The fate of the economy is still up in the air, and investors would be wise to wait and see where the market is heading before deciding to invest in Spain once more. Unless you specialize in picking up repossessed property and that means a lot of work constantly looking at the market and being ready to step in quickly, then now is not the time to buy.
However, those looking for a personal vacation property or planning to retire in Spain may still be interested in buying now, despite the sorry state of the market. These buyers will need to apply for an NIE number before taking any other steps in the process. NIE stands for “Número de identidad de extranjero,” which roughly translates to “foreigner identification number.” Foreigners need an NIE before they can purchase property, apply for a mortgage or open a Spanish bank account. Buyers can apply for an NIE through a trusted solicitor in Spain.
Homebuyers must complete an especially thorough due diligence process on any Spanish property they intend to purchase. A large number of homes were constructed illegally during the boom, and such a home could be demolished by the government with little or no reimbursement to the owner.
The Daily Mail (U.K.) told the story of one British couple who lost their Spanish retirement home because the property had been built illegally. Six years ago, the couple purchased two and a half acres in a Spanish coastal village and spent £350,000constructing their dream home. In January, a demolition team unexpectedly arrived at their door and gave them two hours to evacuate the premises. The local council had been convinced by corrupted builders to grant planning permission, but, according to the regional government of Andalucía, the home was constructed illegally.
It is extremely dangerous to invest in Spain without having adequate and independent expert legal advice because many corrupted developers and estate agents are at the bridge of bankruptcy and subsequently seized by desperation, they don’t hesitate to swindle potential individual clients and corporate investors in order to sell properties.
So if investors choose to purchase Spanish property, it is best to go into the process with both eyes open to the legal issues that could arise. A trustworthy lawyer and meticulous approach could prevent much unnecessary suffering further down the line.
For more information on Spanish property developments and executing bank guarantees, visit:
www.spanishpropertyactiongroup.com
Sunday, 29 November 2009
Spanish Property dust settles
Over the past three years, there has been an almost 'blood lust' for buying property abroad, especially in Spain, by British and Irish investors. With a wealth of property clubs, inspection flights, property exhibitions and seminars, forward thinking real estate agents and investment advice, we have all been touched by the craze in some way.
However, now the dust has settled and the reality in realty has hit home, what has actually been achieved?
Apart from a lot of people, thousands in fact, having travelled to a foreign country for two to three days at most, been paraded round off plan developments and romanced with stories of glasses of wine on the terrace overlooking the 18th fairway, the chance of missing the best positioned properties at the best price with rentals easily covering that 80% mortgage by the bank that will overvalue the property anyway, meeting a lawyer recommended by the developer or agent, signing paperwork in Spanish with the promise of a bank guarantee in the post, oh, and the weather of course - not a lot really.
A return visit to the same developments may not quite inspire the same feeling of excitement as it did before. With large developments such as Trampoline Hills, El Castillo, Santa Ana and La Tercia Real looking exactly as they did three years ago; Fortuna Hill and Finca Parcs resembling ghost towns and those finished, or nearly finished such as United Golf La Tercia, Parajela Golf, Las Terrezas de la Torre and Club de Golf Hacienda Del Alamo leaving you somewhat disappointed.
This all the begs the question: what were we all thinking?
This particular part of Spain, Murcia and the surrounding valleys is what it is. A land dedicated to arable farming or light industry. Lorry parks, small manufacturing plants and local industry has always been there. Maybe we just didn't see it.
We were we too busy imagining life in the small townhouse or two bedroom apartment surrounded by 2,000 identical properties. It is almost as if a mass hallucination had taken place and suddenly the trance has been broken.
Add to this the fact that many contracts have not been fulfilled and now legal action is the new craze in Spain.
For more information on legal action in Spain, contact www.spanishpropertyactiongroup.com
However, now the dust has settled and the reality in realty has hit home, what has actually been achieved?
Apart from a lot of people, thousands in fact, having travelled to a foreign country for two to three days at most, been paraded round off plan developments and romanced with stories of glasses of wine on the terrace overlooking the 18th fairway, the chance of missing the best positioned properties at the best price with rentals easily covering that 80% mortgage by the bank that will overvalue the property anyway, meeting a lawyer recommended by the developer or agent, signing paperwork in Spanish with the promise of a bank guarantee in the post, oh, and the weather of course - not a lot really.
A return visit to the same developments may not quite inspire the same feeling of excitement as it did before. With large developments such as Trampoline Hills, El Castillo, Santa Ana and La Tercia Real looking exactly as they did three years ago; Fortuna Hill and Finca Parcs resembling ghost towns and those finished, or nearly finished such as United Golf La Tercia, Parajela Golf, Las Terrezas de la Torre and Club de Golf Hacienda Del Alamo leaving you somewhat disappointed.
This all the begs the question: what were we all thinking?
This particular part of Spain, Murcia and the surrounding valleys is what it is. A land dedicated to arable farming or light industry. Lorry parks, small manufacturing plants and local industry has always been there. Maybe we just didn't see it.
We were we too busy imagining life in the small townhouse or two bedroom apartment surrounded by 2,000 identical properties. It is almost as if a mass hallucination had taken place and suddenly the trance has been broken.
