The December Tinsa Spanish property price index report estimates that prices are falling at an inter annual rate of 3.6%.
This is the 36th consecutive month that TINSA have opined that residential property in Spain has fallen in value, with the Balearic Isles and the Mediterranean coast falling by the highest margins.
TINSA's index implies that prices aren't falling as steeply as before. Oversupply, massive unemployment and weak demand continue to drive down prices.
The market analytsts, Fitch, have estimated that the down turn in prices will continue throughout 2011.
The rate of decline has been slowing since a early 2009, a simple extrapolation of the change in rate indicates that the market should bottom late 2011. However other factors may come into play, forcing prices down further. The withdrawl of extra unemployment benefit in February and the repricing of Spanish properties held by the banks is likely to depress prices further.
This means that those wishing to move to Spain should probably consider renting rather than purchasing at this stage. It's a buyers market so take your time and start by making a low offer.
The TINSA index is based on the opinion of valuers, rather than actual sale price data. The word on the street is that there are some great bargains out there, but there is a lot of property over-priced on the market.
Original article Spanish Property Magazine
Tuesday, December 14, 2010
Smoking Ban in Spain
Spain will ban smoking in public areas on the 2nd of January 2011.
The legislation has been pushed on Spain by the EU. It's a slippery slope and an affront to democracy and personal liberty.
I agree that smokers should be considerate, especially around children, diners and flammable flora. I hate seeing cigarette butts in the sand.
I don't see the need for governments to tell us what to do. It's a slippery slope. If you leave it up to the government, you remove the responsibility from the citizens. Good respectful and careful behaviour becomes enforced by the state rather than society.
At least in Spain you don't have to standing outside in the rain.
There should be smoking bars, not out right bans. Cigarettes go well with coffee and drinks. Some people enjoy it. It's also quite social.
The science behind the ban is flimsy at best. Of the 92 peer review scientific journal articles on passive smoking, none conclusively show that passive smoking causes disease.
The smoking bans have been introduced largely because of lobbyists such as ASH
The diffusion gradient of cigarette smoke from the smoker to the passive smoker is such that it's impossible to accumulate toxins at a level that causes cancer. Anti-smokers may find it unpleasant, but it's not as much of a health hazard as walking next to a line of traffic.
For more information on the history of the anti-smoking movement visit www.velvetgloveironfist.com
Tuesday, November 30, 2010
European Enforcement Order - "Costa Nightmare"
The infantile news jocks at the mail on Sunday, ran a piece about Spanish Property predictably entitled, "Costa Nightmare" - yawn. The story about how, Banco de Sabadell, a Spanish bank obtained a European Enforcement Order to recoup monies owed to them.
In 2004, an English couple, the Chatterton's signed a contract to purchase an apartment in Duquesa, on the Costa del Sol.
They found it difficult to make the repayments and offered the property back to the bank. The property was in negative equity and the bank wanted to recoup the rest of the money the Chattertons owed. So the bank has used a piece of EU legislation to claim assets from an uncontested debt.
The mail's skew on this story is that it's somehow unfair, and that the big nasty EU is interferring in our lives.
It's one example of where the EU's legal to our lives is justified and wanted.
The ability to more easily recoup monies from debtors across european borders, makes Europe a better and more financially sound place to live.
Whilst it's sad that people should find themselves ina situation where they lose their home because they are unable to pay back a debt. A contract is a contract and a debt is a debt. Were these people naively thinking that the shores of blighty somehow protected them from their creditors?
Wiltshire MEP Ashley Fox (Conservative) is reported to have said; ‘To me this is against the laws of natural justice. I shall be writing to the Commission to ask that they investigate.’
Does Mr Fox believe that debtors should be able to escape their creditors, simply because they live in Wiltshire and not Malaga?
Perhaps Mr Fox should leave the conservatives and join the natural law party.
Mail ARTICLE:
Details of the eu legislation can be found here.
European Enforcement Order Legislation
In 2004, an English couple, the Chatterton's signed a contract to purchase an apartment in Duquesa, on the Costa del Sol.
They found it difficult to make the repayments and offered the property back to the bank. The property was in negative equity and the bank wanted to recoup the rest of the money the Chattertons owed. So the bank has used a piece of EU legislation to claim assets from an uncontested debt.
The mail's skew on this story is that it's somehow unfair, and that the big nasty EU is interferring in our lives.
It's one example of where the EU's legal to our lives is justified and wanted.
The ability to more easily recoup monies from debtors across european borders, makes Europe a better and more financially sound place to live.
Whilst it's sad that people should find themselves ina situation where they lose their home because they are unable to pay back a debt. A contract is a contract and a debt is a debt. Were these people naively thinking that the shores of blighty somehow protected them from their creditors?
Wiltshire MEP Ashley Fox (Conservative) is reported to have said; ‘To me this is against the laws of natural justice. I shall be writing to the Commission to ask that they investigate.’
Does Mr Fox believe that debtors should be able to escape their creditors, simply because they live in Wiltshire and not Malaga?
Perhaps Mr Fox should leave the conservatives and join the natural law party.
Mail ARTICLE:
Details of the eu legislation can be found here.
