Distressed property sales
0 Comments Published by Property Finder Online on Tuesday, July 15, 2008 at 1:18 PM.
It’s a buyers market in Spain, with a glut of investors and speculators desperate to sell – some prices are dropping so now is the time to grab a bargain…
Since 2002, the Spanish property market has been booming with professional off plan investors and enthusiastic amateur speculators buying up thousands of off-plan and re-sale property in any location. These investments offered a get rich quick, risk free, high return and many people have made a lot of money. However, due to the current global situation with increased fuel prices, the sub prime mortgage crisis and credit crunch, the market has temporarily slowed down, which has left many investors and speculators desperate to sell at reduced prices.
Experts predict that the property market is currently going through a period of adjustment and prices will inevitably rise again in the future. A distressed property market always breeds a new kind of investor.
It is important to note, however, that not all properties are being heavily reduced in price as it purely depends on the vendor’s personal circumstances. Demand for exclusive properties in sought after locations and on developments with added facilities will always remain high.
If you are in the market for a holiday home or permanent residence here in the Spain, now is the time to grab that bargain.
We have property from sellers who have stretched their finances too far to be able to complete on a property sale through to clients that have a change in personal circumstances and require a quick sale to return to their home country.
In every circumstance, our aim is to create a win/win situation where the seller gets a quick sale and the buyer acquires a property at prices much lower than the market value.
Remember....Spain still is and will always remain a favourite place to live and visit, so buying here still makes a lot of sense.
The fact that the long term fundamentals of the Spanish market are strong makes buying in Spain at the moment a very attractive proposition. This combines well with the continuous rental demand by holidaymakers, helping investors get more out of their properties than in other places offering cheap deals.
Sellers, it´s a tough market but there are buyers looking to cash in on genuine bargains, if you need a sale, contact us to list your property.
For further informatain visit www.distressedpropertymarket.com to find out more!!
Since 2002, the Spanish property market has been booming with professional off plan investors and enthusiastic amateur speculators buying up thousands of off-plan and re-sale property in any location. These investments offered a get rich quick, risk free, high return and many people have made a lot of money. However, due to the current global situation with increased fuel prices, the sub prime mortgage crisis and credit crunch, the market has temporarily slowed down, which has left many investors and speculators desperate to sell at reduced prices.
Experts predict that the property market is currently going through a period of adjustment and prices will inevitably rise again in the future. A distressed property market always breeds a new kind of investor.
It is important to note, however, that not all properties are being heavily reduced in price as it purely depends on the vendor’s personal circumstances. Demand for exclusive properties in sought after locations and on developments with added facilities will always remain high.
If you are in the market for a holiday home or permanent residence here in the Spain, now is the time to grab that bargain.
We have property from sellers who have stretched their finances too far to be able to complete on a property sale through to clients that have a change in personal circumstances and require a quick sale to return to their home country.
In every circumstance, our aim is to create a win/win situation where the seller gets a quick sale and the buyer acquires a property at prices much lower than the market value.
Remember....Spain still is and will always remain a favourite place to live and visit, so buying here still makes a lot of sense.
The fact that the long term fundamentals of the Spanish market are strong makes buying in Spain at the moment a very attractive proposition. This combines well with the continuous rental demand by holidaymakers, helping investors get more out of their properties than in other places offering cheap deals.
Sellers, it´s a tough market but there are buyers looking to cash in on genuine bargains, if you need a sale, contact us to list your property.
For further informatain visit www.distressedpropertymarket.com to find out more!!
Andalucia Property Market Summary
0 Comments Published by Property Finder Online on Monday, June 23, 2008 at 1:26 PM.
Although the 4th quarter figures are still to be published, comparing 3rd quarter 2007 with the same period in 2006 shows that across Andalucía property prices rose 6.7% on average, against a national average of 5.3%.
Within Andalucía, the best growth was in the province of Granada, at 9.7%, the worst Málaga, with 4.2%.
But, for several reasons, official figures in Spain can be somewhat inaccurate and are best seen as indicators of trends; all the indications are that property price inflation is slowing, although not necessarily as the same rate across all sectors of the market.
