October 2012 Archive

Moraira Property News 2012

Property sales in the Alicante province rose by 10% in August compared to the same period in 2011. The rise is attributed to the increase in the number of foreign buyers.

On a national scale the buying level has also risen according to this report and others.

Although we can not obtain figures from the notary by town, our local experience of the Moraira & Javea property market provides a good barometer and supports the statistics. If anything, we would say that Moraira has seen a significant rise in property sales during 2012 compared to 2011 according to many estate agents and independent sources. It makes you wonder what the proportion of the Moraira property sales were, relative to the increase of the regional figures announced. Such a shame the notaries will not provide us with the breakdowns per town. We have tried but our efforts were in vain. Apparently, all figures get sent to the regional governments statistical department, where they collate the info by region, or so we were told. We would have thought that this information should be public knowledge! If anyone would like to take this up and let us know, we would really appreciate it. We think it would provide some very useful information, especially for prospective purchasers.

Purchasers are still mostly cash buyers but there are still a few that require mortgages. The problem with mortgages recently is that the valuations are poor.

The banks simply do not want any risk. Some of the figures they give are very hard to swallow and in no way reflect the actual prices being achieved on the ground. A word of advice here, especially if you want to ensure the bank can give a prospective purchaser a better valuation, is to make sure you have any undeclared accommodation registered before you agree to a valuation or, if possible, even offer the property for sale.

The banks can only value what is registered!  It's going to cost you to register what has not been registered already on completion, so you might as well get it done first and at least you will give yourself a better sales opportunity. Yes it's outlay now rather than later but money well spent! It could be the difference between a sale or no sale.

There seems to be many properties with un-registered under-builds and extensions that can not be included in the banks valuation. As an example a villa that's priced at 550k may only value up to 315k should the downstairs or extension not be registered with the land registry. This value is what the bank will base their lending upon. 60-70% mortgages can still be obtained, so it's prudent to be ahead of the game if you are a vendor.

If you are a purchaser willing to pay the valuation fees, circa 400 euros, for a bank valuation, it might be a good idea to ask the vendor or estate agent if everything has been registered before you give the instruction to the bank requesting a valuation, otherwise you may be in for a shock when the banks give you the figures! So before you build up any hopes, please be aware of these facts.  If it has been valued and the figures are poor for the reason mentioned, the vendor may of course try to get it all registered to satisfy a higher valuation, which usually takes 2-3 weeks but in the meantime you may run the risk of someone else buying the property and then you are 400 euros worse off and dreams shattered. So it pays to do your home work and ask the right questions.

If you require sound property investment advice, please contact us to find out more

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Posted by on Monday 15th October 2012