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Tag: Spain

Published on Leave a comment on Target: Spain’s Super-Rich

Government considers hiking income tax on Spain's highest earners

Under the proposed plans, the new levy would be imposed on net wealth in excess of EUR700,000, affecting an estimated 160,000 of Spain’s wealthiest individuals. Expected to yield around EUR1.08bn (USD1.48bn) a year for the government, the threshold for the proposed levy is around seven times the previous EUR120,000 2008 threshold to ensure that the middle class is protected from the measure.

The government's move follows an announcement by Spain's FinanceMinister Elena Salgado at the end of August, in which she explained that the government is currently considering the idea of ...continue reading "Target: Spain’s Super-Rich"

Published on Leave a comment on Selling Contiguous Apartments

A mystifying equation:  1 + 1 equals 2.5 on real estate

It's a new way to make better profit according the New York Times. "It applies to breakthrough combinations", says the paper, "in which someone buys two adjoining apartments and breaks through the connecting wall, or in some cases the floor or ceiling, to create a bigger place. The equation makes ...continue reading "Selling Contiguous Apartments"

Published on Leave a comment on Changed Spanish Property Market touching Recovery

The Spanish property market is finally starting to recover

The consensus is that demand is now growing, and that prices have fallen far enough, but that the market is still difficult and very different to what it was -- a fact that the road show planners seem to have missed.

The road show hopes to appeal to the mass-market, low end buyers, but these buyers relied on the loose lending that fuelled recklessness and over-development in the market, and also on the surge of confidence that came from house prices rising rapidly in their home countries.

So, now we have a Spain that is still over developed and over supplied, and where lending is hard to come by, but where prices are up to 70 per cent below peak 2007 prices. And it is that last fact that has the buyers coming back.

property-abroad.com

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Published on 1 Comment on Housing Market: China vs Spain

China’s property market at risk

China - Housing Market: China vs Spain

News that government measures to cool China’s sizzling property market were beginning to work have no doubt been a relief to many investors in the country.

Property, afterall, is particularly important in China, with property construction alone accounting for 15 per cent of China’s gross domestic product. But a report in Monday’s FTfm says it is not time to stop worrying yet.

Edward Chancellor, a member of the asset allocation team at investment manager GMO, looks at the parallels between the Spanish housing market bubble and the bubbles he thinks are still inflating in the China, Hong Kong and Singapore property markets.

The three respective authorities have all instituted measures to cool their property markets. Beijing has gone furthest. Over the past couple of years, the People’s Bank of China has raised bank reserve requirements nine times.

Chinese banks have been ordered to restrict lending to real estate developers. Households face a limit on the number of properties they can acquire. Beijing also plans to provide some 36m affordable homes over the next five years.

The trouble is that none of these measures will work, according to Chancellor. He points out that during Spain’s housing boom there was relatively low loan-to-values on mortgages. Spanish banks also kept mortgages on their balance sheets and there was no subprime.

Nothing the government did stopped the great Iberian housing bubble from inflating. Spanish home prices more than doubled between 2001 and 2006. Housing construction soared. The lending boom actually increased in intensity after the introduction of counter-cyclical capital rules.

ft.com

[youtube]http://www.youtube.com/watch?v=YcHlUZOs-5s[/youtube]

Published on Leave a comment on Spanish Luxury Property Market Resilient

Luxury properties are hot and running in Spain

"The lack of property finance available and changes to mortgage taxation have led to an overall slowdown in Spanish property sales in the first half of 2011 but the luxury property market has shown more resilience than other sectors of the market, a new report suggests.

International buyers are acquiring luxury properties in Barcelona, the Costa Brava and Ibiza without mortgage financing, according to an analysis of the Spanish luxury real estate markets by Lucas Fox International.

Its report on the first two quarters of 2011 also shows that there is a growth in property investment in Spain from Russian, Dutch, and Swiss buyers and investors. And tourism growth in Barcelona, the Costa Brava and Ibiza in 2011 has had a positive effect on demand for short term rental properties."

propertywire.com

Published on Leave a comment on Like it Pure and Simple
A rural resort in Andalucia, Spain

2 Sept Andalucia - Like it Pure and Simple

Andalucía: land of the whitest white and the purest simplicity. Here's a rural resort in Vejer de la Frontera.

