We have often been asked by our clients to recommend local tradespeople, Spanish or English, to do jobs and we happily do so. We don’t do it for a backhander, we do it as a service but some people prefer to try and stand on their own two feet.
Unfortunately some of those that we do not recommend tend to con people out of money and then do a runner. Such is the case of one of our clients whose so called builder took 18000 Euros for an extension, promising planning permission through a local architect, took an extra 2500 Euros to pay the architect, who never received a penny, and took the roof off the house before leaving it open to the elements in October last year, the rainy season here by the way. The inside damage is around 10000 Euros. It turns out that another company are finishing the job for 18000 Euros, our hero’s original quote was for 36000 Euros so our client will only be out of pocket for the extra architect’s fees and a fine from the council for building illegally although they were wanting to do it legally.
Well it turns out that our hero has also botched a job for a large disco in Valencia and the insurance company are suing him. If you are thinking of having some work done don’t employ this cowboy. (And just in case he changes his sobriquet, he is half Welsh, half Spanish and works from Betera and if you phone us to verify we will tell you his name in case you are worried)
Some people say that recommendations from estate agencies are flawed because they have agreements with tradespeople to pay a commission. If you believe this fine but please get at least three recommendations from people that have had work done by the person or company concerned before committing hard earned cash to projects. We have experience of many tradespeople and we generally know who the reputable companies are so ask for help.
All The Best
The VP Team
Tuesday, May 02, 2006
The Market
Rumours are abounding that the market is taking an upturn as people are selling up in Bulgaria, Croatia and other eastern European destinations and heading back to France and Spain. Apparently the cheap prices don’t make up for the lack of home comforts, alien culture and feeling of being just a short hop back to Blighty for a quick visit. We have noticed that the 2/3 year itch is having its effect here too with lots of Brits selling up and moving on, either into larger places here (Or in some cases into the towns when the novelty of keeping the pool clean wears off) or back to the UK taking advantage of the capital gain they have earnt by buying and renovating here. Agents in Javea and Denia are reporting more enquiries in the first three months of this year than in the whole of last year, which was a very slow time in that area.
Here in Valencia the market continues to be pushed by the impending large events such as the America’s Cup and the extension of the airport and other communications. Prices continue to be reasonable but we all wish we could go back three years to when prices were giveaways. There are still bargains with huge potential for capital gain in the long and medium term available although the rental market continues to lag behind when looking for good yields based on price paid.
Our latest update www.valencia-property.com has quite a few excellent buys and a couple of beautiful new build properties in Olocau. It seems that some sellers are more willing to negotiate on price than previously too especially for flats in Valencia. One client in the capital has reduced their flat by 94000 Euros in price. You still need to be very rich to buy it but maybe expectations are becoming more realistic.
All The Best
The VP Team
Here in Valencia the market continues to be pushed by the impending large events such as the America’s Cup and the extension of the airport and other communications. Prices continue to be reasonable but we all wish we could go back three years to when prices were giveaways. There are still bargains with huge potential for capital gain in the long and medium term available although the rental market continues to lag behind when looking for good yields based on price paid.
Our latest update www.valencia-property.com has quite a few excellent buys and a couple of beautiful new build properties in Olocau. It seems that some sellers are more willing to negotiate on price than previously too especially for flats in Valencia. One client in the capital has reduced their flat by 94000 Euros in price. You still need to be very rich to buy it but maybe expectations are becoming more realistic.
All The Best
The VP Team
Mortgages
Mortgages and Valuations
Recently we have been organising a lot of mortgages for people, extensions to existing ones, new mortgages for buyers and mortgages for those who already have a house but need to finance renovation or just want to release some money. So we thought it was time to explain the rather eclectic way that banks grant mortgages here.
Firstly, the price of the house bears no relation to the mortgage offer. The only thing that matters is the valuation because a percentage will be offered based on that valuation. The valuers are independent from the banks supposedly so give a true market valuation. (And I am Santa Claus) Our best disparities are the following, a house for sale for 327000 Euros was valued at 760000 and one for sale at 220000 was valued at 144000 because it was on rustic land. Therefore it is quite difficult to give an accurate idea of how much the bank will offer a potential purchaser unless you can get a prevaluation from the valuer who will be valuing the house to give a rough idea of how much will be offered.
Secondly you will need quite a lot of papers to get a mortgage, all of which can be organised but you need to be aware that the papers the bank originally ask for will possibly need to be complemented by your life story as the process moves along. Expect a non resident offer of 70% for the mortgage based on the fairy story of the valuation but 80% can be obtained for “good” clients. For good read rich!
