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Sterling weakens

Peter Loveday, Head of Sales, Currencies Direct.

Disillusioned with the UK, foreign shores still hold an attraction for many people dreaming of living an alternative lifestyle in another country. Timid clients have been tentatively tiptoeing through estate agents’ doors and, slowly but surely; we have seen some interest returning to the market.

With Sterling dropping to 4-month lows against the Euro over the past fortnight, many agents are again worrying if this will deter their ‘Brit-buyers’. Certainly some sales could be put in jeopardy but some astute clients have mitigated their risk by fixing their rates with Currencies Direct.

Many sales have been made to purchasers in the Eurozone who are unaffected by GBP-EUR but are eager to benefit from reduced prices. Vendors repatriating funds to the UK are benefitting from more Sterling when it arrives and so can afford to drop their prices. Again ‘hedging strategies’ and ‘forward buying’ give clients flexibility on when to fix their rate so they derive maximum benefit from their Eurozone sale.

At Currencies Direct we are committed to saving these clients money and have different options to assist in repatriating their funds without bank charges – as these are tailored solutions the best way forward is for each client to discuss their own particular situation with one of our representatives.

Of course there are still many clients that will continue to search out their dream properties in the sun and for these clients our exemplary service and network of representatives and offices are there to assist every step of the way. With properties costing more in Sterling terms, saving 3% of the purchase price by using a foreign exchange specialist such as Currencies Direct is even more important to clients.

Source article Currencies Direct

 

News

Kevin Reardon / 2010-07-10 11:31:07

Reacting to Ms Andreasen's speech later in the debate, Mr Zapatero denied any similarity to Mugabe.

Spanish prime minister José Luis Zapatero rejected comparisons to President Mugabe of Zimbabwe, after UKIP MEP Marta Andreasen once again brought him to task over his government’s inaction on the demolition of coastal homes in Spain.

“You have exercised the EU rotating presidency in the same way you govern your country, Spain – that is, with your back to your citizens,” Ms Andreasen told Mr Zapatero, who was in Strasbourg for the parliamentary debate to review the Spanish presidency after its six-month rotating period ended in June.

“Today I’m coming back here to remind you of the infamous Spanish land grab, a matter which I first brought to your attention in January.  You have done nothing to resolve the menace affecting hundreds of thousands of people across Spain who face confiscation and demolition of their houses,” Ms Andreasen continued.

“My Constituents regularly ask, ‘who is running Spain?’

“One such individual, Mr Westerdale, writes that he fears he’s facing a situation similar to that experienced by British subjects at the hands of President Mugabe in Zimbabwe, and wonders why he is receiving this treatment in a friendly European country. This is why he feels that the European Union is not capable of protecting British citizens,” Ms Andreasen said.

She added that the head of Andalusia’s planning inspectorate had acknowledged that 300,000 houses are affected in that region alone.  “This is not the handful of British citizens that some want us to believe,” Ms Andreasen said.

A further 15,000 mostly British, Belgian, German and French property owners lodged a formal petition with MEPs four years ago in desperation over a 1994 Valencia land and town planning law which triggered 20,000 compulsory purchases of land or property for “urban” development.

That law’s aim was to ensure community development plans were not blocked by individual land-owners, but a loophole meant unscrupulous developers could reclassify rural land as urban without the owners’ permission – effectively giving themselves compulsory purchase rights on foreign-owned homes at a fraction of the market value.

The European Court of Justice has already ruled the “land-grab” law illegal, but the European Commission says a replacement law – the Ley Urbanistica – still breaches EU public procurement regulations and therefore fails to protect citizens’ rights.

An inquiry by the European Parliament’s Petitions Committee resulted in a report slamming Spanish planning loopholes which leave homeowners defenceless against developers seizing part or all of their property.

Reacting to Ms Andreasen’s speech later in the debate, Mr Zapatero denied any similarity to Mugabe.  This is “something that came from a specific political group from the UK, that was raised here in this House,” Mr Zapatero said, adding: “and they mentioned Zimbabwe and I’m sorry I cannot accept that. It’s unacceptable and I totally reject that.”

Mr Zapatero said that the Courts are responsible for the application of law. “We stand shoulder to shoulder with those people, in this case British citizens, who, maybe, have had wool pulled over their eyes in the property sector.”

“But we are working with the parliamentary groups in the European Parliament. We are doing everything possible,” Mr Zapatero said, claiming that this parliament had itself asked Spain to protect its coast and so environmental laws have to be observed.

Speaking afterwards outside the Plenary, Mrs Andreasen said she was worried that she “might get phone calls from Robert Mugabe complaining about likening him to the Spanish prime minister”.

Mr Zapatero also talked about the law and the courts, but the dogs in the street know that Spain has the most highly politicised judiciary in Europe.”

Source Article The Leader- British Language Spanish Newspaper.

 

Source article = www.forexyard.com

Wednesday January 27, 2010 12:48:17 AM GMT

SPAIN-HOUSING/DEBT

MADRID, Jan 25 (Reuters) – Spanish property developers’ debts with banks at the end of September were worth around a third of the country’s gross domestic product, the Spanish Mortgage Association said on Monday.

