 1

SpainHouses.netApril 12, 2012August 5, 20191 Comment

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

The 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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Commercial activity grows in Marbella

SpainHouses.netApril 9, 2012August 5, 2019Leave a comment

Marbella sees an increase in applications for opening licences

According 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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Changes in the Spanish property lending market

SpainHouses.netMarch 29, 2012April 2, 2020Leave a comment

The Spanish government is trying to put the country mortgage market back on track, and it is forcing takeovers and mergers to accelerate the change.

Banco Sabadell acquired CAM bank for €1 in December 2011 and BBVA acquired Unnim bank for the same price this month, and Catalunya’s CaixaBank has purchased Banca Cívica, becoming the leading financial institution in Spain in terms of assets.

Although Spain did not have official subprime mortgages as the United States, in the late 2000s it did fall into unrealistic mortgages, which consequences nowadays are banks having to repossess a meaningful number of properties, converting them in enormous real estate owners with no buyers.

‘As the property market in Spain boomed, many banks took a naive approach to lending money and they are suffering for it now. Whilst the UK has various checks and balances in place to prevent the recurrence of scandals such as the endowment mortgage mis-selling of the 1980s and 1990s, Spain has yet to get a watertight grip of its financial products although Rajoy is making huge strides,’ explained Marc Elliott, independent mortgage consultant and owner of Fluent Finance Abroad.

‘Deals such as those seen in the past are either non existent or hard to find but if you have a good income and clean credit history the banks will lend. Certain banks did not fall into the reckless subprime trap and are lending pretty much as they were prior to the credit crunch,’ he pointed out.

‘If you are a first time buyer and you don’t have a large cash deposit then it might be wise to consider a bank property. If you have a sizeable deposit at your fingertips it would probably be better to look at the traditional real estate market as these properties tend to be slightly better value for money,’ said Elliott.

‘At the moment banks are looking to get the best price possible for their properties to try and recoup the original funds that were lent, they do this is by slightly inflating asking prices and offering excellent finance terms such as little or no money down deals,’ he added.

‘Always speak to more than one mortgage consultant to make sure you are satisfied that you are getting the best person to represent your interests. If anyone suggests that obtaining mortgage finance in Spain is easy, they are not being completely truthful,’ said Elliott.

Source: Property Wire

propertywire.com

Spanish Office Market Goes Down

SpainHouses.netMarch 22, 2012March 31, 2020Leave a comment

300,000 square metres of new offices are expected to come on to the market in Madrid over the course of 2012

According to an article published in Global Real Estate, the office market in Madrid appears to have taken a downward turn since the beginning of 2012. The vacancy rate in the Spanish city has been creeping up over the past few months, while a rising supply of such commercial properties coupled with falling demand is putting pressure on rents.

300,000 square metres of new offices are expected to come on to the market in Madrid over the course of 2012; however, demand is sliding, with many occupiers choosing to downsize due to the current economic climate.

On average, the rent charged for Spanish commercial real estate in Madrid's central business district is now nearly 40 per cent below its peak, and the organisation is forecasting prime rents will stand at 309 euros per sq m per year by the end of the first quarter of 2012.

Barcelona also made it into the top ten, ranked as the seventh most desirable location in which to have retail premises on the continent.

New Andalucia Rules Attract Scandinavians

SpainHouses.netMarch 8, 2012Leave a comment

New Andalucian Property Legislation aims to legalize almost 300.000 buildings

Almost 300.000 illegal buildings in Andalucia are about to be regularized as the New Andalucian Property Legislation comes into effect this month.

The decree, which affects all of Andalucia, aims to legalise many of the buildings constructed on rural land. Nevertheless this still leaves a large number of properties that for one reason or another will not qualify for the legalisation process.

This has attracted the attention of potential clients from Scandinavian countries looking to buy property in the Axarquia area, especially around La Viñuela reservoir, according to a report in local Spanish daily La Opinión de Malaga.

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