After 30 years of indiscriminative building in the countryside and hundreds of thousands of properties being sold mainly to foreign buyers who contracted lawyers to ensure that their investments were guaranteed by the correct paperwork, only to discover that a law that came into effect retrospectively in 2002 made their homes illegal and therefore unsellable.

Owners of these “illegal” properties in Axarquia and Guadalahorce Valley were promised a quick and fair solution by the Regional Government of Andalucia in 2005 when it proceeded to carry out an inventory of the affected properties town by town, village by village in alphabetical order.  As it was to be expected the inventory was never finished and it only served to prosecute dozens of Mayors and officials for corruption and negligence, thus creating an even bigger problem of credibility as far as would-be investors in this region are concerned.

Six weeks ago the news that the Regional Government was going to legalise 60,000 country properties was leaked to the media only to be rectified by the Government this week who said that the new decree will legalise 10% of these rural homes.  This will leave 80% in limbo although they would be subject to IBI (rates) which the majority of them already pay.  The remaining 10% to be demolished.

This decision is an insult to the citizens of the Costa del Sol and Andalucia in general.  I am personally outraged at the way these inept politicians have dealt with this problem of their own making and totally echo the statement of the president of SOHA, Philip Smalley when he said to the press “we do not know what to do next except wait for a change of Government (which hopefully will be on the 25^th of March 2012) because the present one has demonstrated after six years of talking we now realise that they have not listened to anything we said.”

To summarise we live in Paradise, fantastic beaches, great countryside, beautiful and hospitable people, good infrastructure and of course the best climate in Europe.  All we need is a few good laws which we can all abide by and a new Government made up of politicians who work for the people and not what we have now which is a band of corrupt, inept and proponent imbeciles.  If on the 25^th of March we get rid of this lot it will be the beginning of a new and more prosperous and happy Andalucia.

More advice from our advisor Peter Lavelle at foreign exchange broker Pure FX

19.10.2011

Looking at the exchange rates this past fortnight, I can’t remember a time in the recent past when the foreign exchange market has been this volatile.

One moment the pound is up against currencies including the euro, as discouraging reports from the Eurozone send investors diving for cover. The next, reports emerge detailing a two trillion bailout plan for the Eurozone, and the euro is soaring.

If you’re hoping to send money to Spain, it can be tough to keep up.

Fortunately then, there are tools to protect against fluctuations in the exchange rate, ensuring you get a desirable rate regardless of sudden dips in the market. For this, you can contact us at Pure FX about setting up a forward contract.

Forward contracts are when you lock in the exchange rate often months in advance of the final transfer date, to shield yourself against sudden declines in the market, and bumpy spells such as that we’re seeing at the moment.

After all, when the markets are bumpy like this, a sudden dip in the exchange rate can mean hundred if not thousands knocked off the euro total you receive. In a worst case scenario, this could make buying a property in Spain much more expensive.

Hence a forward contract is a great tool to protect against this. It means you can feel confident about your transfer, and rest easy that you’ve secured a good rate.

Find out more

To find out more about forward contracts then, and other tips for getting a great exchange rate before you send money to Spain, feel free to get in touch on +44 (0) 1494 671800 or email enquiries@purefx.co.uk quoting propertysearchspain.com. We’d be delighted to help you send money to Spain.

11.10.2011

From Peter Lavelle at foreign exchange brokers Pure FX

Plan to start again and begin a new life under the Spanish sun? Then one of the nine or ten million things to get done before purchasing that beautiful villa is sending funds abroad. For the unprepared person however this can be a mine field. Imagine for instance that you amble into your bank one morning, and request an exchange rate on a transfer into euros. The manager mightn’t tell you, but the exchange rate or she provides could in all likelihood be the absolute pits.

How then do you avoid this mine field, and find an exchange rate that doesn’t involve being fleeced for several thousand pounds? For this, I have compiled some hints and tips beneath. Take a gander, and then feel free to pick up the phone and get in touch! Our specialist dealers would love to help with your transfer.

1. Look out for the banks!

Like I mentioned, using a bank to change euros is the currencies equivalent of throwing yourself to the wolves. For instance, imagine that your funds are a cappuccino. Banks look to skim as much of the nice white foam as possible, leaving you with plain old coffee. Not the best option in other words!

