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Holiday Makers Spain & Andalusia June 2018

Non Hotel Tourist Accommodation in Spain

These statistics show the supply and demand for holiday accommodation in June 2018 both nationwide and in Andalusia. More than 12.2 million overnight stays are great news for property owners interested in short term lets. This is slightly down on last year, but still shows strong demand.

Broad Stroke Figures Nationwide

The national statistics for overnight stays in non-hotel tourist accommodation are down by 3.8% in June compared to the same month of 2017. Yet, even so, numbers exceeded 12.2 million in June 2018
Figures may be marginally lower for several reasons including staff strikes at airlines and the heat wave which is affecting many countries this year.

Tourist apartments

Overnight stays in tourist apartments decreased by 8.1% in June. Those of residents decreased by 5.2% and those of non-residents by 9.0%. The average stay was reduced by 4.8% compared to June 2017, standing at 5.3 overnight stays per traveler. In June, 37.9% of the places offered by the tourist apartments were occupied, 7.1% less than in the same month of 2017. The occupancy rate by beds on weekends stood at 41.2% , with a decrease of 5.8%.

Touristic Apartments – INE Spain and Andalusia

Tourist Accommodation 2018
Spain 2018
Tourist Accommodation 2018
Andalusia June 2018

Resident and Non Resident Overnight Stays

These figures are further broken down into Resident and Non resident occupancy of accommodation.

Overnight stays of residents decreased by 0.3 % and non-residents 6.0%. The average stay is 4.3 overnight stays per traveler. During the first quarter of 2018, overnight stays decreased by 2.9% with respect to the same period in the previous year.

Visitors to Andalusia – both Residents in Spain and Non Residents in Spain showed healthy figures in June 2018, up year on year to those of 2017. 2018 has been a success for many owners who offer short term lets.

It goes without saying that our advice when buying a property is to also take into account the short term holiday market and depending on where you buy your investment property, also consider the business community who make overnight stays for business purposes.

Rural Tourism Inland Andalusia

Statistically, the Spanish National Statistics Institute looks at 2 categories that affect ordinary small investors: Tourist Accommodation which is coastal usually – for example Sotogrande, and the rural sector, such as Jimena de la Frontera.

Tourist Accommodation June 2018
June 2018 Spain
Tourist Accommodation June 2018
June 2018 Andalusia

 

 

 

 

 

 

 

 

 

 

 

 

Contact us to buy or sell properties. We also offer long term lets for rental.

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ventas suben mayo 2018

Land Registry Busy May 2018

Transfer of Property Rights (STPR) May 2018

  • 183,748 property transfers recorded in May 2018
  • Up almost 10% year on year compared to May 2017
  • Sales of Residential Properties up almost 5% May 2018 compared to May 2017

Spain Official Figures May 2018

These are the official figures released by the Spanish National Statistics Office with reference to the Property Market in Spain. Sales nationwide account for 93,366.

Property Transfers May 2018 Spain

 

Less Properties Sold May 2018

The property boom has settled down with many of the bargains now snapped up. Traditionally May is a popular month for buying and selling of properties so these figures are indicative of a slowly re-emerging market where the distressed sales are now dissipating. There are still bargains to be had, but fewer than the same time last year. These figures reflect that reality.

Statistics on May 2018 Property Rights

Andalusia Figures May 2018

In Andalusia in May 2018, a total of 32,761 property titles changed hands.  This shows an increase of almost 20% which is double the national average. It is important to note that not all of these were property sales. Conveyance sales also showed an increase year on year in Andalusia of almost 5% with 47,177 properties acquired by notarised title deeds.

Property Sales May 2018

 

Rustic and Urban Sales May 2018 Andalusia

As can be seen from the tables below, 5,261 rustic residences changed hands as well as 17,104 urban homes in the autonomous community of Andalusia. Of these, 2,145 rural properties were bought and sold compared to 14,925 urban dwellings.