European Enforcement Order Legislation
Monday, November 29, 2010
Euroland La La La
Many said that the Euro couldn't work without debt union and fiscal union. The bond markets are pushing hard. The cracks are being patched over (Greece and Ireland), but if the euro is to survive debt union and fiscal union. Will the Irish and greeks accept the loss of fiscal sovereignty to the EU? In
Spain has to refinance it's debt and there are doubts as to whether the political will exists for the surplus countries (Germany, France and teh Netherlands) to take on the debt of their Southern neighbours.
If the eurozone breaks up and Spain goes back to the peseta at the level at which it joined.
166.386 Ptas = 1 Euro
Many analysts are predicting a drop in the value of the euro, meaning that property in Spain for those wishing to purchase will become cheaper.
Spain has to refinance it's debt and there are doubts as to whether the political will exists for the surplus countries (Germany, France and teh Netherlands) to take on the debt of their Southern neighbours.
If the eurozone breaks up and Spain goes back to the peseta at the level at which it joined.
166.386 Ptas = 1 Euro
Many analysts are predicting a drop in the value of the euro, meaning that property in Spain for those wishing to purchase will become cheaper.
Sunday, November 28, 2010
Spanish Property Prices Decline for three consequctive years.
Throughout the late 90's and early noughties the Spanish Property saw an explosion in popularity, construction and price. Any boy from the country who knew how to mix cement or carry bricks could get a job.
Spain has massive a glut of unsold properties, and as developer and individuals continue to go into liquidation banks are resposse
The bubble burst in November of 2007 and since then prices have dropped some 25% (depending which measure you look at), with many analysts predicting that property prices will continue to fall.
The word on the ground is that many properties on sale are often over priced, but if you can find the bargains, these are selling for around 50% of their pre-boom prices.
Spain has massive a glut of unsold properties, and as developer and individuals continue to go into liquidation banks are resposse
The bubble burst in November of 2007 and since then prices have dropped some 25% (depending which measure you look at), with many analysts predicting that property prices will continue to fall.
The word on the ground is that many properties on sale are often over priced, but if you can find the bargains, these are selling for around 50% of their pre-boom prices.
Thursday, November 18, 2010
TINSA - Sold!
The Spanish Property valuation company TINSA, has been acquired by Advent, a Boston based private equity firm.
TINSA publishes an index of Spanish Property prices based on valuations.
Advent paid 100M Euros for a 94.5% stake in TINSA. TINSA posted a turnover in excess of 80Million Euros for 2010.
Advent are hoping to grow the company by expanding into other regions and by buying up other similar businesses.
It is rumoured that Advent are also looking at Servetas, another Spanish valuations company.
TINSA publishes an index of Spanish Property prices based on valuations.
Advent paid 100M Euros for a 94.5% stake in TINSA. TINSA posted a turnover in excess of 80Million Euros for 2010.
Advent are hoping to grow the company by expanding into other regions and by buying up other similar businesses.
It is rumoured that Advent are also looking at Servetas, another Spanish valuations company.
Tuesday, November 9, 2010
November 2010 TINSA price index
The November (For October 2010) price index indicates that Spanish Property prices are continuing to decline.
Download the TINSA index for spanish property
TINSA estimate that prices are falling at an interannual rate of an estimated 4.6%, at the same time the Spanish national institute of statistics have recorded an increase in property transactions.
TINSA base there Spanish Property price index on valuations, so they should be taken as collective opinion of valuers rather than hard fact.
Prices are decreasing as vendors lower there prices in order to attract the scarce number of buyers.
Banks are revising the prices of properties they have repossessed over the few years. In order to clear properties banks are having to cut prices in order to get the property off their books.
Banks are sometimes offering 100% loan to value mortgages, often for the value of the outstanding loan at the time they where repossessed. It should be pointed out that many properties from the banks don't offer value for money, as similar properties can often be purchased for less.
On the other side of the coin an investment fund Taurus Ibérica has been set up with a view of purchasing bargain properties and turning them round quickly in order to make a quick profit.
It is expect that as serious investors come into the market, who aim to make a quick profit when the market bottoms, this will be the time to buy.
The general advice to buyers out there is to either wait as prices to continue to fall or if you can find a property at considerably lower than the market value.
Download the TINSA index for spanish property
TINSA estimate that prices are falling at an interannual rate of an estimated 4.6%, at the same time the Spanish national institute of statistics have recorded an increase in property transactions.
TINSA base there Spanish Property price index on valuations, so they should be taken as collective opinion of valuers rather than hard fact.
Prices are decreasing as vendors lower there prices in order to attract the scarce number of buyers.
Banks are revising the prices of properties they have repossessed over the few years. In order to clear properties banks are having to cut prices in order to get the property off their books.
Banks are sometimes offering 100% loan to value mortgages, often for the value of the outstanding loan at the time they where repossessed. It should be pointed out that many properties from the banks don't offer value for money, as similar properties can often be purchased for less.
On the other side of the coin an investment fund Taurus Ibérica has been set up with a view of purchasing bargain properties and turning them round quickly in order to make a quick profit.
It is expect that as serious investors come into the market, who aim to make a quick profit when the market bottoms, this will be the time to buy.
The general advice to buyers out there is to either wait as prices to continue to fall or if you can find a property at considerably lower than the market value.
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