Get expert Legal Advice when buying or selling your property

Real Estate Code of ConductAs an AIPP registered agent, Hondon Villas would not be doing our job correctly if we didn’t advise our clients to seek proper legal advice when buying or selling a property in the Hondon Valley areas.

We have experienced many people “going it alone”,  doing a “black money” deal or bypassing some of the legal paths to save money but WITH DRASTIC and COSTLY RESULTS, including one deal with counterfeit cash (person got caught when trying to put a large sum into a Spanish bank !!)… another where a house purchased verbally as “fully furnished” found there was no furniture at all when they got the keys to open their new home!

These and many other problems of variable severity can be avoided with proper checks and contracts. So we think it is vital to seek independent professional legal advice for a property sale/purchase in Spain to avoid making costly mistakes. Your lawyer should undertake all the necessary due diligence / paper work on the purchase and, if granted power of attorney, will be able to act on your behalf and save you having to make numerous trips to Spain to open a bank account, obtain an NIE number and other necessary procedures.

If you don’t already have a Lawyer, ask others for recommendations as not all offer the same service or fees. At Hondon Villas we do use several Lawyers in the general area, preferring not to have all our eggs in one basket and to reduce dependency or allegiance to just one company.

If we feel a Lawyer (or collaborating agent for that matter) is not acting in the interests of the clients, simply we ditch them! (and we have).

Spanish Property Prices Index

+++ PROPERTY MARKET DATA ALICANTE REGION +++

AUGUST 2016: We use various property market indicators as a guide to the current status of Spanish Real Estate. Here are some interesting stat’s based on real Notary data since 2007.

The property price index for the Alicante region is up by 5.1 over last year with a 25% increase in sales. [ Hondón Villas have many reduced priced properties here » ]

You can see that houses prices in 2016 are about 69% average of what they were in 2007.
CLICK TO ENLARGE: You can see that houses prices in 2016 are about 69% average of what they were in 2007.

The average price of a 3 bed property in this wider Alicante region is €136K with Murcia being cheaper at €109K.

Foreign buyers of Spanish property are still on the increase (albeit a lot slower than the boom years).

Mortgage lending on house sales is up by 19% in the area but rentals are down by nearly 7%. The population is roughly the same so no mass migration from Spain as yet.

And sadly unemployment is still a problem for Spain and the Alicante region but down by nearly 3% (although we are in the main tourist season).
Overall Spain has seen prices increases across all its regions from just 1.6% up to about 9% in the Madrid area. Overall Valencia has seen a 5.1% increase in house prices, where as Murcia 2.9%.

You can see that houses prices in 2016 are about 69% average of what they were in 2007.  [Source: Kyero Data, Notaries]

Related Links:

» Albatera property for Sale
» Hondon Valley Homes for Sale
» Hondon Vallei Onroerend Goed te Koop
» Long Tern Rentals in Hondón

Healthcare Coverage in Spain

Spanish AmbulanceSource: internations.org| Every resident of Spain has a right to healthcare. The Spanish healthcare system is a non-contributory system paid for by tax revenues. Each autonomous community has its own budget.

If you are a non-EU national living in Spain, you are entitled to healthcare only if you are a legal resident and currently paying for social security. This means that you must either work in Spain or be self-employed there.

Citizens of EU member states who are living in Spain will automatically have access to health coverage in Spain once they become legal Spanish residents.

Sample EHIC CardFor shorter stays, EU citizens should get a European Health Insurance Card (EHIC) from their healthcare provider back home. The EHIC will get you access to state-provided healthcare at the same cost, or sometimes even at a reduced rate, as those insured in Spain.

For those who are not eligible for state healthcare provisions, both in Spain and back home, there’s the Convenio Especial healthcare scheme. This is perfect for foreigners in Spain who have stopped working but whose pensions have yet to kick in.  To be eligible for this scheme, you need to have lived in Spain continuously for at least twelve months, and not be eligible for state healthcare coverage. Keep in mind that a monthly contribution of 60 EUR is demanded of those under the age of 65, and 157 EUR for those above 65 years of age. You will be covered for the services included in the basic national healthcare package, but be aware that this does not include prescriptions.

