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If there is a clear indicator of the consequences of the economic crisis, it is in the immigration stats. In 2011, more than half a million people (507,000), left the country to find a place with more opportunities for a better life. Only 62,611 were Spaniards, whereas the rest (445,130), were foreigners.

 The New Year brings a good panorama for spanish property buyers and investors. 2011 has been the year in which property investors and home-buyers have kept a closer eye on property prices in Spain. Better prices; better quality of the new property stock; encouraging rental market; more security to investors; are, in short, some of the key points for investors and home buyers in Spain in 2012.

1) Better property prices in 2012. Property prices have dropped in 2011, an average of 6,85% according to the Ministry of Public Work. Prices level has reached 2005’s figures and the economic climate suggests that further fall will come.

2) The market is touching rock bottom. 2011 has probably been the worst year in terms of property prices and sales drop. If the price fall in 2010 was by 3% compared to 2009, the mentioned fall of 6.85% in 2011 compared to 2010 confirms that the market is reaching its lowest at the right speed.

3) Cash is king not only for Particular vendors but also for Banks and Savings Banks. Get your cash ready for upfront payments to guarantee juicy discounts from owners direct and financial institutions.

4) Buy-To-Let still being the only short-term strategy for property investors.Unless you are a high-end investor with your clients’ portfolio, the economic situation in Spain still does not give hope for reselling in the short- and mid-terms.

5) Once again and probably forever: location, location, location …. + property specifications. Avoid subprime properties. Subprime tends to be easy to identify. Subprime properties in Spain are in poor locations and are bad-quality properties: poor building specifications, no lifts and frequently they need expensive refurbishment.

6) The best opportunities will come from those in need to sell. If a bank’s portfolio is the largest in the country, it should be because its stock is difficult to sell. Indeed, generally banks have the worst properties in Spain because the owners could not sell or rent in order to repay the mortgage. Spanish local estate agents are giving you the opportunity to find private sellers who need cash and want to sell a good flat or house. If you have the time and ability to work locally, you have a higher possibility of succeeding in the Spanish market as it is said: vender casa a extranjeros.

7) Timing. At this moment (the beginning of 2012), Spanish property bargains are most likely to be in the hands of private owners rather than in Banks’ repossessed property portfolios.

8) Banks will still be driving the market in 2012. Banks are not only holding the largest property portfolios but also they are also using their financial strength to tip the balance towards their own business. Banks are the easiest option but potentially not the best right now. It may chance shortly if the economic climate still hitting private owners.

9) Banks’ mortgage restrictions are still tough and mortgage conditions are not improving despite the fact that Banks tend to mask bad mortgages with residual discounts: free arrangement fees, very low notary fees (the bank pays the notary bill), etc. You must shop around and find the best mortgage. A key question that any buyer must consider: will it be worthwhile asking for a fixed rate rather than a variable if the Euribor starts rising again?

10) THE TIP OF THE YEAR: As a starting point when dealing with a seller directly, reduce your offer by 30% of the asking price. That is the way to guarantee a bargain in the negotiation process.

More info about the spanish property market, just click !!! ENJOY AND TAKE CARE IN 2012

Spain is a great place to live and be visited. The alluring country attracts millions of holiday-makers and new residents from overseas, every year. Whoever decides to make the move to Spain, either permanently or for long periods, has to consider whether to buy or rent a property in Spain.

Ideally, you can buy and keep your property for yourself, but for many holiday makers and expats wanting to live permanently in Spain, it can seem difficult to afford.

Spanish bargain hunters

Low prices appear very attractive in Spain, especially on the coast, and sub-prime properties, as investments in the cities. However, it is not all about the buying price, but also depends on whether you can get a mortgage, and what kind, and there are additional costs in the buying process (which usually comes to 10% in Spain).

There are also insurance costs and yearly expenses that include “service charges” and Council Tax (“I.B.I.”). For most of us, to buy in Spain is a question of affordability, and having the right strategy, in order to make it affordable.

Property prices keep dropping

Generally, the prices in both markets (rental and selling) are incompatible: if one of them goes up, the other falls. But at the moment, selling prices are dropping and rental prices also seem to be going down as well. This means, whether you are buying or renting, now is a good time to do move to Spain, if you are serious about Spain.

Whether to buy or to rent in Spain depends on your goals. I am sure that renting a place now will be cheaper, easier and less risky than buying. Also, if you are planning to live abroad and Spain seems to be your favourite place, I would advise, as somebody said recently in an online discussion, to travel around Spain and discover the country in depth. Do not be an impulsive buyer in the first warm place that you arrive.