Property Sales May 2018

 

Property Sales May 2018

 

Property Sales May 2018

 

Beneficiaries Claim Properties Inherited in Andalusia

the Inheritance Laws changed in Andalusia with more generous allowances based on personal income. this could well account for the higher than habitual number of beneficiaries claiming their inheritance. In previous years it has not always been worthwhile paying the taxes levied against the bequeathed property. Roughly 25% of the conveyances have been bequests compared to purchases.

 

Property Sales May 2018

In summary, sales of properties in Andalusia are continuing at a relaxed pace and have fallen off slightly from the same time last year as a probable result of bargain properties being scooped up. there are still bargains out there, especially in rural areas where properties with minor reforms required could yield great deals in the short to medium term.

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Brexit EU-27 Citizen Protected

Brexit – Brits Abroad and EU Citizens in Britain

Brexit EU-27 Citizen Protected Brexit EU-27 Citizen Protected

Resolution to Protect Citizens

In brief, Brexit talks pivot around sequencing which creates a barrier to any bilateral agreements before withdrawal and the key principles identified in the withdrawal agreement.

All sides agree that protection of individuals is crucial and that many EU Citizens live in Britain. Plus, many Britons live in other EU countries. This is reassuring yet very little real progress has been made. In the absence of real progress, life continues as normal.

April 5th 2017 a resolution was passed. This was updated a year later. But, in truth, it is more of the same.

Below is an abbreviated summary.

Key Principles – With Which Negotiations Will Advance

An overwhelming majority of the house (516 votes in favour, 133 against, with 50 abstentions) adopted a resolution officially laying down the European Parliament’s key principles and conditions for its approval of the UK’s withdrawal agreement. Any such agreement at the end of UK-EU negotiations will need to win the approval of the European Parliament.

European Parliament resolution of 5 April 2017 on negotiations with the United Kingdom following its notification that it intends to withdraw from the European Union

Sequencing of the negotiations

  1. Notes that an agreement on a future relationship between the European Union and the United Kingdom as a third country can only be concluded once the United Kingdom has withdrawn from the European Union;

Withdrawal agreement

  1. States that the withdrawal agreement must be in conformity with the Treaties and the Charter of Fundamental Rights of the European Union, failing which it will not obtain the consent of the European Parliament;
  2. Is of the opinion that the withdrawal agreement should address the following elements:
the legal status of EU-27 citizens living or having lived in the United Kingdom and of United Kingdom citizens living or having lived in other Member States, as well as other provisions concerning their rights;
the settlement of financial obligations between the United Kingdom and the European Union;
the European Union’s external border;
the clarification of the status of the United Kingdom’s international commitments undertaken as a Member State of the European Union, given that the European Union of 27 Member States will be the legal successor to the European Union of 28 Member States;
legal certainty for legal entities, including companies;
the designation of the Court of Justice of the European Union as the competent authority for the interpretation and enforcement of the withdrawal agreement;
  1. Requires the fair treatment of EU-27 citizens living or having lived in the United Kingdom and of United Kingdom citizens living or having lived in the EU-27 and is of the opinion that their respective rights and interests must be given full priority in the negotiations; demands, therefore, that the status and rights of EU-27 citizens residing in the United Kingdom and of United Kingdom citizens residing in the EU-27 be subject to the principles of reciprocity, equity, symmetry and non-discrimination, and demands moreover the protection of the integrity of Union law, including the Charter of Fundamental Rights, and its enforcement framework; stresses that any degradation of the rights linked to freedom of movement, including discrimination between EU citizens in their access to residency rights, before the date of withdrawal from the European Union by the United Kingdom would be contrary to Union law;
  2. Stresses that a single financial settlement with the United Kingdom on the basis of the European Union’s annual accounts as audited by the European Court of Auditors must include all its legal liabilities arising from outstanding commitments as well as making provision for off-balance sheet items, contingent liabilities and other financial costs arising directly as a result of the United Kingdom’s withdrawal;
  3. Recognises that the unique position of and the special circumstances confronting the island of Ireland must be addressed in the withdrawal agreement; urges that all means and measures consistent with European Union law and the 1998 Good Friday Agreement be used to mitigate the effects of the United Kingdom’s withdrawal on the border between Ireland and Northern Ireland; insists in that context on the absolute need to ensure continuity and stability of the Northern Ireland peace process and to do everything possible to avoid a hardening of the border.

