Property solutions in Spain if your struggling financially

06:42 PM · Comments Off · Categories: News from Marbella Costa del Sol · Tags: flatshare, micro-piso, rent a room

Unemployment and loss of purchasing power has forced young and not so young people to use housing alternatives that allow them to live with some autonomy to lease or buy a home alone.

Shared flats, one room flats or a group of several people house sharing is what’s imposed among workers whose salary is not enough to live on their own.

These are the most common alternatives:

Rent a room

Is the most popular choice to have a home at an affordable price. The number of houses that offer rooms for rent has increased by 150 % over the past few months according to the real estate portal idealista.com.

For years this model was the solution most used by young people eager to leave the family home that could not find any other way to move out due to their economic situation. The price is usually between 150 and 300 euros per month, depending on the location.

The disadvantages of living in a rented room are the limitation of space or sharing rooms and the kitchen services, access to internet and having to live with other tenants.

Micro-pisos

These apartments from 15 to 25 square meters are an increasingly popular and affordable solution. The main drawback is they are small in size and usually suitable for only one person, making micro-pisos a temporary alternative until the tenant finds a better place to live.

Flat-share

Several people, usually acquaintances or friends come together to join forces and flat-share, until the beginning of the economic crisis it tended to be young students or people with their first job that would flat-share but now increasing numbers of divorced people, the unemployed and people on low-wages are now flat-sharing.

Flat sharing can be a cost effective option (photo:Idealista.com)

What really is going to happen in the Spanish property market

06:06 PM · Comments Off · Categories: News from Marbella Costa del Sol · Tags: marbella property, spain, spanish

The average price of new housing in the provincial capitals in Spain fell by 7.8% in 2013, according to a newsletter produced by the St-Sociedad de Tasación valuation company. The average price of new housing in the provincial capitals fell to 2,039 euros per m2, which represents 183,500 euros for a home of an average of 90 m2. On the other hand the appraiser estimates the price of apartments will continue its downward trend, although in some locations price falls may be less ” sharp ” than currently.

Nothing new as far as the price of housing is concerned, so the value of new homes in Spain ended the year with an average drop of 7.8% in the provincial capitals, according to the latest data. In December 2013 the average market price of new housing in the provincial capitals stood at 2,039 euros per m2 built, representing 183,500 euros for a home of an average of 90 m2.

Prices have achieved a maximum fall from a drop of 38.9 % in real terms. This percentage decline from the maximum is equivalent to 63.6% of the revaluation of assets observed, which puts us in the top level pricing of 2002 according to figures of the appraisal company.

By provincial capitals

During 2013 the average price of a new home decreased in all provincial capitals, cities with higher unit prices are San Sebastian / Donostia (3,422 euros per m2) , Barcelona ( 3,200 euros per m2), and Madrid ( 2,726 euros per m2). Spains cheapest capital provinces are: Cáceres , Badajoz and Ciudad Real with unit prices that do not exceed 1,200 euros per m2. Between provincial capitals with the highest annual price change are Ciudad Real ( -13.4 %) , Guadalajara (-12.6 %) and Zaragoza (-12.2 %).

Prices per square metre €/m2 (photo:Idealista.com)

In nine capitals the average prices are down more than 10% compared to 2012, 29 capital cities have dropped between 5% and 10%, in the remaining 12 prices have declined less than 5%.

On the other hand in 4 provincial capitals ( San Sebastian / Donostia, Barcelona, Madrid and Bilbao ), where the national average price of 2,039 euros per m2 is exceeded. In 11 capitals (Cáceres, Badajoz, Ciudad Real, Pontevedra, Murcia, Jaén, Basin, Zamora, Huelva , Tenerife and Ávila ) the average value does not exceed 1,300 euros per m2.

Evolution

The Spanish economy that has continued in the negative since 2012, from -1.6 % in the third quarter of 2012 to -1.1 % in the third quarter of 2013, with a small upturn towards the end of the period in the last quarter. Experts predict that the economy in Spain will grow, if only marginally in 2014.