Buying a property has advantages and it is true that it is becoming cheaper than ever – and it will probably be even cheaper in 2012. Also, currently, some Banks are offering good discounts and paying some expenses (such as legal fees) on behalf of buyers. On top of that, now there is a reduction of V.A.T. reduction to 4%, an offer which will apply until 31^st December 2011. Nevertheless, there are other administrative overheads involved in buying in Spain, which are still too expensive.

Do not be an emotional buyer !!!

If you are planning to buy, nothing should stop you finding the place that suits your needs? But do not rush because the HOUSE OF YOUR DREAMS does not exist, or should not exist. There are enough options without becoming besotted with one house. THIS IS THE PROBLEM THAT MANY BRITONS have had in past years. When you become too emotional about a property, there is a high risk in avoiding to look at the details, and then getting stung, especially in Spain during a bubble market where suddenly everybody has become a developer or estate agent. GET A LAWYER – it is a must. If at this stage, a home buyer does not get a reliable lawyer, it means that he has not learnt anything.

So have a look around, make a selection and enjoy the process of choosing your property. Be ready for bargaining and set a very low buying price. I would say 40% below the asking price as a starting point for second residences on the coasts, which also happens to be the profile for retirement homes.

In the cities, the situation is different and the negotiation price is not as great as with coastal properties. I would say that Madrid, Barcelona, Santander and probably Valencia, are the cities where I would expect to see prices stabilization within a couple of years.

IF YOU WANT TO RENT, I must say that it might probably be a clever option.

IF YOU WANT TO BUY, get ready to sharpen your negotiation skills in order to win your bargain. Be ready to pay an average of 10% of the property price on buying costs, which is a lot, but taking into account the current decline in prices in the market and how “desperate” sellers could be, don’t worry too much about the buying costs!

Good luck and enjoy Spain!

If there is an area in the city of Madrid where Brits can get an authentic feeling of what the Spanish capital was like in the early 1900s, it is the borough of Lavapiés. Lavapiés is in the heart of Property in Madrid market. The borough, in Madrid’s city centre, is one of the most dynamic urban areas in the country. Since the renovation scheme which began in 1998, a total of 9,600 properties have already been renovated. The renovation process not only affects housing, but also urban aspects such as pedestrian paths, roads and parks.

A growing property market

Lavapiés has a growing property market with apartments for sale in Madrid, in contrast to the 1980s when the area reached a degradation level that threatened its survival as a populated zone. Nowadays, more than 50,000 people live in this historic borough and its future is secure. More than a third of its population are expats from other countries, which combines well with its traditional local residents. Life in Lavapiés is now as good as it was there in the 1970s.

One of the main problems of Lavapiés has been the sub-prime housing, with blocks of very small flats of 3 and 4 floors, without a lift, and even without windows. This problem is being tackled through the renovations of full blocks that are now equipped with lifts. A total of 88,500 million Euros has been injected into housing renovation in Lavapiés. Nevertheless, the subprime housing is still a challenge for Lavapiés in order to accommodate the growing demand for housing that the borough is experiencing. Vender casa a extranjeros is one of the main aims of Spaniards in Lavapies

Plenty of ammenities

Lavapiés is a borough with plenty of restaurants where tourists and locals can enjoy many sorts of national and overseas cuisines. Small businesses and local commerce are the cornerstones of the micro-economy of this borough. Bordering with Lavapiés, we find the boroughs of Embajadores, which, from an urban and architectural point of view, are similar, but historically have been split, for administrative purposes.

Lavapiés has a growing property market in the heart of Madrid and is surrounded by an excellent transport network (underground, bus and taxi), as well as being within walking distance from the main train station: Atocha. The rental market in Lavapiés is lively both in the short and long term, since students from the University campus near to the borough, generate a permanent rental demand.
 

Find the right Agent

Negotiating prices directly with the sellers through a property agency, could prove lucrative. Serious buyers looking to make a quick purchase, can get sizeable discounts.

Property prices

A recently refurbished 2 bedroom flat on Calle Sombrerería, in a classic building (corrala) with traditional quadrangle and residential elevator, should cost about €122K. On Calle Argumosa, which is the most popular and expensive sreet in Lavapiés, a fully furnished 3 bedroom flat, should cost €133k. A 2 bedroom flat in Calle Buenavista will cost around €107K. It will be in good condition to move in to, although slight refurbishment could help to improve the rental price, if you are a buy-to-let investor.

Rental market

The rental market in the borough will vary according to the sort of property purchased and the street where it is located. A two bedroom flat can be rented for €400-€500 monthly. A three bedroom flat can easily be rented for €650 per month and for even more, if it has been under modern refurbishment.

Spain is a family oriented country and spending a kids break in Spain will provide you with a wonderful and relaxing family holiday. Here we have the top 10 reasons why Spain is the best destination for a holiday with your kids.

