Within Spanish property urbanisations, the issue of security is undoubtedly the single biggest bone of contention. Some owners of properties in Spain will be fully in favour of a 24 hour security service, perceiving it to be a valuable benefit for residents´ peace of mind and the reputation of the development, others will only see the benefit of a nightime service, while others will be completely set against having any type of security service whatsoever. The problem for many owners of Spanish properties is the cost. Think about it. Having 24 hour security effectively means that the owners will be paying the annual salaries of 3 security guards from their community fees. That´s all well and good if the expense can be diluted amongst 1000 property owners on a large scale development such as the Polaris World development of La Torre Golf Resort in Murcia, but if you are are one of only 30 properties within a community with 24 hour security, the cost of the service for each owner can be huge. Before you buy a property in Spain , work out what´s important to you - do you really want or need 24 hour protection?, or could you make do with good locks and a burglar alarm?. How important to you is peace of mind?….and of course, how much are you willing to pay if you decide that you want to be protected? Related Posts Communal Living in Spain - A Few Things to Consider Fancy Communal Living – Think Carefully! Communal Living - Think About the Swimming Pools!

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Communal Living - How Secure is Your Security?

Within Spanish property urbanisations, the issue of security is undoubtedly the single biggest bone of contention. Some owners of properties in Spain will be fully in favour of a 24 hour security service, perceiving it to be a valuable benefit for residents´ peace of mind and the reputation of the development, others will only see the benefit of a nightime service, while others will be completely set against having any type of security service whatsoever. The problem for many owners of Spanish properties is the cost. Think about it. Having 24 hour security effectively means that the owners will be paying the annual salaries of 3 security guards from their community fees. That´s all well and good if the expense can be diluted amongst 1000 property owners on a large scale development such as the Polaris World development of La Torre Golf Resort in Murcia, but if you are are one of only 30 properties within a community with 24 hour security, the cost of the service for each owner can be huge. Before you buy a property in Spain , work out what´s important to you - do you really want or need 24 hour protection?, or could you make do with good locks and a burglar alarm?. How important to you is peace of mind?….and of course, how much are you willing to pay if you decide that you want to be protected? Related Posts Communal Living in Spain - A Few Things to Consider Fancy Communal Living – Think Carefully! Communal Living - Think About the Swimming Pools!

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Communal Living - How Secure is Your Security?

It’s been a very strange week for Spanish property. It all started (from my point of view) with a story about CAM Bank in last week’s newsletter. If you’ve already registered to receive more information about their cheap, distressed and repossessed properties , you’re in good company, because hundreds of other people did too. What surprised me was how quickly so many people responded to CAM Bank’s offer. I think it surprised CAM Bank too. Aren’t we supposed to be in a recession? Isn’t Spain supposed to be one of the worst-affected countries in Europe? I also received emails of concern from estate agents saying that, while the CAM Bank campaign was good news for buyers and vendors, it was definitely bad news for estate agents who were being cut out of the loop. I replied saying that I believed anything which stimulates activity in the Spanish property market must be welcome - and would eventually trickle down to benefit every participant. As it turns out, I didn’t have to wait too long to find out if I was right. Last Tuesday - the day I issued the CAM Bank announcement - was the biggest traffic day ever for Kyero.com. In terms of property page views and general enquiries made to estate agents, it was the biggest ever since we opened our doors in 2003. Then Wednesday was even bigger. Thursday was bigger again, and Friday was the biggest Friday ever .. This isn’t a Kyero-only phenomenon. Earlier this week, Rightmove.com reported that Spain topped their charts for property searches in February. Here’s what I think is happening: The speed and volume of response to the CAM Bank campaign demonstrates that there are people able and willing to invest in Spanish property. What they’ve been waiting for is a clear demonstration of property being made available at prices significantly below market value - because ‘market value’ in Spain could mean almost anything. Once buyers became convinced that genuine distressed and repossessed properties were being made available, interest returned to the market in general. Let’s be clear: I’m definitely not saying that everything’s all OK now and the Spanish property market has turned the corner. I’m saying that when the market provides what buyers are looking for, buyers respond. Hardly rocket science, I know - but the flurry of interest in CAM Bank demonstrates to me that buyers’ needs were not being met before. This hypothesis is pretty much echoed in the OPP article: Spanish Property: Discounting Works , and if true, sends a clear message to everyone involved in the Spanish property market: Now, more than ever, buyers demand value. As I advised buyers in What will you pay for a Spanish property in 2010? , “Find a property you’re interested in, find a vendor who will work with you, do the maths and try to arrive at a consensus on the value of the property. Not every vendor will be willing to do this. That’s fine - just walk away.” In this buyers market, the only way to persuade a buyer of the value of a property is to share the basis of the valuation with them. In the CAM Bank example, the price of the property is the debt value. This simple declaration was enough to start a feeding frenzy of buyers. On a slight tangent, hats off to Mark Stucklin for his reporting on the recent findings of the EU Parliament: Spain Guilty of Property Abuses . This will come as no surprise to anybody who has any involvement with Spanish property - but at least a verdict has been recorded and the lumbering process of justice can lurch forward. I have no doubt that Spain’s reaction will be one of “da igual” - loosely translated as “so what?”. However, I hope that the EU puts some action behind the threatened financial sanctions against Spain. No doubt, it will be lost on many of Spain’s policymakers that the sins listed by the EU Parliament are largely the cause of Spain’s current financial predicament. Now that virtually every country is suffering from some kind of financial meltdown, it’s easy to forget that Spain was heading for calamity - entirely of its own making - long before the US subprime mess involved everyone else. The lessons from this week’s events and the EU ruling seem clear: Spain, clean up your act in the property market. Implement legislation and publish metrics to restore value and faith. Buyers will surface, property market activity will increase, and the Spanish economy will pick up. Martin Dell, Kyero.com

