European Parliament criticises “extensive urbanisation” practices in Spain
The report drawn up by the danish MEP Margarete Auken deals with the various problems associated with the “extensive urbanisation” and suggests interrupting the provision of EU aid to the country until these are solved.
The European Parliament considers that the relevant Spanish regional authorities “should suspend and review all new urbanisation plans which do not take into consideration the criteria of environmental sustainability and social responsibility and which do not guarantee the respect for the rightful ownership of legitimately acquired property in compliance with the Spanish Constitution”.
It is good to see this in the press realease of the European Parliament and I really hope it helps to change the attitude towards the excessive building and illegal building around here! There are some points in the report I would like to highlight:
- whereas the Coastal Law impacts disproportionately on individual property owners who should have their rights fully respected, and at the same time insufficiently on the real perpetrators of coastal destruction, who have in many instances been responsible for excessive urban developments along the coasts, including holiday resorts, and who had good grounds for knowing that they were invariably acting contrary to the provisions of the law in question
- whereas successive fact-finding visits by the Committee on Petitions have shown that these objectives seem to be frequently misunderstood by some local and regional authorities (not just in the coastal regions) when proposing or agreeing to extensive urbanisation programmes; whereas most urbanisation plans contested by petitions involve the reclassification of rural land into land zoned for urbanisation – to the considerable economic benefit of the urbanisation agent and the developer
- whereas many thousands of European citizens have, in different circumstances, bought property in Spain in good faith acting with local lawyers, town planners and architects, only to find later that they have become victims of urbanisation abuse by unscrupulous local authorities and that, as a result, their property faces demolition because their homes have been found to be illegally built and therefore worthless and unsaleable
- whereas the natural Mediterranean island and coastal areas of Spain have suffered extensive destruction in the last decade as cement and concrete have saturated these regions in a way which has affected not only the fragile coastal environment but also the social and cultural activity of many areas, which constitutes a tragic and irretrievable loss to their cultural identity and heritage as well as to their environmental integrity
- whereas this model of growth also has negative consequences for the tourism sector, since it has a devastating impact on quality tourism given that it destroys local values and encourages excessive urban expansion
- whereas the building industry, having made considerable profits during the years of rapid economic expansion, has become a primary casualty of the current collapse of the financial markets, itself partly provoked by speculative ventures in the housing sector
- considers that the competent regional authorities should suspend and review all new urbanisation plans which do not respect the strict criteria of environmental sustainability and social responsibility and which do not guarantee respect for the rightful ownership of legitimately acquired property
- Considers it alarming that there appears to be a widespread lack of confidence among the petitioners in the Spanish judicial system as an effective means of obtaining redress and justice
- Clearly the global financial crisis and its implications have impacted harshly on the Spanish construction industry and this is a tragedy for the workforce, but even before the events of autumn 2008, the construction industry was heading for a shock. The years of massive urbanisation and coastal destruction which lead to considerable financial profit for the industry and massive overbuilding - there are now one and a half million new homes waiting for a buyer, and how many new golf courses - based on the irrational and greedy assumptions of property developers and urbanisers, have now lead Spain into a disastrous recession
- The Spanish authorities, in the regions in particular, remain in denial; while the victims are counted in thousands. At best, in many instances, their behaviour has been complacent with regard to individual property rights; at worst they have been downright dismissive
- That speculators and property developers who had the legal resources to know better should be penalised is reasonable; what is not is that people who have bought their property in good faith respecting all the demands made upon them should lose their rights, and that of their families and descendents to their homes.
- Never agree to a sole agency agreement - well I fully agree to this, but I also recommend, not just to give it to every agent you can find but to choose wisely. Think about what people are likely to look for a home like you have to sell. Estate agents often cover a range of potential clients, but not all of them. I, for example, have only few buyers who are spanish locals from Roquetas of Almeria, so when I think the property would be interesting for the locals, advise my clients to put their property up for sale as well with an agent who covers those potential buyers better than I do. Ask you agents, how and where they will advertise your property. Ask them who their buyers normally are.
And very important: never forget to keep a list of all contracted agents and keep them all updated on any changes concerning your property! Nothing worse, for example, to have your property listed for a range of different prices. - Always have your own se vende sign and always have your price on - I can not say anything against it and if the price is right, it helps to have it on the sign - there are definately more people calling.
