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The increase in the sterling/euro exchange rate over the past few months has been welcome news to potential overseas buyers as the pound in their pocket goes further. Borrowing in sterling may be easier and cheaper at present but if the euro continues to fall, a loan in sterling could wipe out any potential gain made in the value of the property, as the relative value of the debt against the property (sterling converted to euros) would increase. The worse case scenario would be that you could owe more in sterling than the value of the property in euros. Banks lending in euroland will generally only lend in euros because of this risk.
Matching the currency of the property and the debt can offer some protection against exchange rate movements. If sterling continues to strengthen, the monthly cost and balance will fall in relative sterling terms. With very few exceptions, UK High Street lenders cannot take a charge on property overseas. A further benefit of using a retail bank in the country where the property is located is their local knowledge. The lender will carry out their own valuation on the property, giving you independent reassurance that you are paying a reasonable price.
How easy it is to obtain mortgage finance depends largely on location and nowadays will always be full status, with banks basing income on tax returns and applying their affordability criteria.
The competitiveness of interest rates tends to be determined by how many lenders are offering mortgages. Where competition is limited – or worse still where there is only one lender – the rate may be higher and there may only be one product. Fixed or capped rates are likely to be a wise move while base rates are so low, but these are not readily available in every country. Switzerland offers fixed products up to a maximum of fifteen years and US mortgages are often fixed for five years or longer.
Lending in Spain is challenging as there are far fewer lenders than in the past and products tend to be limited. These products are often simple variable trackers with comparatively high initial pay rates.
Research in advance is vital to finding out what your mortgage options are. Before you visit a property you can obtain a decision in principle from a lender or specialist broker, confirming how much you can borrow and on what terms. A decision in principle is not binding and is subject to the valuation of the property, but will help put a potential purchaser on an equal footing with a cash buyer.
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LEGAL NEWS
Pros and cons of short and long term rentals under the new law
The recently approved Tenancy Act makes several important changes to earlier legislation.
These changes include the obligation to have the new energy performance certificate and a reduction in the legally mandatory rental periods. We will analyse the advantages and drawbacks of leasing a property for more than five years or less than one.
In this regard, it is important to remember that under the new law legally mandatory rental periods will be shorter. Up until now the legally mandatory rental period for long-term rents was five years, but it has now been reduced to three years. After these three years have expired, the contract may automatically be renewed, provided both parties are in agreement, and this tacit renewal has been reduced from three years to one year.
Tenants benefit from this change since they can vacate the property without being penalised. However, it may lead to insecure tenancies, as landlords can terminate the contract after the first three-year period has finished.
This new law therefore makes it easier for tenants to vacate the property, and also makes it easier for landlords to regain possession of their property if they need to.
Landlords also benefit from the new regulations because they will be able to regain possession of their property if they need it either for themselves or for an immediate family member, provided that the contract has been in force for at least one year, and they give the tenant two months´ notice.
One of the drawbacks for landlords is that their rental income is not as secure as it was as tenants can vacate the property without being penalised, provided they give two months´ notice.
The aim of this new law is to make the property market more flexible in order to stimulate supply and demand.
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The property market prices stabilise and slowly begin increase again. To buy now may finally have a positive answer. The latest figures -Summer Autumn- show an increase of about 1 % compared to the previous quarter. This adds to the fact that the number of property sales made in Spain also increased 2 %. There were 76.800 transactions over 3 months. The Costas leading the recovery. “A Place In The Sun” – Buyers confirm that now is the time to buy. Experts say the figures released this month show, time has come. Foreign buyers were involved in 12 % of all the transactions with British Buyers making up about 14 % of the new foreign home owners followed by French 11 % and Russians 9 %. So far this year, over 330.000 property transactions have been made in Spain.
