The project should lead to the creation of 25,000 jobs directly, with an additional 80,000 indirectly over the full period of the project. The 15 years development project will be broken in three 5 year stages, with work to commence as soon as 2011.

The project location should lead to its long term sustainability as it will be located within easy reach of the Malaga airport, the new ring road, the university, the port and the business and technology areas. Additionally it will be within easy access of the rest of the Costa del Sol.

Not only a commercial and industrial development project, the area will also create new parks, wide avenues, green zones, leisure and hospitality facilities with 20% of the project to be designated as residential housing. This should help the are to becoming more active and dynamic area. They may even de3cide to include a monorail transport system connecting the area to the nearby airport.

Although it could be argued that this is not the best climate to start such an ambitious project, the recent expansion of the airport means that in the following years quite a few of the Costa del Sol businesses based at the airport will need to find new premises. This could be an additional opportunity of the Alhaurin de la Torre project.

Regards
Andrew Bellés

Seven out of ten Britons who have retired abroad are happy with their new country and likely to stay there, a survey said yesterday.

Fewer than one in five who have gone to live in France, Portugal or Spain are considering returning home, it found.

The poll also found that nine out of ten of expat retirees live among the natives of their adopted country rather than among fellow Britons in communities of exiles.

The survey, carried out for NatWest bank, suggested that the trick to a happy retirement overseas may be planning ahead.

The highest levels of satisfaction were found among those who were employed in their new country before giving up work.

Among those in Australia, New Zealand, Canada and the U.S. who worked in their chosen country before retiring, fewer than one in ten thought they might go back to Britain.

Nearly 150,000 British citizens left the country last year to live abroad, many of them after giving up work.

According to the survey, there are now an estimated 900,000 expat pensioners, with nearly 300,000 in Australia, 115,000 in Spain and just under 75,000 in France.

Dave Isley, from NatWest International Personal Banking, said: ‘Retiring abroad is still very much a popular choice and expats are happy with their chosen life paths.

It’s encouraging to see that the majority of expats believe they made the right decision in retiring abroad and are living their chosen dream. It is enlightening that 92 per cent of expats chose not to retire to a designated expat community.

‘This seems to emphasise the notion that expats have retained a sense of adventure.

They really do want to start afresh and experience life as a local rather than settle with other expats.

‘By immersing themselves in a full, enriched life as a local, retired expats can certainly learn and gain more from their time abroad.’

The survey also revealed that nearly six out of ten retirees abroad feel their experience has been better than they expected.

Only one in ten said retirement in a foreign country had proved worse than they thought it would be.

Among expat pensioners in France, Spain and Portugal, who mainly left Britain after they retired, just 16 per cent thought they might return.

The survey was carried out by the Centre for Future Studies among 1,300 retirees.

Source:  Daily Mail

But whilst the number of appraisals fell by just 4%, property values contained in those appraisals fell by an average of 17%.

Taken over 3 years, the number of property appraisals has fallen 41%, and valuations by 34%, giving us some idea of how far Spanish property values have fallen since the property bubble burst.

It is interesting to note that signs of a slow down first showed up in the valuations data as far back as 2006, falling significantly in 2007 and 2008, and showing signs of bottoming out in 2009.

Source: spanishpropertyinsight

Today I want to inform you of a further action being undertaken by a fellow sufferer, Keith Rule, leader of the Finca Parcs Action Group. He has devised a further petition regarding the problems surrounding bank guarantees. It was launched yesterday on the EyeonSpain website. Unlike the earlier one, this is a very thorough and precise exploration of the issues. Keith is attempting to provide the various leaders of the governments and relevant organisations of both England and Spain with HARD FACTS re the Spanish law (Ley 57/68), through which we are required to work, and the HARD FACTS connected with the miserable circumstances in which many of us have found ourselves.

The petition has been devised as a survey. It asks you to provide these HARD FACTS which will be compiled and presented as a dossier of evidence including formal statistics to the leaders that you will find listed at the head of the petition.

It has taken Keith two years of research, drafting and refining the petition and he has left no stone unturned to get it right and legally correct. I urge you to look at the website http://www.bankguaranteesinspain.com and complete as much of it as you can. Everyone can sign (anonymously if you wish – the only requirement is that you have an e-mail address) as it caters for all those who have had, or are having, to deal with a bank guarantee issue in their attempt to purchase an off-plan property. It allows for both winners and losers to sign and it also allows supporters of the spirit of the petition to sign, too.

