Test Drive a House in Spain

Before you splash out on a new car, it is normally considered appropriate to test drive it first…So why not for a house?

Buying a house in another area of the world can be indecisive. Primarily, in many cases, people are unfamiliar with the vicinity where they want to purchase the property. Staying there can help you see immediately what your property location offers in terms of shops, supermarkets, schools, natural areas (beaches and mountains etc) and entertainment. It also gives you an insight to your neighbours and the locals in the area.

Many Spanish real estate firms are taking on this new idea. Before, buyers would stay in some faceless hotel in between inspecting their property and although this service is not normally free, it is usually a similar price to staying in a hotel with the bonus of really getting to know your property. Ask your real estate agent for rates.

Although relatively new to the housing market it is surprises me that it has only come about recently, after all cars are just a fraction of the price of houses and in consideration to the commitment people give when purchasing a property this new concept, starts to makes a lot of sense.

Spain’s Property Market in 2008

Although Spain’s property market is no longer the bargain-hunter’s paradise it used to be, promising quick and easy returns, it still holds appeal as investors place less interest on low prices and focus more on quality services and accessibility.

Valencia is a good example of a burgeoning market despite the nationwide property slowdown. The America’s Cup in 2007 and the upcoming Formula 1 event (in August 2008) have done wonders to stimulate construction, create new hotels, improve infrastructure and help residential property prices appreciate.

In Murcia, expansions at San Javier airport will boost the popularity of this already-hot tourist destination. More importantly, the construction of a new international airport in Corvera (20 minutes north of Murcia) will deliver a significantly increased number of flights to the area.

The Balearic island of Menorca is also shaping up to be an interesting option. After the passing of new laws that limit construction to protect the coastlines of the Balearic Islands, attention is expected to focus on this little-developed island. Menorca’s inexpensiveness and increased accessibility makes it a valuable choice, especially for buyers with an eye on letting their property.

Because of the changes in Spain’s real estate market that have been brewing over the past four years and came to fruition throughout 2007, a different type of investor is now being drawn to Spain and buying Spanish property is no longer a profit-driven venture.

No longer lured by low prices, foreigners who choose to buy a home in Spain are interested in factors such as access to quality services, proximity to good schools and the strength of the local economy.

This makes Spain a good choice for buyers interested in finding a long-term vacation or retirement home, especially considering the country’s still-strong vacation rental market, which gives homeowners the ability to profit from their investment while still holding on to it.

Up to 40% of Existing Estate Agencies Closed Throughout 2007

More than thirty thousand estate agencies closed their doors last year as a result of the property slowdown Spain has been experiencing since last summer. According to COAPI (Spain’s official property agents association), closures were most noticeable in coastal areas targeted by overseas property buyers.

A spokesman for COAPI expressed the opinion that these closures represent a return to normalcy: “What wasn’t normal was the lack of people ready to sell and the lines of people waiting to buy.” This booming market was responsible for the proliferation of estate agencies without coherent business plans, out simply for profits – the disappearance of these upstart profit ventures actually represents a healthy filtering of undesirable businesses from the market.

COAPI also found that homebuyers today pay fewer physical visits to agency offices and increasingly use the Internet to look for a home; up to 60% of completed property transactions were initiated with an online search.

Less Mortgages Given Due To Real Estate Slowdown

The slowdown in Spain’s real estate market is making its mark on the mortgage market with decreases in its main indexes. According to recent figures for November 2007 from the INE (National Statistics Institute), the capital lent to purchase a home in Spain has decreased by 13.3% compared to the same period in 2006.

The total number of mortgaged homes during this period also fell, with a decrease of 15%. These numbers provide further confirmation that Spain’s property market is moving at a slower pace and has completed the strong real estate boom it experienced since 1997.

Official 2007 Property Prices Released

The Spanish government’s Ministerio de Vivienda (housing department) released this week the official figures for property prices over 2007. While prices increased overall by 4.8%, this increase constituted the smallest one since 1997.

More surprisingly was the fact that prices actually fell in 11 of Spain’s 50 provinces, although this occurred in areas not typically frequented by overseas property buyers.

Murcia was the region where prices rose the most, with an increase of 8.1%. Other coastal regions also rose above the national average, making investment from foreign property buyers an important factor in the health of Spain’s property market throughout 2007.

Spain launches a Rocket Festival into Space

Yes that’s right, Spain is putting on a Rock Festival! Set in the mountain region of Andalucía this festival is themed on “Space”, but the artists playing will not be Alien to us. Under the hot Sun the festival will be hosting acid house from famous artists such as; Coldcut, hip-hop´s; The Nextmen and an exclusive from Evil Nine.

There is an estimated 5000 people from the UK attending, however, the aim of the festival organizers are to mix the Spanish spirit with traditional British festivals.

It all starts from May 16th - 18th 2008.

Spain Shedding off Catholicism

A generation ago, families were considered sacred in Spain; traditional they were big and lasted a lifetime. These days Spain's local schools educate that modern families can be quite different e.g. single parents with kids or same-sex couples raising adopted children. Spain is now considered to have a very modern attitude towards families.

Flood Causes English Couple to Run Their Business from Spain

A Wiltshire couple have been forced to run their stationery company from Spain as they still can not access their property which was damaged in last year's summer floods.

Their house was flooded in four feet of water demolishing their cars and all of their business apparatus.

Luckily the couple had their second home in Spain to which they have now moved to and are successfully continuing.