Spanish Bargain Properties

May 042012
 

According to the figures by the National Statistics Institute or INE, it was seen that there was a drop in the value of the mortgages on an average. In the month of February, there was a decrease of around 12.5% on the value of the mortgages, in comparison to this period in the last year (2011). Again, in comparison to these, there was seen an increase in the number of mortgages which had changed conditions. These types of mortgage were seen to have increased by 4.8%.

Spanish real estate mortgages

During the month of February, the average amount of mortgage constitutions recorded in the land registries stood at 112,179 euros, a figure 12.5% lower than the same month the previous year and 8.8% lower than that recorded in January 2012.

With regards to the mortgages which are required for mainly the homes that are for dwelling purposes , the average amount on these were seen to be 104,868 euros. This is 14.6% less than what it was in February of 2011. It is 2.2% less than the amount which was registered in the month of January of 2012. On the other hand, the value of mortgages which constitutes the urban properties was seen to be 4,615 million euros in the month of February. This is supposed to indicate that there was an inter-annual reduction of 50.1%. With regards to the dwellings, the capital loans were said to have exceeded 2,770 million euros, which is quite a considerable 54.8% less.

On an average, the interest rate of the mortgages in the month of February 2012 was seen to be 4.35%. This is said to be indicating a 17.3% increase with regards to the inter-annual rate of the mortgages. This also indicates a reduction of 1.6% in comparison to that of January 2012. The interest rate on an average with regards to the mortgage loans of Savings Bank was around 4.23%, and the term of these loans on an average was 23 years. With regards to the banks, the interest rate of the mortgage loans on an average was 4.54%. The term on these mortgages on an average was 21 years.

Though the Spanish Banks were seen to be the biggest up takers of the cheap bonds with regards to the European Central Banks in the past months, mortgage lending on an average was seen to be down by 9.4% in February, 2012 in comparison to that of the previous year.

May 012012
 

Fincalinkup says: The last time I wrote on this it was only 1 million!!

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A new study by consultants Acuña & Asociados estimates there are almost two million homes for sale in Spain (see table above), which will take 10 years to sell.
The 2 million figure is comprised of newly built homes and resale properties, which means the total housing inventory on the market.

That sounds like a lot, but is it? It depends how it compares to the overall housing stock, and how that compares to other countries. It also depends upon the turnover rate – i.e. how quickly homes sell in Spain.

Assuming there are 26.5 million residential properties in Spain (there were 25.8 at the end of 2010, according to Government/Fomento figures), that means that roughly 7.5pc of the housing stock is on the market.

I don’t have figures from other countries to compare to (after a fruitless search), but I wouldn’t be surprised if it is a lot higher the EU average. All of which would suggest that Spain has a big oversupply of property for sale, compared to other counties. I’m sure many readers will be thinking “tell me something I didn’t know.”

Another way to judge the oversupply is to estimate how long the inventory might take to sell, using the current sales rate and estimates of future demand (household formation). Acuña & Asociados calculate it will take 10 years for the inventory to sell, assuming household formation of 200,000 a year between now and 2020.

10 years to turnover the current housing inventory (for sale) is a big problem that will be with us for years to come. All of which suggest that downward pressure on prices won’t go away anytime soon. Good news for (cash) buyers, but bad news for builders and vendors.

Acuña & Asociados also estimate there is a land-bank to build another 4 million homes, which won’t be needed for years. Guess who owns the land? Basically, the banks, either directly or indirectly.

If these figures are correct, how much do you think that land is worth? You don’t need an economics degree to work it out, and what it means for the balance sheet of the Spanish banking system.

The only way Spain is going to get out of this hole is a combination of 1) economic growth creating jobs and demand for homes, 2) selling lots more properties to foreign buyers, and 3) high inflation reducing the real value of debts and making property an attractive investment. I’m expecting the inflation, but I’m not so sure about the other two.

Posted on April 29, 2012 by Mark <a href=”http://www.spanishpropertyinsight.com/buff/2012/04/29/2-million-homes-on-the-market-that-will-take-10-years-to-sell/”>Source SpanishPropertyInsight</a>

Apr 292012
 

Collection firms chasing £58bn of debt as figure jumps by £6bn in just SIX months

Debt collection agencies are chasing a staggering £58billion – equivalent to £1,000 for every man, woman and child in the country.
The total has shot up by £6billion in just six months and demonstrates how ordinary Britons are unable to keep up with repayments on loans, credit cards and other finance.
The figures make clear that a huge ‘debt bounty’ has been placed on the heads of thousands of individuals at a time when the economy is in double-dip recession.

Debt-Collection-Agencies

 

Making a killing: Loan collection agencies are making a fortune from the growing household debts being run up during hard economic times

Some collection agencies involved have a reputation for being heavy-handed and threatening, bombarding people with telephone calls, letters and visits at home and work. In some cases, agencies are sending debtors photos of their own homes as a way of frightening them into paying up.

Huge fees are often added to the original debt, making repayments even more difficult.

This is the first time details of the number and value of unpaid debts has been published in a study by the Credit Services Association (CSA), the national body for the UK debt collection industry.

The figures are a measure of the consumer debt passed to Debt Collection Agencies (DCAs) or sold to Debt Buyers, which specialise in buying personal debt cheaply and then pursuing the individuals to pay up.

The association said 32million debts were being pursued, an increase of 4million in the past six months.

The growth in so-called payday loan firms, which offer short-term loans at high rates of interest, is one reason for the rise in people being chased for debts.

The CSA said local councils, government departments and agencies were also taking a more aggressive approach by employing private debt collection agencies.

Card sharp: Borrowers are advised to cancel old unused cards.

Money Advice Trust chief executive Joanna Elson said: ‘These figures make it clear that individuals across the UK owe a huge amount of money that they are struggling to repay.

‘The sharp rise over the past six months is likely to be a result of household budgets being squeezed and credit repayments falling by the wayside.
‘We have seen just this week that the UK economy has returned to technical recession, but the reality for many people is that the recession never really went away at all, meaning they have been struggling to make ends meet for the past few years.’

Miss Elson said some debt collectors did harass those with money troubles.

‘Our advisers at National Debtline hear of lots of cases where individuals are unduly and unethically harassed for money they owe,’ she said. ‘There are many tactics we have seen from debt collection agencies over the years which fall beyond what is allowed.’

The Consumer Credit Counselling Service, which offers free advice to those with money troubles, described the increase in the scale of debts being chased as ‘huge’.

‘This points to a wave of problem debt that is drowning many families,’ it said. ‘We are not surprised as our research has identified 6.2million households as “financially vulnerable”.

‘We still see examples of unethical practices, such as debt collectors pretending to have more powers than they do and using intimidating tactics such as sending pictures of a debtor’s home to them.’

CSA president Sara de Tute insisted agencies treated those in debt fairly.

Miss de Tute said: ‘We recognise fully that engaging with customers and treating them fairly brings the best outcomes for all concerned, and that is reflected in the increase in collection rates.’

Source: DailyMail SEAN POULTER

Oct 062010
 

The currency blog
Foreign exchange specialists
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

Jul 122010
 

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.