Add to this the fact that many contracts have not been fulfilled and now legal action is the new craze in Spain.
For more information on legal action in Spain, contact www.spanishpropertyactiongroup.com
Trampolin Hills goes in to Administration
The developer behind the Trampolin Hills Golf Resort in the Spanish province of Murcia has been forced into bankruptcy proceedings unable to pays its debts, according to reports in the local press.
Administrators have been appointed to run the company, and creditors now have a month to register their claims.
Trampolin Hills, in Campos del Río, had been struggling to survive since the market downturn and was dealt a fatal blow when the town hall refused to approve its plans to build 2,500 homes and a golf course. Investors who bought off-plan without a bank guarantee will now at the back of the creditor queue and face potentially huge losses.
The bankruptcy will add further weight to the argument that developers should offer escrow facilities or bank guarantees as standard to protect consumers and help reverse the damage that cases like this do for the image of the industry.
If you are a creditor of Trampolin Hills and wish to recover any money you paid, you must file a claim before December 3rd 2009
The Ministry of Health and Consumers has issued a fine of €365,000 to the owners of Trampolin Hills Resort for not being able to guarantee the deposits paid by buyers for properties on the urbanization. The official bulletin for the region of Murcia stated on Tuesday 17th November that €350,000 of the fine had been issued for failing to guarantee the deposits and a further fine of €15,000 had been imposed for issuing what they call abusive contracts. The urbanization in Campos del Rio, which Trampolin Hills was hoping to build, included 2,573 homes of which 1,855 have already been sold and for which the company has received €57.988.762 as part payment. These homes have not yet been built and are lacking any planning permission.
Trampolin Hills Resort has been given 30 days in which to appeal the fine, meanwhile the obligation to deposit €30 million into an account to guarantee the civil actions that are expected to follow has still not yet been received by the courts and the company has been given a further two weeks to comply.
Many of those who bought on Trampolin Hills are either British or Irish nationals and they are facing the possibility of losing their initial investment unless they register their claim before 2nd December. The Consumers Department in Murcia has advised anybody that has purchased or placed a down payment on any property on the Campus del Rio Resort by Trampolin Hills should seek legal advice otherwise they could be in real danger of losing their money.
Many of the purchasers were issued bank guarantees by Trampolin Hills. In theory this should mean that their initial investment is covered. However, the courts in Murcia have discovered that the bank guarantees given are not valid in Spain, as they were issued by foreign banks, mainly a financial organisation in Switzerland, which is not under any legal obligation to meet the bank guarantees issued by the company.
The owners of the Trampolin Hills Resort, Antonio Martinez Gonzalez and Raffael Aguilera Serna, will soon see their own personal assets frozen if the €30 million is not paid into the court within the specified timeframe.
For more information on legal action in Spain, contact www.spanishpropertyactiongroup.com
Administrators have been appointed to run the company, and creditors now have a month to register their claims.
Trampolin Hills, in Campos del Río, had been struggling to survive since the market downturn and was dealt a fatal blow when the town hall refused to approve its plans to build 2,500 homes and a golf course. Investors who bought off-plan without a bank guarantee will now at the back of the creditor queue and face potentially huge losses.
The bankruptcy will add further weight to the argument that developers should offer escrow facilities or bank guarantees as standard to protect consumers and help reverse the damage that cases like this do for the image of the industry.
If you are a creditor of Trampolin Hills and wish to recover any money you paid, you must file a claim before December 3rd 2009
The Ministry of Health and Consumers has issued a fine of €365,000 to the owners of Trampolin Hills Resort for not being able to guarantee the deposits paid by buyers for properties on the urbanization. The official bulletin for the region of Murcia stated on Tuesday 17th November that €350,000 of the fine had been issued for failing to guarantee the deposits and a further fine of €15,000 had been imposed for issuing what they call abusive contracts. The urbanization in Campos del Rio, which Trampolin Hills was hoping to build, included 2,573 homes of which 1,855 have already been sold and for which the company has received €57.988.762 as part payment. These homes have not yet been built and are lacking any planning permission.
Trampolin Hills Resort has been given 30 days in which to appeal the fine, meanwhile the obligation to deposit €30 million into an account to guarantee the civil actions that are expected to follow has still not yet been received by the courts and the company has been given a further two weeks to comply.
Many of those who bought on Trampolin Hills are either British or Irish nationals and they are facing the possibility of losing their initial investment unless they register their claim before 2nd December. The Consumers Department in Murcia has advised anybody that has purchased or placed a down payment on any property on the Campus del Rio Resort by Trampolin Hills should seek legal advice otherwise they could be in real danger of losing their money.
Many of the purchasers were issued bank guarantees by Trampolin Hills. In theory this should mean that their initial investment is covered. However, the courts in Murcia have discovered that the bank guarantees given are not valid in Spain, as they were issued by foreign banks, mainly a financial organisation in Switzerland, which is not under any legal obligation to meet the bank guarantees issued by the company.
The owners of the Trampolin Hills Resort, Antonio Martinez Gonzalez and Raffael Aguilera Serna, will soon see their own personal assets frozen if the €30 million is not paid into the court within the specified timeframe.
For more information on legal action in Spain, contact www.spanishpropertyactiongroup.com
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