Property news
property focus: spain
Golfer’s paradise
The south-eastern Spanish region of Murcia, south of Alicante, continues to grow as a property hotspot, popular with golfers and sun-seekers thanks to a balmy micro-climate. One major development that’s been snapped up by golfers is the mammoth Polaris World golf resort, ten minutes from the Mar Menor lagoon. Why? It’s got star credentials. The existing nine-hole golf course is being expanded to an 18-hole course, created by US golfer Jack Nicklaus’ prolific design company. There are still some units left at Polaris World Mar Menor Phase Two. Apartment prices typically start at £113,000 one-bed one-bath apartment.
Planning permission for another Polaris World development, Condado de Alhama (completion due 2010 at the earliest), brings the company’s total developments to nine in the region, including three Jack Nicklaus golf courses. Two of these are labelled ‘Bear’s Best’ courses – the first in Europe to combine the best individual holes from the many Nicklaus courses around the world. www.polarisworld.com
Easy to finance your home in Spain
According to property experts Eurobolig, more and more people buying homes in Spain are choosing to arrange their mortgages in Spain itself; since 2001 the numbers of mortgages taken out in Spain by non residents has increased roughly five-fold.
Previously most non-residents took out loans in their home countries or part-financed the purchase with short-term (up to 15-year) loans offered by Spanish banks. However, with property prices up nearly 140% in the last seven years and healthy banking competition brought by the euro, the loans landscape in España has changed.
As Michael Foltinger, CEO of Eurobolig explains, “Since 2003 we have seen quite a few big EU mortgage institutes and banks raising the bar – and they’ve shown they way for the whole Spanish financial industry.”
“Today many offer up to 40 years terms with 10 to 15 years interest-only, and increasingly competitive cost structures. They now offer highly sophisticated mortgages with conditions like fixed or maximum interest for 30 years.”
“A few, like the UK bank Halifax, even offer full banking facilities like credit card, standing order payment system and internet banking. They now boast over 40% Spanish clients.”
Looking ahead, the future is favourable for mortgages in Spain. As Foltinger points out, the Spanish tax law is one reason for this favourable trend for borrowers: “In Spain you have wealth tax and high inherence tax so it is advisable to have very little equity in your property or in other words get a 80% mortgage with 10-15 years interest only because the value of the property should increase a minimum of 100% in that period. This suits Scandinavians who are used to owning property with a large mortgage and long repayment terms.” www.eurobolig.com or www.eurobolig.dk
Don’t rush in
When it comes to homebuying abroad, the golden rule is not to rush, says Hanne Egaa, Vice President of Nykredit, a company that specializes in financing solutions for Scandinavians buying in the South of France and Southern Spain. Here Egaa gives her top five tips for potential homebuyers:
- * Take time to research the area. If possible rent a place while you are looking. It will allow you to find out if the area meets all your needs and wishes.
- * Be aware that a property may be represented by several agents at the same time.
- * Look into your financing options before you start looking for a suitable property. It may be a good idea to show the agent and the vendor that you have already arranged for the finance of the purchase.
- * Be patient. The process of buying abroad may be longer than you are used to.
- * Lastly but most importantly, seek legal advice. When buying a property in France or Spain, it is very important to consult an attorney who can guide you through every aspect of the purchase.
Nykredit has recently reopened its office in Alicante (Plaza Calvo Sotelo). Other offices are located in Marbella, Cannes on the French Riviera. The International Lending division is based in Copenhagen. www.nykredit.com
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