The more HARD FACTS you can provide the stronger the HARD EVIDENCE.

Please get behind Keith and help to make this petition one that cannot be ignored.

Thank you.
Ruth Genda

According to research from property website Primelocation, internet searches in Britain for property abroad are at a record high, up over 100 per cent from this time last year.

Data from the company’s international search index shows that searches for property in Spain increased the most. Last month, there was a 151 per cent increase in searches compared to June 2009, and the country accounted for nearly a third of searches overall.

Despite a potential rise in capital gains tax and a precarious economic situation in southern Europe, investors appear to be taking a long term view on the market, while hoping, in the short term, to take advantage of a weaker euro.

Ann Wright, International Development Manager of Primelocation International, said: “While the market in Spain has suffered from some bad publicity recently, there has been no significant drop in the number of people searching for property in the country on Primelocation International.

“The fact remains that there are many reasons why the country remains attractive to British buyers. Spain’s main attractions are still the warm climate, great beaches and unique culture all just a short flight from the UK; these factors will still draw in international buyers whatever the economic situation.

“It is also worth remembering that, while most of the problems experienced in recent years have centred on the Costas, there is far more to the Spain than just the southern coast.”

Following Spain came France, the U.S, Portugal and Italy. Searches for property in the U.S increased by nearly 200 per cent on last year’s figures.

The upturn in international property searching contrasts sharply with the volatility experienced during the banking crisis in the late summer of 2007 when searches fell by 38.5 per cent between July and August.

Primelocation also revealed a third of all those considering buying property abroad are looking to emigrate permanently. By contrast, only 23.7 per cent of the 1,500 investors questioned were looking for an overseas holiday home and only 12.4 per cent were searching for an investment property. A further 15.3 per cent were foreign buyers looking to purchase a UK property.

Source: Telegraph

Online presentation

There is an adage that many of you might know “A picture is worth a thousand words”. This is the idea that a complex story can be described with just a single still image, or that it can be more influential than a substantial amount of text. This is no different for a property. Property photos are there to entice buyers to want to see more. But bad photos will also cause buyers to dismiss you property from their search. So try not to publish photos that are:

Too dark with drapes / blinds closed
Of cluttered rooms
Un-cropped photos with unnecessary elements in the pictures
Photos of pets sleeping on the sofa
Only one unflattering photo of the front of the house. More photos tell more.
High resolution photos without adjusting pixels for the Internet

Withholding information from the description

When there are many properties on the market, simply specifying how many bedrooms and bedrooms and bathrooms the property has is not enough information for a property buyer. It does not tell buyers why they should enquire further. Good marketing tells a buyer why this particular home is better than the dozens of others on the market. Sellers should focus on:

What makes the property unique?
What made you want to buy the property in the first place?
How can what would be a negative factor for some be turned into a positive for others?

Limited access for viewings

If an agency cannot easily show your property, the agency is going to show another property listing instead. Do not give the agency a reason to pass up your property. Any of these can affect viewings:

Restricted hours to show
Needing 24-hour notice
By appointment only

Do not want the neighbours to know

You cannot keep the fact that your property is for sale a secret and still expect to sell it. Whether you or the agency  pay for advertising, you need to let everyone know it is for sale. The best way to do that is to advertise.

Advertise in local papers if relevant
Advertise on websites.
Take advantage of the agents shop front to promote your property

Which buyers to aim for?

Who is going to buy your property. Unlike many property markets, on the Costa del Sol there are many areas that appeal to only certain nationalities. So an extra demographic to worry about! Although nationality should have little affect on how you present your property, it will affect your choice of agencies. If it is a popular Spanish area, not much point going with an agency that caters only to the english for example.

Hope some of this helps

Regards

Andrew Bellés

Over the last decade of so many town halls did really on the building boom to top up their coffers (charging for building licences, etc…). The global recession combined with a building slump has hit quite a few town halls and has left them penniless.

Quite a few towns and village along the Costa del Sol, Costa Blanca, etc… grew quite dramatically over the last decade due to the influx of buyers from Spain and abroad looking at second homes near the beach.

Interesting though it appears that land laws in Spain allow for compulsory purchases by town councils if certain types of land are not developed within a set period. The councils can buy the land at rural land values, often around 10% of the book value. So the choice they give banks is ‘develop the land, or we will take it from you and pay you 10% of what it’s worth on your books’. That’s not much of a choice for banks, who can’t afford to take a 90% write down. It’s often cheaper to build.

