During the Spanish property boom that took place during the earlier years of this decade, buyers became so caught up in the purchasing frenzy that the type of stock that they actually acquired really didn´t make too much of a difference to them. The most important thing in the (then) rising Spanish property market was to get a foot on the ladder, and with the glut of new-build 2 bedroom Spanish apartments that were built, most speculative investors ended up with this type of stock. If you analyse the proportion of 3 bed units that were actually built within any given development of apartments in places such as the Costa del Sol or the Costa Blanca , you will son realise that in most cases, only a small proportion of the development was allocated to 3 bed stock – normally the corner units and maybe some of the penthouses. So if we estimate that 3 bed apartments make up approximately 20% of the total number of apartments and penthouses within most developments in Spain , it is safe to assume that this ratio still applies in today´s rather more depressed and distressed Spanish property market. When we couple this with the fact that most buyers in today´s market are making the purchase with a longer-term vision and with the intention of using the properties themselves for family and friends, then a 3 bed property suddenly holds extra appeal. This is something that we have noticed in the last 6 months here at Your Key to Spain. Most enquiries via our website are from prospective purchasers looking for a 3 bed property in Spain . This presents the market with something of a problem. The glut of available stock is made up of 2 bed properties, while the majority of demand is focused on the harder-to-find, less frequently available 3 bed properties. Therefore while there are savage price wars developing between vendors of 2 bed Spanish properties in some developments, the well-located 3 bed units within the well-regarded projects are holding their own, and are actually sometimes in high demand. This doesn´t prevent eager buyers from expecting big discounts across all sectors of the Spanish property market, but prospective purchasers need to be realistic and take into account that smaller, micro-markets exist within the market as a whole, and these micro-markets are governed and manipulated in line with the same rules of supply and demand. Related Posts Everyone is after a Bargain Don´t Forget Spanish Property Purchase Costs! Don´t Buy Cheap – Buy Value!

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3 Bed Spanish Properties – Not as Cheap as You Think

The general feeling is that most British buyers are waiting for sterling to recover to particular ´trigger´ rates such as 1.15 and in particular 1.20 In fact, the last 2 weeks has seen a surge of UK enquiries for property in Spain after sterling rallied over 5% to hit the first of these magical triggers. But let´s look at this situation from the other side. As we previously mentioned, most of the Spanish properties for sale in the key hotspots of the Costa del Sol and Costa Blanca are owned by British vendors, and during the demise of sterling in the last 12 months, they have been able to lower their asking prices considerably, and in some cases accept incredibly low offers, precisely because of sterling´s dire straits.If someone had bought a property for 300,000 euros in 2005 at a rate of 1.40, they would have paid the equivalent of £214,286 If they sell the same property at a whopping loss of 30% (90,000 euros), and then change their proceeds from euros into sterling, they will net the equivalent of £190,909. Despite making a 30% loss on the price of the property, the real loss to them is actually only 10.9% (£23,377), not ´that´ bad considering all the doom and gloom around the Spanish property market. But this win-win situation is all set to change, and we are already seeing the effects of the recent recovery of sterling on the attitudes of buyers and sellers alike. Buyers from the UK are now becoming more confident in their ability to buy into the Spanish property market – after all, their pounds are now worth more over here in Spain…..aren´t they?? British sellers of Spanish properties are now toughening their stance when it comes to accepting low offers, and some are even raising their asking prices, all due to the fact that, as sterling rises against the euro, so their position worsens. For instance, if sterling pushes on to hit heights of 1.25, that same property that had previously cost 300,000 euros (£214,286) in 2005 would fetch just £168,000 if sold at a 30% loss at 210,000 euros. That represents a £22,909 loss on the figure that they could achieve by selling their property now (and a whopping net loss form the original price of £46,286, or 22%) even at the same price of 300,000 euros. Don´t be at all surprised to see the following occur in the next 12 months: -    an increase in the confidence of UK buyers of Spanish properties as economic conditions ease -    a perceived increase in UK buyers´ spending power as the value of sterling increases -    a hardening of attitudes by British sellers of properties in Spain -    low offers being rejected by British owners, with only offers close to the asking price being accepted -    potential for price increases in certain very popular areas This may come as a bit of a shock to many British buyers considering investing in Spanish property , but agents in the popular areas are seeing this happening on a day-to-day basis at the moment. It may sound far-fetched, but I fear it is true – the Brits are in danger of missing the boat and buying into the market too late to take advantage of what are clearly excellent conditions for anyone looking to snap up a Spanish property bargain . Related Posts Why Waiting For Sterling May be a Dangerous Game - PART 1 The Sterling Euro Exchange Rate – Does Anyone Really Understand? The Weak Pound – Tips for UK Buyers of Spanish Property – Part 2

