Reduced properties & Mortgage News September 2010

Mortgage Direct SL Newsletter,  and reduced properties.

Properties that have had the asking price reduced                                             Benissa        Benitachell     Benitachell        Calpe         Biar/ Land                                                      was 329k      was 595k        was 595k       was 378k       was 120k           €274,950          SOLD            €450,000         SOLD           €70,000                                                                    Javea           Orihuela           Calpe             Calpe            Pego                                was 675k       was 138k       was 399k        was 450k        was 135k           €595,000        €89,000         €350,000        €320,000        €115,000                       Calpe               Alcalali              Altea             Calpe         Benitachell                                 was 267k         was 312k       was 265k        was 414k       was 467k            €198,000          €289,000       €195,000        €380,000      €399,950                Benissa           Calpe             Calpe            Catral         Alfaz Del Pi                                   was 460k      was 414k       was 369k      was145k       was 750k               €427,000      €380,000       €336,000       €80,000       €630,000                      Calpe           Moraira           Calpe            Quesada       Moraira                                   was 315k       was 695k       was 980k      was 215k       was 750k                 €299,000       €595,000       €880,000       €199,000     €499,9500                Jardin Alfaz   Monte Pego       Altea             Moraira         Benissa                                      was 649k      was 265k      was 1.5m        was 369k       was 370k                €599,950       €249,000      €1.300,000      €295,000       €295,000                     Moraira           Altea              Calpe            Calpe           Benissa                                       was 1.3m     was 330k       was 599k       was 650k       was 695k                    €1m           €250,000        €535,000         SOLD          €595,000                          Calpe          Benitachel     Benitachel      Quesada          Moraira                                                           was 540k       was 169k      was 350k        was 120k      was 695k                    SOLD            SOLD          €275,000        €89,000        €595,000                  Quesada         Calpe    Llosa de Camacho  Moraira        Benissa                                          was 149k     was 335k       was 685k        was 750k       was 365k                     SOLD         €299,000      €585,000         €598,000         SOLD

Mortgage Direct SL. May 2010 Newsletter 

                           

There are still plenty of reasons why those interested in purchasing property in Spain are holding back. The effects of the Greek debt crisis on the Spanish economy have yet to pan out, although the downgrading of Spanish debt by ratings agency, Standard & Poor’s, has not helped Spain in the financial markets. Many analysts hold the view though, that the downgrading was not warranted and was based on incorrect assumptions.

Some commentators are of the opinion that property prices have bottomed out, although we may not see a recovery for a number of years, due to the weak Spanish economy, high unemployment and the vast surplus of new housing units. It remains a difficult time, but the Spanish Government is predicting economic growth will increase each year for the next 5 years, which would provide some stimulus to the property market.

Data correct at the time of writing
* LTV (Loan-To-Value)
** Most mortgages are based on the annual Euribor with a loading of 1 – 1.5%

The question we are asked most often is whether the banks are relaxing their lending criteria. We have yet to see any banks increasing their LTVs, but there are signs that certain banks are looking to increase their overall lending. We have noticed that larger loans (€500.000 plus) are being given priority, whereas in previous months it has been more difficult to get these approved.

Of course, not all banks have the same lending policies and one bank we work with in Gibraltar (who were providing our dual-currency mortgage) has told us they have no more funds available for lending on Spanish properties, so they have pulled out of the Spanish market until further notice. We believe that having this knowledge is exactly why your clients benefit from using an independent mortgage broker.

Please remember, in July the Spanish Government will increase the “reduced rate of IVA”, which applies to most property purchases, from 7 to 8%. For example, on a property price of €200.000, clients will have to find an additional €2.000 to cover the tax increase. In Andalucía, this tax has already been applied to property sales where the price exceeds €400.000. This is a very good reason to get your clients to complete purchases before the tax rise.

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