A spokeswoman said data up to the end of the third quarter showed hard hit property developers owed 324 billion euros ($458 billion) as a property crisis continued to worsen.

Property promoters have faced a torrid time since a property bubble burst in 2007.

The mortgage association said many property developers could not pay back their debts and that, in turn, was affecting the credit rating of Spanish banks which have largely emerged unscathed from a severe recession and credit crisis.

Spanish house prices fell just over six percent last year but many analysts still say the market has further to fall and data may underestimate the true scale of the slide so far. [ID:nLDE60E0VV] (Reporting by Carlos Ruano; Writing by Nigel Davies; Editing by Dan Lalor) ($1 = 0.7072 euro)

 

Posted on August 26, 2009 by Spanish Property News

celestino-corbacho-minister-employment

Celestino Corbacho, Spanish minister of employment

Bank greed is the “indisputable origin” of Spain’s property crash, according to Celestino Corbacho, Spain’s Minister of Employment.

“As the financial sector is always telling labour markets what they should be doing I am going to remind it of something; it is responsible for the real estate situation. It was the financial sector that supported and encouraged the inflation in the real estate sector, ” said Corbacho in an interview this week, going on to argue that lose lending practises and “120%” mortgages encouraged over-building during the boom, which caused the glut today.

Spain’s economic situation today would be much healthier if banks hadn’t thrown money at “short term, high profit sectors, at the expense of strategic long-term sectors,” said Corbacho, who lamented the lack of a mea culpa from the financial sector. “I would like to hear someone responsible from the financial sector come out one day and say: we made a lot of money in that period, but we were probably mistaken.”

“We wouldn’t be here if it hadn’t been for the model of financial greed we have,” said Corbacho bluntly.

Corbacho may be right to blame banks for their part in Spain’s property crash, but he had nothing to say about another group with plenty of responsibility for the mess: the government and politicians just like him.

 

I know what you are thinking. How apt that a Spanish Property Agent is writing about a CRB (Criminal Records Bureau) report. Ha ha.

But I also know that in this day and age, “one has to do what one has to do”! It might just help!


Reproduced from an article in TheInfoChief

July 11, 2009 by: admin

Are you a British expat living in Spain but needing to go back to the UK for a job? Some jobs require you to have a CRB report and if you have resided in Spain for some time you will need to apply for a Spanish one. Depending on where you live currently in Spain you may be able to get a (CRB) report if you visit the Ministry of Justice but not every town has one. However, if you live near Malaga, Murcia city or Valencia you should be able to go to the Ministry of Justice and get one straight away instead of sending the forms to Madrid, where they very often enter a black hole never to be seen again.

You can download the form (modelo 790) from the internet here and they are in English which is very helpful! Its best to fill it in online and then print them out (3 in total) and then you need to sign and date them.

You then need to go to a bank and pay the fee which is currently €3.47 but remember that this can change periodically so check the website.  Once they have stamped the forms  as proof of payment. The bank will keep one part, one is for you to keep and the third one is for you to take to the relevant department at the Ministry.

The other thing you must remember to do, is to get your passport verified by an official body, usually at the police station or even the town hall.

It took quite a while finding this out and I hope this information  will have saved you lots of time.

11/07/09 – As an update, I have found out that getting the Spanish CRB report was very quick and easy at the Ministry of Justice in Murcia City. Apparently quite painless!!

 

Investing in Property – Can It Still Reap High Rewards?
By David Clayton

If you are looking for an exciting, and hopefully lucrative way to invest, then how about investing in property?

Why choose to invest in real estate? Well a few things in life are absolutely certain, and one of these is that people will always need somewhere to live, there will always be offices, shops, restaurants, bars, cafes etc. for people to work in and where people go to relax and unwind. So that would mean that investing in property could well be a good way to make yourself some money, but, and there is a but, you will need to know how to invest in property.

Remember as with any other investment, although you can make money with real estate investment, you can also lose it when investing in property, especially if you do not know what you are doing. So take all precautions and most of all research, research, research.

For instance to make money you would have to buy your investment real estate in a suitable area – buy the wrong property in the wrong area and you are doomed to failure. Take time to research
where you are likely to make a good return on your property investment. Do you want to consider buying property abroad? Would you prefer to buy property in your own locality? Is there a known property hot-spot nearby?

Once you have decided whether you want to buy property in a country like Bulgaria, Portugal, Spain etc, or whether you are going to stick with your native country, it is then really down to spending time looking into your chosen locality – you cannot do to much research. Is your chosen area an up and coming holiday resort where you could possibly make money by renting out your investment property during the holiday season? What is the weather like all year? How long will the holiday season be? Does the prospective property abroad have a pool and all facilities needed to make a good holiday home? If you are looking to buy investment property abroad, check with your real estate agent for the best country to concentrate your search on, as they are after all experts in investing in real esate. If you decide to stick with your own country, look for an area that seems to have a lot of investment pouring into it, as this nearly always indicates general improvement to an area with property price increases following on. Is it an area which is up and coming which more shops etc appearing? Can you commute to the local City where lots of people work? All of these points need to be thought about when you are contemplating investing in property.