2. Get a better rate! Contact a currencies broker

To take the pain out of changing currencies then, your 1st port of call should be a foreign exchange broker. For brokers, changing currencies is as natural as breathing, meaning you can anticipate a tip top exchange rate. Even better, exchange brokers hold a keen gaze on the foreign exchange markets, meaning you can receive specialist help about the time to transfer too.

3. Plan plan plan

Last of all, to make transferring funds to Spain smooth sailing the best bet is to plan. Think about beaming the funds abroad as soon as possible, so you’re not landed with a dismal exchange rate at the last minute.

Get in touch!

To learn more about sending funds to Spain then, feel free to contact our specialist dealers on +44 1494 671800 or email enquiries@purefx.co.uk quoting Property Search Spain. We’d be delighted to help with your foreign exchange requirements!

About Pure FX

• Operating in the UK since 2006.
• Directly authorised by the Financial Services Authority in the UK no. 504354 for secure transfers.
• Exchange rates guaranteed to beat your high street bank.
• Personal service from a dedicated currency exchange dealer.
• No fees and no commission.
• Same day payments available.
• Exchange rate alert when your target rate becomes available.

Testimonials

“Thanks for the notification, the funds have landed in my account today. Without hesitation I would be happy to recommend Pure FX to friends or colleagues with similar needs. I have found the service to be helpful, efficient and effective. Many thanks for your help.” - Patrick McMahon, Essex

“Thank you for all your help over the transfer of money. It has all been seamless and we would be very happy to recommend your services to friends and colleagues.” - Mr. and Mrs. Moore

Do you want a holiday home, or a permanent home in Spain? If you do then now is the time to start your search as there are a great number of properties for sale, approximately 1 million and the expectation is that prices will continue to drop this year.

Good news for those looking to buy, not so good news for those selling private homes or developers.

The Spanish National Institute of Statistics show that house prices are dropping. In the third quarter of 2010 residential properties fell 2.2 percent compared to figures from 2009. Also new property prices and re-sales are also on the decline with a 2.6 and 1.8 percent decrease year on year.

In view of the economic crisis it would appear that sellers now know that they have to be more realistic when putting a value on their properties. Many more owners are willing to enter into negotiations as the want a quick sale.

The prediction is that house prices in Spain may continue to fall for another two years, so investors locally and abroad are watching what is happening in Spain and some have already made some key investments already.

http://www.propertysearchspain.com/en_benalmadena-costa-spain-apartment-2-bedrooms-1-bathrooms-131000_prop_524.html

On Monday the 1^st of November an article in the Spanish Sur attracted my attention. It was about SOHA (Save Our Homes Axarquia). This association represents thousands of home owners whose property is built on rustic land and therefore judged illegal by the (LOUA) law that is supposed to regulate building in the countryside. Philip Smally is the President of SOHA, I do not know him, but I suspect he must have the ‘patience of a saint’, plodding along for years cap in hand from one authority to another listening to bureaucratic stories and politically motivated promises.

After meeting senior officials, of I suppose, the Regional Government, Mr Smally declared that he had been informed that of the 31 municipalities in Axarquia 14 of them have concluded the census of rustic buildings. This census has been a necessary step in order to be able to analyse each property in its own merit, the remaining municipalities have carried out approximately 50% of the inventory. WHAT!!!!!!!

Surely this means that if each case is to be studied individually (we are talking about 20,000 houses) according to my calculations it will take 100 years to come up with a solution, by that time Mr Smally will be canonized.

Dear Philip the only way you and your association can re-legalise your homes is to vote in the next municipal election for the P.P. That will help set the scene for the regional election in 2012, were, although we will not be allowed to vote, the momentum of the municipal election will carry forward and we will finally see the back of this bunch of parasites who are plaguing our lives.

The present Andalucian government is in the hands of raving lunatics who call themselves Socialist, but under the Trade Descriptions Act (if there was one) they would be jailed for false impersonation.

My dear Mr Smalley your organisation would get a much better result by taking the matter to the European Courts of Justice than listening to promises from the Andalucian government officials.

Europe’s largest property markets are attracting large numbers of British buyers looking for bargain properties. Searches in Spain, Portugal, Italy, Ireland and Greece have increased by 134% this year up until the end of August. It would appear that this is probably due to holiday home buyers trying to take advantage of the economic climate to secure themselves a bargain.

