Author Archives: akinloch

A new super association of Spanish property consultants (ACI) is born

Four of the most prestigious property consultants in Spain have joined forces to create “la Asociación Española de Consultoría Inmobiliaria (ACI)”. This is roughly translated as the Spanish Association of Property consultants”

It is made up of Aguirre Newman, Jones Lang LaSalle, Knight Frank and CBRE. They claim they will offer, professionalism, transparency and stability to the property profession in order to avoid many of the errors committed in the past.

One of their aims is to create value in this key industry within the Spanish economy.

In a recent statement, they have challenged the competence of auditors and bankers and suggest a fresh approach is needed, with limited risks, identifying growth over a medium or long-term period. They suggest the market might have bottomed out, and that there is a possible change in the market indicated by serious interest from international investors.

Spain’s “Bad Bank” is pushing property prices up

Spain’s “Bad Bank” or SAREB (sociedad de gestión de activos procedentes de la reestructuración bancaria) is selling some of its properties at prices which are higher than they were before these same properties were passed on to this nationalized entity.

Investors looking out for bargains have been disappointed to find that prices have not gone down significantly and, in many cases, have even gone up. Often, the price advertised is the one the property fetched in 2008.

A SAREB’s spokesman said that the entity is looking to get the highest price possible for its assets.

Link to article in Spanish:

http://www.idealista.com/news/archivo/2013/02/07/0575687-el-banco-malo-sube-de-precio-algunas-de-sus-viviendas

A Daily Bulletin article on unsold properties in Spain

Number of unsold homes in Spain increases
 

Home prices in Spain have fallen steadily ever since, by five to ten percent each year.
Jones Lang LaSalle published a report in November last year according to which the real estate industry had recorded a thirty percent decrease since the economic bubble burst in 2008.

The market is expected to fall by thirty percent more by 2018.
The bad debts of several Spanish banks which comprised mainly of mortgages to property developers and home buyers also grew steadily, reaching almost 730 billion euros as of September 2012.

Debt inflation cannot be halted by Spain as the nation is part of the Eurozone. The unemployment crisis has added to the country’s woes as the current real estate stock is deemed horribly excessive.

Over 800’000 used homes remain for sale while developers have an additional 700’000 newly completed units that they are waiting to sell off.
Around 300’000 homes have been deemed as foreclosed properties while another 150’000 will be in the same state following the completion of foreclosure proceedings.

Around 250’000 new homes are still being constructed.
RR de Acuna and Associados’ Vice President, Fernando Rodriguez de Acuna said that the situation is crazy at the moment. He added that there has been barely any progress during the past five years with regard to clearing the real estate stock.

As a result, homeowners and those interested in selling their Spanish property are facing the cold truth about the market’s real condition. Consequently, prices are free-falling as sellers have given up hope of acquiring a fair price for their properties and accept some of the ridiculously low offers made by greedy investors from overseas.

Barbara Wood, a consultant with The Property Finders, a real estate agency in Andalusia said that the main feature of the past year was the growing number of sellers in the country who had come out of denial. She said that property sellers in Spain were now accepting offers that they had previously been turning down. This has increased the volume of sales to overseas investors by around 20 percent as compared to last year. Several investors from outside the Eurozone have been sizing up Spain as the ideal destination to have a second home. Many of these individuals have raided the Spanish real estate market for some truly beautiful properties at significantly discounted prices.

In efforts to ease the mounting pressure on its banking sector, Spain’s government decided to establish a bad bank which proved to be a bad idea.
Having accumulated toxic properties with the intention of future sales for profits, the bad bank has found it increasingly difficult to sell those properties and is therefore forced to let them go for incredibly cheap prices.

The quantified difference between offer price and offered price in Spain

According to pisos.com, that figure for what a vendor would like to receive and what a purchaser would like to pay is now at 42,367€.  This is considered quite substantial and needs to reduce. It seems it is falling, with the 2011 figure 4,500€ higher.

Bank of Spain proposes valuers are independent from banks

The Bank of Spain has finally proposed that valuers are independent from Banks and separate from the lending institution.  This has been a long time in the coming and considered a contributing element in creating the property bubble. It is common that Spanish banks own a percentage of the valuation company carrying out their appraisals.

In a report issued to the banks and their valuers, they also suggest, very sensibly, that

loans should not be over 80%

that banks use more than one valuation company

They should view any previous valuation before making a lending decision

The banks also states it doesn’t not believe in massive, desktop valuations and that the valuer should always visit the property, including an internal inspection.

