Posts tagged with "moraira"

UKs Foul February Floods

Without doubt, the vast majority of
the Costa Blanca’s Brits will have been watching the TV news, or listening to
the radio, to determine the UKs worst hit areas. Most will have an association
of some kind with the Thames Valley, with the West Country, or with Wales.

To say we wished we were with you,
helping to fill up sand bags would be a whopping lie. Of course, there is
measureless sympathy with the plight of all those knee deep in water, with
property floating around the lounge. Of course, we understand that it must be
extremely depressing to have rain falling every day from grey/black skies,
without a single ray of sunshine to be seen.

But then, go to any café in Moraira
for a cup of coffee, and fellow coffee guzzlers will confess to being delighted
at no longer being located in the UK. They reckon they are blessed to be away
from all the problems you are experiencing. The temperature forecasts here in
Teulada Moraira for the final days of February are 14°, 18° and 16°. OK, that’s
not paddling/diving in the sea weather, but it does allow you to go for a walk
in a T shirt and light sweater. There are plenty of pleasant beach walks too.
Behind the fine sands and crystal clear waters of El Portet Beach is a long
walkway hosting 2 cafes offering morning coffee and a pleasant light lunch.
Then towards Moraira, near the entrance to Club Nautico, you’ll come across
Portixol Cove. It’s crystal clear waters make it perfect for diving and
fishing. In fact, Teulada Moraira can proudly point out that all its beaches,
spread along 8 km of coast, have been awarded the Blue Flag by the European
Union. Additionally, they have been granted ISO9001 (Certificate of Quality
System) and ISO 140001 (Environmental Management). These awards stem from
cleanliness, unbeatable water quality, and numerous convenient services and
activities available.

Continue walking south, and you’ll
probably hear shouts from the "Lonja” – the fish auction held every weekday
from 10.00am. Then, just by the side of "Castillo” you’ll find L’Ampolla, the
busiest and largest of the town’s beaches, with bars and cafes close at hand..
Go on for a few hundred meters or so and you’ll discover Les Platgetes, two
coves of clear waters that combine sandy and rocky areas, and there’s an
attractive promenade viewpoint, with gardens and a car park.

Your walk will now be interrupted by
cliffs that conceal L’Andrago Cove. Here the rocks and the depth of the
transparent waters make it an ideal place for diving and fishing. An attractive
viewpoint dominates the cove, and makes it one of the areas most photographed
stretches of coast.

The going continues to be rugged,
and reaches its highest point at Punta de L’Estrella. It’s called this since
its shape resembles the arm of a starfish. On the other side you’ll reach and
find Cap Blanc Cove. It’s the least well known of all the coves mentioned, but
it’s well worth a visit. Access from the Moraira/Calpe road is good, but it
would be sensible to park and proceed to the point on foot.

There are no destructive waves
crashing down on the beaches, so you may prefer to spend some time at sea. If
so, sailing or boat tours are available, along with outings in kayaks. If you
like sea spray in your face, then a few hours on a jet ski are easily arranged.

If you’ve had your fill of grey skies and rain, then
why not join us in Teulada
Moraira
. Of course, to categorically promise no rain would be dishonest,
but it’s not likely to fall for long.

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Posted by on 03/02/2014 13:06:00

The Spanish Property Crisis 2013

During the final boom year of 2006, over one million
properties were sold in Spain which on reflection, was quiet remarkable. Those
were the days of easy lending, which fuelled demand and inflated property
prices.

Since the end of 2007 to 2011 the property market had suffered a price correction, which has resulted in a 25 – 30% price reduction across
the board. Many properties were sold during that period regardless and 2011 was a very good year for property sales
by comparison to the previous four.  2012 was slightly down
on 2011 but there were still three hundred and twenty thousand properties sold
in Spain during 2012.  It may be a third
from the heights of 2006 but still far from dead, which the media would have
you believe.

In contrast to the doom & gloom reports, the region of
Valencia has seen excellent property sales for 2012 and Javea/Moraira in
particular has continued to attract many northern Europeans.  Property sales so far in 2013 have been
exceptional as more people seem to be reducing their financial exposure to the
banks as well as other non performing financial institutions. It will be
interesting to see the official figures at the end of the year but the message
we hear daily from prospective purchasers, is loud and clear, they all have a
mistrust of the banking system, especially when the EU can request a nation
like Cyprus to rob from personal savings. That is a very unsettling thought for
savers, regardless of where you live in Europe.

Throughout the crisis, we have seen an annual reduction in
property prices and this reduction varies significantly subject to location.
For example in Torrevieja Costa Blanca South, we have seen prices fall by as
much as 70% on some of the mass developments built for a given price but the
more bespoke properties in that area have not suffered anything like this, circa
40% at most.