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Why Waiting for Sterling May be a Dangerous Game - PART 2

The recent rise in the value of sterling against the euro has led to as much as a 40% increase in the number of Brits buying the European single currency. With the sterling euro exchange rate hovering at around 1.15 in recent days, many Brits who regarded this figure as a psychological trigger to exchange currencies have taken advantage of the 12% increase in sterling´s value within the last 12 months. One expert at Moneycorp , one of the leading foreign exchange specialists, whilst also reporting brisk activity, reckons that a large proportion of Brits are holding out for sterling to hit a level of 1.20 before committing to the single currency. It is thought that a change of government in the UK, added to an end to the current recession , could see that figure reached before the end of 2010, prompting thousands of potential British buyers to enter the Spanish property market. Related Posts Sterling on the Rise - Great News for British Buyers in Spain Sterling Exchange Rate Forces Spanish Property Buyers to Wait The Sterling Euro Exchange Rate – Does Anyone Really Understand?

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Sterling Rise Sees Brits Buying in Spain

The recent torrential rain that we have seen here on the Costa del Sol at least provided some small shred of comfort for local residents. The region´s reservoirs have doubled in capacity in the last few weeks, with December´s rainfall alone guaranteeing water for the next 2 years here in Andalucia – yes, it rained THAT much! The volume of rainfall wasn´t uniform across the region however. For instance 362 litres of rain per square metre fell in Cadiz, guaranteeing the water supply there for the next 4 years, whilst Almeria only received 148 litres per square metre. The level of the well-known La Concepcion reservoir in Marbella rose from 40% capacity to 97.5% in just a 2 week period, to the extent that the reservoir´s sluice gates had to be opened in order to release the excess water into the sea, amounting to the Costa del Sol´s normal supply for a 6 week period. No shortage of water here for a while then! Related Posts The Rain in Spain New British Consul Appointed for Andalucia Spanish Culture - overheard conversation

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Andalucia´s Reservoirs are Full

Sorry if this news hits you as you sit at your desks with the rain lashing against the window, or as you sit at home with the curtains tightly closed and the central heating turned up full blast, but here in Southern Spain we are still waiting for winter to arrive. Apart from a few indifferent days in November, we have seen clear blue skies most days, with daytime temperatures averaging around 18 degrees – extremely pleasant for this time of year, and a real contrast with last winter, when it seemed the whole of Europe took a real battering from the weather. Here we are in December on the Costa del Sol , and although the nights can get a little chilly (you need to wear a jacket or a sweater), most people are walking around in shirt-sleeves, still enjoying the beaches and other outdoor pursuits. This weather on the Costa del Sol has got to be the perfect climate……and it´s only 2 ½ hours from the UK. What are you waiting for??!! Related Posts Spanish Properties Cannot Cope in the Cold Falling in Love with Spain…again! Winter Arrives on the Costa del Sol

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Still Waiting for Winter on the Costa del Sol

If we assume that the legal matters are sorted in the next few months and the Marbella property owners can move on with their lives, this doesn´t compensate them for the months of misery and uncertainty that they have endured, particularly those who are desperate to sell their properties in Marbella as a result of the recent financial hardships. You see, if there is a hint of a problem as to the legality or status of a property in Marbella , the banks and mortgage lenders will avoid it like the plague – a handy excuse in the current credit crunch. So this means that the only option for sellers of properties caught in this legal minefield is to appeal to cash buyers who are prepared to take a risk……….however calculated that may be. This severely restricts the pool of available buyers, and drives the asking price lower still. One such area of Marbella that has been particulary affected is Elviria, 12 kilometres to the east of the town. Property in Elviria is in high demand – it offers some of Marbella´s most desirable permanent and holiday housing, boasts the coastline´s finest sandy beaches, and is home to a variety of sports and leisure amenities. Elviria was built upon the recent property boom, but that only means that most of its ´highly desirable´ projects are now subject to ratification in the new Town Hall plan, and so buyers are still unsure of which way to proceed. This is a crazy situation for everyone concerned. Forced sellers cannot sell, buyers who are desperate to invest in the area are reluctant to do so, lawyers have no real idea of what is going on, and estate agents with some of the best inventory in Marbella are sitting at their desks twiddling their thumbs. As the news filters through of an imminent announcement of the approval of all these ´dodgy´ developments, many buyers are now prepared to take a risk and take advantage of the misery of many sellers, hoping to bag a genuine bargain in a great location, hoping to see a quick return when the properties are finally ratified and the values rise accordingly. And you thought that buying property in Marbella was easy! Related Posts Marbella Property – Do Illegal Homes Represent the Best Buys? An Agent Buys a Property in Spain - Part 7 - Another House! An Agent Buys a Property in Spain – Part 1 – How Hard Can it Be?!

