Property News

Restoring old Spanish Properties to their former glory

May 22, 2013
Frigiliana News, Property News
No Comments
Casas antiguas, Frigiliana, refurbishment, restauración, restoration

Back in the seventies and eighties it was easy to find an old Spanish house going for a song that could easily be converted and restored back to its former glory, or whatever your imagination could come up with.

Today it’s not so easy even though property prices have come down over the last five or six years, as it’s all been done before and there is a scarcity of run down properties at attractive prices, as most of them have already been discovered, and converted. It is true to say that at least inland this may not be the case as traditionally these properties were always available and probably still are. But nearer the coast, with an abundance of foreign buyers and higher demand, they have become more difficult to find and because of their proximity to these more popular areas, their prices are higher.

It has therefore come as a very pleasant surprise since opening our new office in Frigiliana just a few weeks ago that these rare finds are still available.

Having witnessed many conversions over the years, many of which have been carried out with great imagination, clever use of authentic local materials and much attention to detail that in many cases they end up far superior than the original version. Many such examples come to mind in both Nerja and Frigiliana, some have been converted to beautiful, authentic homes whilst others to restaurants or even boutique hotels.

One of the problems when trying to acquire an old, run down house which when you look at it makes you think it’s almost unsalable, is the price. Naturally, most of the original stock belongs to the locals who have much experience eying up a potential foreign purchaser assuming that the price is not a problem. Add to this, the “potential” of the property as seen by the owner, such as a one storey house than can actually be converted to three because local planning will allow, and you now find yourself in a position of being sold something that does not quite exist yet as the second and third floors aren’t even there yet. This is how the Spaniards sell what we might describe as a ruin. But to a point, they would be right. If you can legally add more volume then this potential must be paid for.

In recent weeks we have acquired for sale some interesting possibilities. The first one is not for refurbishment because it’s already been done and provides an excellent example of what was a run down old village house that as been carefully rebuilt maintaining local charm and character:

A beautifully restored village house in Frigiliana.

Here is a perfect example of a house that needs some TLC and a certain amount of investment, but the potential is definitely there. Some modernisation has already taken place in the form of a new but typical village kitchen:

A traditional, split level village house.

Here is another which requires more imagination than the one above. It also has a modern touch in the form of a new bathroom. The rest would be up to you:

Village town house with much potential.

But the “gem” so far is the next one, a large, very well located house in the centre of the village with good access, 200m2 of “potential”, 3 outdoor terraces and…. an original olive press! This property could be turned into a wonderful Spanish home oozing with character, a restaurant or even a small guest hotel or B&B:

Olive Mill House in Frigiliana.

We also have others in the pipeline that we will be adding to our listings very soon and we are sure that there will be more to come.

So if you have dreamt of that lovely, cosy charming village house in southern Spain, they are still out there!

Article written by Edwards Estates, Calle Real, 51 Frigiliana.

Edwards Estates Expands by opening a New Office in Frigiliana

April 30, 2013
Costa del Sol East, Frigiliana News, Property News
No Comments
Edwards Estates, estate agent, Frigiliana, Inmobiliaria

EDWARDS ESTATES EXPANDS ITS OPERATIONS BY OPENING A NEW BRANCH OFFICE IN FRIGILIANA.

We may be going through austere times in Spain, but there are success stories to hear about and one of those is Edwards Estates.

When most real estate agents are struggling, Edwards Estates goes from strength to strength and they confirm this with the opening of a new office in the beautiful white washed village of Frigiliana, just a short distance inland from Nerja and the coast.

Established on Castilla Perez in Nerja for over 5 years, this new additional office in the heart of Frigiliana Village is a testament to their commitment and investment to develop the business further in this fabulous location.

The new office has a prime position on the main street ‘Calle Real’ and ensures a full and thorough service to both homeowners who want to market their property successfully and to potential purchasers from across Europe and beyond.

Moving specifically into Frigiliana was always seen as a natural progression for the Company as there was already well established links within the Village. Many families having lived there for many years and with whom Edwards Estates have previously worked whether for sales properties, long term rentals or the ever increasing holiday rental market. It was a clear goal of the Company to eventually set up a specialist, focused office in Frigiliana to promote the wonderful life style that the Village can offer.

A much quieter neighbour of the ever popular Nerja but with a location offering outstanding natural beauty, set amongst the Almijara, Tejeda and Alhama mountains and all within an 8 minute drive of the coast. With a maze of cobbled streets and white washed houses, every corner offers a new delight. The Village is charming and full of character with Restaurants, café’s and local businesses hidden amongst the houses with their colourful hanging baskets and decorated balconies. The surrounding countryside provides a backdrop to some of the most wonderful Villa’s and Villa locations.