Often people will be selling property that is very run-down and needs a complete overhaul to get it up to a good standard, but so long as you buy at the right price, and in the right place, you can stand to make a lot of money by investing in real estate that needs renovating. Alternatively, you could look to buy property that is a bit ‘tired’, and just really needs a cosmetic overhaul – again so long as you buy in the right area and do not pay too much for your investment property, you should be able to make
a good return.

Have you considered buying real estate that needs some work doing to it, then once you have completed the work, renting out your newly renovated property? This is a popular option, as many people stay in rental properties until they can afford that step onto the property ladder. Lenders are now offering special ‘buy-to-let’ mortgages that are aimed specifically at this type of market. This is becoming almost as popular here as it is in countries such as Portugal, Spain Bulgaria etc. where you would buy your property with the sole intention of making money from renting it out as a holiday home.

Once you have started investing in property you can re-invest your profits on the next property, and just keep doing this, repeating the steps for each property you invest in, and you have the potential to make a lot of money from your investment property. As mentioned previously there are risks involved in real estate investment, but there are also very good profits to be made, just take your time and do your research.

David Clayton writes articles on property investment, and investing in property abroad for http://www.properties-espana.co.uk, where you will find lots of advice on buying property in Bulgaria, Portugal, Spain, Cyprus, and many other countries.
Please feel free to use this article, but resouce box and all links must be kept intact.

Article Source: http://EzineArticles.com/?expert=David_Clayton

http://EzineArticles.com/?Investing-in-Property—Can-It-Still-Reap-High-Rewards?&id=301942

 

I watch as Guardia Civil officers enter the lively restaurant whilst ignoring the Chinese sellers of bootleg CDs standing in groups outside. Identifying the eatery’s owner they tell him in no uncertain terms that he must stop the live music or he will be closed down.

The officers’ visit leaves tourists and diners crestfallen. They came to enjoy the sub-tropical atmosphere and entertainment. Shaking their heads in silence they look at each other resignedly as the truth sinks in.

Nothing underscores better the reason why tourists are deserting the Costas in their millions. A festering culture of antipathy towards tourism and la dolce vita Spanish-style has set in. Reason seems to have deserted the policy makers.

A fellow diner says: “If their purpose is to return Benidorm to fishing village status they could hardly do it better. There is no need for eastern Mediterranean resorts to pass the brown envelopes in pursuit of high-spending tourists: the Spanish do it unpaid. They are misguidedly reversing the gains of decades.”

TURKISH DELIGHT

Compared with Mediterranean Spain (- 22%) Greek tourism has dropped by a much more palatable 7%. Turkish tourism is actually up by 3.59%. In 2008 Turkey attracted 26.4 million visitors.

Because they actually encourage a holiday atmosphere Turkish restaurants are far livelier than are their Spanish rivals. Here on the Costas, even on a Saturday evening, most bars and restaurants struggle to fill just a few tables; good quality live music is virtually non-existent.

Those filling the rival Turkish and Greek resorts are not new to tourism. I suspect that most of them were weaned on the Costas, but given the choice of value for money and eastern Mediterranean joie de vivre, who could blame them?

DEATH WISH SPAIN

The French authorities reacted to the need to boost tourism by reducing VAT from 19.6% to just 5.5% in the restaurant industry. A Parisian restaurateur speaks for many when she says diners are now coming seven times a month instead of four or five times.

On the face of it this is a lot of money for any government to lose but the deal is that, in return, the industry agrees to drop its prices accordingly; and to employ a further 40,000 workers. The extra taxes paid by this new working army will offset those losses.

Ireland set the example: Years ago they drastically cut the hotel industry’s VAT obligations. It was a smart move that attracted so many additional tourists the Government actually increased its income.

THE SOUND AND PRICE OF SILENCE

In sharp contrast Spain’s tourist strategy appears anti-tourist. A ridiculously low 35 decibel level is imposed on venues; a busy bar’s chatter can be as high as 75 decibels. It requires only one resident or spiteful competitor to complain, and the police with Taliban zeal arrive to stop the enjoyment.

On the roads the travelling tourist runs a high-fine judicial gauntlet. If they manage to make it to the beaches a simple ball game or ‘after hours’ soiree can cost more than the holiday itself.

Barrie Breton, keyboard player of the eclectic Dynamic Touché duo says; “It is madness. At least when Franco was in charge there was a consistency and greater liberalisation.”

Banned from playing their popular gigs at the Punto Marina plaza, diner Phil Heath adds: “There are 14 units here; five are empty and another two have only the staff in attendance. On the lower section, of fourteen units only four are open. It’s madness!”

To paraphrase George Orwell: “Maybe they will see the writing on the wall only when their backs are up against it.” For most restaurateurs their backs are already up against it as they struggle to survive the tourist Taliban.

http://www.spanishnews.es/20090713-costas-killing-the-golden-geese/id=636/

 

Investors from the old Soviet Block countries and those from the Scandinavian and Benelux countries as well as Spanish Nationals themselves are currently snapping up some incredible bargains on the Spanish Property scene whilst the traditional UK buyers are missing out big time and we know why. The Pound versus the Euro devaluation is making it difficult for UK Pound buyers to shake off their recessionary blues. I used the word “devaluation” whereas I think common parlance for anything negative these days is “re-alignment” call me cynical if you like but the truth is I don’t see the Pound coming back to anything like the levels we enjoyed before.