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Marbella Property – Do Illegal Homes Represent the Best Buys? - PART 2

Many potential UK-based buyers of Spanish property are holding off in making a purchase, firm in the belief that they are best waiting until sterling has recovered at least some of its lost ground against the euro. Of course, this makes sense. Why buy something now, when you can get it for 20% less in 6 or 12 months time? But one interesting statistic may make those UK based buyers sit up and take notice. As one of the leading Spanish property portals, we have noticed increasing volumes of enquiries during the last 6 months – strange when you think of the financial mess everyone is supposed to be in. I guess this means that the purchase of a Spanish property is still on the agenda for plenty of people, particularly as the prices have come down and started to look so attractive. Although around 70% of our enquiries eminate from UK based clients, 70% of the actual sales volume can be attributed to non-UK buyers. And in the vast majority of cases, these buyers are from the eurozone. Yes, that´s right, although we are spending most of our time on the phone, sending information to, and touring British clients, our time is actually spent more productively (according to the sales figures!) with the Belgians, the Dutch, the Spanish and the Irish. These are the buyers that are snapping up the bargains whilst all of us Brits sit and wait for the pound to rally. And trust me, these eurozone buyers know exactly what they are doing. With many British vendors here in Spain able to heavily discount their property prices due to the tumbling pound, the Europeans are targeting these vendors for the best deals. It´s a win-win situation. The buyers are purchasing with a strong currency, while the vendors repatriate the sales proceeds back to the UK, and get a whole load more pounds for their euros! Everybody´s happy. I have 2 concerns for the Brits who are looking to invest in Spanish property : firstly, that we will see fewer and fewer genuine, well located Spanish property bargains as the truly distressed stock gets snapped up and the economic recovery commences….and secondly, that once sterling does start to rise in value against the euro, the British vendors here in Spain will be far more inclined to hold firm on their prices, even to the point of raising the prices to compensate for the stronger sterling euro exchange rate . It´s all a bit of a conundrum. At the moment, you really want to be a Belgian buying a distressed property from a Brit here in Spain. But who is to say that this situation won´t do an about-turn in the next 12 months? Watch this space. Related Posts Sterling is Rising! Sterling on the Rise - Great News for British Buyers in Spain Exchange Rate - should it prevent me from buying in Spain?

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Sterling Exchange Rate Forces Spanish Property Buyers to Wait

Here are some facts. 1. We are in the midst of a recession. 2. It is not the best time to be looking to achieve the best price for anything if you are selling. 3. There are some great deals to be had. Now, let´s translate these facts to the Spanish property market. If you are a prospective buyer and you have found a property in Spain that takes your fancy, then you will clearly want to secure the best deal. Now let´s pause a second……this is not an entirely different scenario to shopping for other commodities. For instance, if you fancy a new Mercedes, you would probably go and take a look at one or two dealerships and then haggle for the best price. Likewise, if you wanted some work doing at home, you would get a few quotes together and then try to secure the best price for the job.So, you´ve seen that perfect car for sale at €30,000 – would you go into the showroom and offer €15,000 for it? You´ve got your quotes for the jobs at home – would you realistically expect to get the job done for a 50% discount? The answer to these questions is likely to be ´no´. Ok, so you may well ask the question, but my guess is that is the answer is ´no´, you´d end up settling on a price that both parties deem fair. You certainly wouldn´t walk into Tesco and haggle over the bill at the checkout. So why do some Spanish property buyers think that they can make ridiculously low offers on properties that are already very clearly priced to sell? True, there are some desperate vendors and developers out there, but they may not necessarily be selling what you want to buy, and ALL of them are working to some sort of margin. In fact, in my experience most of them would rather wait and sell their properties at a fair price than simply give them away to the first low offer that comes along. Furthermore, a lot of sellers have mortgages to repay, and they simply cannot go lower on the price. I can understand buyers wanting to haggle, and I can understand that people want to secure the best deal. But there are some offers that are simply ridiculous…..and some that are also insulting. Related Posts The Spanish Mortgage Market Don´t Buy Cheap – Buy Value! The Weak Pound – Tips for UK Buyers of Spanish Property – Part 2

