Part Two of Our Year in Review for Spanish Property in 2016

Part Two of Our Year in Review for Spanish Property in 2016

The second half of 2016 continued the positive momentum of the first half, proving anyone who thought the optimism would be dented by the political strife of Spain and Europe as a whole. How wrong they were…

The Costa del Sol continues to recover and confidence has returned

July Was Just Marvellous

There were a lot of positive words said about the Spanish property market during July; including how things were performing and where things could go in the future. It was suggested during July that the market could be headed to five incredible years of growth, beginning with 2016. These positive words came straight from the director of the real estate programme in the University of Barcelona Gonzalo Bernardos. They were echoed by Mark Stucklin of the UK, who added that Barcelona, Marbella, Madrid, Ibiza and the other hot spots of Spain are guaranteed to achieve growth.

August Was a Real Job

The data from August 2016 showed that Spain had their lowest drop in unemployment in over 20 years with over 84,000 jobs created in June. Many of the jobs were seasonal roles, but it was still representative of a 3% year-on-year increase of the amount of people in the workforce. Needless to say the figures represented positive trends for the economy.

September saw Expat Enjoyment

All this data wouldn’t mean much if Spain couldn’t attract people to its shores. There are many other countries that offer affordable properties and a stable economy, so what is it about Spain that attracts all the expats? There are a number of things really; the culture, the climate, the people, and the history. This balance is the reason that 92% of the expats living in Spain said they were satisfied with life; adding that Spain was a comfortable and easy country to settle down in.

October Offered Food For Thought

The climate and the friendly natives aren’t the only things bringing the world to Spain. TripAdvisor suggests that Spain is home to what is considered to be the greatest restaurant in the world in Lasarte; a three-Michelin star restaurant found near San Sebastian. Lesarte managed to hold on to the achievement for the second year in a row and was joined in the list of top-ten restaurants by neighbouring Azurmendi Gastronomic.

November Saw Sustained Sales Growth

The Office of National Statistics (INE) had seen by November how excellently the Spanish property market had performed during 2016. They unveiled data showing that almost 400,000 properties were sold in the 12 months leading up to September 30. This was an increase of 13.2% in a year, and really showcased the stability of the market which saw increases in home sales during 24 of 25 months. It looks like 2016 could be the year Spain sells the most properties since the recession.

December saw Records Broken in the Costa del Sol

December saw Spain end the year on quite the high. Some 12 million visitors flocked to the Costa del Sol in 2016; an increase of 10.2% over the previous year, and the highest number of visitors ever recorded in the region. Thanks to some 26 million overnight stays and over €11 billion spent by tourists, 2016 was truly a record breaking year for Costa del Sol. It’s expected that the region could smash all the new records as soon as 2017.

Part One of Our Review of the Spanish Property Market in 2016

Part One of Our Review of the Spanish Property Market in 2016

2016 saw an amazing year for Spain and the Costa del Sol

2016 was an overall bad year in general, marred with terror, war, conflict, and loss. Even so, it was a good year for Spain as the country underwent economic and social recovery.

2016 was a very uplifting year for the Spanish property sector, with each month proving to be stronger than the one before it. Today we’ll be taking a look at what the first half of 2016 meant for Spain, in particular the property industry.

January Saw Brits Splashing Cash

Data from January showed that €13 billion of the €65 billion spent by tourists in Spain across 2015 came from Brits. This figure represents an increase of 8.9% over 2014. The average British tourists spent around €111 per day with Brits contributing €40 million a day to the Spanish economy in 2015.

February Saw the North/South Divide Widen in Spain

An assessment of the property market in February showed that, as is the case with the UK, there is a strong north/south divide in Spain. The divide is particularly apparent with living and property costs. The Spanish one is the opposite of the British one however as the best value is found in the south, where living costs are around 15% below the national average. In terms of property an 80 square foot property would cost €131,000 in southern Spain compared to the €241,000-€328,000 average house price in the north.

March saw a 14% Increase in Arrivals

Easter fell in March for 2016, which did wonders for Spanish tourism. Data from the Spanish aviation industry shows that over 16 million people entered Spain in March; 14% more than visited the country in March of 2015. This figure was the first tangible sign of the most record-breaking year in Spain.

April Saw the GMT Issue

Spanish politics were deadlocked for much of 2016. Mariano Rajoy of the People’s Party (PP) pledged to bring Spain back to Greenwich Mean Time (GMT) if he were to win the re-election; an election victory that Rajoy enjoyed just a few months ago. The message appears to have stuck and it looks like Spain could soon move their clocks forward an hour to embrace the timezone appropriate for their geographical location.

May Saw Thoughts of Bill Gates

There’s a very good reason Bill Gates is called the World’s Richest Man. He has legendary investment savvy and his geeky demeanour disguises the ruthless competitor he really is. When Bill Gates took over €100 million and invested in Spanish property in 2013 it raised a few eyebrows. This investment was considered to be a bit of a bust, but nothing is average about Gates. He could see the long game; he invested knowing the country would recover and now he’s reaping the fruits of that recovery.

