Junta de Andalucia has still not past the decree to legalise the irregular homes

As I have previously written, the Junta de Andalucía has been working on a decree which would enable many of the current illegal properties in Andalucía to finally be legalised.

The decree on the illegal properties was meant to have been ready within six months of its announcement back in March but is still not ready and the provincial delegate for Public Works and Housing has stated that will not be ready until November, more than likely December.

So there are still around 50,000 home owners of illegal properties in Andalucía that will have to wait several more months before the new regulations come into force. Once they are it is hoped they will be able to start the process of legalising their properties.

According to the Junta de Andalusia’s legal department, they have only started to study the recommendations recently as the information was presented to them in July. It is expected to take several more months as the relevant legal experts have to make sure that the new decree will not contravene any existing documentation. Once they have confirmed this, it will then more onto the Junta’s Government Committee to approve it.

In the meantime, while the affected property owners wait, they are still in the situation where they do not even know is the new decree will even benefit them. Although a minority, there are property owners who cannot show any documents showing they bought in good faith. If these properties comply with the safety and habitation conditions and were built long enough ago that the period of legal action has expired, then those properties will be moved into a special property classification.

Unfortunately, although I hope I am wrong, I do not think this will end well for all 50,000 property owners.

Regards
Andrew Bellés

Original article

Changes to Spanish eviction law

In what we are seeing as quite a positive move, the Spanish government has recently passed a law to help stimulate the property rental market by making the eviction process much easier and simpler for landlords. Until now, the rental market for Spanish property has always been quite anaemic due to the lack of protection afforded to landlords, with one of the main issues being the length and difficulty of removing non-paying tenants. But it appears this is to change.

The new law should allow for the possibility of a direct execution of an eviction order of less than 15 days and without any other formalities in the case of tenants who do not voluntarily leave the property in the stipulated time.

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Mijas Pueblo Villa for sale

Reduced for quick sale, a fantastic chance to purchase a 5 bedroom home, walking distance from Mijas Pueblo, with incredible uninterrupted views of the Mediterranean, the mountains and the village. This spacious 2 floor villa is set in mature gardens with swimming pool and large terraces offering privacy but still close to all amenities. 4 large bedrooms 3 bathrooms of which 2 are en suite are on the lower floor while the fifth bedroom on the upper floor is currently used as an office.A private driveway plus garage and double carport offers ample parking for any occasion. This property also offers a second neighbouring plot of land included in the price but with a separate title deed. A real bargain that needs to be seen to be properly appreciated.

Price: 650,000 EUR

Mijas Pueblo villa for sale

Malaga property down 35%

The number of homes sold in Malaga in the second quarter of 2011 reached a total of 3,464 transactions, representing a fall of 35% compared to the second quarter of 2010 according to data published by the Ministry of Public Works. The fourth largest fall by province in Andalusia

The data indicates that 17,977 transactions were conducted Andalusia, representing a fall of 34.3 percent from the second quarter of 2010, according to the statistics of real estate transactions compiled by the Ministry of Development, who pointed out that this decline is less pronounced than the national trend, where the number of homes sold during the second quarter stood at 90,746 homes, representing a 40.8 percent less than the same period in 2010.

Compared to the first quarter of 2011, home sales in Andalusia increased by 18.6 percent, while Malaga saw an improvement of 21.8 percent. It should be noted that the 1st quarter of 2011 saw similar decreases compared to 2010.

As for new housing in the second quarter, sales fell by 52.4 per cent to 5882 dwellings, whereas in the case of second-hand housing, there were 12,095 operations, 19.3 percent less than in the second quarter of 2010.

By provinces, Malaga recorded 4602 transactions, 35 percent less than in the second quarter of 2010, Seville reached the 3464 transactions, 34.2 percent less, Granada there were 2256 transactions, a 30.1 percent less than in the second quarter of 2010, in Cadiz 2164 transactions were recorded, 40.1 percent less, in Almería there were 1842 transactions, 38.6 percent less compared to the same quarter last year.

In the other provinces also saw declines, as in Huelva, a decrease of 20.8 per cent to 1446 transactions, were registered in 1192 Córdoba transactions, 38.8 percent less than in the second quarter of 2010; Jaén and 1011 operations were recorded, 27.6 percent less.

There are many theories regarding these decreases, including the impending elections, the property tax breaks that ended at the end of 2010, etc…

Source: Costa del Sol property blog

Spanish property tax cut for new builds

Last Friday the Spanish government announced a temporary reductions in the value added tax (IVA), lowering it from eight percent to four percent for any purchase of a new property. The government’s aim is to rekindle Spanish property sales and help reduce Spain’s stock of unsold new homes, which amount to approximately 687.000 properties in Spain, and just over 20.000 in the province of Malaga.