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Spanish Property Market: Heal Thyself

It’s been a very strange week for Spanish property. It all started (from my point of view) with a story about CAM Bank in last week’s newsletter. If you’ve already registered to receive more information about their cheap, distressed and repossessed properties , you’re in good company, because hundreds of other people did too. What surprised me was how quickly so many people responded to CAM Bank’s offer. I think it surprised CAM Bank too. Aren’t we supposed to be in a recession? Isn’t Spain supposed to be one of the worst-affected countries in Europe? I also received emails of concern from estate agents saying that, while the CAM Bank campaign was good news for buyers and vendors, it was definitely bad news for estate agents who were being cut out of the loop. I replied saying that I believed anything which stimulates activity in the Spanish property market must be welcome - and would eventually trickle down to benefit every participant. As it turns out, I didn’t have to wait too long to find out if I was right. Last Tuesday - the day I issued the CAM Bank announcement - was the biggest traffic day ever for Kyero.com. In terms of property page views and general enquiries made to estate agents, it was the biggest ever since we opened our doors in 2003. Then Wednesday was even bigger. Thursday was bigger again, and Friday was the biggest Friday ever .. This isn’t a Kyero-only phenomenon. Earlier this week, Rightmove.com reported that Spain topped their charts for property searches in February. Here’s what I think is happening: The speed and volume of response to the CAM Bank campaign demonstrates that there are people able and willing to invest in Spanish property. What they’ve been waiting for is a clear demonstration of property being made available at prices significantly below market value - because ‘market value’ in Spain could mean almost anything. Once buyers became convinced that genuine distressed and repossessed properties were being made available, interest returned to the market in general. Let’s be clear: I’m definitely not saying that everything’s all OK now and the Spanish property market has turned the corner. I’m saying that when the market provides what buyers are looking for, buyers respond. Hardly rocket science, I know - but the flurry of interest in CAM Bank demonstrates to me that buyers’ needs were not being met before. This hypothesis is pretty much echoed in the OPP article: Spanish Property: Discounting Works , and if true, sends a clear message to everyone involved in the Spanish property market: Now, more than ever, buyers demand value. As I advised buyers in What will you pay for a Spanish property in 2010? , “Find a property you’re interested in, find a vendor who will work with you, do the maths and try to arrive at a consensus on the value of the property. Not every vendor will be willing to do this. That’s fine - just walk away.” In this buyers market, the only way to persuade a buyer of the value of a property is to share the basis of the valuation with them. In the CAM Bank example, the price of the property is the debt value. This simple declaration was enough to start a feeding frenzy of buyers. On a slight tangent, hats off to Mark Stucklin for his reporting on the recent findings of the EU Parliament: Spain Guilty of Property Abuses . This will come as no surprise to anybody who has any involvement with Spanish property - but at least a verdict has been recorded and the lumbering process of justice can lurch forward. I have no doubt that Spain’s reaction will be one of “da igual” - loosely translated as “so what?”. However, I hope that the EU puts some action behind the threatened financial sanctions against Spain. No doubt, it will be lost on many of Spain’s policymakers that the sins listed by the EU Parliament are largely the cause of Spain’s current financial predicament. Now that virtually every country is suffering from some kind of financial meltdown, it’s easy to forget that Spain was heading for calamity - entirely of its own making - long before the US subprime mess involved everyone else. The lessons from this week’s events and the EU ruling seem clear: Spain, clean up your act in the property market. Implement legislation and publish metrics to restore value and faith. Buyers will surface, property market activity will increase, and the Spanish economy will pick up. Martin Dell, Kyero.com