To this day, the Village of Frigiliana is steeped in tradition and whilst acknowledging National festivals held throughout Spain and Andalucía, also has one or two of its own which are a joy to be a part of.

The expertise of Edwards Estates in this location, can guide you through buying, renting or selling a property, or alternatively, assisting you in acquiring land to build your own home. They ensure all transactions go smoothly and provide you with a highly professional service together with a great local knowledge, a vital ingredient to a successful sale or purchase.

Edwards Estates is actually backed by over 30 years of sustained and uninterrupted real estate experience in Nerja and the surrounding area with the company being formed by locally born Scott Edwards and his father Robert. The latter started his first Estate Agency in Nerja and London in 1980 as Hollis Edwards Associates Ltd., and was one of the pioneering companies throughout the eighties and early nineties.

Speaking Spanish, English and Swedish fluently they can provide you with the local knowledge and experience of the area, enabling you to make the right choice in the right location. This is a business built on relationships, standards and honesty, words that you can’t associate with many businesses of this type.

Recently, Miguel Forbes the great grandson of the founder of the business magazine Forbes, stated the he considers it a good time for foreign investors to bet on the Spanish real estate market. “Property valuations and stocks are low, it’s time to buy,” he said.

Edwards Estates can help you become part of that future vision, with their aggressive marketing campaigns across several countries, a hugely successful website in the industry and a multi language capability to ensure that International clients have confidence in their service, Edwards Estates really does have it all.

You can find the new office of Edwards Estates in the Calle Real, 51, 29788 – Frigiliana (Málaga), SPAIN.

Web: Edwards Estates in Nerja and Frigiliana.

Telephone: (0034) 95 253 3642.

Property in Axarquia

If you still don’t know Axarquia, you have to. The ancient area, located east of Malaga, in the south of Spain, is considered the place with the best weather in all Europe. Its sub-tropical temperatures, the always available beaches that spread through 25 kilometers and the pretty orange trees that are Axarquia’s hallmark make it one of the best vacation destinies in the world. Surrounded by the Mediterranean ocean and magnificent mountains, Axarquia is a true paradise.

The breathtaking area, with its big mountains and small villages, remains mainly traditional and free from the interest of big tourism groups. Almost all these little places dedicate to the culture of olive, almond and vine. It’s a simple world, where, currently, rural tourism and property renting still comprise the largest chunk of the local economy.

Recently, Axarquia has been the target of major investments in the tourism area and its resources. Nothing that can take away the sense of tradition that the region can convey, of course. These investments comprise, in total, three million euros that have been spread across 50 different initiatives. The goal is to boost the area’s appeal to the Spanish and foreigners.

These millions allowed the development of a visitor centre, located in La Viñuela and other projects like an information system with digital maps, the construction of a museum dedicated to honey, in Colmenar, the Galvez Museum, in Macharaviaya, and also the expansion of the Morisco de Sayalonga Museum. And don’t forget the numerous improvements that are being made in all Axarquia and the publication of several guides related with tourism (development and creation of souvenirs, urban landscape and nature or a traditional cookbook with all there is to know about the local gastronomy).

You can see that Axarquia is a great choice for your vacations and, once you tried it, you will want to go back. In this case, property analysis seems the right thing to do, since the region has country and village properties available for potential renters and buyers, without forgetting the luxurious villas scattered around Axarquia.

Fortunately, this region is still partly free from the problems that came with the real estate and construction crisis that hit the country. Property to rent and buy in Spain is in a stall. Before the crisis, purchasers wanted to buy cheap and then rent or sell to make more money, but the economy backfired their intentions. However, the situation remains different in Axarquia and to find a property that suits your taste and requirements all you have to do is talk with a trained professional.

Written in full by BuySellRentSpain.com

Spanish Property Market – as it stands

March 27, 2013
Property News
No Comments
España, marketplace, mercado inmobiliario, property, propiedades, Spain

LPG Spain was recently approached by the web site, Spain Made Simple, asking us our opinion on the current state of the Spanish property market for their newsletter.

We were more than happy to oblige. Here are their questions along with our answers:

Q. Are property prices in Spain going down, up or stabilizing?

A. Spain’s property market is now into its seventh year of recession. During this time prices have dropped significantly from the heady heights of pre 2007, prices of which many claim, had to drop. During this period, many thousands of estate agents, developers and builders have disappeared, leaving a hard core of professionals still struggling to survive. However, price performance has varied considerably in different parts of Spain depending primarily on its clientele, domestic or foreign.