Lastly, the rules have recently changed in banking to not allow the declared price of a house to be less than 80% of the mortgage amount. To give an example if your mortgage is 200000 Euros you must declare at least 160000 Euros on the deeds even if your actual purchae price bears no relation. This is an attempt by the government to put pressure on the banks to stop overlending and to put an end to the practice of underdeclaration on the deeds. If in the above case the declared price was 150000 Euros there would now be supposedly an immediate investigation by the taxman into the operation. Also let us assume that you were buying for 250000 Euros in the above case, the procedence of the extra money must be accounted for, where did you get it from? Our advice is that it is stupid to underdeclare by 90000 Euros on a sale because the taxman will catch up with you. Decide yourself which is better, 7% tax on purchase price or 30% on capital gain on sale price if and when you move (For non residents, residents pay 15%).
Rates remain low with the average mortgage currently being set at 3.5% but expect that rate to change to around 4% by the end of the year. Rates are fixed in general for one year and then variable every year after at Euribor base rate plus a differential which varies between 0.5% and 1.25% depending on the client, the bank and the risk involved.
Recently we have been organising a lot of mortgages for people, extensions to existing ones, new mortgages for buyers and mortgages for those who already have a house but need to finance renovation or just want to release some money. So we thought it was time to explain the rather eclectic way that banks grant mortgages here.
Firstly, the price of the house bears no relation to the mortgage offer. The only thing that matters is the valuation because a percentage will be offered based on that valuation. The valuers are independent from the banks supposedly so give a true market valuation. (And I am Santa Claus) Our best disparities are the following, a house for sale for 327000 Euros was valued at 760000 and one for sale at 220000 was valued at 144000 because it was on rustic land. Therefore it is quite difficult to give an accurate idea of how much the bank will offer a potential purchaser unless you can get a prevaluation from the valuer who will be valuing the house to give a rough idea of how much will be offered.
Secondly you will need quite a lot of papers to get a mortgage, all of which can be organised but you need to be aware that the papers the bank originally ask for will possibly need to be complemented by your life story as the process moves along. Expect a non resident offer of 70% for the mortgage based on the fairy story of the valuation but 80% can be obtained for “good” clients. For good read rich!
Lastly, the rules have recently changed in banking to not allow the declared price of a house to be less than 80% of the mortgage amount. To give an example if your mortgage is 200000 Euros you must declare at least 160000 Euros on the deeds even if your actual purchae price bears no relation. This is an attempt by the government to put pressure on the banks to stop overlending and to put an end to the practice of underdeclaration on the deeds. If in the above case the declared price was 150000 Euros there would now be supposedly an immediate investigation by the taxman into the operation. Also let us assume that you were buying for 250000 Euros in the above case, the procedence of the extra money must be accounted for, where did you get it from? Our advice is that it is stupid to underdeclare by 90000 Euros on a sale because the taxman will catch up with you. Decide yourself which is better, 7% tax on purchase price or 30% on capital gain on sale price if and when you move (For non residents, residents pay 15%).
Rates remain low with the average mortgage currently being set at 3.5% but expect that rate to change to around 4% by the end of the year. Rates are fixed in general for one year and then variable every year after at Euribor base rate plus a differential which varies between 0.5% and 1.25% depending on the client, the bank and the risk involved.
Wednesday, March 22, 2006
Misleading
I had the misfortune to watch My Place in the Sun, (Not “A Place in the Sun” as it was the update programme) this week on Channel Four. It is not that it is a bad programme but please researchers do some updating of prices before putting programmes on the TV. So for all of you who got in touch this week asking for mansions for 150000 Euros please bear in mind that the programme was originally recorded around the end of 2002 start of 2003 and prices have doubled in the Valencia region since then.
However check out Amanda's top ten as Valencia is considered to be the fourth best place to buy in 2006 in Europe to make money and according to Amanda Lamb “If I had to pick my top buy for an instant return, it would be here. If you get off the mark and buy fairly quickly, it will have gone up dramatically within a couple of years.”
All the Best
The VP Team
Regards
Graham
However check out Amanda's top ten as Valencia is considered to be the fourth best place to buy in 2006 in Europe to make money and according to Amanda Lamb “If I had to pick my top buy for an instant return, it would be here. If you get off the mark and buy fairly quickly, it will have gone up dramatically within a couple of years.”
All the Best
The VP Team
Regards
Graham
Wednesday, March 01, 2006
VP in the news!
We have been featured yet again in a national newspaper, this time the Guardian. Check out Guardianunlimited and it will also give you some more info about what is going on, going down and going up (In flames) in Valencia at the moment.
We have now been featured recently in the Times, The Sunday Times, Telegraph, Independent and many of the magazines that you can find out about Spain and in particular Valencia. For a list of links get in touch with tim@valencia-property.com as I am sure he can supply you with them.
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