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Haggling Over the Price of a Spanish Property

Crikey – what on earth is happening to the exchange rate at the moment. After the scary days of January when the sterling euro exchange rate fell to a record low of 1.02 and some travelers were being paid 96p for each euro purchased, we saw a steady recovery to highs of 1.18 in June this year – hardly back to the good old days of 1.47 but a move in the right direction! And now, our hopes are dashed again. As I write, one British pound is worth a paltry 1.0801 Before you dismiss these figures as irrelevant, just consider this. If you had been thinking of buying a property in Spain in the 6 months from January 2009 to June 2009, a €200,000 property would have cost you the equivalent of £196,078 in January………and yet the same property would have set you back just £169,492 in June. That´s a massive difference of £26,586, a saving of over 13% A 13% saving on a pair of socks isn´t much to get excited about, but when it´s a applied to a €200k house, it´s another matter entirely! The Brits traditionally account for the largest proportion of overseas buyers of Spanish property , so the weakness of sterling is a massive problem for Spanish property sellers and estate agents alike. The problem for the market is that no-one truly knows which way the exchange rates are heading, It seems that the UK is exercising its freedom to manipulate the value of sterling in order to boost its export market and thereby emerge intact from recessionary times, but this is causing major problems for any Brits thinking of buying anything in the eurozone. Recent reports suggested that some experts think that sterling will once again be dragged close to parity with the euro before the end of the year, while experts at Barclays were quoted as forecasting a recovery to 1.18 within 3 months and then 1.25 within 12 months. It´s all very unsettling for any British buyers thinking of investing in Spanish property – most prospective purchasers seem happy to play a waiting game to see exactly which way we are likely to go – not great for Spanish property sales, but understandable nonetheless. Related Posts Sterling is Rising! Sterling on the Rise - Great News for British Buyers in Spain Exchange Rate - should it prevent me from buying in Spain?

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The Sterling Euro Exchange Rate – Does Anyone Really Understand?

It may be true that there is a glut of property for sale in Spain at the present time. Thousands of unwanted properties litter the Spanish costas, bought up by eager investors during the boom years, fuelled by expectations of rising prices and cheap finance. So you would think that there is more than enough Spanish properties for sale to satisfy the current demand…and let´s face it, although that demand is picking up, there aren´t exactly hordes of eager buyers battering down estate agents´ doors just yet! But this is where the whole thing gets a bit messy. The problem is that everyone is after the same thing. Not quite ´everyone´ of course, but after analysing the recent enquiries from our website, there is a definite trend. Most buyers now have a set of criteria that looks something like this: -    Minimum 3 bedrooms -    Walking distance to the beach -    Walking distance to bars and restaurants -    No more than 1 hour from an airport -    Must be a great deal Of course, the budget varies, but more often that not, the other criteria are fairly constant. Whereas in the boom years, investors were buying up 2 bed apartments in the middle of nowhere in their droves, just to get themselves on the Spanish property ladder, nowadays buyers are rightly taking a longer-term view, and investing primarily for lifestyle reasons. And that means family holidays, so enough space for the kids and friends, being able to stroll out for a pizza, and taking a cab from the airport for those who don´t drive. So if you are looking to buy a 3 bed property in Spain , within walking distance of amenities and the beach, expect some serious competition. Related Posts Warning to Bargain Hunters – Don´t expect to view on a Sunday! Paradise Lost – ITV Gives the Spanish Property Market Another Kicking Why use a UK-based agent to sell your Spanish Property?

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Spanish Property Buyers All Want The Same Thing!