“I’m very proud of it. It’s our house, but it’s quite special because it’s one of the few houses in the town which has retained the really traditional style.” - Christina.

2 sept jardín - Like it Pure and Simple

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Published on Leave a comment on The Hottest International Housing Markets

Hong Kong, Brazil or France are in the top list for real estate investment 

Even as the value of residential real estate around the developed world continued its multi-year plunge in the second quarter, some countries bucked the trend. In seven national markets, housing values rose by more than 5 per cent in the second quarter compared to the second quarter of 2010. In two countries, prices rose nearly 20 per cent.

Data from the Global Property Guide for second quarter real estate values around the world reveals values in the U.S. dropped by 9.05 per cent in the period. Predictably, Greece, Spain, Ireland, and Portugal are the other nations with deep housing value problems. In Greece, property values fell 9.9 per cent in the second quarter of this year from the second quarter of 2010. That drop was 15 per cent in Ireland. Each of these European nations has deep deficit problems and has instituted austerity packages, which have tended to hurt growth and employment. Also, each is in the process of being financially bailed out by other nations in the EU.

Among the top countries to invest are: Hong Kong, Brazil, Thailand, Taiwan, Norway, Singapore, France or Switzerland.

Read complete list here: 247wallst.com

Published on Leave a comment on US Stock Market: Post-Irene Rally or ‘Dead Cat’ Bounce?

Analysis of US stock market situation

Amid a sluggish U.S. job market, a patch-work recovery in the housing market sector, and now damage from Hurricane Irene, it's understandable if U.S. investors are hesitant regarding deploying new money to the stock market.

Conclusion regarding where the Dow Jones is headed, near-term:

Technical Indicators: Neutral. The Dow is firmly below the 50-day (11,937) and 200-day (11,988) moving averages -- which is bearish. However, the Dow, as noted, did hold support at/near 10,700.

Fundamental Indicators: Slightly Bearish. During the second quarter earnings season, corporate earnings were adequate to slightly better than expected.

Monetary Policy: Bullish. Inflation remains low, at the core level (which excludes food and energy prices). Fed will at least continue to reinvest the proceeds of the second stage of it's quantitative easing policy to help stimulate the economy.

Fiscal Policy: Bearish. The U.S. Congress, led by the Tea Party-pressured Republican majority in the U.S. House, implemented austerity measures too soon.

Credit Markets: Recovering, but still strained, with still too many small/medium-sized businesses arguing they're not getting the level of credit they need to expand operations. Home mortgage qualifications terms remain very high.

Europe's sovereign debt situation has improved somewhat, but there could be more financial market ripples if Portugal or Spain require a bailout. So far, each has said they won't need outside intervention funds.

ibitimes.com

Published on Leave a comment on Euro Zone’s Poorest Face Rising Home Foreclosures

Property market to be boost by the selling of public debt

"While a survey of the property market reveals global investors' growing appetite for repossessed homes, it also shows that Europe's poorest countries are worst off as they face rising repossessions while investment falls away.

The countries in the eye of the EU's economic storm – Ireland, Spain and Portugal and Italy – have "the highest net balance reading for likely forced selling," the survey conducted by the Royal Institute of Chartered Surveyors (RICS) reads.

In a worsening investment climate this is not good news for the EU's periphery".

euractiv.com

Published on Leave a comment on Spain cuts Property Tax

Spain has announced plans to try to tackle the severe problems facing its housing market

The Spanish Government has decided to try to create more demand for new properties by cutting IVA (VAT) from 8 to 4 per cent thus saving a property purchaser a sizeable €8,000 on a €200,000 purchase.

Spain's economy was plunged into recession following the collapse of its once-buoyant property sector.

The government is also hoping that building projects will help create jobs and cut the unemployment rate, which is one of the highest in the eurozone.

A reduction in tax paid on new properties and incredibly low prices are set to boost the Spanish property market, according to real estate professionals.

The 50 per cent reduction in VAT is applicable until 31st December 2011 and has been widely welcomed by the property industry.

bbc.co.uk