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Disney is coming to Valencia, to the City of Arts and Sciences. An American film Producer will shoot in Valencia …:
” Tomorrowland ” and will be premiered at the end of 2014 featuring Hugh Laurie and George Clooney. The storyline is top secret although 1952 it was based on “”Man in Space”” an animation production by Disney 1955. Valencia will feature prominently in the film . Filming is due to begin end December / beginning 2014
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Near Alfara de Algimia, near Torres Torres, near Sagunto (Valencia)
a 100 m2 rustic cottage with 1600 m2 plot, fruit-trees, small pool, BQ, 3 bedrooms, large kitchen, bathroom with water connected and light by generator
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![th[9]](http://villasvalencia.com/wp-content/uploads/2013/09/th9.jpg)
Valencia, Spain has the largest aquarium in Europe – The Oceanografic in Valencia`s City of Art and Science (CAC) – is celebrating its 10th anniversary this year. – During the 10 years since it opened its doors to the public the Oceanografic has established itself as one of the main marine complexes in the world, and has attracted more than 14 million visitors since 2003. In addition to promoting pioneering research programmes, it is also the only aquarium in Spain where the public can observe species such as the Beluga or White Whale.
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![GTY_HealthSherpa_lpl_11113_4x3t_384[1]](http://villasvalencia.com/wp-content/uploads/2013/09/GTY_HealthSherpa_lpl_11113_4x3t_3841.jpg)
Spain leads Europe in longevity stakes.
Lancet issued a report last week, shows that Spain has the highest health Life expectancy in Europe. The healthcare system is excellent, 7th best in the world. The UK was ranked 18th. The report only concentrates on the health of people who arrive at health centres. The Mediterranean diet in the Valencia region, which consists of salads, fruits, fish and lots of olive oil, may be responsible for the good report.
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Villasvalencia offers over 1.000 properties to buy and for rent
Find the right property for you (according to the official Spanish property registry office)
Probably the most difficult part of acquiring a property is choosing the right one. For this reason it is necessary to take time to:
– Compare what is on the market
-Understand in detail the tax situation of the property
-Find out the legal position of the property.
There are different ways of looking for a property, eitheer alone or using the service of an Estate Agent who looks for you. In this case you should be aware that:
> An Estate Agents is an intermediary between the vendor and the buyer, who puts them in contact with eachother, and if they agree they sign a contract. It must be understood that it is not the Estate Agent who is selling the property.
> In general the Agent is instructed by the seller and therefore will normally receive their payment of fees from the vendor.
> Some Estate Agents offer extra services, i.e. mortgages, specific notary, lawyer servives etc… The purchaser is in no way obliged to use any of these services.
> If you found a house amongst our properties, please let us know.
info@villasvalencia.com or Tel 607228378
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Selling a property in some regions of Spain became more expensive following new tax hikes.
In what has been described as a “mystifying move”, governments in the autonomous regions of Catalonia and Valencia have increased the levy on buying a resale property to 10%.
At 10%, the tax is now the same rate as VAT on new homes, which the national government increased from 4% to 10% at the beginning of the year.
The Catalan administration hopes to raise an extra €50m from the increased tax to plug its regional deficit, while Valencia is looking to bring in an extra €30m this year, and €75m next year.
The tax applies to all homes whether they are worth €100,000 or €1m.
Spain relies heavily on overseas investors, with foreigners now making up half of the market in Valencia.
“There’s nothing like purchases from foreigners to boost a region. This move will discourage people from buying. Spain should be rolling out the red carpet to foreigners with lower taxes and less bureaucracy.”,
….but…….. vendors have already reduced house prices by 2% to compensate for the tax hike.
Category : Uncategorized
Villasvalencia offers over 1.000 properties to buy and for rent
Find the right property for you (according to the official Spanish property registry office)
Probably the most difficult part of acquiring a property is choosing the right one. For this reason it is necessary to take time to:
– Compare what is on the market
-Understand in detail the tax situation of the property
-Find out the legal position of the property.
There are different ways of looking for a property, eitheer alone or using the service of an Estate Agent who looks for you. In this case you should be aware that:
> An Estate Agents is an intermediary between the vendor and the buyer, who puts them in contact with eachother, and if they agree they sign a contract. It must be understood that it is not the Estate Agent who is selling the property.
> In general the Agent is instructed by the seller and therefore will normally receive their payment of fees from the vendor.
> Some Estate Agents offer extra services, i.e. mortgages, specific notary, lawyer servives etc… The purchaser is in no way obliged to use any of these services.
> If you found a house amongst our properties, please let us know.
info@villasvalencia.com or Tel 607228378
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