How To Guides
- Childbirth & Education
- Legal Formalities
- Pensions & Benefits
- Property & Accommodation
Did you know...?
... Telefonica are NOT the only service provider of Telephone Lines, Internet Access or Mobile Phones?
Tumbit recommends Telitec Communications. Find out how Telitec Communications can help you here!
- Airports and Airlines Spain
- Paramount Theme Park Murcia Spain
- Corvera International Airport Murcia Spain
- USD weekly currency update - 27 March 2015
- When Expat Eyes Are Smiling
- Meet Wincham at The Homes, Gardens & Lifestyle Show, Calpe
- QROPS 2014
- Spain Increases IHT in Valencia & Murcia
- Removals to Spain v Exports from Spain
- The Charm of Seville
- Gibraltar Relations
- Retiro Park : Madrid
- Wincham announce opening of Marbella office
- Community Insurance in Spain
- Calendar Girls
- Considerations when Insuring your Boat in Spain
- QROPS – HMRC Introduces changes that create havoc in the market place
- QROPS – All Change From April 2012
Cash buyers dominate Spain's property market
Cinco Dias has reported how Spanish Property sales have fallen by 71% since the burrst of the property bubble five years ago.
Before 2007 the property market was bouyed by easy available and affordable loans, however, now that access to credit has been restricted, only 43% of homeowners are even applying for mortgages, according to the statistical information center of Notaries.
With more than 500 foreclosures per day in Spain and a loan default rate of 8.95% (of which more than half is directly related to residential properties) Mortgages are becoming increasingly difficult to come by, which is causing a further dowward spiral of the property market.
"The most common alternative to the mortgage is cash" Javier Torre de Silva, Lawyer and partner at Albiñana & Suárez de Lezo told the press "Those who bought a property in cash before the crisis are still there. Foreigners and Spaniards with high purchasing power can also take advantage of the situation," he added.
Propety prices have now fallen by an average of 25% since teh market peaked in Q1 of 2008.
However, cash is not the only alternative to the mortgage when it comes to funding a property purchase. One alternatve is the personal loan, which also issued by most banks, but almost always works out more expensive in the long-run. "They end up costing more because the banks charge much higher interest. If the mortgage adds 1-2% onto the Euribor - which is currently about 1% - personal loans add 3-4% so end up paying about 5%, "said Torre de Silva.
Latest News & Stories
- FCO Reveals Ridiculous Expat Requests
- Spain's vehicle production up 10.56% in Feb.
- Orange Spain collects used smartphones for Unicef project
- Low cost airline passengers arriving in Spain up 9.2%
- Rajoy’s Adviser ; "No Election Spending Spree in Spain"
- Investigators rule out mid-air explosion as cause of Alps crash
- Spain to offer passports for Sephardic Jews by May ?
- Spain sees new Bank launched for Expats
- Spain's Telefonica sells O2 UK to Hong Kong
- 2 Dead in Valencia Floods
- How to value a property in Spain
- How to legally rent your property in Spain
- Buying from an Estate Agent vs a Property Finder
- How Can I Protect Against An Unwise Property Purchase ?