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Spanish Property Market: Heal Thyself

Most buyers of Spanish properties within communities love to have a view of the swimming pool within their grounds. This often particularly suits parents who can keep an eye on their kids from the comfort of their teraces, with their ice cold beer in hand, while little Johnnie and Rosie are trying to drown the neighbour´s kids in the deep end. But bear in mind that if you are buying a Spanish property purely for the view of the swimming pool, all lit up beautifully at night, and you cannot stand kids, then you may be advised to steer clear of the place during July and August. This is the peak season for pool use in Southern Spain. For the rest of the year, the pool simply acts as a calm oasis, resplendent in all its glory. After all, a few adults may be daft enough to brave the lower temperatures of the pool during May, June, September and October, but outside of the peak summer months, there is unlikely to be a child in sight. Kids make noise, and not all parents will share your standards of what is acceptable and unacceptable regarding noise and behaviour, so think very carefully about the choice that you make when you come to buy your Spanish property . Related Posts Communal Living in Spain - A Few Things to Consider Fancy Communal Living – Think Carefully! Come To Polaris World to Live Life King-Size

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Communal Living - Think About the Swimming Pools!

The European Parliament today approved a report slamming Spain for all manner of evils relating to the Spanish property sector , including the ‘land grab’ and Ley de Costas scandals that have created so much misery for home owners in Spain. The report, by Danish MEP (Greens) Margrete Auken, paints a depressing picture of developers and corrupt politicians trampling over private property rights and the environment in pursuit of their own enrichment, whilst the authorities look the other way. This is the 3rd EU report slamming Spain for foul practices in its property sector in almost as many years. The non-binding report, approved in a plenary vote by 349 in favour, 110 against, and 114 abstentions, lambasts Spain for: Violating individual property rights by forcing owners to “cede legitimately acquired private property without due process and proper compensation,” and “pay arbitrary costs for unrequested and often unnecessary infrastructure development.” (also known as ‘land grab‘ laws) Arbitrarily and retroactively using the 1998 Ley de Costas , or Coastal Law, to expropriate coastal property without compensation, and in a way that “impacts disproportionately on individual property owners who should have their rights fully respected” whilst leaving be the “real perpetrators of coastal destruction, who have in many instances been responsible for excessive urban development’s along the coasts, including holiday resorts.” Pursuing rampant, speculative building programmes with little regard for the environment, the needs of society, or Spain’s cultural heritage. Encouraging unsustainable macro-urbanisations without sufficient water resources. Violating EU public procurement procedures Failing to provide timely and meaningful justice , leading to a “widespread lack of confidence among the petitioners in the Spanish judicial system as an effective means of obtaining redress and justice.” Allowing corruption to become endemic , as a result of which “the EU citizen is the primary victim, but which has also caused the Spanish State to suffer significant loss.” “Whereas such considerations compound the abuse which is felt by thousands of EU citizens who, as a result of the plans of the urbanisation agents, have not only lost their legitimately acquired property but have been forced to pay the arbitrary cost of unwanted, often unnecessary and unwarranted infrastructure projects directly affecting their property rights, the end result of which has been financial and emotional catastrophe for many families.” “Whereas many thousands of European citizens have, in different circumstances, bought property in Spain in good faith acting with local lawyers, town planners and architects, only to find later that they have become victims of urbanisation abuse by unscrupulous local authorities and that, as a result, their property faces demolition because their homes have been found to be illegally built and therefore worthless and unsalable.” “Whereas real estate agents in Member States such as the UK, and other providers of services related to the real estate market in Spain, continue to market property in new urbanisations even when they are necessarily aware that there is a clear possibility that the project in question will not be completed or built.” “Whereas the natural Mediterranean island and coastal areas of