So many unloved homes in Spain!

WOW! It is estimated (2015 survey) that well over 3 million Spanish homes / houses are unoccupied. There are many reasons for this: held for future investment, unfinished urbs, unpopular areas, occasional holiday homes, derelict or failed projects, illegal builds, land-grab, etc. Many of these are still unoccupied since the financial crash in 2008. Not all are for sale or rent of course but there is a massive glut of homes across Spain, especially on the Costas.

It does now mean lower property prices and indeed it is a buyer’s market right now. Many who want to sell their Spanish property are finding that offers are well below their desired asking price (-25% – 40%). And here at Hondon Villas we know first hand that very few sellers in the Hondon areas get a price they want. And further, with the passing of time and on-line knowledge, all modern buyer’s are much more savvy in making “cheeky” offers and negotiating. Unlike the pre-crash market when we had to fight to get our dream home in Spain!

Be realistic about Hondon house prices

So, as facts are, it is best to be realistic and to expect a lower offer, especially if you want to sell quickly. We have seen clients refusing to budge on price or have a house on the market too high for too long (years) to find that the inevitable has to be done: i.e. to lower the price and magically more people are interested.

You may think you have the most wonderful home, tendered with loving care and hard-earned money but it is the buyer’s market.  Of course we know people don’t want to give their homes away but the question is: Is it worth putting your life on hold?

Factor in relative prices or differing exchange rates

It might help your reasoning if you can factor in that if you want to re-buy in Spain then the national % reductions will also be relative to your next house purchase. So if your home to sell is about 25% lower than when you bought then a new home in Spain may be similar or more.

And, if you are returning to a non-Euro country like the UK perhaps the low Euro is now in your favour as opposed to when you bought years ago. E.G. The low Euro to the pound  can mean significant difference when returning to the UK.

2006 : £200,000 sterling @ 1.46 would buy €292,000
2017 :  €292,000 Euro @ 1.19 would now buy £245,000

As a basic example (not withstanding fees) and of course depends on the exact rates you bought at / sold at. And factor in the price reduction and just maybe there is still some profit or at least a reasonable break-even.

Need help selling your Hondon Villa or Hondon Valley Home?

If you wish to discuss your property situation or get a free valuation then please call into our Frailes office (in the Plaza)
or call our team Monday to Friday : (0034) 965 075 357.
» www.hondonvillas.net

10 FAQs about Spanish Energy Certificates

bnr-hondon-property-epcThe 10 most frequent questions about energy certificates for homes:
As from January 2013 all homes that are sold or rented in Spain will have to have an energy efficiency certificate. This is a European initiative which will affect millions of homeowners, and comprises a report on the home´s energy efficiency. The architect Héctor Machín describes how the certificate will work and explains, for example, that it will not be possible to sell or rent a property unless it has a certificate, which should be paid for by the owner.

» 2013 Source: Spanish Solicitors These are the 10 most frequent questions about energy efficiency certificates for existing homes:

1. Has the royal decree regulating the energy efficiency certificates been approved?
Not yet, but it should be approved shortly as it will come into force on 1 January, 2013.

2. Who can issue an energy efficiency certificate?
According to the royal decree “energy efficiency certificates should be issued by qualified professional technicians who are au thorised to undertake building projects and thermal installations for buildings. The property owner may choose the technician of their choice “.

3. What is an energy certificate?
It is a report that describes how efficient a home is in terms of energy consumption. It assigns an energy rating to each home on a scale which ranges from “A” (the best) to “G” (the worst).

4. Will I be able to sell a home which does not have an energy certificate after 1/01/2013?
No you won´t. You will have to have a certificate before selling your home.

5. Who will have to pay for the energy certificate?
The owner of the property to be sold or rented.

6. How long is the energy certificate valid for?
The certificate is valid for 10 years. This means owners will not have to obtain a new certificate during this period unless they renovate or change the property in any way.

7. If I want to sell my home and it has a poor energy rating, such as D, E or F, am I obliged to make any improvements?
No, you are not obliged to make any improvements even if your property has a low rating.

8. Will a low rating affect the sale of my home? Can I sell it without any problems?
You are free to sell your home. The only way it will affect a sale is how the rating influences the buyer.

9. How much will the technician who issues the energy certificate charge?
As yet there is no established rate, which will be set by the local market. As a rough guide, the rate in other European Union countries is about ?250 + VAT for a 100 m2 home.

10. Will the technician need to visit the property (generally homes)?
Yes. They have to visit the property to take measurements and collect information about the property before drawing up and certifying the report.

It is IMPORTANT to always check the CURRENT rules. Call or email Hondon Villas for advice on Spanish Energy Certificates today.

Realistic Prices on Hondon Homes

Thumbnail for 459As much as it hurts, in the current market, sellers still have to be realistic about the price they want for their property in Spain. Many people have too great an expectation of their property value. In general houses for sale in the Hondon area have sold for well below their original sale price if they were bought in the boom/pre-2008 (the crash).

Whilst Hondon Property Sales are definitely on the up, figures such as 40% below pre-crash values are now common. Not great news if you are selling! It’s a buyer’s market right now. And supply is larger than demand in many areas of the Costas, pushing prices down even further. But most expert reports think this has trend has now bottomed and a slow recovery is now happening.

The property portal Kyero keeps tabs on many of the official property indicators and housing data on their blog. They have just reported the news that house prices on the whole are fairly stable now. Read their page as often they do contradict but it might help you when valuing your own house. And do comparisons with similar property in your area. Remember, though that these reports usually talk in averages. The hard truth though is that the property market usually dictates the average exchange so what we want for a house is not always what we get.

So, please, do your property research or call / visit us for a free no-obligation valuation and an experienced chat. We are Hondon Villas in Frailes, the most experienced agents in the area. AIPP accredited and extremely helpful.
: TEL 965 075 357 property @ hondonvillas.net

> SEE HERE> KYERO “Spanish House Prices Have Fallen by 41.4% Since 2007” ARTICLE

Another good sign !

SoldHouseSignConti has seen the volume of overseas mortgage enquiries increase by 41 per cent over the first three months of this year, and said: “Bargain prices and the opportunity to negotiate these down even further with some very motivated sellers mean that it’s most certainly a buyer’s market.

This, together with historically low interest rates and the growing strength of the pound, is making it much more affordable to buy in Spain.

> See this article for details > http://www.euroweeklynews.com/…/128275-spain-back-as-number…

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

Spanish Real Estate Recovery predicted for 2015

BBVA-logoAccording to BBVA Research, Spain’s economic growth prospects and more favourable financing conditions will lead to a new increase in housing sales in 2015.

They have estimated that the return to economic growth, the recovery of the labour market – with the creation of some 425,000 jobs – and improved financing conditions, have encouraged the return of consumer confidence and, as a result, the growth in home sales.

In March, the FT website also reported that “Spanish housing prices rise at fastest rate in 6 years” since the start of the country’s financial crisis, fuelled by a broader economic recovery and increased availability of credit.

They go on to say “Spain has started to recover, emerging as one of the fastest growing economies in Europe. Mariano Rajoy, Spain’s prime minister, last month raised the official government forecast for economic growth this year from 2 per cent to 2.4 per cent.

Newly built homes in particular seem to experiencing an upsurge in prices, with figures in the second quarter of 2014 increasing by 1.9 percent. Although excellent news, this recovery will have to continue for some time before house prices regain a more than 30 per cent loss in value during the recent economic crisis. » New Build and Spanish Resale Villas in Hondon

Looking to the future it hoped that a sustained increase in housing prices will boost Spain´s struggling construction industry.