Economic indicators that have influenced the behaviour of the housing market have evolved as follows:

• The euribor, which is the reference of mortgage lending has kept it´s decreasing trend during 2013, falling at the end of November to around 0.5 %.

• the CPI has maintained a flat trend during the second half of the year with accumulated inflation in the first eleven months of the year which reached 1.2% ( 3.9% in 2012) and the year in November stood at 0.2 % (2.9 in 2012).

• The unemployment rate remains in the second half of the year at a slightly decreasing rate that will likely continue in the coming months.

• The real estate housing market has reduced its level of activity as a result of the continued difficulties in obtaining financing and the factors listed above, the downward trend in prices remains.

• Despite this in the latter part of the year it seems the forecast made at the end of 2012, that the reduction in prices could encourage entry into the Spanish market for foreign investment groups capable of absorbing large volumes of houses has been confirmed.

Forecasts

Macroeconomic forecasts for 2014 estimate that the Spanish economy could improve, most recently observed figures suggests that it could reach into positive growth figures, although it is likely that this growth is insufficient to allow the generation of stable employment.

Inflation according to the trend of recent months will probably stabilize at around 1 %, the decline in inflation over the previous year is insufficient to offset the reduction of revenue in a significant proportion of families, making it likely that real disposable income for house owners is down compared to previous periods. This effect will be enhanced by the impact of high unemployment and job uncertainty and require more effort in the household economy for the purchase of a first or second home.

In 2014 the supply of new housing will remain important, the recent entry into the Spanish property market of foreign investment funds may induce acceleration in the absorption of stock already built, which entails a certain revival of the sector.

Apart from the aforementioned funds, it is anticipated that demand keeps – with some exceptions point – the position of weakness that has been characterized in recent times and to continue, at least for some time the trend of negative growth in the prices until the surplus of existing supply is absorbed.

The ups and downs of Spanish property prices (photo: Idealisa.com)

Outlook for property prices in Spain for 2014

02:58 PM · Comments Off · Categories: News from Marbella Costa del Sol · Tags: marbella property, prices, spain

There is now more movement in the residential property sector, albeit timidly. Next year 2014 will be a better year than 2013 but still the housing market will remain weak and home sales will stabilize and some even rebound, falling prices will be at a slower rate but mortgage lending will continue to be very low.

The experts predict that the coming year will be not as bad as 2013, expecting property sales to stabilize or even rise, 2014 will not be a recovery of the housing market but nuanced, the experts consulted by us claim that 2014 could be the year in which residential business bottoms out although note that the construction sector will not even get close to rebounding.

One of the great burdens that continues to stop the housing market growing is the high unemployment dragging down the economy and which affects the population mainly between the ages of 20-35 years, which is ultimately the ones who should be able to buy new homes and get on the property ladder, in this sense, recent associated data from the LFS ( epa ) reports in the third quarter 2013 when the number of households decreased by 80,000 families on year, therefore it´s estimated that the creation of homes in Spain is practically non-existent in the next two years, expecting to start growing in 2016.

This figure must be added to the decline suffered by the purchasing power of families with higher taxes and falling wages, another negative is the high stock of homes for sale.

Record falls for those with Spanish mortgages

12:46 PM · Comments Off · Categories: News from Marbella Costa del Sol · Tags: euribor, mortgages

With the beginning of the new year lots of expenses like electricity, water and public transport are to rise in price, but mortgages rates for the last two years have recorded record falls and this will give joy to those with mortgages.

The fall of the Euribor rate at end of 2013 to 0.54% will make a reduction of 3 or 4 euros per month.

The Euribor, the main indicator for calculating mortgages is expected to close the year at 0.541 %, representing a fall of 6 a thousanth 0.548 % compared to December 2012.

The percentage of savings you’ll get each month will vary depending on the years you have contracted the repayments, the review period and the differential, so a mortgage of 24 years mortgage payable with annual review and Euribor + 2.5% will see their mortgage reduced about 3-4 USD per month fee which is about 48 USD per year.

But if a mortgage still has a life of 39 years the savings will be around 1%, which is 6 euros per month less and over a year about 72 euros less.However semi-annual review mortgages will suffer another increase in their quotas.

