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Land Registry Busy May 2018

July 11, 2018 Property News

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.

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.

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.

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.

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.

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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Property Taxes in Andalusia when Buying a Property

September 24, 2017 Real Estate

Property Taxes when Buying a Property in Andalusia

Buying a property in Spain is a straight-forward process. Each autonomous region has the right to set its own taxes, so differences do exist, although small. We help people buy and sell properties in Andalusia, in the provinces of Málaga and Cádiz. So, we provide information from the Junta de Andalucia’s website regarding the taxes levied on purchase and you can find general information on taxes levied on the Seller by the Town Hall, here. On the whole, budget about 13 – 15% on top of property purchase price for attendant costs. (Buying at auction has different requirements, find more here.)

Tax Payable – New Properties

First Transmissions of properties attract 10% tax plus a stamp duty on the drafting of the first title deed which is 1.5%. Total is 11.5%

Tax Payable – Resale Properties

For most people you pay 8% up to the first 400,000€, 9% on next 300,000€ and 10% on all amounts accruing after that.

The amount owing is calculated by multiplying the relevant band with the applicable coefficient as follows:

Transfer of Tangible Assets

a) Property Transfer:

As a general rule, in the transfer of immovable property, as well as in the constitution and assignment of rights in rem over them, except in the real rights of guarantee, the tax rate will be obtained by applying, on the basis of the liquidation, the rate that results from the following rate:

Band payable in Euros	Total Fees Euros	Amount Due Euros	Rate Applicable
0.00	0.00	400,000.00	8.00%
400,000.01	32,000.00	300,000.00	9.00%
700,000.01	59,000.00	There after	10.0%

Garages attached to the Property Purchase are included in the rates above, with a maximum of two. After which, in the case of transmission of buildings classified as urban parking space, the following rates apply:

Band payable in Euros	Total Fees Euros	Amount Due Euros	Rate Applicable
0.00	0.00	30,000.00	8.00%
30,000.01	2,400.00	20,000.00	9.00%
50,000.01	4,200.00	There after	10.0%

b) Transmission of movable property and livestock

(as well as the constitution of real rights over them other than the guarantee):

4 %, in general
8%, on the transfer of boats of more than 8 metres in length and on vehicles of more than 15 horse power and objects of art and historical antiquities.
5% in the transmission of real estate where the real value does not exceed 130,000 euros and it is to be the Buyer’s permanent residence and the buyer is under 35 years of age, or 180,000 euros in the case of a permanent residence where the Buyer suffers from a disability which is registered and measured as being equal to or greater than 33%.
2% in the acquisition of housing for resale by a natural or legal person who carries on a business activity to which the rules of adaptation of the General Plan for the Real Estate Sector apply. (Aimed at constructors, developers and banks with repossessions, for example.)
1%, for financial instruments of real security rights, pensions, bonds, loans and cession of credits.
Leases are governed by the scale of tax fixed by Law.

* With effect from January 1, 2015, tax rate offsets will be applied in the creation and exercise of purchase options in lease agreements related to certain payment operations.

Budget 13 – 15% on top of Property Purchase Price

In addition to the taxes there is also the need to pay stamp duty for new builds on the pages notarised for the Title Deeds, as well as general application of Notary’s fees, Land Registry fees and Lawyer’s / legal assessor’s fees (Gestor). These days, most mortgage set-up costs are assumed by the lender. As a rough rule of thumb, allow 13% – 15% on top of the Purchase Price and note stamp duty for new builds.

Disclaimer: TMT Spain Real Estate has provided this information as a general guide only and it must not be relied upon in place of legal advice. Legislation is constantly updated and the reader must satisfy herself/himself of the accuracy of these contents.

“The ache for home lives in all of us, the safe place where we can go as we are and not be questioned.”
Maya Angelou

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Property Prices Slowly Rise in Spain

September 11, 2017 Property News Property Purchases on Rise

Andalusia once more posting strong results as property prices continue to rise in Spain.

