Posts Tagged ‘properties in Spain’

Spanish Property Market Latest Headlines

Friday, September 16th, 2011

It was a challenging week for the unstable Spanish marketplace, having difficulties in a mountain of debt and with tax changes threatening a further downfall in prices. However, the discount charges to be had at present stand for a probable windfall for foreign investors who get in at the right time.

Spanish property rates to drop again

There are between 700,000 and 1.1 million unsold houses in Spain, a figure that could drag the property charges in the region down further this calendar year, in accordance to the Central Bank in Spain.

A spokesperson from the financial body said property values are most likely to carry on their downward pattern due to tax changes in the region.

The banking regulator explained: “We should see a course of action of gradual 7% of accrued extra supply, that could be sluggish and indicate that housing funding should not add to the expansion of activity in the close future.”

Home values fell by about 13% from the optimum viewed in the initially quarter of 2008, according to authorities statistics.

There was also a decline in new-home construction. Solely 137,000 houses were designed in the year to September, down from the 2007 optimum of 750,000 units.

Euro hits three-month low

The euro has traded close to a three-month low on speculation Eu nations could struggle to raise funds, diminishing the allure of their assets.

Europe´s currency declined versus 13 of its 16 significant counterparts ahead of Portugal, Spain and Italy trade authorities debt this week.

“It seems as though the marketplace is pricing in some additional deterioration in the sovereign debt story,” explained Sean Callow, a more mature forex strategist at Westpac Banking Corp. in Sydney. “the Portugal auction on Wednesday will be carefully watched. I see euro weakness continuing.”

The euro was at $1.2904 at 8:30a.m. in Tokyo from $1.2907 in New York on Jan 7, after touching $1.2867, the cheapest because Sept. fourteen. The solitary forex traded at 107.26 yen from 107.32 yen endure few days, when it arrived at 106.95 yen, the weakest given that Sept. fourteen.

Spanish bond purchase looks good after Portugal triumph
Spain’s firs bond public sale of 2011 may be buoyed by Portugal’s triumph selling debt yesterday and European endeavours to bolster the area’s sovereign-bailout fund.

Spain plans to sell as much as 3 billion euros ($3.9 billion) of five-year bonds today at about 10:30 a.m. in Madrid. Securities of related maturity yielded 4.765 % on the secondary market, up from 3.576 % at a Nov. 4 auction. Italy, the euro region’s second-most indebted nation, aims to issue as much as 6 billion euros of debt due in 2015 and 2026.

The yield on Spain’s benchmark 10-year bond reached the maximum in over a decade this week on concern Europe’s debt disaster was spreading and Portugal may follow Greece and Ireland in searching for European Union aid. Portugal’s 10-year borrowing charges fell at a sale of 1.25 billion euros of bonds yesterday, as European leaders moved to cobble together a bundle of new steps to cease the contagion.

Spanish Property Market Current Issues

Saturday, July 30th, 2011

Spanish property scam cost investors millions

A businessman is at the centre of a Government and police investigation into a suspected £43 million overseas property scam. Colin Thomas of Town Hill, Yoxall, is currently being investigated by Staffordshire Police and is also facing legal action from the Insolvency Service following the collapse of his company Ocean View Properties.

A spokesman for Staffordshire Police said: “Following the collapse and liquidation of Ocean View Properties International Ltd, Staffordshire Police is in receipt of a number of complaints alleging fraud against the company.”

The Insolvency Service is understood to be about to launch disqualification proceedings against Mr Thomas and other bosses of Ocean View Properties. In a separate but related development, a class action lawsuit to recover money on behalf of dozens of Ocean View victims was filed by a Spanish lawyer in Madrid on Friday.

The criminal claim for fraud and misappropriation of funds against the directors of Ocean View was lodged in a Madrid court. The prosecuting lawyer is seeking more than £6.5 million in damages for 70 claimants.

The company, whose founders included a convicted fraudster, used the likes of England footballer Gareth Barry and television property expert Martin Roberts to sell luxury apartments in Spain. It took deposits worth around £80,000 each from British investors, but much of the cash disappeared as the homes failed to materialise.

Zapatero reforms increase Spain market confidence

Spanish Prime Minister Jose Luis Rodriguez Zapatero’s moves to overhaul banks while changing rules on labor, pension and wages may do more to stem the debt crisis than European plans to reinforce its bailout fund. Zapatero’s cabinet plans to pass new rules for job seekers today, two weeks after approving a draft bill to raise the pension age.

By the end of the month it will pass a decree to bolster lenders’ capital and in March aims to loosen collective- bargaining rules to make it easier for Spanish firms to compete. Spain, emerging from almost two years of recession, is trying to convince investors it can shore up its struggling savings banks without overburdening state finances and having to follow Ireland in seeking a European Union bailout.

The gap between Spanish and German borrowing costs is more than 10 times the average in the first decade of monetary union, even after easing by a third since Ireland’s rescue in November.
“The working assumption of more and more analysts in Europe is that Spain will be able to pull through on its own,” said Gilles Moec, co-chief economist at Deutsche Bank AG in London. “A lot of that has to do with what they’ve been doing; there’s a lot of market talk about Zapatero’s epiphany.”

Banks’ exposure to property could prove Spain’s downfall

They are officially banks but they have become Spain’s main real estate agents, according to data from the country’s banking sector which reveals the extent of their risky property assets. The Bank of Spain had asked all 17 of the country’s fragile regional savings banks, which account for about half of all lenders, to supply it with details of their exposure to the collapsed real estate market.
Unsurprisingly, the savings banks held far more risky assets than the main banks, based on a calculation of the figures last week by AFP. The nation’s seven main banks held 45 billion euros ($61 billion) in risky assets and the 15 of the savings banks that have so far published their figures had around double that, or 90 billion euros.

The difference is due to the huge amount of mortgage loans — some 164.9 billion euros worth — that the savings banks handed out during the property bubble, whereas the main banks only issued some 77.5 billion euros. The savings banks are at the heart of market fears that Spain could need a bailout like the ones granted Ireland and Greece last year.