1. The Spaniards love children! You will find that Spain has one of the most child-geared cultures, and with that, children are always kept in mind. There are numerous water parks, zoo’s, child-friendly beaches and restaurants and activities planned out by hotels for their guests with children.  Special family oriented hotels offer babysitting services.
2. One of the first thoughts, which come to mind in regards to Spain, is the almost perfect weather! Spain enjoys fantastic temperatures all year round.  If you need to get away from the gloomy winter days, then come to Spain! You will find that Spain has on average 300 days of sunshine a year!
3. Spanish food is rich in taste and prepared with great care. Breads and pastries are beloved here, as is the use of fresh vegetables in meals. Wine is served with almost every meal, and Spanish wine is slowly gaining notoriety in the world.

1. Water and Amusement parks are everywhere! There is not one child who will not cry with joy at the mention of an amusement or water park, and fortunately, Spain has plenty of both.  Aqualandia is located in Benidorm and was the first water park created in Spain in 1985. It has since been developed into one of the largest parks covering over 150,000 square metres. In this park, you will also find beautiful flower gardens.
2. One of the main tourist attractions in Spain would be its beaches! You cannot think about Spain, without thinking of the beaches. Spain’s blessed with 5,000 miles of coastline, which provides stunning and serene beaches.  Many of Spain’s beaches have been voted as top beaches in Europe.  A unique concept in Spain, is the child-friendly beaches, in which you can rest assure your child will have a proper, safe and exciting playtime.
3. If you are brave and not afraid of heights,  El Transbordador Aeri del Port is an experience you will always remember.  El Transbordador Aeri del Port is a cable car ride, which takes you across Barcelona and is available only through appointment.  Children under six ride free. The ride takes approximately seven minutes. You will be dazzled and impressed with the beautiful scenery.
4. The L’Aquarium Barcelona is perhaps one the best-known aquariums in Europe and with good reason.  It contains over 11,000 animals, 35 tanks and the only Oceanarium in Europe.  It offers tons of educational activities for children and even a chance to dive with the sharks! This, of course, is for adults; however, children along with their parents can also have the opportunity to spend the night by the shark tank.
5. Parc Güell is a marvellous garden in Barcelona, completed in 1914 and is today a part of the UNESCO World Heritage Site. Walking through this amazing garden, your child may feel like Alice in Wonderland!  The garden is filled with beautifully sculptured statues, mosaics, fountains, and even a sea-serpent bench.
6. In Spain, you will find agencies and stores who specialise in making sure you have everything you need for your child during your trip in Spain.  You can rent anything from car seats, stroller to high chairs.
7. Holiday rentals are always easy to find. Tourism is a big part of Spain and providing visitors with adequate, comfortable and affordable accommodations is no small thing for the Spanish.  If you decide to take a holiday to Spain, you will be warmly welcomed and treated with utmost importance.
8. Parc Güell is a marvellous garden in Barcelona, completed in 1914 and is today a part of the UNESCO World Heritage Site. Walking through this amazing garden, your child may feel like Alice in Wonderland!  The garden is filled with beautifully sculptured statues, mosaics, fountains, and even a sea-serpent bench.
9. In Spain, you will find agencies and stores who specialise in making sure you have everything you need for your child during your trip in Spain.  You can rent anything from car seats, stroller to high chairs.
10. Holiday rentals are always easy to find. Tourism is a big part of Spain and providing visitors with adequate, comfortable and affordable accommodations is no small thing for the Spanish.  If you decide to take a holiday to Spain, you will be warmly welcomed and treated with utmost importance.

By Andrés Díez Bronzini (Abogado & Rechtsanwal)

The Spanish law maker has changed the court proceedings with regards to non paying tenants against owners direct. Does this new law mean that the landlord can get his non paying tenant out in just 10 days?

Suppose your tenant is defaulting. It will take approximately 2 weeks from the day your lawyer files the claim for the overburdened court to take any decision.

If the court admits the eviction and payment claim, it will set a deadline of 10 days to the non paying tenant and force him to (1) pay the outstanding rent, (2) return the property to the landlord or (3) object the claim.

The tenant might choose a fourth option: simply do nothing and wait for the E-day (eviction day).

My pessimistic guess is as follows: based on the tenant´s decision, the proceedings may last, in the best case scenario, approximately one month; in the majority of cases it will take between 4 and 12 months. In the worst case scenarios it may take even more time to get the non paying tenants out.  However, future cases will teach us the truth. Read the full article about spanish rentals and non paying tenants.

The Spanish property market has closed its poorest year since the 60s in terms of new houses being built: less than 60,000 in 2011 according to official figures.

In terms of prices,the market is still going down. According to the Minister of Public Works, property prices has dropped by 5.2% in 2011.

The link of this article takes you to a very useful map of Spanish house prices with average figures per square metre in each region and each postcode (properties built before 2010).The data corresponds to December 2011