Now the one thing that many people would say that we do not need more Spanish properties on the market and the land should not be developed. I disagree. More properties are needed, but they should not be holiday homes catering to second home buyers. Many towns have large demand for government subsidised housing. There is also a lack of commercial zones is several areas. It should also be noted that the land could be used for the public good, either parks or such or as municipal buildings.

Potentially this sort of situation could lead many towns developing in a more sustainable way to the benefit of stakeholders

Regards
Andrew Bellés

Steps to take:

Disassociate yourself with your property.

Remember this is no longer your house, but a product you are trying to sell. No different from a car or piece of furniture.

Let go of any emotions you have over the property. Work on the assumption that you will be selling shortly and moving out.

De-Personalise.

Remove all those personal photographs and family heirlooms. Property buyers will not be able to see past your personal objects and you want them to focus on the property itself. You want the buyers thinking “I can see myself living here” not about who currently lives in the property.

De-Clutter!

People (including myself) have an amazing ability to hoard. Most of the items in questions tend to be junk, so work on the assumption that if you have not used it in a year you do not need it.

If you don’t need it, why not donate it or sell it?
Tidy up all books from bookcases.
Pack up those knickknacks.
Keep kitchen counters bare.
Put essential items used daily in a small box or draw, anything too large keep in a nearby closet when not in use.
Think of this process as a head-start on the packing you will eventually need to do anyway it will make it a lot easier.

Rearrange closets, cabinets and wardrobes.

Buyers will open closets, cabinets, etc.. when looking around your property. Remember you want them to imaging themselves living in the property. So having them full of clutter will not give them a clear idea of the space. And imaging what they will think if objects fall out! If the wardrobes and so forth are tidy and organised you create an image of care. Now imagine what buyers believe about you if they see everything organized. It says you probably take good care of the rest of the house as well. Although such organisation can be viewed as ‘over the top’ by some, these are all minor details you tend to find in show houses.

Alphabetize spice jars.
Neatly stack dishes.
Turn coffee cup handles facing the same way.
Hang shirts together, buttoned and facing the same direction.
Line up shoes.

Less is more.

Almost all properties show better with less furniture. Remove pieces of furniture that block or hamper paths and walkways and put them in storage. Leave just enough furniture in each room to showcase the room’s purpose and leave room to move around. Buyers need to know clearly what you use the room for, but also have to be able to see the other possibilities.

If property is sold furnished.

Many properties tend to be sold furnished. So if you want to take window coverings, built-in appliances or fixtures with you, remove them now. If the Grandfather clock in the lounge once belonged to your great grandmother, remove it. If the buyers never see it, they will not want it! Try to minimise any potential points of contention.

Minor Repairs.

Replace/fix cracked tiles, wall, etc…
Patch holes in walls.
Fix leaky faucets.
Fix doors that don’t close properly and kitchen drawers that jam.
Consider painting your walls neutral colours or at least light and warm colours, especially if you have grown accustomed to strong colours.
Replace burned-out light bulbs.
If you’ve considered replacing a worn bedspread, do so now!

As good as new!

Wash windows inside and out.
Clean out cobwebs.
Polish chrome faucets and mirrors.
Clean out the refrigerator.
Vacuum/mop daily.
Dust furniture, ceiling fan blades and light fixtures.
Bleach dingy grout in bathrooms, etc….
Replace worn rugs, cushions, etc…
Hang up fresh towels.
Smells invoke memories. Make sure they are good memories!

First impression.

No matter how well you prepare the inside, the buyer will see the outside first. If you have a house or villa, broom and mop regularly outside. Keep plants/grass tidy and alive. If you have an apartment, you will have less control over first impressions. Make the best of what you have. Clean door, polished door knob, clean/tidy welcome matt, etc… all make a difference.

Also it is worth remembering that no matter how much we try it is hard to be objective about our own property. Personal feeling and bias will always play a part. Ask a friend to ‘pretend’ view your property and point out positives and negatives. If possible ask the agent to critique your property.

Good luck
Andrew Bellés

84% of Spaniards think that vendors are still asking too much, and more than half think prices will fall around 10.5% this year.

Compared to the last time this survey was carried out, however, the general perception of value for money has improved. In 2005, 95% of Spanish property hunters thought property prices were over-valued by between 30% and 50%.