June Saw Prince Increases Expected to Last Until 2025

As Spain welcome summer tourism was running wild in Spain by the time it was announced by financial management professor at the IESE business school José Luis Suárez forecast that property prices in Spain would continue to rise until 2025. The professor calculates that the price of homes in 2025 will be an average of 40% higher than they are today, and that this would drive up new builds across the country with up to 140,000 new properties being erected across Spain annually by 2025.

Stress Free Holiday Rentals Part Two

Stress Free Holiday Rentals Part Two

If you’re planning on renting out your property in the Costa del Sol or other parts of Spain then here is part two of our top 12 tips for holiday rentals. Don’t forget to bookmark the page so that you can find it the next time you need it!

1.      Put Together an Information Pack About Your Property

The demand for rental properties in the Costa del Sol is outstripping supply

Holiday renters need to know the community rules and so you should put together an information pack that contains this information. They should know the rules about leaving towels on balconies, playing loud music, having late night parties, and using the pool incorrectly. If your renters cause trouble it could get you in trouble with the community. The information pack should also include information on how they can use your appliances, the security alarm, etc. It should also have information on emergency telephone numbers for you or your agent, doctor, chemist, hospital and repair services.

2.      Set Ground Rules

When you advertise your property you need to include information on things like the maximum number of people that can occupy your property and if you allow pets and smoking.

3.      Charge Proper Rental Prices

An important decision is how much you’re going to charge in rental prices. If you’re managing the property booking and advertising yourself you should look at what people are charging for properties similar to yours. If you’re working with an agent then your agent should be able to give you a good rental price that allows you to still make a profit. Remember that this rental income isn’t 100% profit. You still have to take out the costs of the agent’s fee, the advertising costs, maintenance costs, cleaning and laundry costs, Spanish rental tax, insurance, and any other expenses.

4.      Prepare Your Property To Remove Stress

It’s important to make sure your property is in top condition so that it can stand up to the wear and tear of being rented all through the summer. Ensure that your appliances and plumbing are working perfectly. It’s a good idea to have your appliances serviced before renting your property. Have the air conditioner and filters, power supply, kitchen appliances, gas supply and gas bottles, automatic gates, garage doors, pool equipment, fuse boxes and TV channels all checked in advance. Don’t forget about health and safety regulations. Make sure your smoke detectors and fire alarms are working properly. Call in a plumber to check your toilets, baths, showers, and the kitchen sink and boiler are all working well and the water pressure is right. If your property has a pool then check the pump and other equipment to make sure it works great.

5.      Don’t Be Late With Utility Bill Payments

Ensure that you pay all your utilities such as water, gas, electricity and community fees are paid on time. It’s a good idea to pay them by standing order and check that the bank is paying the bills on time. You’d be surprised how many properties lose power and water because the bill wasn’t paid on time.

6.      Remove the Risk of Renting

A great way to take away the risks of renting is to take out a property insurance that covers holiday rentals. These policies are well worth the money and give you important peace of mind. Some of the more common problems and claims with holiday rentals are bath overflows that damage lower apartments and community property damage.

Stress Free Holidays Part One

Stress Free Holiday Rentals Part One

If you’re thinking about renting out your Costa del Sol property or any other property in Spain then keep the following 12 tips in mind to make your holiday rentals stress free. You might want to bookmark this page so it’s never too far away!

1.      The Community Rules

The demand in the Costa del Sol for rental property

is amazing and the demand is

out stripping the supply.

If you’re thinking about renting out your property over the summer then you need to make sure that the community rules allow it. If your community rules don’t allow you to rent out your property then you should consider teaming up with other owners who want to rent out their property and attempting to change the rules at your next AGM. There shouldn’t be any issues if you’re renting out a villa but it’s always a good idea to take a look at the community rules first. Better to be safe than sorry.

2.      Legally Register your Property

After making sure you can legally rent your property you need to register your property with the town hall or have your lawyer take care of it for you.

3.      Holiday Rental Agreement

Put together a standard holiday rental agreement or consult your lawyer and ask them to put one together for you. If you’re planning on renting using an agent they will have their own rental agreement.

4.      Handling Rental Bookings On Your Own

If you’re planning to handle the bookings then you also need to arrange everything else including cleaning, laundry, maintenance, repairs, meet and greet, taking bookings, collecting money, advertising, dealing with problematic renters, repairing damage to your property, and everything else.

5.      You’re Going to Compete with Other Rental Properties

The holiday rental industry is a very competitive one. Put together a list of all the appealing things about your property that the agent or you can use to sell your property to holiday renters. It could be something as simple as the view. The location, the condition of the property, the kitchen, if the property is accessible, the pool and garden, etc. Take some photos of the interior and exterior as well as nearby attractions such as the beach or golf course. These are great for advertising your property.

6.      Target the Holidaymakers You Want To Rent Out Your Property

Make sure you’re clear about the people you want renting your property; advertise clearly that you want families or couples and cater to those groups with things like baby cots, a fold down sofa for the children, board games and books, and things like that.