Restatement of Key Principles

Brexit EU-27 Citizen Protected

The Resolution of 9th March 2018 reiterates the importance of securing equal and fair treatment for EU citizens living in the UK and British citizens living in the EU and restates points above.

Everything else to date is mere puff, but with all parties committed to Natural Justice and Fairness there is every expectation that properties and ability to reside in other EU countries will remain protected.

Tracy Thomson

Brexit Text Adopted by EU_EN Brexit Approved text_ES

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5 bed beach side Sotogrande

Now’s the Time to Buy . . .

The Property Market is moving again. The number of mortgages taken out in January this year is up 9.2% on the same month in 2017 and the amount borrowed has gone up by 7.9%. These are the latest figures from the Spanish Statistical Institute (INE) published Thursday 22nd April and they paint a very confident picture. Mortgages for property in Sotogrande tend to be around 70% of the asking price for non-residents and can be as high as 80% for residents. The same is true inland in the villages like Jimena de la Frontera and Gaucin. Prepare yourselves; the best bargains are getting mopped up fast.

Case Studies

We have just sold a property in Jimena which was bought for 70,000€ cash. The lawyer had to tell the Buyer that this was lower than the price the Hacienda calculated as the ‘Real Price’. The Buyer paid the 8% tax on the Title Deed Price and chose to wait until the Tax Authorities calculate the shortfall. (Which they will). This will add another 3,200€ because the government says the property is really worth 110,000€.

Winners and Losers

Bad luck for the Seller, our client, who had cash flow problems and needed to sell, but on this occasion the lucky winner was the Buyer. There was a similar example in Sotogrande Marina, where a 2 bed sold for 280,000€ when the asking price was 315,000€. Plus, a villa in Sotogrande sold for 1.4 million € negotiated down from 1.7 million €

Still A Buyer’s Market . . .

Properties are out there. So, too, are mortgages: fixed rate and variable for long and short to medium term investments. Cash buyers can complete quicker which can give more negotiating ‘clout’, but those buying with mortgages can also put in a ‘cheeky’ offer. In this sense, it is still a buyer’s market. But, to quote Bob Dylan, ‘the times they are a changing’.

It looks like Sellers who can afford to sit and wait a year or 18 months before putting their property up for sale should get a better price. So, our advice? Buy now.

This article appeared in the Euro Weekly News 12-18th April 2018

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Demand for Accommodation Andalusia

Accommodation Makes Money in Andalusia

Demand for Accommodation in Andalusia

Both Residents and non-residents alike enjoy coming to Andalusia with its rich diversity and sunny weather. Be it hotels or privately owned properties in Coastal or Rural areas, statistics from the Spanish Statistics Institute, (INE), show Andalusia is popular all year round.

As you can see from the infographics for February 2018, visits to Andalusia from abroad were up on the same time last year, at 11.08 days. 582,686 tourists spent an average 1,140 euros over their stay.

Demand for Accommodation Andalusia

Profitability of the Hotel Sector

Andalusia has an annual growth rate for the hotel sector of 3.99% compared to 5.44% annually, according to data released in Feb 2018 by the INE. The average daily rack rate is calculated at 65.83 euros, with revenue per room availability at 35.07 euros. This is up by 1.64%. Of this, the highest growth has been in one-star Hotels, (10.74%) and one-star Guesthouses (12.17%). It seems people want to stay longer and for less money. This indicates good returns in under exploited markets such as rural properties inland.