Good news from the Institute of National Statistics for Spain (INE) – the property market continues to bounce back. House prices continue to rise albeit slowly. Andalusia strong in new builds and climbing steadily in Resales. The first quarter of 2016 is still the highest average figure for sales, notwithstanding, the Real estate Market is moving again. If you are considering buying a property, now is the time to commit, before prices rise even higher. Those of you thinking about selling, the average time for sale of a property is approximately 9 months – beat the trends and list with us!

HPI – SECOND QUARTER 2017

Housing prices are up two points over the previous quarter.

Annual evolution of housing prices

The annual variation of the Housing Price Index (IPV) in the second quarter of 2017 increased by three tenths and stands at 5.6%.
By type of housing, the annual rate of new housing prices is 4.4%, more than one point lower than the previous quarter, with consistent growth in property sales for Andalusia.
Meanwhile, the annual variation of Resale housing rose by half a point, to 5.8%.

Quarterly evolution of housing prices

The quarterly variation of the general HPI in the second quarter of 2017 is 2.0%.
By type of housing, new housing prices rose 2.6% between the first and second quarters of 2017. Whilst, ‘second hand’ or ‘resale’ home prices rose 1.9%.

Results by Autonomous Community. Annual variation rates

A total of eight autonomous communities increased their annual rate in the second quarter of 2017. The highest increases are recorded in the Balearic Islands, the Basque Country and Cantabria, with increases of 1.9, 1.2 and 1.1 points, respectively.
Andalusia is up 0.3 points over the last quarter.
In contrast, the greatest decreases of the annual variation occur in Aragon, Principality of Asturias and Castile and Leon, with declines of 2.1, 1.7 and 1.0 points, respectively.

Annual HPI Rates Second Quarter 2017

Results by Autonomous Community. Quarterly variation rates

Most of the Autonomous Communities have positive quarterly rates in the second quarter of 2017.
Community of Madrid, Cantabria, Basque Country and Catalonia recorded the highest increases (of 3.4%, 3.2%, 2.9% and 2.9%, respectively).
Andalusia once more posted a strong quarterly variation rate of 1.6%
For their part, Principado de Asturias (-1.0%) and Extremadura (-0.2%) are the only communities with negative quarterly variations.

These statistics are taken direct from INE’s Press Release dated 8 Sept 2017.

If you are thinking of re-entering the property market in Andalusia as either a Buyer or Seller and are in the provinces of Cadiz or Malaga, get in touch to see how we can help.

Get in Touch!

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Property Bargains Less as Market Rises.

July 18, 2017 Property News

Buy Property Bargains Now because Prices are Rising Again.

We are in a new phase of the property market now. We have turned the corner and can embrace a more transparent environment. There are still bargains out there for the Buyer, but Sellers are now starting to price their homes and investment portfolios at prices that are fairer returns for themselves. And why not? After all they rode out the worst part and no longer face an almost obligatory haircut if they wish to sell. It depends on what their motivation is, those who wish to downsize can realise some equity. On the other side of the equation, Buyers with growing families can invest once more in medium to long term gains and opt for more ambitious properties than during the recession. It pays to take a deep look at what is out there. In Spain, if you sell and buy at prices of ‘La Crisis’ (recession) you stand to gain in the long term. It’s an open market across most of Europe at present. For those of you who make a tidy lump sum, you may well be tempted to choose the Buy to Let market than the vagaries of a savings account. Property Bargains are ideal opportunities for those getting their feet on the property ladder for the first time. Or venturing out again now the time is right.

Here are a couple of Distressed Sales – Bank Repossessions recently sold.

Great Prices – Bargains for All

Check out the video here: 1 bed 1 bath Torreguadiaro only 68,100 €

Check out the video here, 3 bed 3 bath San Roque Club only 285,500 €

Because they were owned by a bank you could get very favourable borrowing terms. Up to 100% of the property purchase price over a 30 year term for residents. (You make a 10% down-payment on the total amount borrowed but lend more than the purchase price.) This can mean 290 € pcm fixed term for the Torreguadiaro apartment and 1,180 pcm fixed term for the 3 bed with huge garden and private pool in San Roque Club. (Actually the San Roque Club property was purchased by a cash buyer).

Non resident mortgages are also available.

These were just a couple of our property bargains, contact us now to learn more.