- Drop your price, all too often sellers drop their prices after the market has fallen and continue to play ‘catch up’ as it drops further. …I could tell you catch up stories..and it never works out. I am sometimes perplexed by the level of denial in the property market which still exists after over a year of constant price drops. Many sellers still cling to the belief, that their property is somehow worth more than other comparable properties. But it does not matter that your neighbour sells low because he has to, or that the other neighbour sold higher last year, or that you spent a small fortune on your kitchen. If a comparable property is cheaper, it is more likely to sell. And there are many properties on the market.
- Use the internet extensively and consider advertising in the classified section of your local paper - there are many places in the internet where you could advertise your property privately, but I must say, advertising locally never worked out for me, even in times when business was still good.
- Of course, you can always make the decision not to sell and to wait until the market picks up again. - that´s right, why not? I think it will take some years, but if you have the time, maybe it is better to just enjoy the sun. Often sellers come into my office and when I tell them that their price is too high, they say, yes, but I´ve got time, I am not in a rush. Well, why then put it on the market at all? It might be a strategy in a rising market, just to wait until sombody buys your property for the price you hope to get, but at these times, with the market in decline, it will just be one more unsold property.
Another carnival on spanish property news
Not really good news, although there are always two sides of the coin. Good news for those who have a spanish mortgage related to the Euribor, because this index has hit his all time low, so rates have gotten cheaper.
At the beginning of February we got the news that Spain’s largest property appraiser is predicting another drop in house prices of 20% in 2009 (spanish version in El Pais / english version in the Telegraph).
Considering that their last years prediction was far too low in my experience, I wonder what will happen this year. But it has not exactly been a surprise, more like a “oh now they got it…”. That is of course bad news for all those who want to sell property, but good news for those who are looking to buy - two sides of the coin. Since prices had risen to an utopically high, I think this adjustment is healthy, but of course, since I am maybe the only estate agent who does not own property - it is easy for me to say this.The other really bad news is the rising unemplyment here, predictions go to 16% by the end of this year (see Economist.com for example). And there is no other side of the coin. And its not only the construction workers, it is everyone, you can see it here in Roquetas as well, shops closing, restaurantes closing, everyone is struggling. The only ones not affected so far seem to be the invernaderos, the greenhouse owners. I have been talking to one and he said so far they do not feel the crisis, everyone needs to eat he told me…..
The unemployment rate in Spain at the moment is 13,91 at the moment, pulished on the 23rd of January, but the rate still looks good compared to the rate of Andalusia ( 21,87%) or even Almeria province, where it is 24,98%, nearly every fourth person of the working population. And rising every month.
So if you are thinking of moving to Spain to work here, consider that it is nearly impossible to get a job here at the moment, especially if you do not speak spanish.Back to property news. Some of the biggest developers in Spain have not started to build a single new home in the last 2 months (enlish version in the Spanish Property Insight blog), which is not actually a wonder when you consider that the estimates of new built and unsold homes goes up to 1 Million homes, and that is only the new built ones still owned by developers, not taking into account all the ones sold off plan and now on the market by their owners, and not taking into account all the older second hand properties on the market.
Predictions say that it will take the market at least 3 years to absorb these 1 Million homes (El Pais). Who is going to buy all these properties?
The latest news from today is that house prices dropped 9% in February compared to last year (El Pais). Ok, that is enough on it for today.Just one thing more, and I do not know whether to laugh or just shake my head in wonder, but would you believe it, after all these news, I read this week that the Junta de Andalucia just approved of a plan to construct a completely new city just a bit west of Garrucha? It is called Llano Central and it is planed to construct 25 000 homes for about 60 000 inhabitants…and of course a golf course….I wonder if the existing golf courses are all overcrowded? I wonder if a golf course is the only idea there is to attract tourists? I wonder who the hell is supposed to buy all these homes? I wonder who is stupid enough to build these homes? I wonder, why not invest in the existing and naturally grown resorts? I think of El Toyo, the city they stamped out of the ground for the Mediterranean Games, have you ever been there? It is nice, but dead, but it has a golf course……
Well I could go on on this topic forever, but I leave it for today. I hope to find some more links in English next time.Looking for something to rent in Yegen?
One of my clients is looking for somebody to rent their 2- bedroom apartment directly in the wonderful village of Yegen / Alpujarras. It is available from now on and probably for rent until summer.
From July on the whole large house will be for rent, including the downstairs apartment.
The house is for sale, so if you like to have a look at the house, have a look here on my website.The house will be rented out fully furnished. If anybody is interested in renting, just contact me!