Spanish property searches increased the most by 145.7%, which would seem to indicate that Spain is still a popular country to invest in. Property searches in Portugal (123.9%) were second highest followed by Italy (98.9%), Greece (55.3%) and Ireland (44.1%)

The economic difficulties that these countries have undergone have probably contributed to an increase in searches by British buyers in pursuit of properties in these markets.

At the beginning of the crisis property prices dropped sharply but recently they appear to be holding firm. Maybe it is because of the belief of buyers that the markets are bottoming out that we are seeing an increase of activity from them.

It would look like foreign buyers are supporting prices in the popular markets and will continue doing so.

According to the latest statistics it would appear that house prices in Spain have fallen more rapidly in recent months. They are down 4.6% over the last 12 months. There has been an increase from -4% in June, to 4.6% in August in price falls. Costal property prices have fallen by 22% since August 2007.

When the rise in VAT on new home sales was introduced in July it was feared that property sales in Spain would plummet. However, the National Institute of Statistics show there were 38,838 home sales in July, which is an increase of 15% on the same time last year and 16% on the previous month.

Year to date cumulative sales up to the end of July are 10.3% up from last year but still down 47% compared to 2007. Sales have increased every month this year on an annualized basis.

Will this trend continue, we will have to wait and see!

For the last 5 months the interest rate normally used to calculate mortgage repayments in Spain (Euribor) has risen taking it to the highest level in more than a year.

1.421 is what the Euribor reached in August which was an increase of 3.5% from July and 6.5% higher than August 2009.

Borrowers will have to start paying more on annually resetting mortgages. On a typical annually resetting mortgage (150,000 Euros, 25 years) repayments will rise by around 6€ per month, or 70€ per year, taking repayments to around 594€ per month

The Eurobor has not risen on an annulised basis since October 2008, when the credit crunch started to take hold of the markets. Interest rates then started to fall as central banks poured money into the banking system. Because investors are worrying about fiscal deficits and inflation, rates are now starting to rise.

New mortgage lending

In June 2010 compared to June 2009 the new residential mortgage lending dropped 10.8%, according to the National Institute of Statistics (INE). New mortgage lending has fallen for the second month in a row. New mortgage lending is a key indicator of the mood of the housing market and a fall in the last 2 months is not a good sign.

55,143 new mortgages were signed in June, just a small decrease from May, so looking at a monthly basis the news is better. Accrued over the first half of the year lending was down 0.5% compared to 2009.

It would seem that banks are being more discerning about who they lend to, but to those that they do select they are lending more, which we can see from the fact that the average loan value for property in Spain in June was 119.547€, up 1.4% on last year, and 4% higher than May.

On the whole new residential mortgage lending was 6.6 billion Euros, down 9.6% on last year

The average interest rate was up a fraction on May at 3.93%, and down 12.1% compared to June last year.

Is this the first sign of a return to a healthy economy or is it going to put people off buying which further slows recovery from recession?

Please let us know your thoughts.

It is a well known fact that the coastal areas in Spain have always been popular with those looking to purchase property and the Costa del Sol and Costa Blanca are still magnets for the majority of interest. However it is worth noting that many people are deciding to buy property in inland Spain, opting for rural homes instead of coastal homes.

There are various reasons why people opt to buy inland – getting more land and property for their money, cheaper cost of living compared to the coast, quieter rural lifestyle, getting involved in the local community.

There are lots of property options available in inland Spain, some people choose to live in the heart of the countryside in a finca or villa and others prefer to live close to or in the centre of a village, in a townhouse or an apartment.

Also for those looking for an investment, buying a rural property which needs renovation can result in a significant return on investment when it comes to re-selling the property.

If you have any comments or questions regarding living in rural Spain please get in touch.

According to the Euro Weekly News the Town Hall in Cartama is drawing up plans to improve the lighting in several of the streets of Barriada de Los Limoneros. The Provincial Government will be providing the 120,000 euros that it will cost to carrying out these improvements. Also there are plans to completely renovate Calle Isaas Albeniz. Work is due to begin in September.

In Alhaurin el Grande the Provincial Delegate for Public Works and Housing, Enrique Benitez, has paid a visit during which he signed an agreement with the mayor, Juan Martin, to improve all roads which have been affected by the closing of the A-387. Also he has promised to find a solution for those residents who have complained about having to travel long distances to reach their properties so that they avoid crossing the central right line between the Cristo de las Agonias Hermitage and Venta Los Morenos.