This gives buyers an incentive to finalise their purchase within the next four months. On an average property worth 200.000€ the cut means that buyers will save themselves some 8.000€. the majority of the 20.000 unsold brand new homes in the province of Malaga are in the hands of developers or the banks.

This tax deduction is of course welcomed, but if banks are still unwilling to relax their criteria regarding lending, the effects will more than likely be subdued.

So the properties that will benefit the most are those that have developer’s mortgages in place. The questions though, how does this apply to new build properties that have come under the banks control? Are these ‘new builds’ or have they been transmitted once and are thus resale’s? This question has yet to be answered.

Along the Costa del Sol, the areas that should benefit the most from this tax cut are Marbella and Estepona. These areas saw a high concentration of building works in the last few years due to the property boom.

Although this tax cut should not really benefit the property market in the long run, as it will only motivate existing buys to go to completion slightly sooner, it does benefit two groups. The first group will be the developers, who will get to shift some of the stock sooner, second the buyer, who stands to save several thousand euros.

There are also rumours that if the Partido Popular win the next elections, this tax cut might be extended further, but like all political promises, we will just have to wait and see…

Regards
Andrew Bellés

Original article

Fuengirola apartment for sale with pool in the center of town

Just reduced to 155.000€.
200m to the beach, this 2 bedroom apartment in one of the main avenues in Fuengirola, Costa del Sol enjoys a south facing terrace with pool and garden views. The apartment has been renovated with a new kitchen, floors and new bathroom and stays furnished. Because of its location near beach it has a huge rental potential. Enclosed urbanization with pool and garden close to all amenities. We recommend the viewing it is ideal for a holiday home.

Fuengirola center apartment

Penthouse in Riviera, Mijas Costa

Spacious 1 bed duplex penthouse with stunning views in Rivera del Sol, Costa del Sol. Amazing views to the Mediterranean, from a south west facing terrace. Only 10 minutes to the beach, this secure urbanization is in a peaceful location. It offers 2 swimming pools, mature gardens, tennis court and communal parking, all in an enclosed resort. Ideal for a holiday home or for permanent living. Just reduced to 99.000€!

Riviera, Mijas Costa Penthouse

7 Bedroom villa Mijas Costa

REDUCED TO 489.000€. This property is 2 houses reconverted in a big one in Fuengirola, Costa del Sol close to all amenities with in total 7 bedrooms and 4 bathrooms. With a very good road access, this property on a corner plot is located in one of the big avenues in Fuengirola, close to all amenities, supermarket, shops, pharmacy, etc. Owners are finishing the renovation of all the house with good quality materials and to high standard like A/C, double glazing and the downstairs is already finished. The property has a big garage for 2 cars and gardens around the villa. The community fees is only 36? a month. We recommend the villa as it is ideal for a big family or as an investment for bed and breakfast.

Mijas Costa Villas

British expats takes on Danish Bank

Tempted by the offer of a salary for life and an inheritance tax reduction for his two daughters, Euan Armstrong, 73, signed up to an equity release plan in 2004 with Denmark’s biggest bank using his €2 million home in Spain as collateral.

Six years on, Mr Armstrong is forced to live with one of his daughters as he prepares to take on the bank that promised so much yet threatens to leave him penniless.

His lawyer is filing eight similar complaints against various Nordic banks on behalf of expats who bought into equity release plans in the false hope that they could avoid inheritance tax and enjoy a salary for life. He believes the true number of victims could run into the hundreds.

Scottish-born Mr Armstrong, aware that his daughters would eventually be liable to pay Spain’s top rate of 34 per cent inheritance tax on the €2 million Costa del Sol property he owned outright in Malaga, sought the advice of an independent financial advisor known to advise British expat pensioners living on the coast.

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June Spanish property market still weak

Home sales in June were the lowest since the property crash began, show the latest figures from the Statistics Institute (INE).

There were 24,699 home sales in June (excluding social housing), down 26pc on the same time last year, below even June 2009, when the crash was thought to be at its nadir. The graph above makes it clear that, after a deceptively promising start, 2011 (in red) is turning out to be the worst year yet.

Compared to June 2007, sales were down 60pc – a teeth-jarring fall by any measure.

Year-to-date, transactions are down 11pc compared to last year, 3pc compared to 2009, and 55pc compared to 2007, as illustrated by this table.

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