“There is still a perception that prices are over-valued, although less so, probably as a result of official prices falling for 2 years,” explains real estate expert Prof. José García Montalvo in the report from FUNCAS.

Is now a good time to buy? Spanish house-hunters are divided. 55.5% say yes “fundamentally because of low interest rates,” whilst 44.5% say no. So the current and former Ministers for Housing are not the only ones who can’t agree if now is a good time to buy property in Spain.

The survey by FUNCAS also reveals that most house-hunters think it will take the market 7&1/2 years to recover fully, though a significant minority are optimistic a recovery will happen much sooner.

Orginal article: Spanish property insight

If this is the case the next report by the Ministry of housing should reflect these positive trends as this was not apparent due the first trimester.

The local representative of the developer Myramar, Miguel Rodriguez Porras has stated that “We have seen an increase in sales as people are finally realising that many of the properties are not going to drop any further”. The developer has also confirmed that to date sales have increased four-fold compared to last year and has observed an increase in foreign buyers (British and Russians) for certain promotions along Mijas Costa looking for holiday homes.

The promoter also believes that in the following years VPOS (subsidized housing) will play an important role as in future up to 30% of future promotions will have to be reserved for this type of housing.

The greatest issue now affecting developers is financing. Even with all the properties sold it can take a year to get financing to start the projects.

It should be noted that this improvement in the new build market comes after one of the worst years recorded for many promoters. And although there are positive signs, only time will tell whether it will continue. And of course whether banks will start lending again at normal levels.

Regards
Andrew Bellés

“The newly built property market is already in its fourth year of adjustment and now it the time for change and for the financing of buyers and promoters” he added.

He believes now is the time to start building again as in many cases prices have already dropped between 20 and 30%. And even with the still over supply of properties now is when new construction needs to be stimulated. Prices may continue to drop in certain areas due to lack of demand and over supply, but in many others there will be shortages soon.

According to the INE (Spain’s institute of Statistics), sales of residential properties rose by 17.6% in April and that it appears that at least on a national level there may be a recovery in the market. Of course, whether this continues once the new VAT levels are implemented on the 1^st of July is yet to be seen.

Furthermore the end of mortgage deductions in 2011 has helped stimulate the market this year and that in 2011 the property market will be more dependent on the current restructuring taking place in Spain. From the consolidation of Spain’s saving banks to the new employment laws.

It should also be noted that although there are positive trends in the levels of property sales, they are still only a third of the transactions from the ‘boom’ years.

Regards
Andrew Bellés

According to Robin Wilson, Head of Overseas properties at Rightmove:

“It’s always hard to let go of what your property was worth at the peak of at the market and accept times have changed, but vendors also seem more open and have much improved realism about prices necessary to make transactions happen. The improving Euro exchange rate is definitely playing a part, up 10% on January this year and 20% on January last year, meaning buyer’s budgets can go further.”

Furthermore, according to the article, MoneyCorp (currency exchange) have also seen an increase in enquiries for Spanish properties during March and May. Understandable as the British Pound has been gaining ground against the Euro with all the fretting over the state of European economies including of course Spain. The increase in the sterling/euro exchange rate would have made properties within the euro zone an increasingly more attractive prospect for euro buyers, and explains the surge in interest in Spain. Of course the exchange rate has not return to the heady days of early 2000s, but it is substantially better now than it has been over the last two years or so.

Regards
Andrew Bellés

Although not frequent 100% mortgages are available if the buyer has guarantors, takes out several insurances and so on and so forth. As you can imaging different banks have different requirements, but the important thing is that the money is starting to flow.

Although we personally have not recently dealt with anyone who has achieved 100% in several cases buyers have received 80% mortgages on the sales price and in one or 2 cases on the valuations.

Bank requirements

To receive the maximum mortgage from the bank the following is normally needed.

1. That the mortgage equal no more than 40% of the household income. Pay slips from the last 6 months are normally required plus proof of a fixed contract. For the self-employed, normally 2 years of accredited accounts are needed.

2. A guarantor is needed in case the borrower is unable to make the payments. If there is no guarantor, property assets can be used as a guarantee.

3. The length f the mortgage is normally quite high, anything from 35 to 40 years.

4. The bank will expect you to have an account with them for your salary to be paid into. This account would also be used to pay utilities and other charges by direct debit.