For example, while I would expect to negotiate ±25% off asking prices on the coasts of Andalucía, I might only manage 10% in the centre of Seville and even less in some of the prime country areas where demand for certain types of property may still outstrip supply.
In a country as large and diverse as Spain national averages ignore big regional variations and it is no different at the provincial level.
Andalucía is Spain’s largest autonomous region, covering nearly 20% of the Spanish mainland and is bigger, in fact, than several E.U. countries. So it should come as no surprise to find differences in the property markets in the eight provinces that make up Andalucía, ranging as they do from the affluent coasts of Málaga province to the less well-off rural interiors of Jaén and Huelva.
In effect, there a several property markets across the region and it makes more sense, therefore, to look at the different sectors separately.
Mark Stucklin (Spanish Property Insight)
Within Andalucía, the best growth was in the province of Granada, at 9.7%, the worst Málaga, with 4.2%.
But, for several reasons, official figures in Spain can be somewhat inaccurate and are best seen as indicators of trends; all the indications are that property price inflation is slowing, although not necessarily as the same rate across all sectors of the market.
For example, while I would expect to negotiate ±25% off asking prices on the coasts of Andalucía, I might only manage 10% in the centre of Seville and even less in some of the prime country areas where demand for certain types of property may still outstrip supply.
In a country as large and diverse as Spain national averages ignore big regional variations and it is no different at the provincial level.
Andalucía is Spain’s largest autonomous region, covering nearly 20% of the Spanish mainland and is bigger, in fact, than several E.U. countries. So it should come as no surprise to find differences in the property markets in the eight provinces that make up Andalucía, ranging as they do from the affluent coasts of Málaga province to the less well-off rural interiors of Jaén and Huelva.
In effect, there a several property markets across the region and it makes more sense, therefore, to look at the different sectors separately.
Mark Stucklin (Spanish Property Insight)
Distressed property - its a realty!
0 Comments Published by Property Finder Online on Thursday, June 19, 2008 at 1:17 PM.
Distressed properties in Spain are the result of recent changes in the local regulations and tax adjustment, forcing foreign investors to leave them off-plan due to improper funding or inability to afford adjustments in mortgage payments.
According to the Spanish real estate market, a large percentage of real estate investors are British and a large number of them have sold their properties at very reduced price. This situation has led to increasing distressed property sales in Spain that benefit new investors.
Therefore, repossession also affects local investors and the process is quite different in comparison to other countries.
In Spain, the failure to repay a mortgage is directly dealt with the Banks, which are the common lenders. Once a distressed property falls into repossession, it is sold to the first bidder and that enables true bargain prices for buyers and big loses for the original owners.
Even though, the nature of distressed property sales in Spain is to get rid of a property quickly before repossession occurs. In some other cases, investors put a deposit down on ongoing real estate projects with the hopes of selling these properties before the project is complete.
However, unfinished properties are not easy to sell, and a new distressed property is sold every day for a fraction of the cost to allow the owner to move in a new direction.
Distressed properties in Spain are a good option for investors with previous experience in the housing market or those who want to invest in real estate with limited capital. Even though the advice of a financial expert is always a big aid to help avoid a fall into costly mistakes with properties about to be repossessed, many people ignore this option.
While people keep experiencing financial difficulties to repay their mortgages, distressed properties are an option for overseas investment in Spain at very affordable prices.
Mark Stucklin (Spanish Property Insight)
According to the Spanish real estate market, a large percentage of real estate investors are British and a large number of them have sold their properties at very reduced price. This situation has led to increasing distressed property sales in Spain that benefit new investors.
Therefore, repossession also affects local investors and the process is quite different in comparison to other countries.
In Spain, the failure to repay a mortgage is directly dealt with the Banks, which are the common lenders. Once a distressed property falls into repossession, it is sold to the first bidder and that enables true bargain prices for buyers and big loses for the original owners.
Even though, the nature of distressed property sales in Spain is to get rid of a property quickly before repossession occurs. In some other cases, investors put a deposit down on ongoing real estate projects with the hopes of selling these properties before the project is complete.