 

 

property works now on linkedin

As well as my personal sitew, you can find us on Linkedin at:

http://www.linkedin.com/company/2851129?trk=tyah

OJO! If you have not voted for more that 15 years and resident in Spain you lose your vote for ever!

James Preston, a Spanish resident, and UK citizen has lost his appeal to allow British ex-pats to vote after 15 years of absence from the UK.

it is estimated that the ruling will disenfranchise up to 5 million British ex-pats.

British ex-pats continue to fight the 15-year voting rule

Ironically, this is occurring while the EU is trying to force the UK government to allow the prison population to have the vote.

It seems rather short-sighted of the government to reject this generally conservative voting group.

The government argues that ex-pats are out of touch with the UK. However, in our view that it is likely to have the reverse effect, making ex-pats more proactive and involved with British events and issues.

to sign the online petition to support this cause please go to:

 http://votes-for-expat-brits-blog.com/category/voting-rights/james-preston-case/

Latest news on the mortgage ground clause or “clausula suelo”

It appears there is light at the end of the tunnel for the thousands of mortgage holders with a ground clause.

This clause basically sets out minimum and maximum levels of interest payments. A typical clause might state a 4% minimum payment and a 15% maximum.

Various court cases, including recent judgements in Sevilla and Mallorca, consider this clause illegal.  the key seems not to be its existence, but the be the disproportionate distance between the ground and ceiling levels.

At present most standard mortgage rates are calculated using Euribor average over 12 months plus a percentage of perhaps 0.75% or 1%.

The Eurobor is at about 0.60% so if the bank charges 1% on top of that, the rate is 1.6%.

With interest levels at such a low level, the interest payments differential might be 2.4% in this case. Over a 30-year mortgage, that might make a difference of about 250€ per month. Quite a significant difference.

if you are affected by this clause and for more information on these judgments you should contact you local citizen advice office. You can also try the  association of bank and building society users ADICAE

www.adicae.net

A funny story…..improper language use in Spain….

a memo release issued by a Spanish corporation regarding the improper use of swear words….

It’s been brought to our attention by several officials visiting our headquarters that the Spanish staff commonly uses offensive language. Such behaviour, in addition to violating our group’s policy, is highly unprofessional and offensive to both visitors and the staff itself.

Therefore it is requested to our Spanish staff to adhere immediately to the following rules:

1. Foreign colleagues or visitors should not be referred to as “ese guiri de mierda”.

2. Words like “coño”, “hostia”, and other such expressions will not be used for emphasis, no matter how heated the discussion is.

3. You will not say “la ha cagao” when someone makes a mistake, or “la está cagando” if you see somebody being reprimanded, or “¡qué cagada!” when major mistake has been made. All direct or derived forms of the verb “cagar” are inappropriate in our environment.

4. No Project Manager, Section Supervisor or Head of Administration Chief, will be referred to, under any circumstances, as “el hijo de la gran puta”, or “el muy cabrón” or even “el comemierda”.

5. Lack of determination will not be referred as to “falta de huevos” or “mariconería” nor will persons with a lack of initiative be ever referred to as “capullo” or “acojonado”.

6. Unusual and/or creative ideas shall not be referred to as “pajas mentales” in particular when they stem from your manager.

7. You will not say “cómo me jode” if a person is persistent, or “está jodido” or “se lo van a follar” if a colleague is going through a difficult situation. Furthermore, when matters become complicated the words “qué jodienda” should not be used.

8. When asking someone to leave you alone, you must not say “vete a tomar por culo”, nor should you ever substitute the most educated “may I help you?” with “¿que coño quieres ahora?”

9. If things get tough, an acceptable expression such as we are going through a difficult time should be used rather than “esto esta jodido” or “nos van a follar a todos”. Additionally, if you make a mistake, just say so and do not say “que putada” or any expressions composed with the root “puta”.

10. No salary increase shall ever be referred to as “subida de mierda”.

11. Last, but not least, after reading this note please do not say “me voy a limpiar el culo con ella” or “me la paso por el forro de los cojones”.

Just keep it clean and odorless and dispose of it properly.

B. regards
J.W. Adamson

Gathering in Palma de Mallorca to raise awareness of the consequences of bank eviction.

A demonstration has taken place in Palma de Mallorca in order to show solidarity to people who, they claim, are victims of the “banking and estate agency violence”. The demonstration was organized after it made front page news that a man in Granada had committed suicide on Thursday hours before he was due for eviction. The organising group says this suicide was not a “one-off” and that many hundreds of lives are being broken by abusive banking legislation.