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House sales and prices up in January 2017

The housing market really did get off to a good start of the year, according to the latest data from the Association of Spanish Notaries. January was a month during which both sales and prices rose.

There were 33,670 homes sales witnessed by Spanish notaries in January, up 16.8% compared to the same month last year, though a more modest +12% when corrected for seasonality (chart above left).

House prices were up by 1.8% (chart above right) to an average of 1,355 €/m2, though that figure doesn’t really tell us much because house price data in Spain is so unreliable. I’ll include this in my end-of-month roundup of all house price data published in March (Spanish house price index tracker).

New mortgage loans were up 27% to 15,624.

A few days ago I reported figures from the National Institute of Statistics telling a similar story, with Spanish home sales inscribed in the Land Registry up 19% in January. But those figures are based on sales that took place a few months before, say between October and December, whilst the Notaries’ figures are based on sales witnessed in January, so their figures are more timely, and give us a more up-to-date pictured.

Which ever figures you look out the picture is one of a sustained recovery in Spanish home sales and mortgage lending, with house prices rising in hot markets like Barcelona, Madrid, and the Balearics.

By Mark Stücklin: spanishpropertyinsight.com

Where to live near the best international schools in the sunny Mediterranean

“Property prices are more competitive than in Sitges, Castelldefels and St Cugat and the area offers 50km of beaches, marinas, equestrian centres and golf,” Lucas Fox partner Tom Maidment speaks to The Telegraph on why the Maresme region is ideal for families”

Read more here

Published by Tom Maidment at linkedin

10 Tips for Real Estate Investment

Investing in real estate is both exciting and challenging, and you can certainly make some decent money in the process. However, many investors make mistakes that keep them from realizing their potential. The following 10 tips from guest blogger Patrick Rogers should help…

1. Set Specific Goals
All too often, investors (or aspiring investors) do not have genuine goals. “I want to buy my first investment property” is not a true, actionable goal. On the other hand, “I want to buy an investment property that gets me €300 in profit a month,” is a goal you can work toward. Here is another example of a goal: “I want to buy a triplex for no more than €200,000, live in one space, and rent the other two out for €3,000 a month combined.”

2. Use Property Management Companies
In general, property management companies more than earn their keep. They take care of legal matters and help you find a higher caliber of tenants, and they also enable you to invest from anywhere. With a property management company, getting in on the action is easy, even if you live far from where you want to invest.

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Calculate your Euro mortagage with a online mortage calculator

How to get a mortgage in Spain

If you require a mortgage against the property in Spain, you should contact your estate agent or local bank as soon as possible. A mortgage can be applied for in Spain or abroad. If you have not arranged a mortgage, we may be able to help you, through an offshore or Spanish bank. If you are making your own arrangements you will need to advise your estate agent of the date by which you expect to have the funds available in order to complete the purchase. A non-resident purchaser in Spain may apply and obtain a mortgage of up to approximately 70% of the bank’s valuation of the property. A resident or national purchaser may obtain up to 100% of the valuation (when purchasing repossessed stock from a bank). Under such circumstances the property purchased in Spain would act as guarantee for the mortgage. Both variable and fixed rate mortgages are currently available.

Interest rates on mortgages in Spain are nearly always based on the Euribor. Spanish banks are currently offering rates of between 1% – 1.5% + Euribor. During 2012, the Euribor has come down from 1.837% in January to 0.542% in December (2012), currently the lowest rate ever (see below for latest rates).  Other factors to discuss and negotiate with a bank are those of interest only during a stipulated number of years or a combination of interest and capital repayments, and of course the total period of the loan.

euribor-1-year-trend

euribor-over-a-decade-2015-2016

(Images reproduced from SPANISH PROPERTY INSIGHT.)

Euribor Update:

During 2013 the Euribor average was 0.57% –  Historically, the lowest average level in the Euro zone.

During 2014 the Euribor average was 0.473% –  Beating the previous year’s low.

[minti_button link=”http://www.leadingpropertygroupspain.com/en/services/mortgages/” size=”small” target=”_blank” lightbox=”true” color=”color-1″ icon=””]CALCULATE HERE YOUR MORTAGE[/minti_button]

About building surveys

As most clients have already viewed the property and have agents’ sales information, surveys tend not to describe the location, building, structure, accommodation, services or facilities in detail, but to concentrate on defects and any other matters of particular relevance. However clients can request the more details as necessary.

Surveys can address the following issues: Read more

Contribution on post Brexit report

What impact has Brexit had on British demand for property in Spain in the five months since the referendum? The latest official figures show a substantial fall in British purchases, and a survey I recently carried out suggests a big overall drop in British buyer activity, especially in the top two destinations of the Costa del Sol and Costa Blanca.

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‘Brexit’ Will Require a Vote in Parliament, U.K. Court Rules

LONDON — The British government’s plan for leaving the European Union was thrown into uncertainty on Thursday after the High Court ruled that Parliament must give its approval before the process can begin.

The court’s decision seemed likely to slow — but not halt — the British withdrawal from the bloc, a step approved by nearly 52 percent of voters in a June referendum.

Nevertheless, the court’s decision was… Read more here