Carlton to invest billions in Spanish property

Carlton Group Inc.’s clients have earmarked 7.5 billion euros ($10 billion) to buy real estate in Spain and Portugal over the next 12 to 18 months as risks diminish and prices adjust to what buyers expect to pay.

“A combination of reforms in Spain, stabilization of sovereign debt yields and reduction of risk perception for Europe as a whole has made investment in Iberia far more attractive,” Javier Beltran, head of Spain and Portugal for the U.S.-based real estate investment bank, said in an interview. More..

Brussels gives go ahead to Spanish banks restructuring

The European Commission has approved the Spanish government’s plans to restructure four troubled banks.

Bankia, Banco de Valencia, NCG and Catalunya Banc were nationalised after experiencing heavy losses on loans to homebuyers and property developers. More..

Easier residency for foreigners buying property

With the over supply of properties throughout Spain, and general doldrums of the EU wide economy, Spain is looking at further ways to help increase real estate transactions. As I am sure many people who will read this article are aware, for months now there have been a range of articles, talking about Russians/Chinese/etc… buying up properties in locations throughout Spain. More..

2 months of spanish property market expansion

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3 million properties to have rateable values increased

The increase in VAT and the expected increase in electricity bill will not be the only charges they will face some homes in the coming months. As stated in the draft State Budget presented by the government this weekend, the Ministry of Finance plans to review the assessed value of nearly three million homes in 2013, which in many cases will imply an additional tax burden to many families. Notifications of the Ministry are used by municipalities to prepare the local taxes. More..

IVA on new homes rising from 4pc to 10pc next year

The Government has confirmed that IVA (value added tax) on new homes will go up from 4 percent to 10 percent at the start of next year. More..

Spanish property market transparency

I have just found an interesting news blurb by Mark Stucklin on a study by Jones Lang Lasalle. Based on this study it appears that the Spanish property market is more transparent that quite a few of its fellow European countries including: Belgium, Norway Italy, Portugal and Italy are all less transparent that Spain.
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Banks under pressure to finish building Costa del Sol properties

The governments most recent financial reform is forcing banks to dig themselves out of a hole that they helped to make in the first place.

Mortgage default and repossessions mean that now financial institutions are the owners of around half of the 6,792 unsold new properties on the Costa del Sol (according to a recent repost by Aguirre Newman). Now following Spain’s most recent financial sector reform this stock of real estate assets and loans granted to developers are costing the banks more and more in the form of provisions. As a result they are doubling their efforts to sell, which in many cases implies first finishing off the construction work where indebted developers left off.
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Andalusian property sales decrease 9.31 percent in first quarter of 2012

The sale of Andalusian properties fell by 9.31 percent in the first quarter of 2012 compared to the previous quarter, reaching a total of 17,240 property transactions in the first three months of the year
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Spanish property market still weak in June

Home sales in June were the lowest since the property crash began, show the latest figures from the Statistics Institute (INE).

There were 24,699 home sales in June (excluding social housing), down 26pc on the same time last year, below even June 2009, when the crash was thought to be at its nadir. The graph above makes it clear that, after a deceptively promising start, 2011 (in red) is turning out to be the worst year yet.

Compared to June 2007, sales were down 60pc – a teeth-jarring fall by any measure.

Year-to-date, transactions are down 11pc compared to last year, 3pc compared to 2009, and 55pc compared to 2007, as illustrated by this table.

On an annualised basis, sales have fallen in 10 of the last 12 months.

Assuming that prices have fallen by an average of 30pc since 2007, then in value terms (Euros) the market has shrunk by 70pc since then. That means 70pc less money around for everyone who lived off the housing market, town halls in particular.

All this helps explain why many town halls are now in the jaws of a financial crisis: They ramped up their spending and overheads during the boom, assuming it would last for ever, but now the money has dried up and they can’t afford to pay their bills. A 70pc fall in revenues from real estate helps explain why.

Why are transactions still falling? Partly because the credit crunch is still in full swing – in Spain at least – and partly because the abolition of mortgage tax relief at the end of last year brought forward sales that might otherwise have taken place in the first half of this year. So the figures might make the market look worse than it actually is. To find out we will have to wait and see if there is a recovery in the second half of the year.

The following table summarises the key transaction data month-by-month for the last 5 years.

Article by Mark Stucklin

SPANISH BANK GUARANTEE PETITION

Dear fellow petitioners,
You may remember that 17 months ago I submitted a petition to the Governor of the Bank of Spain with regard to the non-compliance of the various Spanish banks who were not honouring the guarantees given by them to protect deposits paid by purchasers of off-plan properties. You very kindly supported this petition and were signatories to it. The petition was briefly brushed aside by the Bank of Spain’s legal representative who in so many words suggested we deal with the matter through the courts. This in spite of the public pronouncements made by the Governor himself when explaining his powers to deal with recalcitrant banks.
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Reading the signs of the Costa del Sol market

After finding the article the Spanish property bust, I thought it would be of interest to look at how the province of Malaga has done by comparison. Although there are no specific figures for the Costa del Sol, we can work on the assumption that has most of the population and infrastructure are along the Malaga coast, Malaga province equates with Costa del Sol in reference to property transactions.
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Andalucía Technology Park expanding to Marbella

With the success of the Andalucía Technology Park (Parque Tecnologico de Andalucía) in Malaga, the Junta de Andalucía has declared the establishment of a new Technology Park Marbella.

The head of Innovation, Science and Business for the Junta has said that the new site will cover 197 hectares on land that is currently made up of 300 privately owned estates and is designated as an “area of opportunity” for the Costa del Sol in the POT plan. The idea would be to reach a public-private agreement with the participation of Marbella Town Hall and the landowners along with the regional authority for the development of the project.
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Capital gains on your property in Spain

When selling your property in Spain you may be subject to a Capital Gains Tax (CGT). This tax is on any profit the Spanish government perceives that you have made, which even in the present climate is an issue that many have to watch out for. Currently the rate is set at 18% and can make a serious dent in anyone earnings.

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Financial services in Spain

In the current economic climate, which has seen a vast changes in interest rates, high unemployment and a very complex Inheritance Tax Law, I have decided to contact a financial services company. Siddals Spain has recently developed financial services specifically tailored to help people save time, money and combat the negative effect of the “credit crisis”.

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