Looking for a place to rent in the countryside Almeria - Alpujarras
I have clients who put their apartment in Roquetas de Mar up for sale because they want to buy a house in the countryside. As things are going at the moment, nothing sells. But they want to move as soon as possible and so took the initiative and are now looking to rent something and asked me whether I could put this into my website. This is what they are looking for:
- house with at least a little garden
- in or near a town
- 2 bedrooms or more
- preferably 1 floor, not too many stepsIn or around Berja would be fine, anything else considered.
They would consider to rent it with a later option to buy if they like the place.There is no commission on my part involved.
So if anybody is interested in letting out their house to this nice couple, please contact me and I will pass on the word.
6 general tips on buying property in Spain
1. Get a clear idea in which region you want to look for property. This probably seems obvious to many people, but not everybody has a clear idea where to look. Do you want to have an apartment directly at the coast, or do you prefer a garden and do not mind moving further inland? Do you like the mountains or would you like to move just a bit inland, so you can reach the coast within 20 minutes? Would you like to rent out your property?
I get people coming to look at properties who are in Almeria the first time and are then disappointed by the general landscape (not exactly a lot of green….) or the many greenhouses, especially around Roquetas de Mar and El Ejido. If you can not have a look before you actually look at properties, try to get as much information as possible about the region you choose for looking at properties.
One of my clients once told me when we were looking for property “There are 3 important factors when bying property: location, location, location” - I tend to agree…
2. Once decided on the region, get a feeling for the market and the prices. Which means looking at as many websites as you can find, comparing the adverts and when you actually look for properties, talk to the people living here, talk to as many agents as you can cope with and have a good look around.
3. Take into account that you will have to pay around 10% of the selling price on top for taxes and fees.
4. If you found something you like: bargain! Many sellers are willing to drop the price, from the price advertised, considerably. I have sellers coming into my office telling me for example “I want to have 150 000, but everybody wants to bargain, so advertise it for 170 000.” Which at the moment sometimes means you could get it for 140 000…
Of course there are sellers who want their properties avertised for the lowest price they are willing to accept, which I actually recommend at the moment, so those will not bargain that much. But there are not many of them as far as I know.
5. If a buyer has his own independent solicitor, I am always pleased, because it just means less work for me. As a general rule, I do recommend contacting an independent solicitor. But even if you have your solicitor, be aware that this not necessarily means all the papers will be ok after the selling. I have people coming to my office who want to sell and when I look at the papers and then tell them this is not ok and that is not like it should be, they say, “but I had a solicitor when I was buying!”. Do not get me wrong, it is always better to have a solicitor checking the papers than just trusting your agent and in most cases you will have a property with all papers in order after the selling. But a solicitor is not a guarantee for that.
I recommend that everyone who wants to buy property gets him/herself informed on what to look out for concerning the paperwork. Get somebody translating the papers (your agent and/or solicitor should do it anyway) if you do not speak spanish yourself. Inform yourself on the possible traps you can run into. A good internet research always gives at least some results.
6. I do not recommed to buy off plan properties at the moment. With the current situation you never know when or if they will be finished. And even if they are finished in time, it is probably worth less by then because prices are dropping.A little carnival on spanish property market news
I regularly browse the internet for any news on the spanish property market and the spanish economy and I found some interesting articles that I would like to share.
The first ones are from a special report on Spain in the Economist: After the fiesta, the introduction into the special report and a short summary of the spanish economical boom hitting the financial crisis now, After the fiesta, a short summary of Mr Zapateros politics and Spains economical position as well as the response to the economic slowdown, Banks, bricks and mortar, a good article on the housing bubble, In search of a new economy, what else is there, besides construction and tourism?, and another article in the Economist, not part of the special report, After the fiesta - the party is over, Spain in 2008 and the outlook, and then there is Property market outlook for Spain is poor in the propertywire.com and Spanish property problems deepen in thisismoney.co.uk, no good news, but that´s as it is at the moment, and something which went through the press here for some time, and which I consider rather funny in a sad way, Thousands of Spaniards queue in hope of cheap flat, and take into mind that the apartments are not yet started to build, it is not clear where exactly they will be built and I personally do not think that these apartments are that cheap.
That´s it for this time, but I will let you know when I find some more interesting articles.Good news for spanish home owners
With effect to the 01/01/2008 the spanish wealth tax (impuesto sobre el patrimonio) has been elimitated. The last time home owners will have to pay it is this year, because this will be the declaration for 2007.
