Spanish Property Experts say Brexit Far Less Impactful than Feared

Spanish Property Experts say Brexit Far Less Impactful than Feared

There is nothing wrong with being cautious. Many were fearful that the uncertainty following the UK voting to leave the EU would cause a slump in demand from British buyers to purchase Spanish property.

Property will always be in demand in the Costa del sol

because the sun will always shine here.

Now we know that there is still plenty of demand for Spanish property and now much of the contraction appears to have happened during the panic leading up to the Brexit rather than following it. While there are reports that there is less demand from Brits for the higher end Spanish properties (which is partly caused by the slump in the value of the pound) the rest of the Spanish market is doing well.

According to the head of Masa International UK Simon Morris there are no fears at the firm caused by the post-Brexit sales figures. Nick Wahcter, who sells Andalusian cave houses to British buyers says that he has seen none of the problems that Brexit was expected to cause materialise.

Wahcter spoke to the Wall Street Journal and said that, while Spain braced for the worst the worst just hasn’t happened.

There have actually been an upside to the Brexit as the Sterling dropping against the Euro has caused British vendors to lower the Euro prices of their Spanish homes to still earn the same amount in Sterling. The report says that this has made the market more energised.

There is a lot of uncertainty when it comes to European politics; Spain has gone nine months without a government, the UK are thrashing out their own terms to exit the EU, and the migrant crisis is showing no signs of slowing down. These kind of problems would be expected to cause a lot of fear and uncertainty amongst Spanish real estate operators.

It looks like the Spanish property market is as healthy as ever though. This shows just how far the sensible pricing, high quality, and the appeal of Spain can go.

Three Ways You Can Turn Thinking About it to Actually Moving to Spain

Three Ways You Can Turn Thinking About it to Actually Moving to Spain.

Spain tops all other European destination to live.

If you’re one of the many people coming back home after a Spanish holiday then you probably feel the post-holiday blues. The drab and grey British sky is nothing compared to the bright and sunny skies of Spain so it’s no wonder that you’re feeling a little down now that you’re home. The same feeling comes after comparing going to work with spending a week by the pool.

There is more to the problem than just readjustment for some people. Spain just gets to some people. The culture, the people, the architecture; everything about Spain is appealing and it can be hard to get rid of thoughts about packing everything up and just moving to Spain.

What would it be like to wake up to the bright skies and welcoming warmth each day? What would it be like to get rid of your boring British home that is probably overpriced and undersized and swap it for a spacious Spanish property for sale on the Costa del Sol.? What would it be like to avoid the rush hour traffic, the wet puddles and the people on the train at 7AM?

You can find out what all that would be like if you want but it takes a little more than just packing up and moving. There’s a lot of thought, tons of planning, and the urge to just jump when it comes to moving to Spain. You shouldn’t rush into a decision such as emigration though, so you might be wondering how to go from thinking about moving to Spain to actually going. While everyone is different in their own ways we’ve compiled a list of three simple truths that should help you make the choice.

You’re In Good Company

The idea to move to another country is definitely daunting but it’s not as much of a step into the unknown as you think it is. Many people have already emigrated to Spain and are now living the life of luxury. There are so many, in fact, that it’s impossible to know how many Brits have moved to Spain. The official estimates suggest that there could be as many as 1.2 million Brits living in Spain. A million Brits can’t be wrong, right?

The most expat-heavy areas in Spain are found along the Mediterranean coast. The Costa del Sol in particular has everything that an expat could possibly need to live and work in peace. There are plenty of British supermarkets, greasy spoon cafes, plumbers, solicitors and teachers that have all made the journey from the UK before you. As such it makes integrating much easier than in other areas of Spain.

Now Really is the Best Time

Spanish property prices are currently around 28% less than they were at the peak of the boom period in 2008. Even so the data suggests that these prices are still continuing to rise across the country, especially in the popular buying areas such as Marbella and the surrounding regions. That’s why Spanish property is currently almost the perfect storm. It’s affordable for Brits who have the money for it (and may even be selling their home in the UK) while at the same time you know that in the future your Spanish property will be worth a fair bit more than it is now.