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Property Sales Buoyant After BREXIT and Fixed Rate Mortgages Increase

March 22, 2017 Property News

Property Sales Buoyant

The price of housing in 2016 increased (on average) by 5.7% over 2015, according to the Association of Property Registrars.

The purchase and sale of registered property in the fourth quarter reached 93,423 transactions, 11.2% more than in the same period of 2015 and the best result of any fourth quarter in the last seven years.

Over the whole of 2016, the market surpassed the barrier of the 400,000 conveyances: 403,743 operations, showing an increase of 13.9%.

Property resales rose by 18.5%, while new housing experienced a decrease of 3.2%.

Of the total transactions, 13.3% were made by foreigners (about 53,000 transactions).

By nationality during the fourth quarter, not put off in any way by Brexit, The British led with 16.4%, followed by Germans (9.2%), French (8.5%), Swedes (6.4%), and Belgians (6.3%).

Mortgages – Sales Buoyant after Brexit

Average mortgage of 111,656 euros
The average mortgage in 2016 was 111,656 €, resulting in a year-on-year increase of 2%.
31% of new mortgage loans are fixed interest rate, a new historical high.
2.4%, is the initial interest rates for new mortgagors, similar to the 2016.
The length of mortgage taken out decreased slightly during the fourth quarter, to 23 years and two months.
The average monthly mortgage rate in 2016 stood at 522.60 euros (2.7% less than in 2015), eating up an average of 27.5% of salary.

Brexit No Sweat

It will be Wednesday 29 March when the United Kingdom activates Article 50 of the Treaty of Lisbon, the mechanism that initiates the process of Britain leaving the European Union.

Around 284,000 Britons, according to official data, reside permanently in Spain.

British Residents in EU

The National Bureau of Statistics has updated the figures of British residents in the European Union, and vice versa. About 900,000 Britons are scattered throughout the EU, while 3.1 million Europeans live in the United Kingdom.

Brits Choose Spain

Spain is the EU country where most British people live (308,805). However, it is ninth in the list of countries whose citizens move to Britain, behind Poland, Ireland, Romania, Portugal, Italy, Lithuania, France and Germany.

London waits to see what the EU proposes for British residents in the 27 countries in order to match the arrangements and provide certainty.

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A couple and a house under a Spanish Sunset

Property Prices Rise 5.7% in 2016 – Britons Lead the Way

March 5, 2017 Penthouses Property Purchases on Rise Villas

Property Prices rise – now is the time to buy.

House Buying was up 13.9% in 2016 compared to 2015
A quarterly increase of 1.9% in the IPVVR (Case & Shiller Methodology of the price of housing applied to Spain)

Property Sales
93,423 operations as property prices rise
11.2% more than in the same quarter of 2015
The best result of a fourth quarter of the last seven years.
The year 2016 has broken the 400,000 registered sales barrier with 403,743
Best year-on-year figure since mid-2011, with an annual increase of 13.9%. However, behaviour remained distinct with resales increasing to 18.5% while new housing showed a decrease of 3.2%.

Property Purchases by Foreigners

Ex-pats and second home owners find the bargains – unphased by BREXIT.

Brits Top New Owners Figures

The fourth quarter of the year shows the highest percentage of foreign purchases in 2016, with 13.6% of home purchases.
13.3% of purchases were made by non Spaniards, around 53,000 operations, of which the British led the way.

Mortgage Patterns and Stats

The average mortgage debt for 2016 was € 111,656, a year-on-year increase of 2%.

Fixed interest rates were up by 31% in respect to new mortgage loans, a new historic high.

As property prices rise there is growing availability of Mortgages

Average mortgage loan in the fourth quarter was 524.7 euros.
1.7% lower than the previous quarter, while the percentage of salary it cost to pay the mortgage went down 0.45 percentage points to 28.3%.

Year-on-year results marked new historic lows (over the last fourteen years), with € 522.6 million and 27.5%. With respect to 2015, it represents a decrease of 2.7% in the mortgage rate and -0.88 pp. with respect to wage cost.

It’s a great time to buy.

Note: The complete report can be accessed (in Spanish) at the following link: http://www.registradores.org/portal-estadistico-registral/estadisticas-de-propiedad/estadistica-registral-inmobiliaria/ Spanish Land Registry.