The Euribor in 2013 ends at an all time low

Evictions down in Spain by 31%

01:00 PM · Comments Off · Categories: News from Marbella Costa del Sol · Tags: Anti eviction Law, Antidesahucios

The General Council of the Judiciary (GCJ) notes that both housing evictions and foreclosures are down in the third quarter of this year following the entry into force of the Antidesahucios Law (Anti eviction Law) and the also the new law of rent.

Evictions are down 31% from the previous quarter, between July and September there were more evictions for non-payment of rent than for non-payment of mortgages.Meanwhile foreclosures were down 11.6% this year to a two-year low.

Spanish Evictions per quarter

The price of housing in Spain rose 0.7 % in the third quarter of 2013

01:49 PM · Comments Off · Categories: News from Marbella Costa del Sol · Tags: marbella property, price, rise, spain

The price of housing in Spain rose 0.7 % in the third quarter of 2013, the first increase since the second quarter of 2010, the housing price index (HPI ) compiled by the National Statistical Institute said 10 autonomous communities recorded increases, led by Balearic islands ( 2%) and Valencian Community ( 1.8%), however year on year it fell by 7.9%

Property prices in Spain have risen 0.7% in the last quarter

The annual rate of new housing fell by 7.9%, almost five points higher than the previous quarter, meanwhile the annual variation of the resale market decreased by 8%. Rates of a decrease by regions are, Ceuta (-3.8 %) , Basque Country (-5 %) and Cantabria (-5.4 % ) are recorded under the autonomies price falls, on the contrary, Murcia (-15 % ), Extremadura (-14 %) and Castilla-La Mancha (-12.9 %) are the regions where the greatest price falls were recorded.

in terms of quarterly performance , the price rose 0.7 %, the first increase since the second quarter of 2010. by type of housing, new housing prices rose 2.3 % and used housing , 0.1%

most CCAA had positive quarterly rates in the third quarter of this year. the largest increases were recorded in Balearic Islands ( 2%) and Valencian Community ( 1.8%). communities whose prices have fallen further in the third quarter were autonomous community of Navarre (-1.3 %) and asturias (-1.2 %)

Property price change per country – (Data supplied by Frank Knight Residential Research)

(Data supplied by Frank Knight Residential Research)

Price per m2 on Spanish property suffers a further drop of 10.5%

02:17 PM · Comments Off · Categories: News from Marbella Costa del Sol · Tags: drop, m2, marbella property, mortgages, price, spanish

Housing sales reached 28,418 units in October this year representing a drop of 8.9 % over the same month of 2012 according to the general council of notaries which is one organisation with the freshest data to be obtained from the writings of notarised purchases.

Property purchases and sales of homes fell 13 % yoy, while transactions of single family homes showed an increase of 10.6 % yoy, but on a very small number of operations therefore increasing its volatility.

Price per m2

Moreover notaries indicate that the average price per m2 of homes sold in October stood at 1,204 euros, thus suffering a further drop of 10.5 % yoy.

in the case of flats, the average selling price was 1,320 euros per m2, thus suffering a fall of 14.1 % and 1,315 euros for resale, 1.3 % to 1,341 euros per m2

Mortgages

The number of new mortgage loans to purchase dwellings in October suffered another year decline of 22.5 % to 20,575 mortgages, in the case of the purchase of a home, the average loan amount was 116,822 euros, thus suffering a fall of 5.2%

On a positive note the number of foreigners purchasing property in Spain, especially in coastal areas is rising to help counteract the downward trend in Spanish nationals being unable to buy, due to high unemployment and fewer mortgages being granted.

Property prices in Spain to stabilise in 2014 according to the CCI

01:25 PM · Comments Off · Categories: News from Marbella Costa del Sol · Tags: 2014, marbella property, prices, spain, stabalise

The understanding that the housing sector is actually approaching the bottom of its correction is definitely increasing in popularity. In accordance with the Consumer Confidence Indicator (CCI) for November, made by the Centre for Sociological Research, 46.4% of the people that were surveyed believe that property selling prices will probably stabilise within the the coming year.

