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.
Wednesday, October 19, 2011
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.
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.
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.
Saturday, July 16, 2011
TINSA June 2011
Spanish property prices continue on there downward journey, with no signs of slowing up. The downward trajectory is a sustained year on year trend that shows no signs of abaiting. The reasons for the continued decline are much the same as they were this time last year.
- A glut of new properties still unsold.
- General malaise across other property market's
- Property scandals not resolved.
- Unemployment still very high (20+%)
- Instability in the Eurozone.
- Poor outlook for Spain
Prices are failing, so it's therefore not a good time to buy, since you can purchase in the future for less money. This in itself puts further downward pressure on the property market.
For prospective buyers looking to invest in Spain, unless you find a great bargain, sit on your money and wait. Rent instead.
Tinsa report
Tuesday, April 12, 2011
TINSA April 2011
Unsurprisingly the TINSA index of the Spanish property market indicates that prices are continuing to fall.
Prices have now been falling for continually and consistently for over 3 years and most analysts expect prices to continue to fall throughout 2011.
TINSA suggest that prices are falling at an interannual rate of -3.7% overall:
The breakdown is as follows:
Provincial Capitals and large cities -4.6%
Metropolitan areas -5.3%
Mediterranean coast -5.7
Balearics and Canaries - 3.0%
Other municipalities -1.1%
TINSA estimate that the biggest drop in property values continues to be the coastal areas.
With record unemployment and a swath of properties swamping the markets, there is little to be optimistic about. The conditions that have previously pushed down prices are still acting and will continue to act for the medium term.
Repossessions are at an all time high and interest rates are set to go up. Most mortgages in Spain are based on the Euribor and as their payments increase more people will default on their mortgages forcing the banks to acquire yet more properties.
Many of the properties that have been repossessed by the banks are optimistically priced to say the least, and if the banks are going to move them off their books their will need to be reduced in price. This can only mean more downward pressure on property prices.
The advice to people looking to buy a property in Spain is to wait and consider renting.
Prices have now been falling for continually and consistently for over 3 years and most analysts expect prices to continue to fall throughout 2011.
TINSA suggest that prices are falling at an interannual rate of -3.7% overall:
The breakdown is as follows:
Provincial Capitals and large cities -4.6%
Metropolitan areas -5.3%
Mediterranean coast -5.7
Balearics and Canaries - 3.0%
Other municipalities -1.1%
TINSA estimate that the biggest drop in property values continues to be the coastal areas.
With record unemployment and a swath of properties swamping the markets, there is little to be optimistic about. The conditions that have previously pushed down prices are still acting and will continue to act for the medium term.
Repossessions are at an all time high and interest rates are set to go up. Most mortgages in Spain are based on the Euribor and as their payments increase more people will default on their mortgages forcing the banks to acquire yet more properties.
Many of the properties that have been repossessed by the banks are optimistically priced to say the least, and if the banks are going to move them off their books their will need to be reduced in price. This can only mean more downward pressure on property prices.
The advice to people looking to buy a property in Spain is to wait and consider renting.
Tuesday, April 5, 2011
TINSA March 2011
TINSA property valuations continue to estimate that the Spanish Property Market is in decline. They estimate that Spanish residential property has declined by 4.5%, with the Mediterranean coast showing the steepest price drop at 6.7%
The latest TINSA report can be downloaded here
TINSA market can be broken down into different areas:
The index indicates that the Canaries and Balearic's Islands are close to the bottom of the curve.
Some analysts have been proclaiming that the price decline has already hit the bottom, however the conditions that have pushed prices downward continue to act, and Spain's wider economic woes continue.
Those looking to buy on the Mediterranean coast should continue to wait or consider renting property until the market hits the bottom.
Those buyers looking for a property in Mallorca, Ibiza, Menorca, should probably start bargain hunting.
The latest TINSA report can be downloaded here
TINSA market can be broken down into different areas:
- Balearic Islands / Canary Islands -0.8%
- Large Cities / Provincial capitals -5.2%
- Metropolitan areas -5.4%
- Mediterranean Coast -6.7%
- Everything else ( Inland / Rural properties) -3.3%
The index indicates that the Canaries and Balearic's Islands are close to the bottom of the curve.
Some analysts have been proclaiming that the price decline has already hit the bottom, however the conditions that have pushed prices downward continue to act, and Spain's wider economic woes continue.
Those looking to buy on the Mediterranean coast should continue to wait or consider renting property until the market hits the bottom.
Those buyers looking for a property in Mallorca, Ibiza, Menorca, should probably start bargain hunting.
Thursday, March 31, 2011
Caja Mediteraneo
Caja Mediteraneo or CAM announced the need to seek bailout funding to the tune of 2.8 Billion Euros.
Following the collapse of a merger agreement,Spanish savings bank Caja Mediterraneo (CAM) declared it would apply for state funds to meet capital requirements.
CAM was due to merge with other cajas, but three of the partners in the state-driven Banco Base merger voted against an association with CAM.
CAM which mainly operates all across Spain, has lent heavily to both property developers as well as domestic mortgages. These loans are not looking as healthy as they once did, given the downward spiral of the property market and unemployment.
Only yesterday in response to the 9Bn bailout of Caja Castilla La Mancha, Pedro Solbes Finance Minister said,
"The cajas are solvent, as is the financial system".
Following the collapse of a merger agreement,Spanish savings bank Caja Mediterraneo (CAM) declared it would apply for state funds to meet capital requirements.
CAM was due to merge with other cajas, but three of the partners in the state-driven Banco Base merger voted against an association with CAM.
CAM which mainly operates all across Spain, has lent heavily to both property developers as well as domestic mortgages. These loans are not looking as healthy as they once did, given the downward spiral of the property market and unemployment.
Only yesterday in response to the 9Bn bailout of Caja Castilla La Mancha, Pedro Solbes Finance Minister said,
"The cajas are solvent, as is the financial system".
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