Wednesday, October 19, 2011

TINSA August 2011

With Spain posting falling employment figures, and the fear of another recession on Spain's already beleaguered property market is diving fast.

They continued advice of this blogger is to rent unless you can find a real bargain.

Spanish Property prices are declining at a faster rate than they were ayear ago.

The government has announced that they will be launching another Spanish Property Roadshow. Their last effort was dismal and attracted

Until Spain can resolve the problems experienced by some foreign buyers, such efforts will only be seen as a poor PR exercise. The government should stick to creating a system in which buyers can have confidence. Pressure groups are quite rightly expressing legitimate greviances, if the ministers wish to help the property market, then they should listen to these people and resolve their problems.

It makes an estate agent's job very difficult when people are worried about the horror stories they have read in the press and online.

The banks and politicians have to realise that they aren't estate agents. They aren't very good at selling houses.

When will things start to get better? When will prices stabilize?

The philosophical/psychological answer, is that in a market that is based largely on confidence is that things will only level off, when people don't think prices can fall any further.

Spanish Property VAT (IVA) reduced from 8% to 4%

In an attempt to jump start the Spanish property market, the ministry for housing has halved the tax on new homes from 8% to 4%.

The reduction in IVA only applies to new properties. The transfer tax for second hand properties remains at 7%.

This is a clear policy U-turn from the government, last year an ill-judged and vain attempt to increase the tax take from property transactions the government raised IVA from 7% to 8%.

The reduction is a temporary measure and will last until December 2011.

Whilst this will have some effect on shifting the  it may have the unintended consequence of driving down prices in the second hand market.

TINSA July 2011

Some more optimistic commentators have been suggesting since the start of the house price crash, that the end is nigh. The end of the crash that is. These soothsayers of blue horizons perpetually churn out articles proclaiming they have second guessed the market and now is the time to buy.

The latest figures compiled by TINSA suggest nothing of the sort.

Download the July 2011 TINSA report.

The drop in property prices is, if anything, currently accelerating. That is to say that house prices in Spain are falling faster than previously and the general advice to potential buyers out there is to continue to wait.