Throw in the uncertainty of the Brexit and Brits have a two-year window in which they can take advantage of the current EU laws that allow Brits to live, work, and own property in another EU member state such as Spain. Things are going to be a little foggy after the Brexit and there’s a solid chance things are going to be tougher.

Money Worries Will Always Be There

Something that stops potential expats from moving is that they worry about work and pensions. Ask yourself if you already have those worries at home. If you don’t then you should be able to afford a move to Spain. But if you do already have those worries then why are you expecting things to be magically different if you move? If you’ve got the knowledge and the resources to hold down a job and support your family in Britain then there’s no reason that you can’t do the same thing in Spain.

There will undoubtedly be challenges (you should probably start learning Spanish now before you move) but the facts are in and they paint a great picture; it’s cheaper to live in Spain, they also have an excellent free healthcare system, the education standards are top notch, the Spanish job market is recovering, and the Costa del Sol will always have openings forqualified and competent English speakers; which you undoubtedly are if you can afford to move to Spain.

Spanish Banks Could be Forced to Reduce Prices on Repossessed Properties

Spanish Banks Could be Forced to Reduce Prices on Repossessed Properties

The Spanish government recently introduced a new rule that could see Spanish banks forced to lower the prices on properties that were repossessed during the recession. The new law was introduced on October 1^st and it will banks forced to reduce their exposure to Spanish real estate.

Spanish banks found themselves the largest landlords in Spain during the recession of 2008 – 2012 as they possessed a number of homes following mortgage holders being unable to keep up with repayments.

Many banks also took the chance to purchase unfinished properties from developers that sold them off cheap to escape, or as a result of, bankruptcy.

All of this led to price suppressions across Spain as banks were eager to get these properties off of their books. Following the stabilisation of the housing market in recent years banks are now following suit with everyone else and are pricing their assets at current market rates.

The Bank of Spain would still like to see the Spanish banking sector take steps away from the real estate market and let the real estate market become an independent industry again. Many property experts feel that this could cause many costa del sol low-price and reduced offers as the Spanish banking regulator clamps down as the fastest way to get rid of a property is to sell it at a reduced price.

Spanish Property Insight founder Mark Stucklin said that if banks are forced to offload their properties then it gives them the freedom to offer lower prices. Even though the Spanish banking sector is still continuing to offload assets they remain a large part of the real estate market and Spanish banks controlled around €84 in property assets at the end of 2015.

It’s likely that consumers will welcome the news. Spanish property prices have stabilised recently and there are places where prices have even risen. As such many would welcome some low-priced homes entering the market and giving the industry a shot in the arm by providing many Costa del Sol property bargains for first time buyers looking to get on the property ladder.

The Average Property Investor in Spain Revealed; A European Father Between 40-50

The Average Property Investor in Spain Revealed; A European Father Between 40-50

Buying property in the Costa del Sol comes

in all shapes, sizes and ages

A recent survey suggests that the typical foreign investor for Spanish property is a man aged 40-50 with a family. The study, carried out by Iberia Real Estate suggests that the most common profile for Spanish investors is indeed a northern European middle-aged father.

Iberia Real Estate recently analysed their data and discovered that the people most interested in investing in Spanish property were fathers aged between 40 and 50 and that they were likely to come from northern European countries such as the UK, Ireland, Germany and the Scandinavian countries. Average-Property-Investor-in-Spain-Between-40-50

The survey also showed that for every ten people who visit Spain two of them seriously consider the idea of purchasing Spanish property; especially in tourist hotspots such as Andalucía, Valencia and Catalonia.

This is great news for the Spanish property sector following the record breaking tourism seen this year. Spanish newspaper El Mundo are predicting that there will be a 30% increase in Spanish property transactionsthis year, which is thanks to a mixture of the resurgent domestic market and foreign investors choosing Spain because of its position as a safe choice.

Many other popular holiday and investment choices across Europe have suffered from terrorism in the past 18 months and as such Spain has found itself taking in more tourists and money as tourists choose Spain over these unsafe destinations.

There is also not much surprise when it comes to the profile of the average property buyer in Spain. Middle-aged men tend to also be the richest demographic of these countries and, with the news that the British, German and Scandinavian economies are recovering it isn’t surprising that the people most likely to invest in Spanish property belong to these groups.