However, unfinished properties are not easy to sell, and a new distressed property is sold every day for a fraction of the cost to allow the owner to move in a new direction.
Distressed properties in Spain are a good option for investors with previous experience in the housing market or those who want to invest in real estate with limited capital. Even though the advice of a financial expert is always a big aid to help avoid a fall into costly mistakes with properties about to be repossessed, many people ignore this option.
While people keep experiencing financial difficulties to repay their mortgages, distressed properties are an option for overseas investment in Spain at very affordable prices.
Mark Stucklin (Spanish Property Insight)
Stagflation, what does it mean?
0 Comments Published by Property Finder Online on Sunday, June 15, 2008 at 1:01 PM.
(article from Kyero.com)
Every day you'll find one 'expert' predicting continuing doom and gloom in the Spanish property market - and another 'expert' presenting the other side of the case. This week's news stories are no exception.
Some of them are just marketing messages wrapped in a veneer of 'expert opinion' - but even real experts disagree about what's happening in Spain and around the world. Not to be left out, here's my 'expert' opinion - courtesy of an article I've been reading by a real expert - Nobel winning economist, Joseph E Stiglitz.
One aspect which economists haven't had much experience of is the increasing likelihood that economic trends will have global impact rather than stay within the relatively simple confines of a single country.
This is because of a number of factors - including currency competition, foreign investment and the increasing trend of 'developed' countries to import essentials such as food and oil. When a country can no longer control it's own inflation by manipulating pricing, it loses one of its basic tools of financial control.
That's certainly what's happening in the US now and it's something they haven't had to deal with for almost 40 years. In the 70's they experienced increasing prices (inflation) and increasing unemployment which reduced the volume of purchases (stagnation).
This was when the term Stagflation was first coined - and it's happening all over again. The difference this time is that what is happening in the US is also being experienced by many other countries. They also interact with each other as the balance of imports and exports fluctuates.
Spain's banking policies of not investing heavily in high-risk, mortgage-backed investments have spared it the worst of this aspect of the credit-crunch.
This is just as well, because Spain had its own crisis well under way before we first heard the terms sub-prime and credit-crunch from the US. In reality, the entire economy of Spain had been over-invested in it's housing market for far too long.
Despite continued warnings from the European Central Bank and the UN, Spain kept building more and more homes and prices kept increasing until there were more homes than buyers.
Just as this started to bite in Spain, the rest of the world was having its first taste of stagflation because of high-risk investments. Just as Spain needed more foreign investment to soak up the excess properties, those buyers suddenly retrenched to their own countries - further aggravating the situation in Spain.
Of course, I'm generalising - houses are still being bought and sold in Spain - by Spanish and foreign buyers, but the volume of transactions has decreased dramatically.
Even though the causes of stagflation in Spain are different than in the UK and US, the effects are the same - high prices, high inflation, high unemployment.
In the mid to long term, this cycle will reverse but it's worth remembering that governments in this situation can't use any of their normal tactics to control all three of these variables at the same time. They simply have to allow market forces to run the show for a while and hope they can ride the storm (before the next general election).
The only action they can take with relative impunity is to provide financial incentives to businesses to generate revenue. Unfortunately, the entrepreneurial urge is not one of Spain's traditional strengths.
If I were in Zapatero's shoes (pun intended), I'd make the Spanish property market the most transparent in Europe by:
Publishing accurate housing statistics and making them available to everyone for free. This would put an end to the senseless speculation that drove the market to unsustainable highs in the first place.
Passing laws to remove the uncertainty of 'illegal housing' and 'land grab' which are currently holding back potential buyers.
Increasing the stock of long term rental property by raising taxes on hundreds of thousands of second homes sitting empty.
I expect the property market in Spain to bottom-out towards the end of this year, perhaps early 2009. I say this because there are already signs of serious investors entering the market and buying up thousands of bargain properties. These investment-fund buyers know they're probably not buying at the very bottom of the market, but they are buying at a substantial discount over where prices are likely to settle.