Within the domestic market, Spaniards have seen the bottom drop out of their market with prices coming down up to 60% in some areas as banks haul in repossessions and unsold new stock from developers that have gone out of business. Added to this, the banks are also offering 90% + mortgages to the Spanish who buy any of their stock.

On the other hand, coastal regions have fared much better as the majority of buyers are from overseas. Whilst it‘s been a complete buyers market over the last 4 – 5 years, where purchasers have been offering very low bids on property already drastically reduced, there are regions that are now beginning to recover, which leads me to the next question…

Q. Who represents the main buyers now, is it the Spanish or has another foreign market taken over from the British?

A. The Costa Blanca reports thriving business from the Russians. The Costa del Sol has been almost invaded by the Scandinavians, in particular those from Sweden and Norway, whilst the British, historically the nation that has purchased more property in Spain than anyone, is still a little conspicuous by their absence, although in the past six months have shown an increase in property purchases in Spain.

As an Estate Agent on the east Costa del Sol, in Nerja, Edwards Estates also employs Swedish staff, and can attribute 75% of sales last year to this market. We would also go as far as to say that during the course of this winter, the problem that we are having is not a shortage of clients, but a shortage of quality and well priced property. This indicates that the majority of prices in our area are still overpriced, in the eyes of the purchaser, but property that is priced well for the region is selling quickly.

Concluding, we see that 2013 may be the year that prices do stabilize in areas that are in demand, whilst the Spanish domestic market will continue to suffer with even further reductions in price added to the main problem for potential buyers, uncertainty in the job market and the unemployment situation, currently at over 5.000.000 people, still rising and expected to reach 27% of the active working population this year, more than fifty percent of which are people under the age of 30. Not an easy situation for those trying to get onto the property ladder.

Robert Edwards – Administrator of LPG Spain.

Forbes Magazine: “It’s a good time to invest in the Spanish property market”

March 7, 2013
Property News
1 Comment
España, Inmuebles, property, Spain

The great grandson of the founder of the business magazine Forbes, Miguel Forbes, considers it a good time for foreign investors to bet on the Spanish real estate market. “Property valuations and stocks are low, it’s time to buy,” he said.

In a presentation of Forbes magazine in Spain, the founder’s great grandson says he is confident the magazine will serve to better understand the success and recipes of millionaire entrepreneurs, such as Amancio Ortega, founder of Inditex (Sara shops and boutiques), who has recently appeared in third place in the annual list of the richest people in the world.

Editor’s note: It’s good to hear some positive news about property and Spain in general.

Foreign House Buyers in Spain up 28.4 pc in 2012

March 5, 2013
Property News
3 Comments
España, property, propiedades, Spain

A total of 38,312 foreign, non-resident nationals in Spain bought a home last year. This represents an increase of 28.4% compared to 2011, according to the Notary Association. 42% of the transactions closed at a price above 160,000 Euros.

By region, Murcia and Andalusia are the two regions where the number of buyers has fallen, whilst Catalonia last year recorded more than twice the number of buyers as compared to 2007. The origin of new homeowners has also changed, because for the first time the Russians represent the second largest volume of homebuyers, behind the British.

Regarding prices, 42% of transactions closed for an amount in excess of 160,000 Euros, precisely the figure that the Spanish government has set as a recommended amount in order to grant residence permits to foreigners who purchase a home in Spain. This however, is still subject to final legislation by the government.

Buy a house in Spain and obtain a residence permit.

Low Pound favours Expats returning to the UK

February 2, 2013
Property News
No Comments
Euro, exchange rates, Expats, Libra esterlina, Pound sterling

Since the beginning of the year sterling has taken a pounding against the Euro.

There are various reasons for this, the most recent being data released on 25^th January with regard to the UK GDP which returned a negative 0.3% in the last quarter of last year. Despite growth of 0.9% in the third quarter after the summer Olympics, the overall balance for the year is negative.

The Pound has dropped from 1.23 in December to 1.15 as of today, the lowest in over a year. This is not such good news for Brits wishing to purchase a property in Spain but is positive for Expats selling their property in Spain in Euros and who wish to return to the UK. Given that it’s still a Buyers Market in Spain, this allows some further adjustment by the seller on their sales price allowing them to sell up and return sooner.