Many of those mass developments still remain empty, even
though you can buy a relatively new three bed villa for 65,000 euros and
less.  This dire situation basically
makes news headlines and by association gives the property market, for the whole
of Spain, the doom & gloom people read about.

Many of the “new unsold” properties you get to
read about which the government/banks are trying to off load are in  areas like this, all the way down to the
Costa del Sol. This kind of news, drives uncertainty and fear into any
prospective buyer. Consequently today’s buyers are cautious because property is evidently not
the investment it used to be. This whole mind set takes time to come to terms
with as most of us have historically been conditioned to the contrary. The fact
is, we all have to adjust and mange our expectations better. Ultimately this
means big reductions if you want to sell now. It’s no different for me writing
this stuff and it’s a bitter pill to swallow.

Not too bad if you buy again in Spain but if you are going
back to the UK, most have to scale down considerably from their Spanish villa
in the sun.

The northern Costa Blanca, specifically Moraira & Javea
has suffered a 25-30% correction in prices since the boom year of 2006. This
has meant some excellent bargains for the buyers living within the euro zone.

For the Brits, whom have historically been the major buyers
of Spanish property, they have not really seen a significant price reduction in
real terms, due to the loss of value in GBP Vs Euro.

GBP has lost circa 30% since 2006 against the Euro.
Consequently the demand from the other euro zone nations has increased
dramatically. Regardless of the price corrections, euro zone buyers still want
substantial price reductions, especially on anything that needs updating, which
is common place.

Providing the accommodation, location, orientation and plot
is desirable, quality is still in demand and sells quickly. Like most property
agents in Moraira & Javea, we are inundated with buyers looking for quality property for sale in Javea  and properties for sale in moraira at a reasonable price, unfortunately properties like that are few and far between. Consequently,
property that is dated tends to either hang around for months or vendors
eventually decide to accept a low offer to sell it, usually on a reluctant
“needs must basis.”  In many
cases this price erosion process takes three years or more. During which
time  fair offers often get rejected
only to be reduced even lower than this a year later but still behind the
reality of price reductions as other sellers have also become more realistic
with pricing relative to the actual demand.

Moraira & Javea Villas for sale.

For the majority of buyers around, regardless of
nationality, their expectations often exceed the available property stock
within their budget range. In many cases, middle ground can be found but this
means compromises for both buyer & seller. The properties that are
realistically priced amongst all others keep selling and are always in big
demand.    Good affordable property
stock is very hard to find, as most of the properties for sale are still vastly
overpriced for the condition and location they are in.

In our experience a lot of villas priced at 295-395,000 euros tend to be 50 – 100,000 over priced compared to some of the better quality ones available at this price level. So unless a property has been completely renovated to a high standard and situated in a good
location, many are still too expensive for today’s prudent buyer. Many have had price reductions but unfortunately do not reflect what’s happened to the market.

The price reality gap between buyer and seller is still
significant but not as bad as it has been in the past for this area.  That said, prices still need to come down on
many properties for them to stand a chance of selling. For those that really
want to sell its easy to find buyers, providing they have a desirable property
that falls within the affordability band of up to say 300,000 euros and are
seriously prepared to negotiate subject to the condition, location etc… Above
this, what would seem to be a “falling price band,” buyers get
significantly fewer. Speaking with many agents, they report that circa 90% of buyers are within
this 300k euro price band. If you add on the 11% purchase cost it’s still too much
for most.

Regardless of price reductions there are those properties
that can be very difficult to sell.

For example, if you have too many steps to get in and out of
your property, it’s getting very difficult to find buyers that will compromise
because the average buying age has risen to 50 years of age and is creeping even
higher.  This age group and beyond have
basically accrued some wealth over the years and have “real
money”  which is just as well
because banks don’t want the risk any more, other than for dumping their own
unsold poor quality repossessed stock.

For the moment the Moraira & Javea property market is
busy with many buyers looking for a deal. So if you have a property for sale and it’s not selling, there
is usually good reason as there are many buyers around and villas being sold. The longer you leave it
and hope a buyer will come along, the higher the risk you have in not
getting the bottom line price you have
in mind. If you really must sell, speak with your estate agent and get them to
give you a realistic price that will make it desirable to the buyers around
today.

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Posted by on 04/11/2013 09:35:00

Moraira & Javea property news Nov 2011

It’s been 8 months since our last Moraira and Javea property news update. Time fly’s!

This year started very well as we reported previously. Thankfully many more clients have decided to use our services and we have continued to be very busy.
Many of the leading estate agents have also reported having a very busy year. Regardless of the dire economics we all face, there has been a glut of buyers ready with their cash.

The biggest problem has been and continues to be the significant reduction in the average property budget that buyers now have in relation to the bulk of property prices out there.