How long can we all just sit on the fence?

Ex pat owners seeking to get back to the UK have reduced their asking prices and as they get a better rate of exchange now as long as they are going Euro to the Pound they can and have reduced their prices right?

Only problem is that it’s not us Brits that are getting the benefit such as those that are already in the Euro who can take advantage of the prices windfall without the Pound/Euro fiasco.

 

With the recession biting hard, there are outstanding bargains to be had for those that can move quickly and for those with the cash to take advantage of  hard pressed developers with stock to shift. Cash flow, liquidity and survival are the words of today. Take a look at the latest crop of country villas that have come onto my desk, key ready properties that would have cost tens of thousands of Euros more just a few months ago and these properties would have been bought before completion. Now they are waiting key ready for the lucky few who have the money and the courage to seize the moment. Not everybody wants to live away from the coast, of course, but then not everybody wants the tourist life of larger, sea and sand but even if they, or their guests, do then it’s just an hour away. With prices as low as 147,000 Euros for a 3 bed 2 bath detached villa on a 10,800m2 plot with a garage, BBQ, Terrace, Courtyard, Utility etc etc that must be a bargain in anyones eyes. SEE FOR YOURSELF

 

News

Property in Spain stays top.

The latest statistics from a leading overseas property portal have shown that Spain is still the number one destination for British buyers of overseas property, despite the effects of the credit crunch on the numbers of properties purchased. Property Index.com has released statistics showing that Spain leads France, Portugal, Turkey and Bulgaria in the number of enquiries for property in February 2009.

However, the effects of the global economic downturn have been seen in the average price of the properties searched on the portal. In 2008, the average price of property viewed in Spain was £235,223 – a figure which dropped to £211,343 in February 2009, a drop of around ten per cent.

Meanwhile, property in Spain remains much more affordable than in it’s closest rival in popularity. The average price of property viewed in France was £441,252.

Within Spain, property in Costa Blanca was the most popular, followed by Tenerife in the Spanish islands, and with property on the Costa del Sol.

Lee Bramzell, Chief Executive of PropertyIndex.com said, “The British love affair with Spain is far from over, and our data suggests that when we emerge from the recession, it will be the first place on the list for Brits wanting to buy holiday homes and investment properties overseas. While property sale volumes remain low, there is no doubt that the British are keeping a beady eye on the Spanish market, waiting for the right buying opportunity. I expect to see considerable pent up demand when the economy recovers.

“Tourism in the country remains strong and sensible Brits already owning property in Spain will be aiming to maximise their rental income over the coming months while they wait for the market to stabilise. New buyers can get a real bargain – official data shows house price falls in the region of three per cent, but in reality reductions are much greater than this. We are seeing some developers offering discounts of as much as 40 per cent on some schemes. This more than compensates for the strength of the Euro which we expect to weaken against the pound throughout 2009.”

http://www.buyassociation.co.uk/property/news/spain/property-in-spain-stays-top-11097.html

 

With the world economy in tatters and the Spanish property market albeit destroyed, many see Spanish bank repossession property as the obvious “best value for money” choice for the “cash in pocket” investment buyer.

Lets think about that – because it is plainly not the case, a home owner defaults on a Spanish mortgage, the bank may have loaned at 70% of the supposed value of the property. Property values have rolled back 6 years or so, therefore the outstanding debt that the banks want to recover could well be equal to the full “today’s market value” of the property and the bank may well also add a 25% margin on top to cover their overheads.

I think it is worth saying that if you are being offered a bank repossession property, you should not just automatically assume that it must be the best value available.

Consider property being offered by the owners themselves, either via an agent or direct. They may well be in a distressed situation but have not yet got as far as being repossessed.

They can perhaps see it on the horizon but want to get out whilst they can and with their financial integrity still in place.

These folk might well be offering their properties for sale at little more than enough to clear the mortgage and that could easily be the 2002 price and possible the 2002 price less x amount.

A Spanish so called bank repossession could in fact be when the owners have given up and have opted to hand back the keys. It never went as far as a court order to repossess but the banks wants to recoup all of the outstanding debts and their charges.

However, if the bank has pursued a repossession via the courts this is possibly where the real bargains are – in the auction rooms.

Consider the difficulties that we as “for the most part” will have, not being good Spanish speakers.

1. Finding out where and when the auctions are being held.

2. Being savvy enough to be able to compete with Spanish Nationals and the Professionals.

3. It can take well over 12 months before these properties even get to the auctions rooms.

(You should always seek the services of an English speaking solicitor to act on your behalf when considering purchasing any property.)