Something else that can’t be overlooked is the excellentSpanish property market. Spain offers a perfect blend of affordability,quality, choice, and convenience. Throw in the Spanish culture, which is not that different from that of northern Europe, the warm climate, the excellent infrastructure, and the healthcare and you have a great place to own property.

Bloomberg Suggests Lack of Spanish Government is Blessing in Disguise

Bloomberg Suggests Lack of Spanish Government is Blessing in Disguise

Spain is doing very well without a government

Most economists would be driven crazy by the idea that a country could go nine months with no one at the helm. Spain is currently a strange situation where the opposite seems to be true however. The country hasn’t had a leader since last December when the national election resulted in a hung parliament. The country went back to the polls in June but, once again, no party was able to secure a majority or a coalition.

Things haven’t changed much since June. The leaders of the parties refuse to budge and are not accepting any peace offerings made to them. It’s looking like Spain could face an unprecedented three elections in one year and the third one could even take place on Christmas Day.

While it seems like such a thing could lead to economic disaster things are actually going well for Spain. Things are going so well that the political analysts at Bloomberg are suggesting that this lack of leadership could be more of a blessing for Spain as they navigate their way out of a recession as living in Spain continues to go well.

No one is quite sure how but the stats don’t lie and they say that Spanish GDP grew 3% this year; which is better than most other European countries. There are plenty of reasons why there as this growth but main underlying factor seems to be that Spain has always had a decentralised government with local authorities and bureaucracy meaning that Spain has always been good at taking care of itself.

It’s different from the UK where London could be considered the centre of power. Spain is a country with many regional powerhouses including Barcelona, the Valencian economy along the Mediterranean, the cultural capital of Seville, and other places of power such as Malaga, Santander, Bilbao and San Sebastian.

The bumper tourism season this summer has also helped a lot with jobs created organically rather than through some kind of employment program. This has worked perfectly in combination with the employment reforms acting Prime Minister Mariano Rajoy and his PP introduced that allow businesses to come to their own agreements with unions. The end result is a strong and liberal job market.

The Bloomberg piece is basically suggesting that Spain has a lot of policies and regulations that allow it to run itself for the near future at least. It’s obvious that there will need to be some leadership at some point so things can be tweaked but, right now, Spain is pretty much on autopilot and things are going quite well and has kept the cost of living relatively low. 

Many hope it continues for as long as it can.

Spanish Socialist Party Urged to Allow PP To Form Government

Spanish Socialist Party Urged to Allow PP To Form Government

The idea that Spain could hold a third general election in 12 months, on Christmas Day of all days, looks like it could be too much for some of the Social Party (PSOE) of Spain. It’s expected that they will pressure their leader, Pedro Sánchez, to go ahead and let other parties form a government.

Spanish Parliament is still looking for someone to lead Spain

It looks like some PSOE members have given up on forming a minority government of their own and are ready to let Mariano Rajoy and his Popular Party (PP) gather the remaining votes he needs to form a coalition.

The regional elections held last weekend saw that the PSOE have lost some ground in northern regions of Galicia and Basque Country; leading some members of the party to accept that perhaps they should bow out of the race with grace and dignity now.

At the minute Sánchez is showing no signs of backing down however, even saying that his “no” to Mr Rajoy is as justified as ever. Even so senior member of the PP Pablo Casado has asked Sánchez to reflect on possibly allowing Rajoy to put together a government.

The PP have managed to secure the most votes but have also failed to secure enough votes to form a majority government. Instead they have been forced to look to other parties to form a working coalition with them. The PSOE holds the second highest number of votes, giving them a strong veto hand that they’ve been using since the first election back in December.

If Sánchez were to stand aside however then the PSOE votes would be counted as abstention, which would mean that they were not included in the final tally and the PP could take control of the government once again; even if it was as part of a coalition involving centrist party Ciudadanos.

But if Sánchez cannot be persuaded by the 31^st of October then the Christmas vote is pretty much guaranteed for Spaniards. Interestingly enough Sánchez has called for the PSOE to have a leadership race on October 23^rd, which would suggest that he is not going to change his position at all, but that he will give the chance for someone else to take over and abstain.

Living in Spain without a government hasn't done the country any harm, on the contrary the country has continued to do well without either party in power.