Consequently the availability of quality property stock that falls into the price band that people can afford has diminished and the amount of legwork involved with finding an affordable property has increased substantially for all concerned. You have to kiss a lot of frogs!

Over 93% of enquiries are for less than 400,000 euros and 70% of these are for less than 300,000 euros.
Having spoken to many agents they have confirmed a similar enquiry pattern.

For the majority of properties for sale, agents are struggling to close the reality gap between vendor and purchaser expectations.

Quality properties that do fall into the mainstream affordability band and represent value for today’s money have continued to sell throughout the year and expect next year to follow the same trend.

We have had a very busy year doing just that for our many clients and this is where a property finding expert can help you find quality property quickly and help you decipher the best from the rest in a short space of time.

Happy hunting!

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Posted by on 11/16/2011 07:39:00

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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Posted by on 07/27/2010 07:25:00

Javea Property For Sale update

Sketch of Javea Montgo Villa for Sale

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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Posted by on 10/04/2009 16:40:00

Property valuations in Javea & Moraira

3 bed 120m2 moraira apartment for sale

3 bed 120m2 moraira apartment for sale

Recently I have been trying to make sense of property prices and valuations in Moraira and Javea.

There seems to be all sorts of data around with regard to valuations. The majority is not area specific relative to the Javea and Moraira properties for sale. Although we have seen, in some cases, a price reduction of around 20 – 30 % in advertised sales prices, it does not represent a true picture of the underlying value that was born during 2007 – 2009 financial crisis.

What the majority can afford will always dictate the underlying value of a property. It just takes a while for the reality to kick in. Many property owners out there simply don’t have to sell or can hang on to an unrealistic price until such a time when the majority of prices have been corrected. They then have to follow suit if they wish to sell. This process usually takes three years to bottom out to a realistic level. Some properties are priced to sell but the majority for sale still doesn’t reflect reality.

The properties that seem to sell are being substantially reduced when it comes to the actual deal done. Most never get to know how low the actual sales price was relative to the asking price. Many offers are refused but the ones that are selling are deals based upon a more realistic price level to start with. So how do you get a realistic valuation?

The process of valuation is arrived at by various means but rest assured, it’s always way behind the market when it comes to the reality of reductions! Most vendors already seem to know how much their villa is worth. They arrive at this in the usual way and this is based upon other advertised prices and what they think properties have been sold at next door or down the road over the past few months. Then by making adjustments for what they paid for their property and how much money they have spent on it, plus adding some on to negotiate with and “oh, the exchange rate is not in my favour” etc.

The other way is to ask an estate agent to come around to value the property. Estate agents are aware of the market conditions and will use slightly revised figures per square meter that reflect this but will still hold out in hope that the market will improve or will not be as affected like other areas. Historically there is a lot of truth in this as far as Javea and Moraira go. These desirable areas have been able to ride the storm far more than other areas, but of late there seem to be many people having no alternative other than to sell at low prices. In my opinion this time next year will see the low priced deals done today being the advertised sales price next year. So the initial figures estate agents arrive at will be similar to what the banks come up with to lend new money.The only difference is that estate agents are more at liberty to be a little bit more creative with the rest, usually increasing the valuation to please the vendor subject to how desperate they are to sell.

The truth is there is no rock solid formula and the formulas that exist in my opinion, do not reflect the true underlying value of a property or basically what the majority can now afford. Even the official figures are lagging behind what’s happening on the ground and what’s actually happening on the ground is lagging behind the financial crisis born during 2007 and it’s not over. It may take another year before we see some realistic prices being advertised, maybe even longer.

Estate agents talk amongst themselves and know, even if they are not selling much them selves, some of the properties being sold and at what price some are exchanging hands for. Many can’t believe the deals that are being done and it would insult many vendors out there wishing to sell if they knew. Consequently it’s easier to live in the past and avoid the confrontation when asked to put a value on a property! They allow the market to take its natural course.

Another way, though at cost, to value your property is to pay a bank to do it and allow them to be as clinical as possible. Don’t sell it to them! After all these guys will probably be financing the 70% mortgage to someone, somewhere down the line. Its inevitable banks will have their say because most buyers require some form of funding or at the very least an official valuation, so you might as well know how banks are going to look upon the value of your property before hand. At least you can waive an official bank valuation in front of them regardless.

Recently I thought I would compile 200 villa properties in Javea, taken at random from various websites. I made sure that the prices were reduced prices and that the properties had a similar build 150 – 175 and plot size of 850 – 1200. Then I totaled up the build size and divided it by 200, likewise with the advertised prices. Then I divided the average price by the average build and came to an average figure of 2,300 euros per M2.
I compared this 2,300 M2 figure with some recent bank valuations and arrived at a figure that was almost the same. Today I have spoken to a property valuation expert that does valuations for the banks. Banks use various registered organizations that specialize in such activities whom follow the guidelines laid out by central government.