Private Healthcare — Jumping the Queue

The Spanish healthcare system is very up-to-date, and doctors are caught up on the latest medical innovations. Due to the fact that medical care is state-run, though, hospitals are often overcrowded, resulting in long waiting periods. Spaniards sometimes choose the more expensive option of taking out private health insurance. One of the most popular private insurance providers is Sanitas, whose website also helps you locate the specialists they cover.

Dentists are private doctors in Spain and, arguably as a result of this, dental care is very good. As quality comes at a price, however, they are usually not covered by your health insurance. Unlike in some other countries, you are unable to buy medication anywhere other than at the pharmacy. Farmacías can be found on almost every street corner, clearly marked by signs in the shape of green crosses.

We do our best to keep this article up to date. However, we cannot guarantee that the information provided is always current or complete.

FINALLY … Spain wise up to a more flexible Mortgage Product

KYERO SAYS: Historically low rates are enabling extremely cheap mortgages to be offered by lenders. Flexible term interest rates are currently being advertised at less than 1.5 percent above the Euribor, and the latest Euribor rate has just been announced, with March’s figure being only 0.2 percent.

With a more pro-active attitude from banks and the surplus of unsold property gradually reducing, the number of new mortgages issued this year is nearly 20 percent higher than last year and has maintained 8 months of consecutive growth.

The vast majority of Spanish mortgages (90 percent) are agreed on flexible rates, based on the Euribor, and although these rates are unlikely to rise too much in the foreseeable future, the Euribor went as high as 5.39 percent in mid-2008.

It’s therefore worth mentioning again that buyers do have the possibility of fixed term rates, with some lenders reportedly agreeing 30 year loans at less than 4 percent interest, providing very attractive long term payment stability.

Analysts are viewing the mortgage figures extremely favourably, with one of the ‘big three’ credit agencies (Fitch) marking an end to house price falls in Spain and a return to slow but gradual growth.

» More here:  http://us8.campaign-archive1.com/?u=4ced9c1e7ebb84944d3c3e207&id=6d954c6838&e=84bf63dd72

2015 UK Budget… Good for Investors?

What does the latest UK budget and new UK Pension / Annuity Rules mean for buyers / sellers of foreign property? Here’s an interesting post-budget reaction from Opps about cashing in pensions to invest in property. Good or Bad?


In a boost to the UK housing market, Chancellor George Osborne announced that Help to Buy ISAs will be introduced to help first-time buyers save for a deposit. For every £200 they save, the government will top it up with £50.

But were no other major announcements in the Budget directly affecting the housing sector, apart from confirmation of plans for 20 new housing zones.

Turning to the economy, Mr Osborne says the squeeze on public spending will end earlier than planned due to stronger growth and low inflation, as the Office for Budget revised its growth forecast for 2015 up 0.1% to 2.5% and for 2016 from 2.2% to 2.3%.

Focusing on pensions, Mr Osborne confirmed the Government will give five million pensioners increased access to their savings.

Louise Reynolds, Director of award-winning, Overseas Estate Agency, Property Venture, says pensions should seek professional advice when considering investing in property.

“In a budget taking the country from ‘austerity to prosperity’ pension savers need to ensure they don’t put themselves into ‘austerity’ with reforms announced to extend pension access to Annuity-holders.

It is a sad indictment of the industry, but we are likely to see a rise of the get-rich-quick brigade entering the property market, to wax lyrical about the advantages of investing in property, as an alternative way to invest liberated pension potsread more on Opps

Now is the time to buy Spanish Property

Kyero.com Director, Martin Dell, said “Foreign interest in Spain has been slowly creeping up for a few years, but in the last 12 months we have seen a massive resurgence of purchasers from overseas”.

Spanish Property Look PromisingLast year, foreign buyers were already making up the largest proportion of all home purchases in Spain in history. With property price indices starting to rise and building permits increasing for the first time since 2007, the results are already indicating another record breaking year.

“Not only have prices in Spain bottomed out so far as residential property has concerned, but for British buyers in particular now is the time to buy due to the fantastic exchange rate,” concluded Martin.