Posts tagged with moraira

Villas for sale in Moraira and Javea - Repossessions

For some time now property prices have slowly but surley been corrected to take account for the economic downturn.

There are some genuine bargains to be had if you do your homework. It’s a mistake if you think that bank repossessions are bargains! It’s not always the case and sellers always try to recover at least the outstanding mortgage as a last attempt to sell. One must ask the question why the property has not sold before the repossession? In my opinion it’s usually for good reason.

Having seen many overpriced or undesirable villas for sale, I am not surprised they have never sold even though prices have been reduced. Many are not even worth the outstanding mortgage and consequently they get repossessed.

Banks will auction them off and try to recover the mortgage. If they fall short they will pursue the owners for the outstanding debt.

Assuming you can pick up a so called “distressed property sale” from a bank, there seems to be a fundamental flaw here as you risk inheriting the very same reasons why it never sold in the first place, so buyer beware!

As Moraira and Javea property finders, I have taken a close look at bank repossessions lately and it has been of no surprise I have seen many of the properties on the list over the past 3 to 4 years.

Understanding why property does not sell and what truly represents excellent value is paramount. The market may be depressed and property sales way down, but don’t be taken in by all of the media’s generalisations, sweeping statements and exagerrated hype stories. The fact is there are genuine bargains to be had and desirable property is still selling. It’s a buyers market and for those with some liquidity property seems to be a safe bet. Where else do you invest money and feel safe?

That said, more recently it has been more euro led since sterling has lost so much of it’s value.
Eurozone countries are taking advantage of the price reductions. The UK buyers whom once led the market are few and far between, compared to when sterling was strong but they indeed exist.

Real bargains tend to be with the people that bought before the boom began and paid very little for their property. If they have dire circumstances they can afford to let go and still recover more than most that say bought during the boom so it’s worth bearing in mind.

Without doubt there are some desirable properties at knock down prices if you have the time to find them but you need to be careful that you arn’t just buying work. Our property finding services are free so feel free to contact us with this link

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Cap d'Or Moraira

Start of walk to Cap Do’r Moraira

It’s the 17th of May 10.30am and we are off for a walk to Cap d’or.
Cap d’or is the pepper pot watchtower above El Portet in Moraira built in the 16th century. It’s going to be another hot sunny day so walking in the morning is much easier. A leisurely walk to the top takes 30 mins. The pathways are rough with loose rocks, so you need to be sure footed with sensible footwear. I would not attempt it in the wet as there are expanses of flat rock that would get very slippy. During the winter it also gets slippy in the mornings from the dew, so best to let the sun dry it out and walk later in the day. The start of the walk is at the end of Pto. de Alcudia and this road is off Puerto del sol.
Simply follow the green and white markers along the way.

markers

There are many wild flowers to look at all the way up to the top. The views are stunning and at the top you can see Javea and beyond on one side and Moraira over to Benidorm, with the Penon de Ifach rock in Calpe in between, on the other. It’s amazing just how many properties there are scattered along the coastline. If you need to know more about [buying property in Moraira](http://www.spanish-property-sales.net/buying-guide) this link may help you.
Enjoy the pictures we took!

butterfly

wild flower el portet

wild flowers

wild flower

wild flowers

moraira view

view

javea view

view of tower

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Moraira and Javea Property Investments

The recent financial collapse of some of the leading investment banks, ongoing business failures, rising unemployment, stocks and shares rendered worthless overnight to what they once were and the credit crunch that is starting to kick in, it’s no wonder that the once highly inflated property prices have been affected. The value of sterling has diminished almost one for one against the euro having a dramatic effect on the once strong buying power of the UK pound.

Even the recent cut in interest rates by the central European bank did little to rally sterling other than a few points. As the UK economy slides deeper into recession, the threat of further interest rate cuts by the bank of England will again weaken the pound. What does the future hold for property owners in Moraira and Javea?

As Far as the Moraira & Javea property market is concerned, I think we are witnessing a market shift as people respond to the current crisis. More and more people will reduce overheads and find safer and more manageable ground. This will mean scaling down and selling off assets, for those that have to sell, at knockdown prices to realise some liquid cash whilst reducing outgoings. Even though Moraira and Javea property prices have been far more insulated from the massive devaluation seen in other areas, it has still been affected, more so, to those people that simply have no option other than to sell.

I think it’s going to be some time before we see any recovery and unfortunately more people are yet to feel the pinch. Historically, only 10% of property stock in Moraira and Javea would be up for sale at any one time. Due to the ongoing crisis I predict an increase this year of up to 15% as the full effects of a bad situation are felt. Consequently, buying property at knockdown prices is on the increase as investors and other people with savings capitalize on a dire situation.

Thankfully for most of the property owners, they don’t have to sell and let go of their dream but as the situation worsens many will have little alternative.

