Assetsure News 24th April 2007
Spanish Stocks down again - In Madrid, Spanish property stocks are in the news again as many have again lost ground amid fears that the Spanish real estate sector maybe about to fizzle out. The latest predictions are that the downturn is likely to happen soon rather than later. Spanish property stocks have been taking a downturn in today's session amid concerns the domestic real estate sector bubble could burst sooner rather than later, analysts and market watchers said.One of the main reasons for the sector being in the spotlight is the 60% drop in the share price of Astroc Mediterraneo SA, this has focused investors attentions on other builders and real estate companies in the sector. The doom mongers are out in force now and whilst it is true that many Spanish Real Estate companies were overvalued, house prices in Spain are still rising albeit at a lower rate. There is plenty of over capacity in the market, too many developments are in the offing but Spain does remains a firm favourite for retirement or Holiday Home purchase. In is anticipated that property prices will level off having enjoyed a strong run dating back almost 20 years
Largest Property resort in Europe to be built in Murcia Spain - How odd that with all the talk of uncertainty regarding Spanish property prices that it has recently been announced that in Murcia they are to build the largest resort complex in Europe. Murcia the location for this massive development of almost 60,000 new homes hopes the new build properties will be snapped up by overseas investors as buy to let rental properties.The scheme is controversial to say the least as the development is taking place on land that is part of the Cabo de Cope-Puntas de Calnegre Regional Park. The building project is going to cost in the region of a massive 3800 million Euros and will take approximately 15 years to entirely complete. Conservationists are appalled by this announcement but local authorities in Murcia have stressed that the development will bring a much needed influx of investment in to the area. There have been recent developments that have pointed the way to this announcement,notably the opening of a new multi million euro dual carriageway, the AP7 which links Almeria with Murcia and runs parallel with the Mediterranean coastline This new road passes very close to where this development will occur. This new road will help greatly improve transport links and will help cope with the upsurge in visitors as will the recently announced new international airport that is will be built 15kms from Murcia. Murcia is working hard to improve it's infrastructure and this may not be the last major development to be announced.
Snowball to join the Tower gate Group - We have received reports that Patriot Snowball former head of Norwich Union Insurance has been snapped up by the Tower gate Group. Mr Snowball is expected to take up his new role at progressive insurance broker Towergate in the near future.
Better Mortgage Deals for British Expats - We are pleased to report that Banco Halifax Hispania has just announced the launch of a new initiative known as the switch & save campaign. This new facility will allow British Expatriates owning property in Spain to transfer their mortgage to Banco Halifax Hispania without having the stump up the usual switching costs. The offer entails the bank meeting the customers transfer costs which also include legal & notary fees, valuation fees, arrangement fees and registration fees. Banco Halifax Hispania are also offering to pay 0.5% towards any early repayment fee levied by the outgoing lender. Banco Halifax Hispania have a well developed knowledge of the British Expat Market and the Spanish property markets. They are able to offer flexible mortgage products and all of the negotiations can be carried out ion English, the bank also have access to English Speaking solicitors and lawyers that are often locally based with the benefit of good local knowledge.
Strong Interest in Italian Property - Buying a holiday home or property in southern Italy is becoming more popular. The region has been receiving much good press in recent times and now that cheap flights are available via Ryanair, buying an renovating a building in this part of the world is a lot easier. Ryanair are expected to extend their services to southern Italy again this summer and many people are now considering property in the area as a real alternative to Spain. Spain is still the jewel in the holiday home crown amongst British Expatriates but many feel that property prices in the region have now peaked. Investors are now demanding more value and are prepared to look further to make sure they obtain a great deal.
Spanish Capital Gains Tax Reductions - More good news for British Expats and holiday home owners in Spain. The Spanish government has just announced the reduction in levels of Capital gains tax and withholding tax on property sales for non residents to bring in in to line with the amounts charged to Spanish nationals. For quite a while non residents were lumbered with a massive 35% tax on their gain compared to only 15% charged to resident sellers. In reality the new charge is going to be 18% with residents suffering a 3% increase in the tax they have to pay. The Spanish withholding tax has also been reduced to 3% thus enabling sellers to take away more of the proceeds of any sale straight away