In the meantime, other strong markets have emerged over the last twelve months, especially those from Scandinavian sources such as Sweden, Denmark and Norway, and also Russia.

Buy to Rent in Spain

January 29, 2013
Property News
3 Comments
buy property, Buy to rent in Spain, property investment, rent property, Spain

Whilst the Spanish property market maybe going though hard times, property is selling, albeit in much lower numbers than during the boom time. On the other hand, both the holiday rental and long term property markets are in high demand in our area of the eastern Costa del Sol and Costa Tropical.

Buy to Rent in Spain

When you buy a holiday home, you’re not only making a property investment. It is also an opportunity to make money in the long run by renting the holiday home in the weeks and months that you are not using it yourself, or take advantage of the much lower prices and buy a property to let all year round.

The video above will show you a few but important things you must consider in the acquisition of holiday homes – things that matter most in the rental potential of the property.

Target Group

Start by getting an idea of your target audience. By determining your target group of tenants, you will achieve the best results in your rental business – both in terms of earnings and customer satisfaction.

Your target group could be: young couples with no children, old couples with no children, families with children, groups of families with children, families with a person with disability, or perhaps a group of business travellers. Each group has different and specific needs. But if you are able to deliver 100% of their wishes and expectations, you can be assured of your success.

Location

First and foremost, your holiday home has to be in an ideal location where you would dream of living when you go yourself on holidays or vacations. Since you also need to consider your target group’s needs and requirements, it is advisable to find a location that is both perfect for your own and your target group’s holidays.

If your target group is families with children, for example, it is important that the home is safe – not close to roads with heavy traffic and speeding cars. Families with children also want easy access to supermarkets, restaurants, beaches, parks and playgrounds. If your audience are young couples without children, your holiday home can be closer to busy places and the bars. For business travellers in groups and for older couples, the holiday home can be in quiet and peaceful areas.

Other important things to consider, in terms of location, are the view and the distance to the airport. You might want to also think of its distance to golf courses and ski resorts.

Size and structure

The size of the accommodation that you choose to buy is likewise important for your target group. Smaller apartments are great for young and old couples travelling without children, while large villas are good for families with children. Larger villas are perfect for groups of families or business travellers.

Regarding how the house is laid out, think of the necessary equipment and facilities your target group is looking for: a number of bedrooms, private bathroom for each bedroom, and maybe more living rooms or work spaces. If you wish to rent for persons with disabilities, or in wheelchairs, make sure to provide direct level access and plenty of space in the bathroom, kitchen, bedroom, front doors, etc.

Features and Furnishings

The choice of house features and furnishings is also important for your target group. Nowadays, Wifi Internet access, cable TV, air conditioning and mosquito nets for windows and doors, are important for all groups. The same applies to washing machines and dishwashers. But there are big differences with other things.

Families usually find swimming pools an attractive feature that’s why pools can be important for groups of families for children. But, of course, do not forget safety. The pool must be adequately shielded with a fence. The entire outdoor area must be fenced, so parents can relax without being worried about where the children might walk or wander off. Likewise, remember to have a door or gate in front of stairs. Remember, it’s quite crucial to think about security if the target group is families with children.

Another thing to consider is that the furniture must look presentable. It’s generally recommended to choose pieces of furniture that are better than the cheapest in the market. Try to make the house comfortable, cosy and homey, and your guest will feel even more at home. Also, keep in mind the target audience when it comes to choices of furniture. If they are business travellers, there must be good work desks and chairs. If they are families with children, there must be high chairs, cribs, etc.

Holiday Renting

Once you have purchased your dream holiday home with the appropriate choices of location, size, design, features and furnishings for the target group in mind, renting it out is much easier and more pleasant. Most rent the property on a weekly basis as rental income on short-term rentals is significantly higher than the long-term ones. Also, implementing short-term rentals makes it easier for you to use your holiday home for yourself, your family and your friends.

The normal level is 20-30 weeks of rental per year. Advertising about renting can be either through your own website, vacation property portal or agency. The rental itself can be managed by either you as the owner or a skilled agent in the area that you choose. Tasks are to meet with customers, provide keys, accept payment and check guests out, etc. In most cases, cleaning is done by local cleaning companies.

Long Term Renting

If you should decide to rent long term the overall financial annual gain may be lower than short term lets, but you are secure in the knowledge that it is rented all year round, at a fixed monthly rent, with the tenant paying all the utilities. Maintenance and wear-and-tear on the property is also reduced. In coastal and touristical areas you will find that many of the tenants are couples, often with no children, and a simple one or two bedroom property will suffice in many cases. If it’s a villa or large town house that you have, then this will appeal to families with children.