 

UK homeowners in Spanish victory

The City of Arts and Sciences, Valencia
A court decision in Spain has opened the way for thousands of UK citizens to reclaim some of the tax they paid when they sold their homes there.
The High Court in the region of Valencia has ruled in favour of a British couple, Mr and Mrs Roy.
It told the Spanish tax authorities to repay them for being charged a capital gains tax levied at 35% instead of 15%.
A spokesman for the Roys’ law firm said it was gathering similar cases, with an average claim worth £14,100.
“This discriminatory law was in force for many years,” said Emilio Alvarez of Valencian law firm Costa, Alvarez, Manglano.
“It will have affected thousands of people,” he added.
Law change
The opportunity to lodge a tax reclaim hinges on a change to the Spanish tax laws in December 2006.

The decision [in Valencia] was so clear, we don’t expect other High Courts in Spain to come to a different decision

Emilio Alvarez
Until then, people who sold homes in Spain, but who were officially non-resident, were taxed at 35% of their profits, rather than at the 15% rate applied to Spanish nationals.
The law was changed after pressure from the European Commission, unhappy that the Spanish government was enforcing discriminatory tax laws.
However, the Spanish tax authorities have resisted caving in to retrospective demands for refunds and only now, after the Valencian court decision last month concluded a year-long case, has the first ruling gone in favour of a claimant.
There is a four-year limit on making reclaims from the time when the tax was paid – typically six months after the sale went through.
So Mr Alvarez estimates that about 10,000 UK citizens who sold their homes between July 2004 and December 2006 still have an opportunity to press their claims.
Long drawn out
Several hundred people have signed up to pursue claims, but the process will not be straightforward.
Firstly they must lodge a claim at their Spanish tax office. Assuming this is rejected, they have just one month to appeal to an “economic tribunal”.
If that, too, rejects the claim, then there are only two months in which to start pursuing the issue through the courts, which involves employing a Spanish lawyer.
Failure to take make a claim to the tribunal, or doing so incorrectly, can lead to the claim being struck out completely.
“We expect other tax offices to reject their claims,” said Mr Alvarez.
“But the decision [in Valencia] was so clear, we don’t expect other High Courts in Spain to come to a different decision,” he added.
Other EU citizens who sold property in Spain will also be able to take similar action, if they want to reclaim some of the non-residents’ income tax they were over-charged.

http://news.bbc.co.uk/1/hi/business/7928362.stm

 

Houses For Sale in Spain – Now at Rock Bottom Prices
By John N Stanley

Cash Is King.

Along with many other countries, the Spanish property market has plummeted due directly to the global credit crunch.

Those looking to sell their Spanish homes face a daunting wait if they are unwilling or unable to reduce their asking prices as there are literally thousands of houses for sale in Spain. It’s only the bargains now that buyers are pursuing and for anyone lucky enough to have sufficient savings to buy property in Spain then cash is king and they will certainly be able to snap up the bargains.

People hoping to take advantage of the current glut of properties but needing a Spanish mortgage are unlikely to succeed for unless they have a squeaky-clean credit history and a large deposit, they will not get the mortgage needed which are becoming very difficult now. The Spanish banks are seemingly unwilling to do what we expect of banks which is to make mortgages!

Cold Feet for New Developments.

Developers are being left with many unfinished and unsold properties as potential buyers turn their backs on anything new or off plan. They have been frightened off by the stories of developers going into bankruptcy half way through or are otherwise worried over potential problems if a developer does not have all the paperwork properly in place get the utilities on. Not much point in buying a property if it has no electricity or water, and then waiting for it, for, possibly months if not years to be resolved. Before considering a new property it is essential to check that the development has either been fully completed with all infrastructures in, and all services connected or ensure that proper bank guarantees are in place to ensure that you are not left high and dry.

Resale Bargains Galore.

With so many resale properties for sale they in fact can prove to be the best bet for those unwilling to get involved with the vagaries of the newbuild market . With so many people now finding it difficult to make a living in Spain it is inevitable that some are facing increasing difficult with their mortgage payments. Those wishing to sell up and move back to the UK, are forced to greatly reduce their asking prices in order to attract a buyer and with a similar scenario applying to some pensioners, who have seen their pension income hit hard by the devaluation in the Pound. They are not entitled to any additional UK benefits whilst in Spain and they too are finding life very tough and so they are also selling up to go back to blighty where at least they may get the financial assistance they need.

Money in the Bank?

If you have money in the bank, or under the mattress, it is probably the best time ever to look at houses for sale in Spain. In certain areas, like the Costa Blanca or the Costa Calida it’s probably unlikely that prices can fall much further with many owners already saying “Why should I give my house away to a complete stranger, I might as well hang on to it until the market picks up, because it will eventually.” It is possible that prices may have bottomed out as owners take their properties off the market and leave it to those distressed sellers and developers thereby actually reducing the stock available.

If you are seriously considering an overseas property investment then you should seriously look at buying a property in Spain whilst they are at rock bottom prices. Spain is still the favourite European country for Brits. looking to live in the sun. Those that are waiting for things to improve before buying may be disappointed as when the crunch arrive it arrived quickly and it could disappear just as quickly I hope.

For those waiting for the British Pound to recover against the Euro:

(1) I don’t think it will or not by much in any case.
(2) The virtual parity of the Pound with the Euro means that Brits can sell cheaper if they are planning to return to the UK.

Now is the time if you want to pick up a bargain.