My hope is that between now and the upturn, Spain will apply their common-sense banking practices to their housing market and make it the envy of Europe. In doing so, they'll not only provide Spain with a more viable economy but they'll export some of that much-needed stability to its trading partners around the world.
Martin Dell, Kyero.com
Every day you'll find one 'expert' predicting continuing doom and gloom in the Spanish property market - and another 'expert' presenting the other side of the case. This week's news stories are no exception.
Some of them are just marketing messages wrapped in a veneer of 'expert opinion' - but even real experts disagree about what's happening in Spain and around the world. Not to be left out, here's my 'expert' opinion - courtesy of an article I've been reading by a real expert - Nobel winning economist, Joseph E Stiglitz.
One aspect which economists haven't had much experience of is the increasing likelihood that economic trends will have global impact rather than stay within the relatively simple confines of a single country.
This is because of a number of factors - including currency competition, foreign investment and the increasing trend of 'developed' countries to import essentials such as food and oil. When a country can no longer control it's own inflation by manipulating pricing, it loses one of its basic tools of financial control.
That's certainly what's happening in the US now and it's something they haven't had to deal with for almost 40 years. In the 70's they experienced increasing prices (inflation) and increasing unemployment which reduced the volume of purchases (stagnation).
This was when the term Stagflation was first coined - and it's happening all over again. The difference this time is that what is happening in the US is also being experienced by many other countries. They also interact with each other as the balance of imports and exports fluctuates.
Spain's banking policies of not investing heavily in high-risk, mortgage-backed investments have spared it the worst of this aspect of the credit-crunch.
This is just as well, because Spain had its own crisis well under way before we first heard the terms sub-prime and credit-crunch from the US. In reality, the entire economy of Spain had been over-invested in it's housing market for far too long.
Despite continued warnings from the European Central Bank and the UN, Spain kept building more and more homes and prices kept increasing until there were more homes than buyers.
Just as this started to bite in Spain, the rest of the world was having its first taste of stagflation because of high-risk investments. Just as Spain needed more foreign investment to soak up the excess properties, those buyers suddenly retrenched to their own countries - further aggravating the situation in Spain.
Of course, I'm generalising - houses are still being bought and sold in Spain - by Spanish and foreign buyers, but the volume of transactions has decreased dramatically.
Even though the causes of stagflation in Spain are different than in the UK and US, the effects are the same - high prices, high inflation, high unemployment.
In the mid to long term, this cycle will reverse but it's worth remembering that governments in this situation can't use any of their normal tactics to control all three of these variables at the same time. They simply have to allow market forces to run the show for a while and hope they can ride the storm (before the next general election).
The only action they can take with relative impunity is to provide financial incentives to businesses to generate revenue. Unfortunately, the entrepreneurial urge is not one of Spain's traditional strengths.
If I were in Zapatero's shoes (pun intended), I'd make the Spanish property market the most transparent in Europe by:
Publishing accurate housing statistics and making them available to everyone for free. This would put an end to the senseless speculation that drove the market to unsustainable highs in the first place.
Passing laws to remove the uncertainty of 'illegal housing' and 'land grab' which are currently holding back potential buyers.
Increasing the stock of long term rental property by raising taxes on hundreds of thousands of second homes sitting empty.
I expect the property market in Spain to bottom-out towards the end of this year, perhaps early 2009. I say this because there are already signs of serious investors entering the market and buying up thousands of bargain properties. These investment-fund buyers know they're probably not buying at the very bottom of the market, but they are buying at a substantial discount over where prices are likely to settle.
My hope is that between now and the upturn, Spain will apply their common-sense banking practices to their housing market and make it the envy of Europe. In doing so, they'll not only provide Spain with a more viable economy but they'll export some of that much-needed stability to its trading partners around the world.
Martin Dell, Kyero.com
Distressed Property Market in Spain
0 Comments Published by Property Finder Online on Monday, June 2, 2008 at 12:38 PM.
Distressed Property Market in Spain - It's a buyers' market on the Costa de Sol as there is currently a glut of properties that investors are desperate to sell. There are some real bargains out there, so its time to go bargain-hunting!