Split Renting

In an ideal world, you can split the year into 6 months during winter to cater for the winter residents, switching to short term holiday lets for the summer. In this way, you can also allow room for your own booking!

In summarising, the Spanish property market now offers good property at very attractive prices. If you’re thinking of moving into the market, to buy to rent, then this is the time.

The bases of this article and the video have been supplied by John Kramer at Spain-Holiday.com and is reproduced with his kind permission. Here at LPG Spain, we have added some additional content and advice to the original article.

Note: A Spanish version of this article and video will be published in the near future.

Energy certificates now required in Spain for properties for sale or rent

January 11, 2013
Property News
27 Comments
calificación energetica, certificado de energía, Energy Performance Certificate, España, Spain

From April onwards an energy certificate will be required to sell or rent homes in Spain.

Those who sell or rent a house built before 2007 will need a mandatory energy performance certificate. According to the Ministry of Industry, the royal draft decree will be approved this month but will allow a period of adjustment of two months before this becomes law in April 2013.

This is yet another requirement that comes from Europe and was expected to be adopted before 1st January this month. The industry ministry said that if this draft was not approved by the deadline, Spain would probably face a penalty from Europe.

Once the new law is enforced all owners who wish to sell or rent their homes must have available to the buyer and / or the tenant this “energy certificate”. Protected buildings and monuments will be excluded, as well as places of worship or residential buildings that are subject to a lease for less than four months a year.

Therefore, each house will have a label similar to those already used in electrical appliances indicating how efficient it is in terms of energy consumption. This label is currently used for new houses and classifies each property with a color code according to a scale of from “A” (the most efficient) to “G” (least efficient).

Has the Spanish Property Market Bottomed out yet?

December 29, 2012
Property News
No Comments
España, House prices in Spain, IVA, precios de la vivienda, Spain, VAT

The Spanish property market is now coming to the end of its fifth year in recession, and as with all previous slumps (the last one occurred in the early nineties), there comes a time when property prices stop falling, the market stabilises, and a certain confidence returns attracting once more a desire to purchase a property in Spain.

Upon reading the endless statistics from many official and unofficial sources it would appear that prices in Spain have fallen, on average around 40% across the board. If you listen to the banks in Spain, the reduction is even greater, perhaps as much as up to 60% when you buy one of their re-possessed properties. And just recently there have been reports that the Spanish banks are up to their old tricks in offering 120% mortgages to buyers of their properties in order to cover al the purchasing expenses.

The latest figures on property prices in Spain have just been published by Idealista.com, one of Spain’s foremost portals. Although scanning values across the country continue to show a decline in prices, there are now some signs of a turn-around in the last quarter of this year in certain towns where prices have actually increased:

In the province of Málaga: Benalmádena up 4.4%, Nerja up 1.5%, Ojén up 1.3% and Marbella up 0.1%. Other towns in Spain also show increases, particularly in coastal regions and on the Canary Islands.

It’s a very small beginning but the tide turns in all cycles. Will 2013 be the year that the Spanish property market begins to steady itself, which in turn will be news in itself, and begin to attract the buyers as before?

Increase in VAT

As from January 1^st the VAT on the purchase of a new property rises from the present 4% to 10%. As in the last quarter of 2011 when property sales increased due to the fact that the VAT would increase 1^st January of this year (which was extended), there are already signs to indicate the same trend will continue in the last quarter of this year. One of the problems that Spain has at present is the huge amount of unsold stock of new property which is unlikely to reduce to any great extend next year with the increase in VAT. There are rumours that the Government, after reviewing figures when published for the last quarter, may decide to revise the law once again and decrease the VAT to a level to attract buyers for this stock pile, much of which now belongs to the “Bad” bank, recently set up in Spain.

This is perhaps a key factor to the forces controlling prices in Spain, so long as there is such a quantity of unsold property available, especially from the banks, general resale property prices cannot rise by any significant amount.

Estate Agents in Spain

The recession has brought about the demise of thousands of property agents in Spain. As a result, their now exist a hard-core of professional estate agents who have been able to ride the storm and are best placed to offer the best possible advice to new purchasers. This is positive for the sector, as before there were simply too many agents, and secondly, too many with insufficient experience to provide professional advice for what is the biggest investment that most people make in their lives. This confidence, between client and agent, is another key factor in the present scenario and will help in revitalising and assisting the market… perhaps in 2013?