The wealth tax has been valid for residents as well as non-residents and had to be paid until the end of each year for the year before. I know that many non-resident home owners probably do not even know that they should have paid this tax every year (and do not confuse it with the IBI Urbana wich is the townhall tax and is paid once a year as well), because it took many by surprise when I told them. But that is all history now, you can look it up, for example at bloomberg, Spanish Property Insight, and, if you read spanish, in El Pais, or just google!Bad news for spanish home sellers
Christmas is getting closer, it is cold and windy outside and the hopes I had for autumn, after getting loads of inquiries in the beginning of autumn, have not come true. After the financial crisis and everything involved, inquiries got down by 60 - 70 %. Coincidence?
Property prices went down by about 30% from the top prices of 1 - 2 years ago. However, the Spanish Housing Ministry and the national intitute of statistics are slow in getting it, they talk of a fall of 1,3% in the second trimester of this year and of 4,9% within the last year respectively( look in El Pais and El Pais ). But I am not the only one saying that prices have dropped by far more, you can look it up, for example, in Spanish Property Insight, in an interview with Jesus Encinar, the founder of the big spanish property portal idealista.com, and in Southern Spain Houses. Which means that a 3 bedroom apartment, which was priced 240 000 Euros 2 years ago, will not sell for more than 175 000 Euros at the moment. Take in mind that I am speaking only of the region I am working in, it still might be different in other regions of Spain (although I doubt that there is a big difference). Someone who bought his or her apartment 10 years ago will still make a profit on it, but those who bought about 3 years ago will have to face a loss if they need to sell now.
But even when your price is just below the actual market price, you still have to find a buyer (and there are far more sellers than buyers at the moment). Statistics talk of a drop in sellings this year from 28% to 38% for second hand property, up to 78% in Las Palmas and 90% in Teneriffe (see 20minutos.es here and here), up to 40% on the Costa del Sol as posted in Spanish Property Insight, and of 37% for all Spain in El Pais. My own expierence says it is a drop of over 50%.
So, sorry for the bad news, but what is bad news for sellers could be good new for buyers (look at “Spain is still a solid investment” in the Move Channel Spain), and after all: the sun is still shining in Spain, and one of my clients once told me, as long as the sun is shining, people will want to buy in Spain….A residencia is not a document to prove your non-resident status!
Time runs by and it is already October. For 3 weeks I have wanted to comment on an article which was published in the Sunday Times on the 7th of September: Britons hit by tax blitz on Spanish homes. I got several calls from England from concerned home owners, after the first call I had a look into Times online and got really angry about this low quality and badly investigated article. I mean there are really enough things to get concerned about here, considering the corruption scandals, demolition threats and demolitions, land grabs and the unease about the market and the prices. There is no need to frighten people just for a good headline.
Now my comments on the article:
1. No owner of spanish property will lose his property just because he does not have the right identification papers. (Well, maybe if he got false identification papers….)
2. There does not exist a new identification paper proving the non-resident status. The identification paper to prove the non-resident status is the NIE-certificate which exists for at least as long as we have our office here, which means for more than 15 years.
30 years ago you got a little blue card with your NIE Number on, so they changed to the “new” certificate (a A4 white sheet of paper stating you Name, date of birth and nationality) some time between 15 and 30 years ago.
3. If you are a non-resident and you do not have this “new” certificate, you should get it the next time you are in Spain, since you have to apply for it personally and your bank will want a copy of that. You will need it as well if you want to sell your house.
4. If, as a non-resident, you have a spanish bank account, your bank will ask you every two years to sign a statement saying that you are still a non-resident.
5. It is true, that if you have a non-resident bank account, gains made in this bank account have to be declared in the country of your residency.
6. The “Residencia” is not an identification paper proving your non-resident status!
7. No bank will ask you for a Residencia if you are a non-resident. (And I have been to my bank, the CAM in Roquetas, showed them the article and asked if I missed something new! They told me, the article is “tonteria”, which means nonsense)
8. The Resicencia is an identification paper proving your resident status together with your empadronamiento (the inscription into the townhall where you live) and your tax declaration. As a resident you are taxed in Spain (with some exceptions like receiving your pensions from outside Spain).
9. Since this year there exists a new Residencia certificate. You will get it if you apply for a residencia or when your renewal of your old residencia is due.That´s it for today, as always, if you have any questions about this, just ask!
Or have a look at
How to get a NIE (Número de Identificación de Extranjeros) number in Almeria
The new certificate of residencia and how to get it in Almeria
How to sell your spanish property
In the Olive Press, I read an article “beat the property minefield”, and although property agents do not look too good in this article :-), I think it is worth reading, if you want to sell your property here in Spain. In the end, it is all about making your home more likely to sell than your neighbours and there are some recommendations in this article, I would like to comment on: