Living under a blue sky

Moraira Property Update

It’s been a while since we wrote about the Moraira property scene as we wanted to see and experience where it was heading.

As far as the property market goes it has picked up significantly for most if compared to the previous two years. The market seems to have stabilised albeit there are still many properties that are over priced. That said price corrections are now common place, but still the best bargains tend to be down to the personal circumstances of the vendor.

The year so far for us has been fantastic and likewise for many agents we speak to with property sales on the increase. Thanks to Moraira being a highly desirable place to be it attracts property sales as soon as things start to stabalise. There are many buyers around at the moment and hope this trend continues regardless of the UK media always talking about Spain’s deficit and painting a doom and gloom picture. The negativity probably takes the heat off the UK’s recent austerity measures.

Spain has its problems and they are of course very serious as is the UK’s but the coastal town of Moraira remains far more insulated from the wrath of the poor economic climate as a whole. In fact this summer has seen some of the largest crowds at the local fiestas ever and villa rentals are almost full.

The market here in Moraira is driven by Northern Europeans more so than the nationals or Spanish economics, although it’s bound to have some bearing on things especially when taxes or rates increase. Regardless of increasing living cost here in Spain, northern Europeans still want sunshine and a little paradise for their families. The irony is that people are now getting used to the economic problems and know they will not be going away for some time but meantime they still have a life to get on with regardless and now seems to be a good time to invest in property rather than leave cash in the bank which is also a concern for many.

The threat of turmoil was worse than actually being in it as we are today.
The problem with a threat is that you don’t really know how bad is it going to be, so people fear the worse and sit tight becoming spectators for a while which makes things even worse and then they wait until it’s bottomed out. The talk of a double dip recession does not make much sense unless you believe in a so called recovery. We all know the economic struggles we have today will last for years, it’s hardly going to recover and will simply stabalise itself and remain tough. We will probably see some more bailouts, mergers and austerity measures over the next two years or so but for most it will be no surprise and life will continue and wealth will still be created and spent.

So when does it bottom out? If bank bailouts, country bailouts, hardly any interest being paid from the banks to savers, debasement of their currency through the printing of even more money, lowest interest rates in history as well as the real cost of inflation being hidden is not enough, I don’t know what is!
Its no wonder property is becoming a safe haven again.

Consequently we see so many property buyers coming from Holland, Belgium and the UK. Only this time around it is being led by people that understand value for money and investment opportunities plus they are mostly cash buyers. Very different from the boom days where the many could well afford the Spanish dream based upon their equity in their main residence and when banks fell over backwards to lend money which all added to the property price hike.

Having spoken with many clients over the months it’s obvious there has been a shift in the mind set where once people were more than willing to sit it out and leave their money in the bank or in other investments.
95% of all our clients are now cash buyers. This is because anyone with savings, especially in a bank, hardly earns any interest. They seem to be taking their money and investing it into something tangible. Most do not gamble with stocks and shares at this level and historically property has always been a good long term investment that is reasonably safe, plus it is income bearing if you go down the letting route and you get to use it with the family, so it kind of makes sense.

Spanish banks have begun to lend again but to get the best deals around you need to put down 40%. The less risk for the bank the better the deal for you!
They do lend up to 70% and sometimes a little more but the packages are not as good.
They also vet you like never before especially if you have your own business, so be prepared! We have a few contacts for mortgages if needed!

A word of advice: It’s better to get your finances in order before looking for a property because you may be refused by the bank or if not by the time you get mortgage approval the property you found to be a real bargain gets sold to someone else. Happens all the time! If it’s any good that is.

Happy property hunting and don’t forget we can take away the stress and find properties others can’t as well as make things very easy for you!

Good luck until next time

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Life In Spain

I thought this news blog would be useful to those out there that may be single and wondering how on earth they are going to find love and companionship again.

If you happen to be a happily married ex pat couple living in Spain enjoying the outdoor lifestyle all well and good. But what about when relationships go wrong or you find yourself alone for another reason? What then? How do you you meet new people especially if you left the bar & club scene behind years ago!

Many join various organisations like social activity and interest groups. This is a good start to begin building your own network of friends and who knows you may find someone you really like. But what if you have done all these things and everyone you meet that you like seems to be spoken for? Nothing worse than going home alone all the time. The friends you have try to help match make for you but this is usually very limited. The other day I came across a website that specialises in Dating In Spain

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Buying property for sale in moraira

Moraira Coast

Over the past eight weeks or so many properties have been sold in Moraira. The majority of which have been of low value. Anything under 350,000 euros is considered low value in Moraira. Average is around the 500k mark and you don’t get much for that! Unless you drop lucky.

We speak with many estate agents and the really good properties at low prices seem to be selling fast. If only there were more! There seems to be a big problem finding quality property of low value in Moraira or Javea. Recently we have all been inundated with property hunters many of which go back slightly disappointed and wondering exactly where the recession is around here. That was a comment made to us the other week
from some clients with 500k. Believe me we have experienced 20-30% price reductions on today’s advertised prices. Make’s you think just how easy obtaining money use to be!

And there lies the problem. “Liquidity” not many people have it and not many can raise it to the level required to satisfy their expectations. Those that do have liquidity are chasing the bargains and snapping them up. But what’s a bargain in Moraira’ well if you can get a “quality” 3 – 4 bed villa (not a project) with a good real sea view from pool level on a useable flat plot near to amenities for under 600k you are doing well!! We have several clients wanting just that. So remember a good sea view and that’s nothing wow cost 100-150k minimum. Sea view plots cost upwards of 340,000 euros!

This leads me to a reoccurring problem that we never used to see very much but it is becoming more common because of the low offers some vendors are having to swallow.

Basically once you manage to find your dream home and agree on a price you usually put down a 3000 reservation deposit and then instruct lawyers to do the due diligence etc…This takes a couple of weeks. Meantime the property is still on the market with several other estate agents and if they have a cash buyer wanting to take a look the vendors hardly ever refuse. They try their luck and see if they can get a better offer.

You see it’s only legally binding once the 10% deposit is paid and the private purchase contract signed by both parties. Other than that you can easily get gazumped. Don’t leave it to chance.

To save the heartache there is a very simple way to avoid this. We have just recommended it to a client and it has been done with ease.
Instead of putting down a reservation deposit which doesn’t mean anything in legal terms, you instruct your lawyer to issue with immediate effect a private purchase contract and make it “subject to due diligence”. Then both parties sign it. This now legally means that the vendor would have to pay you back the double if they sell it to someone else!
It’s worth ensuring this common “pay back the double clause” is in the contract.

The 10% deposit is held within a lawyers client account until all the searches have been completed to your satisfaction. If they are good you continue with the purchase. If they show a problem and the problem can not easily be rectified it is within your right to back out of the deal and get your 10% back from the lawyer. You can not back out other than for legal reasons, otherwise you would risk losing your 10% deposit which is understandable because you may have prevented them selling it to someone else..

Lawyers have standard private purchase contracts that can be tweaked accordingly and used. This means within a couple of days you can secure your deal even if a inventory is required!
It’s also worth mentioning title deed insurance It’s new and well worth while for peace of mind. It’s called Safe Purchase Scheme

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Javea Property For Sale update

Sketch of Javea Montgo Villa for Sale

The Euro zone nations have recently been leading the way as far as Javea property for sale and Moraira property for sale is concerned. Buyers from the UK still think that property for sale in Javea or property for sale in Moraira is overpriced even though there has been a significant price reduction.

The recent fall, yet again, in sterling means the UK buyers are no better off regardless of a 20 –30% price drop on average. The UK media coverage says that the prices have fallen sharply in Spain and you can pick up villas at a fraction of the original cost.

This generalization is not true of the Javea and Moraira property market. In all fairness the prices have held up very well. I think a lot of this is more to do with the fact that Moraira and Javea are very well established areas full of villas of a more bespoke nature for the more discerning client. Yes there has been a property boom here too but it has not been built up in the same way as the massive purpose built housing estates to the south of Alicante, created at a price to sell to the masses.

This is where we see massive problems and consequently massive price reductions. Unfortunately the media rarely make any distinction between the prosperous areas and the not so prosperous areas. Remember bad news sells papers!

There are various articles about Moraira and Javea that may go some way to explain why these areas are so highly desired. If you are thinking about investing in a holiday home it is well worth while to do as much research as you possibly can and hopefully this website will aid you in some way. If you prefer to speak with one of us directly please feel free to do so, we don’t bite! Or you may want to view some properties for sale in javea or properties for sale in Moraira

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