John writes online information on various subjects, with his core business being Spanish Property, Mortgages and Solutions for those living in Spain. Check out his website and find much more information about Spanish Properties at http://www.fincalinkup.com

Article Source: http://EzineArticles.com/?expert=John_N_Stanley
http://EzineArticles.com/?Houses-For-Sale-in-Spain—Now-at-Rock-Bottom-Prices&id=1888158

 

For many British ex pats living in Spain the current economic situation is detracting from their quality of life and spoiling the dream. However, there are many solutions.

FINANCIAL SOLUTIONS FOR BRITISH EX-PATS IN SPAIN


Over the last eight months or so retired people living in Spain have been finding it increasingly difficult to make ends meet, caused mainly by the £ versus the Euro exchange rate fluctuations. The weak Pound has effectively wiped nearly 25% off the value of UK pensions causing, in some cases, serious hardship. To make matters worse, because of the oversupply of property here in Spain people are also finding it almost impossible to sell in order to downsize and release some equity and so they find themselves stuck in a deepening rut.

Most British Expats who move to Spain on a permanent basis and after selling their UK property buy their Spanish property for cash and for many it’s the first time in their lives that they have been mortgage free. Life is conspiring against them and now when they should be taking it easy in retirement yet financial worries have returned yet again. What have they done to deserve it and what can they do to make things better for themselves. Well, they could take out a mortgage! “What” I hear them say “A mortgage at our time of life!”

Think about it! They have worked all their lives to raise a family and buy a house. When the children leave home mum and dad say to themselves “it’s just us now,so why not sell the house and go and live in Spain or somewhere else where we can enjoy life in the sunshine and the kids can come over for holidays so we will still see them.Wont that be sweet and why not we deserve it after all these years”. Unfortunately the only thing in life that is certain is that everything changes sooner or later, for better or worse and even the best laid plans can go astray. So, one needs to be ready and adaptable.

With the current credit crunch you may think that its now impossible to use a mortgage to improve ones quality of life, this is not true, it certainly is more difficult now but there are banks who still have the confidence and foresight to be investing in Spanish real estate, although with more caution than in previous years and this is only right.

Being in the mortgage business we see people everyday who have not realised that what they thought was the cause of their problems (their beautiful house in Spain) could in fact be the answer to their prayers. Peoples first reaction is to say “but our house is our kids inheritance, we cant mess about with that” Our answer to that quiet understandable reaction is ” you know your kids best, what would they rather have, your house and everything in it when you have gone or would they like to see you having a happier and better quality of life whilst you here” If the answer is the first one, then tell them that you will expect their cheque on the fist of every month from now on!

To be serious though, there are many good and valid reasons why you could consider taking out a mortgage later in life, not least of which is the inheritance tax issue. Spanish Inheritance Tax can be vicious and totally different to the UK.

There are many solutions for property owners in Spain who are feeling the pinch and there is no “one size fits all” remedy as everyone’s circumstances are different. If you think that a mortgage might be something you would like to explore further then it would be an idea to seek the advice of a qualified mortgage adviser and be certain that you understand the various htmlects of what’s available to you before you make any commitment.
Rosemary Nettleton

How to stop the pain in Spain, Help is at Hand.


Don’t despair, help is at hand if you are perhaps feeling the squeeze financially just when you thought you should now be relaxing in the Mediterranean sunshine. If you own a property in Spain then there is probably a solution to get you back on track and enjoying life again.

 


The media is a wonderful thing and I’m sure it is!

It has helped to create this global village and bring us all a little closer together and as we all know, it’s only the bad news that hits the headlines. So if we take Spain as an example, we have seen some fairly depressing reading in the UK press with headlines that quite rightly frighten even the strongest types with words like demolition, corruption, illegal builds, land grab, bureaucracy etc.etc. For those of us already living here we often wonder if it’s another conspiracy in an attempt to scare the Brits into staying at home in nice safe, crime free, have another cup of tea, Britain!
I live and work (cos I am in the property biz) near Alicante and I decided to write this after reading in the local press a headline stating that a local Town Hall had issued notices to some residents stating that in order to obtain their habitation licences, the residents would have to demolish all of the extensions that they had built onto their homes and without planning permission. There is now a bit of a “to do” because obviously no one wants to pull down their conservatory or enclosed porch etc, do they? But why I ask, did they think they could do it in the first place because they certainly would not have even attempted to lay a brick in the UK without permission?
This seems like trivia compared with other horror stories that we read about and I personally blame some corrupt lawyers, builders, property agents and general trades people but most of all the town halls and the ordinary citizen themselves.
Town Halls have allowed illegal properties to be built and have decided to turn a blind eye. Presumably to support the local builders who may or may not be related to the powers that be. They may wish quite genuinely to increase prosperity in the local area because the Brits who buy these properties, and they are in the majority, will spend their money locally. However, when the proverbial hits the fan it’s the illegal homes and their owners who have to wait for the axe to fall. My argument is this, how come they will notice the pallet of bricks you have just had delivered outside your gate and send in the police to check if you have a licence for whatever it is you plan to do with those bricks or be issued with a fine! However, they fail to notice the house that was built in the country, the urbanisation of 50, hundreds if not thousands of houses that are built in advance of licenses being issued. We as a company have had many approaches from promoters to visit their developments and start to market their properties as hundreds have been sold already what are we waiting for? When we ask if the development is legal they say don’t worry we have our own lawyers and everything will be alright, this is the way we do it in Spain, you English just don’t understand.
Yeah right and when our clients are having problems in the future with the town halls, with the water and electric companies where will you be then? Our advice is to be careful and when you ask – Are they legal? Do not trust it when you are told, don’t worry they will be, because that means they are not legal now and therefore may never be!