Spain have suffered extensive destruction in the last decade as cement and concrete have saturated these regions in a way which has affected not only the fragile coastal environment – much of which is nominally protected under the Habitats /Natura 2000 and Birds Directives, such as urbanisations in Cabo de Gata (Almería) and in Murcia – but also the social and cultural activity of many areas, which constitutes a tragic and irretrievable loss to their cultural identity and heritage as well as to their environmental integrity, and all this primarily because of the absence of supra-municipal planning or regional planning guidelines placing reasonable limits on urban growth and development, set on the basis of explicit criteria of environmental sustainability, and because of the greed and speculative behaviour of certain local and regional authorities and members of the construction industry who have succeeded in deriving massive benefits from their activities in this regard, most of which have been exported.” “Whereas this model of growth also has negative consequences for the tourism sector, since it has a devastating impact on quality tourism given that it destroys local values and encourages excessive urban expansion.” By approving the report the European Parliament has called on Spain to tackle the many problems highlighted in the report, starting with a freeze on all contentious housing projects. “Competent regional authorities should suspend and review all new urbanisation plans which do not respect the strict criteria of environmental sustainability and social responsibility and which do not guarantee respect for the rightful ownership of legitimately acquired property,” says the report, which goes on to call for a halt to “all existing developments where criteria laid down in EU law, notably as regards the award of urbanisation contracts and compliance with provisions relating to water and the environment, have not been respected or applied.” The report also calls on Spain to compensate individual property owners who are “victims of urbanisation abuse who have suffered as a result of the application of the provisions of existing legislation.” The report also says that people “who have bought property in Spain in good faith, only to find that the transaction has been declared illegal, should have the right to appropriate compensation through the Spanish courts.” The report also notes that the EU has the power to interrupt or delay structural and cohesion fund payments “in order to persuade a Member State to end serious breaches of the rules and principles,” another way of saying that Spain should be punished financially if it doesn’t address these problems. The full report can be read here , and the press release from the European Parliament about today’s vote can be read here . Story from Mark Stucklin

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EU Parliament: Spain Guilty of Property Abuses

My advice when thinking of buying a Spanish property within a community of owners is as follows: 1.    Ask to see the budget and minutes from the last AGM This will give you an insight into any problems that the community faces (i.e. any outstanding issues or unresolved lawsuits with the developers/builders) or any grumbles that the current owners may have (i.e. maybe the barking dog at Number 9 is a recurring theme - could be a problem if you are thinking of buying Number 10!) 2.    Take a look around the communal areas If you think that any areas look tatty or in need of a lick of paint, ask your agent to find out if/when any remedial work is due. This will give you an idea of how seriously the owners take the upkeep of the community. 3.    Ask about security. Security if a thorny issue on most communities - it is a divisive and costly service. Try to find out how effective the security is, and whether it represents value for money. 4.    Ask to meet your neighbours Particularly if you are buying a ground floor apartment in Spain , ask to meet the neighbours upstairs - try to find out what sort of people they are - do they have kids or pets? When they invite you to their regular Friday night party, you may begin to have second thoughts about moving in! 5.    Meet the President This may be tricky, but by meeting the President of the community, you will get a feel for how strict he/she is likely to be about enforcing the communal rules and regulations. If he/she is strict about certain things like kids playing in the pool and making a noise after dark, this may worry you….or conversely, you may consider a more liberal arttitude as a good thing. Related Posts Fancy Communal Living – Think Carefully! Paperwork - a frustration of living in Spain Freezing Temperatures in Southern Spain

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Communal Living in Spain - A Few Things to Consider