As professional property finders, finding a really good bargain takes a lot of effort. Sorting through the 10% of property stock takes much time and effort. What may seem a bargain may be fundamentally flawed and probably the reason it has not sold in the first place. There are some highly desirable properties at knockdown prices to be had. To maximize capital growth it is important not to inherit a problem or location that cannot be changed. Buyers beware!

For many years the UK buyers have predominantly driven the Spanish property market. Villas for sale in Moraira and villas for sale in Javea are no exception.

There was once a time when the majority of UK property owners had enough collateral in their UK home to finance a second mortgage for a holiday home in Spain. The increases in Spanish property prices over recent years closed the gap significantly and as this was taking place the property purchase model changed and the calculations included the rental potentials more so than ever before to help with annual cost. Bare in mind this was when sterling was at it’s strongest and Spain was a cheap holiday destination, especially before they joined the euro. Due to the fall in the value of sterling, the holiday rental market that Spanish property owners depend upon is going to be a tough one this year only adding to the problem. If you are depending on renting out your property this year, I recommend advertising within the euro zone and not just the UK.

Recently, interest rates have been reduced to all time lows, but how much the banks pass on to us is a completely different matter, especially if they have you paying 6% plus with an annual review! Therefore banks have an opportunity to make more money out of this situation. They will undoubtedly be reluctant to pass any savings on to us and will stretch it out for as long as they get away with it. If you have a Spanish mortgage, the devaluation of sterling means many property owners are now faced with extremely high monthly mortgage payments.

Many ex-pats living in Spain on a UK pension have seen at least a 30% reduction in their income. Many are now scaling down from their detached villas to smaller more affordable properties and even renting instead of buying realizing a little more liquidity to see them by. Some of the best property deals to be found are with the property owners that bought before the property boom. They can afford to sell at much lower prices than someone that bought during the property boom and still recover some profit. What the seller may lose on the price they have to sell at they can recover this lost value when they negotiate the price on a smaller property.

Mortgage defaults are escalating and consequently property repossessions are increasing. It is therefore important not to get into arrears and speak with your bank manager if you are having difficulties. Some are simply handing the keys and deeds back to the bank and walking away. Providing there is more value in the property than the overall debt, handing the keys back to the bank with no arrears means it then becomes an asset to the banks balance sheet. It’s never simple but handing the keys back could be a more favorable option for you but it means you lose whatever you have put into it but at least they cannot chase you around for the rest of your life or be made bankrupt. If people are in arrears with their mortgage and cannot pay the bank, after four months or so, the bank will issue a repossession order to the courts. A repossession order is a banks last resort as it also means a liability for the banks balance sheet. If the property is repossessed, the banks can auction off the property at a fraction of the market price and then chase you for the remainder of the outstanding debt and that includes any future earnings or inheritance you may one day have! Even if you go back to England, they have English lawyers in place to track you down. It is paramount that you speak with your bank manager before you fall into arrears.

As already mentioned, more recently we have seen much interest from property hunters /investors that are looking for highly distressed property sales, something that we specialize in finding for our clients. Some people do have money and those that have, at this moment, don’t trust stocks and shares and can’t earn hardly any interest on it from the banks without tying it up for a given period. And as for the rest of the alternative investment plans and schemes, just how are they going to be managed? Other than for some more specialized investments that you may have a role in managing, you have to be a rather brave investor to trust any institute again. Anyone for roulette!

Tying money up with the banks, in my opinion, is also a risky proposition right now, regardless of promises from the government to underwrite it.
I think cash is king and we all need some liquidity that’s totally accessible just in case governments declare a financial state of emergency. What if?

Having too much cash is also risky and a tangible asset makes perfect sense. If we take note of our boom and bust history, property seems to be a good choice right now and probably the only thing worthwhile. Unfortunately, we don’t have a crystal ball, so much for timing! I am afraid to say for those that have to sell, needs must but it’s a golden opportunity for an investor or simply someone whom has always wanted a place in the sun at the right price. That said, you have to realise a distressed sale when you see one.

Written by Anthony Bloom For more information www.spanish-property-sales.net

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Strelitizia Reginae plant

Strelitizia (bird of Paradise plant)

This plant is a must for any garden on the Costa Blanca and will be ideal in any Moraira or Javea garden. It has very distinctive spiky yellow and orange flowers which give the appearance of bird crests, they are very unusual and if cut last a long time in water.
They are excellent grown in pots or in the garden and the foliage is evergreen and has large spear like leaves in a grey-green.

The plant is a member of the banana family so will only tolerate a light frost and temperatures below -2 degrees Centograde coluld damage the flowers and leaves. They need rich soil and frequent feeding. The plant flowers during spring and autumn and winter.

They are readily available in garden centres throughout the Costa Blanca. Many Moraira villas and Javea properties enjoy this plant.

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