5. Taking out a life insurance policy or mortgage insurance to cover any outstanding payments in the case of injury or death.

Hope this information has been of some help to those looking for mortgages. Please note this is based on our direct experience and can vary depending on the bank.

Regards
Andrew Bellés

Timeshare Industry in Spain Set To Collapse

A new court ruling in Spain on the 27 of May 2010 is set to see an avalanche of timeshare compensation claims against developers, the ruling can now be used by European timeshare owners to seek compensation from illegal contracts signed after 1996 In Spain and its territories.
It is now thought that up to 400,000 contracts were made illegally after 1996, industry experts believe that timeshare compensation claims could reach 2,000,000,000 (Billion) Euro.

Magistrate D. Juan Carlos Socorro Marrero has ruled that a timeshare developer in Gran Canaria must pay back double the amount of the timeshare deposit taken within the cooling off period. In a case brought against Anfi Sales SL, part of the Anfi Del Mar Group in Gran Canaria the Magistrate commented” The case of paying an advance instalment is in opposition to what is dictated in the law 42/1998, article 11, the second section of this mentioned rule permits the acquirer “at any time” to get back double the stated amount.”

Anfi Del Mar reportedly one of the most largest and luxurious timeshare developments in Europe is now set for up to 10,000 new claims for timeshare miss-selling under the 1994 European timeshare directive. Anfi Del Mar, built by the Ling Group in Gran Canaria in 1989 and once owned by the largest travel agent in the world “TUI” is said to be in a state of panic at this ruling. “TUI” who own and operate several of the best known UK high street tour operators including Thomson were also responsible for taking illegal timeshare deposits at Anfi from 2001 to 2004.

At present there are over 200 live claims for timeshare miss-selling against Anfi Del Mar in the Spanish court system and with fresh claims coming in at a rate of 10 a week before this ruling, it is not known what affect this will have on the stability of Anfi Del Mar.

Under Spanish law, even if a property is sold on all debts and encumberments are passed to the new owners, so even if a timeshare property has changed its ownership, the new owners will still be liable for new compensation claims.

However in Tenerife in the last two years a number of timeshare developments have already been repossessed by the unscrupulous developers by way of inflating yearly maintenance fees, once seized they split the apartments up and sell on as real estate, this then circumvents this ruling, it is widely thought within the industry up to 200 developers operating out of Spain, Canaries and the Balearics are already moving to sell off timeshare resorts that have or will have actions brought against them.

Five out of the top 10 timeshare developers in Europe including Brand name companies have taken illegal deposits during the cooling off period and some as late as 2009 were still selling illegal contracts. In contracts shown to Claims Directive this year, one developer based in Mallorca, Spain is still taking illegal deposits even after this was outlawed in a 1994 European timeshare directive, that Spain adopted in 1996. The European timeshare industry does have a regulatory body, however 4 of its paid members are developers that have broken these laws previously, and until the regulatory body in place condemns these actions committed by their own members, there will not be a fair regulatory body representing timeshare owners in Europe.

Claims Directive and its sponsor believe that this new ruling gives power back to the timeshare owner, and because this ruling can be back dated on claims to 1996, it will give timeshare compensation to owners who never before had a chance of taking on large corporate brand developers.

If you have paid a timeshare deposit on or during the cooling off period after 1996, in Spain or its islands, you are now entitled to reclaim double your deposit, even if the company you purchased from is no longer trading, as long as the timeshare development still exists.

Source: Timeshare Daily

Gisele Van Meer; head of property transfers at local law firms De Cotta, McKenna & Santafé, which has an office within a few kilometres of the development, is pleased to see these steps being taken, believing it goes a long way towards restoring confidence in Marbella, making people more willing to consider investing here; “The planning situation has improved and steps are being taken to legalise properties affected by planning irregularities, which should give a boost to the recovering property transfers market and confidence to prospective buyers in what has been one of Spain’s property hotspots for many years.”

However, success in gaining licences will leave a bitter after taste for some. Marbella’s town hall is seeking compensation from developers that flouted existing planning laws, but where developers bankrupts, there are fears that costs will fall upon residents.

In addition, with the legalisation of property comes the obligation to pay local property taxes, and these could in theory be back-dated to the first date of occupation, giving some a hefty bill.

The town hall says that compensation from developers and urbanisations can also be in terms of donating land for public use and maintaining areas as public green spaces and parks

Source: Sur in English June 11^th 2010