With this in mind, property finder have launched a new website highlighting some distressed property on the market. visit http://www.distressedpropertymarket.com/ to view a selection of repossession properties and property reduced for quick sale.
With this in mind, property finder have launched a new website highlighting some distressed property on the market. visit http://www.distressedpropertymarket.com/ to view a selection of repossession properties and property reduced for quick sale.
Now is the time to buy in Spain!
0 Comments Published by Property Finder Online on Thursday, May 22, 2008 at 12:07 PM.
A detached villa with stunning south facing views to the sea is currently available at an unbeatable price!! - now is the time to buy!
was €378,000 (bank valuation) - now just €260,000!!
Las mimosas is a development of 6 detached villas with private swimming pools boasting the most amazing views to the sea.
The villas are located in an elevated position above Torrox Costa and comprise 3 double bedrooms, 2 bathrooms, large lounge, kitchen and various terraces.
The properties have full bank guarantees, licences and all peperwork is in place. The villas will be finished in one year and will be built to a very high standard.
The villas have a bank valuation of 378,000€ and a mortgage available of 264,000€.
The last remaining villa has just come availble as the original buyer cannot complete.
Spanish Governments measures to stimulate the economy
0 Comments Published by Property Finder Online on Monday, April 21, 2008 at 11:31 AM.
The Spanish Government has approved, in the cabinet meeting on Friday, 11 measures to stimulate the economy and make things easier for families facing financial difficulty in the current economic slowdown.
The measures include the ability for those in difficulty meeting mortgage payments to extend the loan at no cost.
A new plan to improve a return to the workplace for the unemployed.
New credit lines made available to those who want to purchase protected or subsidised housing.
It’s all part of the 10 billion € packaged announced earlier in the week designed to stimulate the stagnating economy.
The 11 measures are, in brief:
1: Help for families with mortgage payments by extending the loan at no extra cost.
2: Tax reductions, including the famous 400 € income tax rebate for all workers, pensioners and self-employed.
3: The cancellation of Patrimonio Tax, expected to cost the treasury 1.8 billion €. The measure back dated to Jan 1 this year.
4: Help in the re-location of the unemployed to find work. This plan has a budget of 21 million €.
5: Help for companies, with 2 billion in credit for Pyme small businesses.
6: VAT/IVA Payments – Companies can ask for VAT refunds monthly from 2009.
7: Assisted housing – new ICO credits of 5 billion, 2 more than previously planned.
8: Public works – new measures to speed up public works tenders and completion.
9: House construction – Plan to build 150,000 assisted or protected homes each year, and to promote energy efficiency in new buildings.
10: The renovation of old buildings – When the cost of renovation is more than 25% of the purchase price, tax breaks will be awarded including the return of VAT.
11: Foreign Investment – The Government will improve the investment conditions for non residents of Spain.
The measures include the ability for those in difficulty meeting mortgage payments to extend the loan at no cost.
A new plan to improve a return to the workplace for the unemployed.
New credit lines made available to those who want to purchase protected or subsidised housing.
It’s all part of the 10 billion € packaged announced earlier in the week designed to stimulate the stagnating economy.
The 11 measures are, in brief:
1: Help for families with mortgage payments by extending the loan at no extra cost.
2: Tax reductions, including the famous 400 € income tax rebate for all workers, pensioners and self-employed.
3: The cancellation of Patrimonio Tax, expected to cost the treasury 1.8 billion €. The measure back dated to Jan 1 this year.
4: Help in the re-location of the unemployed to find work. This plan has a budget of 21 million €.
5: Help for companies, with 2 billion in credit for Pyme small businesses.
6: VAT/IVA Payments – Companies can ask for VAT refunds monthly from 2009.
7: Assisted housing – new ICO credits of 5 billion, 2 more than previously planned.
8: Public works – new measures to speed up public works tenders and completion.
9: House construction – Plan to build 150,000 assisted or protected homes each year, and to promote energy efficiency in new buildings.
10: The renovation of old buildings – When the cost of renovation is more than 25% of the purchase price, tax breaks will be awarded including the return of VAT.
11: Foreign Investment – The Government will improve the investment conditions for non residents of Spain.