Buying Property in Spain Part 2

Buying Property in Spain Part 2

The Complications of Buying Property in Spain through other less professional companies.

Costa Del Sol Property Group can help you as we have over 29,000

properties on our books and have the whole coast covered.

Because there are a lot of real estate agents in Spain it’s become common practice for these agents to share properties. Basically you can end up seeing the same property listed on more than one website and sometimes the property listing has a different price and even different information. When you call up one of those real estate agents to ask about a property you are automatically listed as a client with them to ensure that you only deal with them. Even if you never talk to the real estate agent again and never step foot in their office you will still be listed as their client in some property databases.

Why is this a Problem?

This can become a problem because there are times when agents have refused to allow someone to view a shared property because they appear to be a client with several agents and thus any sales commission would be spread apart too much. You might not know this is the situation as a buyer but it becomes frustrating for an agent. It also means that you don’t receive the service that you should. Our recommended property finder will help you avoid this problem entirely.

How we Guide you Through the Maze of Spanish Property Purchases

When you register with the Costa del Sol Property Group we make sure to connect you with a professional property finder who can help you find the right property for you. They will be your representative and ensure that you get only the highest quality of service at all parts of the purchasing process.

They have a trained and dedicated customer service team that will be able to help you find the right property and assist you in any way should an issue come up.

The following information will help you deal with some of these potential issues so that you can make the purchasing process as pain-free as possible when purchasing property in Spain.

Tips and Tricks for Purchasing Spanish Property

1.      Don’t be surprised if the first properties you are shown are bad properties or properties that are well out of your price range or don’t meet your needs. This is a common tactic employed by Spanish and foreign real estates to soften you up ready for the house they really want to sell you which will be the last property they show you that day. Work with your property finder to prepare a shortlist of properties before starting the day.

2.      Don’t believe the seller or agent when they tell you that someone else has also shown interest in the property and will be placing a deposit.

3.      Have your deposit ready to go so that you can secure a property at short notice. Having this cash deposit in hand before entering the negotiations makes it a powerful negotiation tool. It also shows the seller that you are committing to purchasing a property and are able to purchase their property. As long as you’ve also got a good lawyer this deposit is completely refundable if the property doesn’t have the right licenses and paperwork.

4.      It’s perfectly fine to sleep on the decision. The property will almost always be there waiting for you the next day no matter what the agent tells you. Making a phone call first thing in the morning and dropping of the deposit is enough to secure the place for you. Even so you need to work with your agent and communicate clearly with them.

5.      If the property has just been painted then take a look for cracks and water damage. Spanish sellers aren’t in the habit of presenting a property for sale. This fresh coat of paint is usually hiding something really bad. At least you aren’t likely to come across a piece of wallpaper hiding a huge crack.

6.      Visit the house again when you’re on your own so that you can see the property at a time the agent doesn’t specifically want you to. You might find that there’s something near the property the agent was able to work around like bad traffic or an industrial zone. It could also make you want the property more as you take a look at the beautiful sunset from the terrace of what may become your peaceful new property in the sun(set).

Buying Property in Spain – Part 1

Buying Property in Spain – Part 1

Buying the right property is key, at

Costa Del Sol Property Group we pride ourselves

on customer service

It can be a lot of trouble to buy a property in Spain. The tabloid newspapers are filled with stories from foreigners who lost their savings money investing in overseas property. Each year thousands of foreigners choose to buy property in Spain and many of them are quite happy. They just don’t get any attention in the tabloids.

This Buyers Guide will give you some insight into buying property in Spain and it also has some wise words from our experts. Let’s get started with some tips, but for an in-depth Buyers Guide you need to register with Costa Del Sol Property Group.

Agents in Spain:

There are several types of agents in Spain. The ones you’re most likely to deal with are:

·        Traditional real estate agents; these agents will often charge owners a sales fee and will have your best interests at heart

·        Buyer’s Agent : The best of this kind of agent are able to find the right property for you and where then the commission is paid for by the seller or seller’s agent.

·        Professional Property Finders: Like Costa Del Sol Property Group tell a professional property finder what you want and they will find it for you. Some of them will charge you a set fee for this service depending on price. They may also work with agents they have made agreements with to create an opaque fee structure. Some professional property finders, such as the ones we recommend, take these payments from the agents meaning that none of the cost is passed on to you.

What to Look for in a Professional in an Agent in Spain

1.      Experience – ask the agent for testimonials from previous customers and for information about their previous work

2.      Coverage – only deal with agents that have the coverage and connections to do what you need

3.      Market Knowledge – ask the agent the difficult questions about living in Spain. Drop any agent that is unable to answer these questions. A good agent may even be able to offer you a better price on the property you were after.

4.      Language – find an agent that knows Spanish so you know you are dealing with someone who can handle any problems that may arise

5.      English – it’s best to hire an English speaking bilingual agent who can talk you through the purchasing process and tell you if anything goes wrong

6.      Avoid the Hype – when an agent is using high-pressure techniques it’s often because they are under pressure to sell the property or working on commission. You are going to be spending a lot of money to purchase the property so you need to get it right the first time.