One such organization is Tinsa and a report by them echoes my sentiment on this subject matter even though there info is dated relative to what’s happening on the ground.

Tinsa, a Spanish property valuation company used by several high street banks, has signaled that advertised house prices will drop a further 20% over 2009. In the same report, they have calculated the drop in 2008 as being 10.1%
If this figure is correct, Tinsa say that this will bring house prices back to their advertised levels in 2005. The monthly drop may be between 1 and 1.4%.
This is not news to many agents down here on the ground, who have seen price reductions of between 20 – 40% in the resale market. The official figures often lag behind the reality of business day to day.
A 10% drop in price does not really attract attention among the bargain hunters looking to purchase a Spanish home at a drastically reduced price. It is only those properties that have reduced to 2005 prices that are actually selling.

It may well take time for certain vendors and developers to catch up with the pricing downturn. It is only those that need to sell for personal or financial reasons that are pricing their properties realistically or accepting very low offers.

This translates into only a small percentage of properties available at ‘distressed’ prices. However, they are the only properties that are selling and selling quickly.

As there seems to be no accurate formula for property valuations, I asked how they establish a value on a given property. It was a little vague but here we go…..

Firstly, they have a valuation guide by province and this is broken down to some degree by area. The problem is that there are huge fluctuations from province to province and town to town. The system depends greatly upon each individual valuation officer having knowledge of a given area and the prices these areas are able to attract. For example a like for like property in the south of Alicante would be significantly less in price than say the north of Alicante in areas like Moraira and Javea.

The bulk of the valuation is based on the amount of actual living accommodation, excluding garages, terraces and undeveloped under builds. The plot is usually included in the price/calculation, unless it’s a double plot. The pool also tends to be included. Then adjustments are taken into account relative to the overall condition of the building, gardens, views and area. So it’s part science part art. One thing for certain is that properties with greater living accommodation have always valued up very well, where as smaller accommodation will not calculate favorably and therefore will be more difficult to sell especially if the buyer requires finance.

Some of the recent bargains I have come across are larger properties of 280 and 290 M2 build. As far as bank valuations go, they value up well and one was recently valued at 670k two months ago. But the prices they are being sold at are way below a bank valuation. The figures work out at 1,300 – 1,400 per M2!!
The reason for this is because that market for older properties that were once worth 600 – 750k has virtually gone, and what’s left of that market sector can buy something that was once worth 1.2million!

So to get back to property values in a real world, many of the once 600k – 750k properties are selling at around the 400k mark, some above and some below. This is mainly due to the fact that lending has become difficult and people have less value in their currency. Spain used to be cheap!

It all sounds like doom and gloom, but let’s not hide away from what is actually happening here on the ground. You might as well know because if you have a villa that you need to sell and it’s not too dissimilar to the many out there and amongst hundreds of others for sale within a given price band that 90% of the market can not even afford, through no fault of their own, how are you going to sell your villa?

If 90% of all buyers can only raise 300k – 400k at best, plus the additional 10% cost and you happen to have a villa that you think is worth 700k or 800k, think again!
Where is your market? Who are you selling to? The few buyers around with this higher budget can find amazing villa bargains that seem unreal and unfair but they indeed exist.
If one day the advertised prices are within the grasp of the many and sterling recovers to 1.45 against the euro, you may stand a better chance of finding a buyer. Either way, you will lose out on both the reduction in price and probably on the exchange rate if you need sterling!

One thing for certain is that resale properties represent amazing value for money. And are far less expensive than new build. You would be lucky to find a decent plot for less than 225k and anything with a sea view is at least 350k for a 1000M2 plot. With the cost of architects, building permissions and modern day materials and labour you don’t get much change out of 600k and that’s for something basic. Consequently, the future of new build looks grim and only prime and very expensive plot locations seem to be being built on for a more discerning customer.

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Posted by on 07/28/2009 19:26:00

Villas for sale in Moraira and Javea - Repossessions

Moraira property for sale

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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Posted by on 05/22/2009 14:10:00

Cap d'Or Moraira

Start of walk to Cap Do'r 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

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

butterfly

wild flower el portet

wild flower el portet

wild flowers

wild flowers

wild flower

wild flower

wild flowers

wild flowers

moraira view

moraira view

view

view

javea view

javea view

view of tower

view of tower

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Posted by on 05/20/2009 08:23:00

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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Posted by on 01/20/2009 16:49:00

Strelitizia Reginae plant

Strelitizia (bird of Paradise 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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Posted by on 01/11/2009 16:44:00
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