In spite of difficult economic conditions and significant falls in the value of Sterling, searches for international property on Primelocation.com increased in January 2009 by 72% month-on-month and broke through the one million barrier in February, according to data released yesterday. Spanish property was the most popular search on the portal, attracting just under 300,000 searches, some 60,000 ahead of last month’s most popular country, France (238,729). The USA held on to its third position with 153,912. The portal believes that the countries that have performed the best y-o-y are those located outside the Eurozone, with the USA for example rising by 130% in popularity during that time. Searches for Turkish and Australian property also performed well with a rises in searches of 25% and 18% y-o-y. “After a slow down in searches for international property in the second half of 2008, we have had a very strong start to 2009,” said the portal’s international business development manager Ann Wright. “Searches for international properties on Primelocation.com were up 72% on December and February searches and leads to agents look to be up over 100% on January. Some of the growth is in areas outside the Eurozone where sterling has suffered less than it has against the Euro. It may also be that people who held off investing in 2008 are now hoping to take advantage of the falling prices in some areas.” Top 10 searches in February 2009 through Primelocation.com Spain France USA Italy Portugal UAE Turkey Australia Cyprus Bulgaria Monthly search destinations – Top 10 January 2009 France Spain USA Italy Portugal Australia UAE Turkey Cyprus Bulgaria Story from OPP (registration required)

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Spain Tops Overseas Property Searches

The low-cost airline airline will open 39 new Spanish routes to and from eight Spanish airports – Alicante, Girona, Granada, Ibiza, Palma, Reus, Santander and Sevilla. Irish low-cost airline Ryanair is to open 39 new Spanish routes in 2009 despite a sharp drop in tourism due to the global economic crisis, chief executive Michael O’Leary said Tuesday. “At a time when traffic to and from Spain is collapsing, particularly at the major Spanish airports, including Madrid and Barcelona, Ryanair is still the one airline in Spain growing rapidly,” he said. Ryanair’s overall traffic will grow by about 15 percent this year from 58 million to 67 million passengers, said O’Leary at a news conference in Madrid. “A significant amount of that growth is already allocated to Spain where in 2009 alone, Ryanair will open up 39 new routes to and from eight Spanish airports – Alicante, Girona, Granada, Ibiza, Palma, Reus, Santander and Sevilla.” O’Leary forecast Ryanair would overtake Spanish flag carrier Iberia as the country’s largest airline “in about two years”. He saw “enormous growth opportunities” for Spanish tourism and airports but only if the country’s airport authority, AENA, lowers its charges. Spain, the world’s second biggest tourist destination after France, reported a record 59.2 million visitors in 2007 but this dropped to 2.6 percent to 57.41 million in 2008 as the global economic slump hit home. In February alone, tourist arrivals plunged 15.9 percent from a year earlier. Ryanair made a loss of almost EUR 119 million during its third quarter as fuel costs soared and it reduced fares. However, last month the no-frills carrier upgraded its full-year profit forecast to EUR 50-80 million from a previous estimate of break-even as fuel costs fall sharply. Story from Expatica

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Ryanair to Expand Spanish Flights in 2009

Continued from previous article Just bear in mind that the vast majority of Spanish banks will now only lend on the PURCHASE PRICE, not the valuation. After all, in the current credit crunch, the banks really don´t want to over-expose themselves (again!), and will want to see you taking on some of the risk by way of a decent deposit. There are one or two banks in Spain that will lend up to 90% of purchase price if a valuation is hugely in excess of the price you are paying for your Spanish property , but even with this scenario, you will need to find a 10% deposit, plus your 10% purchase costs, plus the costs to arrange the mortgage and pay the mortgage taxes, so you would still be looking at around a 25% commitment. Finally, most buyers expect estate agents to know the exact valuation of a Spanish property for mortgage purposes. This is unrealistic. There may be a previous valuation available to us, but this will be meaningless if the valuation is dated September 2008 and you are looking to buy 6 months later. The housing market has changed you know! So be careful with agents talking about wild valuations – they may be very old. If you are serious about buying a discounted Spanish property , you will need to find well priced stock, speak to a mortgage broker or lender, and then arrange a valuation. Yes, that´s right, you will have to invest a little by instructing a genuine valuation based on today´s market. It will cost you a few hundred euros, but could ultimately save you a fortune. That´s the way to do it. Related Posts Spanish Property Valuations - Part 1 The Spanish Christmas Lottery Horse Riding in Spain

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Spanish Property Valuations - Part 2