The Property Pack!
Before I moved from the UK to Spain, I heard about the intended introduction of the ‘Property Pack’. It all sounded like too much paperwork and another extra piece of red tape in the process of selling a house.
I now see myself once again involved in the property market as I live in Spain. May 2008 sees the introduction of the same ‘Property Pack’ here in Spain. Instead of seeing the pack as a hindrance I see it as a god send…It provides a lifeline to those people who have a legitimate property… As opposed to those that have been saddled with an illegal build.
The media have found great joy in reporting on televising, radio and in the newspapers, about the demolition of property that has been deemed as illegally built. Whilst you cannot fault the Spanish for upholding their laws; their actions have often caused severe repercussions for the property market.So here is where the property pack pays dividends… Each and every estate agent cannot sell a property without having all the legal documentation for that property. If the property is an illegal build then they cannot secure all documentation.
What this means therefore is that the property market is more secure. The reports by the media of illegal builds crippled the overseas investment in property. Now this property pack introduces a secure measure to introduce confidence back into the market.
Brits, Germans, French and the Danish are all great lovers of Spain and have in the past 20 years have contributed to development of immense proportions. Today a lot of those newer developments are only part finished as the property slump takes full effect.
However for the shrewd property buyer… A small injection of confidence will improve the market, but buying property in the summer of 2008, before the market regains its confidence; will see up to 50% discounts on purchase prices as sellers need to sell their properties.
Should you be in a position to buy property in Spain, I would be privileged as a ‘property finder’ to discover your dream home. From Villas over a £million to Finca’s ready for re-development at £50,000 we can find exactly what you need. Please follow this link and register your interest. Thank you. Spanish Property for Sale Majorca Tenerife Costas Inland Spain
Related links.
Villas in Spain
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Properties for Sale in Italy
Thursday, May 22, 2008
Wednesday, May 21, 2008
New mortgage range launched by the Rock
Previously troubled personal loans lender, Northern Rock, which was recently nationalised has announced the launch of a new range of mortgage products, and consumers will now be able to enjoy residential short term flexible fixed rate mortgages that start from 6.49%. Buy to let mortgages are also available at the same rate, whilst lifetime mortgages are on offer from 6.99%.
Northern Rock has also introduced new ceiling limits on its LTVs, with a maximum LTV of 90% on residential mortgages, and a maximum LTV of 70% on buy to let mortgages. The bank has also made changes to its income multiple levels, which previously ranged from 2.8 to 4.9 times the borrower's income based on credit rating. This is now changing to between 2.1 and 4.5 times the borrower's income.
The government appointed chief executive of the bank, Ron Sandler, said "This is the first major review of our mortgage product range since Northern Rock was taken into temporary public ownership. The changes reflect our determination to create a viable business in accordance with our published business plan and competitive framework. While we intend to reduce our mortgage book by accelerating redemptions, we also need to maintain a presence in the UK mortgage market and originate a modest level of new loans without distorting competition. We believe this new range will help us to do just that".
Northern Rock became the first victim of a run on a British bank in nearly 150 years last year after it became known that it took an emergency loan from the Bank of England. This resulted in savers withdrawing billions of pounds in savings within the space of a few days amidst concerns that the bank was on the verge of collapse.
Northern Rock has also introduced new ceiling limits on its LTVs, with a maximum LTV of 90% on residential mortgages, and a maximum LTV of 70% on buy to let mortgages. The bank has also made changes to its income multiple levels, which previously ranged from 2.8 to 4.9 times the borrower's income based on credit rating. This is now changing to between 2.1 and 4.5 times the borrower's income.
The government appointed chief executive of the bank, Ron Sandler, said "This is the first major review of our mortgage product range since Northern Rock was taken into temporary public ownership. The changes reflect our determination to create a viable business in accordance with our published business plan and competitive framework. While we intend to reduce our mortgage book by accelerating redemptions, we also need to maintain a presence in the UK mortgage market and originate a modest level of new loans without distorting competition. We believe this new range will help us to do just that".
Northern Rock became the first victim of a run on a British bank in nearly 150 years last year after it became known that it took an emergency loan from the Bank of England. This resulted in savers withdrawing billions of pounds in savings within the space of a few days amidst concerns that the bank was on the verge of collapse.
Monday, May 19, 2008
What to do in a falling property market
With property prices falling in many countries it is a real dilemma for some people, some people do not realise that they need to take action, whilst others worry unnecessarily. Those most affected are the ones with mortgage costs that they cannot afford, do they sit back and hope rates will drop, or do they take action and try for a quick house sale in a falling market?
Taking the first option of waiting for interest rates to fall is a very high risk strategy, this is because the actual mortgage interest rate is, in most cases, not linked to bank base rates, the rates are in effect what the lenders can afford to lend at. As the credit crunch has hit banks badly then they are unable to lend at low rates, they need to allow for the money market rates, e.g. the interest rate that they pay for the money. As it would be many months (possibly years) before lower rates are realised any one struggling to pay their mortgage needs to take proactive action.
For those who decide to sell then how do you do this in a falling market with few buyers looking around? In short the answer is simple; you have to be decisive, put your property up for sale at a realistic price, possibly reducing it by 20% on prevailing prices. Whilst that may seem a big drop the alternative is to price your property to current market and then keep dropping the price each month as market prices fall. Taking the latter approach you may well eventually end up at 20% below on today’s prices and still not find a buyer!
Taking the first option of waiting for interest rates to fall is a very high risk strategy, this is because the actual mortgage interest rate is, in most cases, not linked to bank base rates, the rates are in effect what the lenders can afford to lend at. As the credit crunch has hit banks badly then they are unable to lend at low rates, they need to allow for the money market rates, e.g. the interest rate that they pay for the money. As it would be many months (possibly years) before lower rates are realised any one struggling to pay their mortgage needs to take proactive action.
For those who decide to sell then how do you do this in a falling market with few buyers looking around? In short the answer is simple; you have to be decisive, put your property up for sale at a realistic price, possibly reducing it by 20% on prevailing prices. Whilst that may seem a big drop the alternative is to price your property to current market and then keep dropping the price each month as market prices fall. Taking the latter approach you may well eventually end up at 20% below on today’s prices and still not find a buyer!
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