That is almost 10 percentage points more than that recorded last year when, in December 2012, just 37.1% had been of the viewpoint regarding real estate selling prices. Furthermore, during that time, up to 52.7% of the people asked anticipated even more declines in the price of properties, even though at present only 36.6% are convinced this kind of decline in selling prices will keep going. 7.4% even foresee that selling prices will rise, that is 2.5 points more than in 2012.

Spanish house prices could be nearing the end of their fall

This kind of overall feeling that real estate prices might be approaching the end of the drop coincides with a few statistics from recent weeks. On the other hand, the Ministry of Development documented that throughout the third quarter of 2013, properties reported their lowest decrease since 2010 – even progressing to being higher in price in a number of areas – the Notaries are now starting to speak of increases in real estate prices.

With all this probable outlook, the need to buy a property is starting to increase, although very slightly. El Mundo documented that, based on the November Consumer Confidence Indicator, 3.8% of participants advised they “intend to purchase a residence within the next 12 months”, that is a substantial improvement throughout the last month of 2012, while merely 2.1% said they might possibly be prepared to take that step.

Marbella town planners approve skyscraper project

01:23 PM · Comments Off · Categories: News from Marbella Costa del Sol

The 30-story building is 115 meters in height and will be located in the area of the Istan road.These are the main features of the only project presented so far to build a skyscrapper located in Marbella and was approved in the latest plenary session at Marbella City Hall.

The land reserved for the project in Marbella is 1km from the shoreline (photo sur.es)

The building will be designed by the Catalan architect Ricardo Bofill, with whom the company behind the initiative is in a very advanced stage of agreement.

Although various investor groups sought information to build high-rise towers in Marbella, this particular project is the only one approved in the municipal offices, although there has been national investor groups and foreigners very interested in building properties of this type .

The plot where the building is to be built is just over a kilometre from the shoreline in the vicinity of the Olivia Valere nightclub, Hotel Management School Les Roches and Racquet Club Manolo Santana.

The project is for an exclusively residential building of luxury apartments with four apartments per floor .
The rules adopted by the City Council to raise towers of 30 to 50 floors and a maximum height above sea level of 150 meters and to settle on the land on which is located at a maximum height of 50 meters above the sea level.In this case the project is submitted for a project that is about 30 meters above sea level and will reach once built a height at its highest point of 115 meters.

Luxury Marbella Homes

The idea of the promoters is to build luxury flats with up to four per floor with all the usual range of services including private security, spa and fitness facilities.

This project will occupy a total of 30 floors and of the five locations adopted during the last plenary session along side the Istan road.The rest would be located at Realejo where the topography allows one or two projects with a maximum height of 28 floors, in Rio Vervde in which a block of 30 floors high could be built, and two points which could be raised at Guadaiza with separate buildings of 36 floors.

The adoption of this project has come under the scrutiny of three groups of local opposition and has sparked a debate in the city of Marbella, even before knowing the specific projects, which has been reflected in social networks and has created a Facebook group opposed to skyscrapers which yesterday exceeded 740 supporters and they are promoting an initiative to gather signatures against the urban modification that has been approved.

In Madrid there are over 200,000 empty homes

02:03 PM · Comments Off · Categories: News from Marbella Costa del Sol · Tags: empty, madrid, properties

In Madrid there are over 200,000 empty homes and Madrid capital has 153,101 empty homes, areas with a greater increase in rent arrears are Madrid ( 24.6%) and the northern municipalities (17.4% ).

Among the highlights of the study by Safe rental data, we found that among the seven areas analysed in Madrid there are over 200,000 empty homes, 153,101 in the capital Madrid which is the area with the most empty buildings, followed by the southern municipalities with 18,712 and the Henares corridor with 10,202.

Regarding delinquencies, areas with a greater increase in delinquencies in rent are Madrid capital 24.6 %, the northern municipalities with 17.4 % and North-western municipalities with 16.4 %. On the other hand other areas that have experienced slower growth of defaults are: Alberche basin 10.02%, Basin – Tajuña 12.31% and 14.3% in southern municipalities.

Article By Rughead viviendas-vacias-alquiler-seguro