Admin:

 

Over the past 10 years or so the number of UK citizens who have relocated to Spain has increased dramatically. One major contributing factor is that because of EU membership, Britons are free to go live and work anywhere they like within the membership states, immigration without need for permission no need for any work visa nor any need to apply for residency unless a pensioner or unemployed. An enviable freedom of movement with a lower cost of living and a near perfect climate makes it the logical choice for the many thousands that decided to up root and move to another country. But no small feat really because we are taught from childhood to be cautious “the grass is not greener” and all that kind of stuff but at the same time we have the notion that if we don’t give it a go we will regret it and “you only live once” you know!

I suppose another reason why so many pick Spain is because they think that they already know it as so many will have visited before on vacation. They are only a couple of hours away from the UK so family and friends aren’t gone forever and they know that if they stick to the coastal areas it will be like one long holiday and with so many English speaking residents it is indeed possible to live indefinitely with the merest hint of Español. Those essential words “dos cafe con leche” and “gracias” will suffice for many a year, I have heard the expression British Spain but I’m not really sure how many of us quite want it to be that easy.

We all (at least most) of us have the earnest intention of integrating with the Spanish people who have the reputation for having a better grasp on life, being more caring of their children and elderly and generally understanding that life is not all about having the bigger house and a more expensive car.

Good intentions however do not make it easy to learn another’s language and admiration of another’s culture does not make it any easier to integrate into it. For the Brits, with our reputation (I think), for seeming to be “aloof” it is still about upbringing and not wanting to look stupid when we don’t understand spoken Spanish and for many I think it is also our inherent shyness amongst strangers that makes it more difficult to join in.

It is unfortunate that for many of us what could be an ideal chapter in our lives has been interrupted by another of life’s little events. We have become used to the boom and bust economy of Britain wrecking our plans but I suppose we had hoped that we would be insulated from it here. No such luck, it seems now, more than ever the Worlds economies are so intrinsically bound together so no matter where we are in the world, what affects one will affect us all!

For those working here finding employment will be increasingly difficult and with so many businesses, and especially those linked to property, going under, many of the other businesses that willingly or not are by default linked in to the expat property owning economy and they soon will start to feel the pinch as well.

Pensioners have seen serious downturns in their retirement incomes from UK funds as the € has firmed up against the value of the £. I am not an economist but I have heard that that it will be the UK’s intention to join the € so the powers that be do not really want the £ to rally in strength. A powerful pound as we have become used to it in the past could indeed be a thing of the past.

For Spanish income tax payers it should be remembered that mortgage interest counts against your tax calculations so for many who can prove an income it could be worthwhile considering taking a mortgage on your property that you might have bought for cash or you maybe increase it if you already have a small mortgage on.

This global economic cycle, “or the proverbial b%%%% up!!!!” caused by the so called experts who are supposed to know better than the rest of us, can’t go on forever and perhaps a cash injection is what is needed to replenish your rainy day fund!

 

Over the last eight months or so retired (longer than that now) people living in Spain have been finding it increasingly difficult to make ends meet, caused mainly by the £ versus the € exchange rate fluctuations. The weak Pound has effectively wiped nearly 25%  (and now more than that 26/01/09 ) off the value of UK pensions causing, in some cases, serious hardship. To make matters worse, because of the oversupply of property here in Spain people are also finding it almost impossible to sell in order to downsize and release some equity and so they find themselves stuck in a deepening rut.

Most British Expats who move to Spain on a permanent basis and after selling their UK property buy their Spanish property for cash and for many it’s the first time in their lives that they have been mortgage free. Life is conspiring against them and now when they should be taking it easy in retirement and financial worries have returned yet again. What have they done to deserve it and what can they do to make things better for themselves. Well, they could take out a mortgage! “What” I hear them say “A mortgage at our time of life!”
Think about it! They have worked all their lives to raise a family and buy a house. When the children leave home mum and dad say to themselves “it’s just us now” why not sell the house and go and live in Spain or somewhere else where we can enjoy life in the sunshine and the kids can come over for holidays so we will still see them. “Wont that be sweet” and why not we deserve it after all these years. Unfortunately the only thing in life that is certain is that everything changes sooner or later, for better or worse and even the best laid plans can go astray. So, one needs to be ready and adaptable.
With the current credit crunch you may think that its now impossible to use a mortgage to improve ones quality of life, this is not true, it certainly is more difficult now but there are banks who still have the confidence and foresight to be investing in Spanish real estate, although with more caution than in previous years and this is only right.
Being in the mortgage business we see people everyday who have not realised that what they thought was the cause of their problems (their beautiful house in Spain) could in fact be the answer to their prayers. Peoples first reaction is to say “but our house is our kids inheritance, we cant mess about with that” Our answer to that quiet understandable reaction is ” you know your kids best, what would they rather have, your house and everything in it when you have gone or would they like to see you having a happier and better quality of life whilst you here” If the answer is the first one, then tell them that you will expect their cheque on the fist of every month from now on!
To be serious though, there are many good and valid reasons why you could consider taking out a mortgage later in life, not least of which is the inheritance tax issue. Spanish Inheritance Tax can be vicious and totally different to the UK.