Profitability of the Tourist Apartment Sector

As the infographic illustrates, there were 17,078 apartments, which is up compared year on year to the same month of 2017. As you’d expect the estimated figure for bed places was also up on last year at 65,941. The number of guests was down at 127,913 but the number of nights they were staying showed an increase at 4.2 days on average. Nationally, the largest number of non-resident visitors was the UK, followed by Germany.

Demand for Accommodation Andalusia

Rural Tourism Indicators in Andalusia

Rural Tourism figures were a little down on last year, with 16,377 guests staying on average 2.24 days. Estimated bed places and apartment availability was up. Average cost was 139.63 euros, or approx 33.25 euros per night. This offers very good returns in relation to the buying price of these properties.

It is a legal requirement for establishments to be registered with the Junta de Andalucia Tourism Department. This can be either as a full time business registered with Social Security payments and complying with disabled access requirements – Casa Rurales – or the more flexible category of rural accommodation – Viviendas Rurales –

Registration as Casa Rural means the person registered as owner or manager can offer touristic pursuits – guided tours, cookery classes, etc, whilst the Vivienda Rural can only offer accommodation, not activities as well. And only for a finite number of days, not all year round, unlike the Casa Rurales. Even so, this equates to being able to rent it out almost every weekend. Also, if you get a holiday-maker who wants to stay for longer, you can put them on a different letting contract and this lease does not count as part of the weeks per year.

There are some great rural properties out there, at prices below what they should be. There are also commercial outlets with accommodation that can be turned into very attractive propositions for the holiday maker market. Get in touch with us now and we can organise a no obligation tour of some of the rural areas and visits to various properties that are on the market at terrific value.

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Mortgage Borrower Pays AJD

Supreme Court Decision Person Taking Out Mortgage Pays AJD

Supreme Court Ruling Mortgage Borrower Pays AJD

The average set-up costs for a mortgage is around 3,000€ to 4,000€ depending on the amount borrowed. This is roughly broken down into a tax on notarised documents (AJD), notary fees, administration fees, land registry fees, stamp duty and copies of the notarised document. Back in December 2015 a leading case paved the way for people with mortgages to claim back the costs that they had been forced to pay. The Court decreed that mortgage lenders do not have the right to decide these should be paid for by the other party. It stated such costs should be shared but did not go on to stipulate percentages. The implication was that it should be an even split at least.

This led to claims against mortgage lenders and the flood gates opened. The Law Courts are always busy, and the last thing needed was additional workloads. Having said which, many judges in Autonomous Communities seemed to champion the little man, striking out clauses they deemed Unfair Terms and forcing the mortgage lenders to pay back what they had charged plus legal expenses of the claimants.

Mortgage Borrower Pays AJD

All has now changed again. On February 28th 2018, the Plenary of the First Chamber of the Supreme Court deliberated and decided two appeals in favour of the mortgage lenders. The Obiter Dictum, or wider generalisation to be taken from this, is that the Transmissions Tax on Documented Legal Acts (AJD) must normally be paid by the client, while the stamp duty on the notarial documents will be paid by both parties. Costs of copies of the mortgage will be borne by the party who requests them. In Andalusia the AJD is 1.5%. this leaves notary fees, administration fees and land registry fees up for grabs.

Mortgage Borrower Pays AJD

The Court’s judgment is based on a Statutory Regulation that says the loanee is the one who pays the tax and as a result the party mortgaging their home, the mortgagor, is liable. The full court decision has yet to be published, but as it stands, without the in-depth analysis of the Court’s findings, the court has used a Regulation to serve as a magic wand to restore order and quell rebellion. But a Regulation has less legislative force than a Statute conferred by Act of Parliament and is not of universal application. It wields the equivalent force of a statutory instrument.

A Supreme Court decision ‘trumps’ that of a lower Court. But, provincial courts in Autonomous Regions have consistently ruled in favour of the mortgagor since the leading case in December 2015. Until there is legal certainty, this political duel looks likely to continue. Let’s see what the Judgment proclaims when it is published in the next few days.

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