There are many solutions for property owners in Spain who are feeling the pinch and there is no “one size fits all” remedy as everyone’s circumstances are different. If you think that a mortgage might be something you would like to explore further then it would be an idea to seek the advice of a qualified mortgage adviser and be certain that you understand the various aspects of what’s available to you before you make any commitment.

In Spain there is no professional requirement for mortgage advisers to be qualified.

Ensure that your adviser is qualified to discuss the options available as this is a big decision and you need the correct information and assistance.

Rosemary Nettleton is a partner in Fincalinkup and SimpleSpanishMortgages.

 

Why it’s important to have a Mortgage in Spain?

I will give a brief overview of the importance of having a mortgage in Spain and one of the reasons is that you will pay more in taxes than is necessary and particularly if you are classed as a non resident in Spain.

The money you borrow on a mortgage the better and in particular an Interest Only Mortgages because the original debt is not paid back at all, and the mortgage remains the same throughout the term of the mortgage. This means overall that you will pay more interest over the agreed term, but your monthly repayments will be much lower than a repayment mortgage.

“Why is this good”? I hear you ask!

Well, having an Interest Only mortgage can be used to mitigate the inheritance tax laws in Spain because the equity in the property is reduced by the mortgage debt charged against it. For instance, let’s say your property is worth about € 300,000 and it has a €150,000 mortgage against it. Then the tax man can only levy on the € 150,000 of the remaining equity. So the larger the mortgage then the less tax man will get.

Many people come to live in Spain maybe to retire in the sun or work and run a business but many don’t understand the Spanish taxation system and are genuinely shocked when they find out that it’s completely different to the UK. The best thing to do is to speak with a financial Adviser or an Accountant soon after your arrival in Spain and they will explain the tax regime so that you can avoid all the pit falls that so many people find themselves in. Better still speak with one before you decide on your purchase!

If you are going to live in Spain permanently then as a resident you will have to file a full tax return every year. The tax year starts January to December and you need to file a return between May 1st to June 30th the following year. This process will result in you receiving your tax certificate and you will need this at the Notary for any property transaction and this will ensure that you get all the tax breaks on offer to Residents.

Failure to produce this tax certificate means you will be treated as a Non Resident and even having a “Residency Card” will no longer be sufficient to prove you are a resident. As a resident you will be entitled to reasonably good allowances against inheritance tax in some provinces, for example in Valencia the allowance can be over €170,000 per person subject the conditions but in some other areas the allowances are much less generous and so it’s very important that you take steps to protect yourself as soon as possible.

It’s a different story for Non Residents who may own a holiday homes and only spend short periods a year in Spain as they will only get small allowances but there are ways to avoid against this and again, it’s having a mortgage on your property, preferably, an Interest Only Mortgage!

As I said earlier this is only a very brief overview of the Spanish taxation system and just like the UK it is a very complicated subject and it is always best to seek professional advice.
Remember, forewarned is forearmed!!!

Rosemary

 

Every comes to those that wait.

No mortgage repayments ever again

The rules of the game are changing all the time and this very week (w/c 19 Jan 2009) the minimum age to qualify for The Lifetime Mortgage has now been increased from age 60 to 65 years for each applicant. So now if you are 65 years young or over then you can end your money worries now.

Many ex pats living in Spain and especially those from the UK are now finding it difficult to make ends meet. Is that you? Or maybe you just want to raise some extra cash to enjoy and improve your quality of your life. £ versus the € exchange rate fluctuations have eroded the real value of UK earnings and pensions and the rising cost of living has meant that the budget doesn’t stretch as far as it did even just a little while ago. Everyone’s personal circumstances are different so there can be no one size fits all solution but there may well be a way for you to enjoy more of what life has to offer here in the Spanish sunshine without the continuing worry of lack of funds or high mortgage repayments.

CeMap qualified advisers are waiting to give a FREE unbiased and discrete consultation to see if there is a solution for you.

Here are just some of the benefits of this plan:

• The plan has a NO NEGATIVE EQUITY GUARANTEE
• NO monthly mortgage repayments EVER again
• Retain full ownership of your home
• Cash lump sum to spend as you wish
• Not tied to any investment product

Remember, it is FREE to find out if this mortgage can make a real difference to your life.

You have worked hard to buy your home so why not let the equity that is tied up in your property work for you now?

Our advice is FREE and there is no obligation for you to act on any advice that we may give, it is entirely up to you. For full details and terms of this Lifetime mortgage plan then contact us through the website fincalinkup.com or simply send us an email at info@fincalinkup.com with your contact telephone number and we will get a qualified adviser to call you to discuss the plan and answer any questions you may have.