Nikki Beach White Party

Confirmation that Marbella is the best place on the planet came with the news that America’s First Lady and her younger daughter, Sasha, nine, will spend four days in the seaside resort, staying at the five star Villa Padierna based in Los Flamingos Golf Resort. This Hotel was known as the Ritz Carlton until for legal reason they were no longer able to use the name.

Officially President Barack Obama will not be making the trip, nor would the couple’s elder daughter Malia, 12, who is going to an American summer camp. However don’t be surprised if the President shows up here in Marbella even though its been denied by the White House who released an official statement released by the White House read: “The First Lady will travel to Spain next week for a private, mother-daughter trip with longtime family friends. President Obama will not be joining this trip.”

Sources quoted in the Spanish media said the Obama party had booked 30 rooms at the resort, which start at 250 euros for a standard double, rising to between 2,200 and 5000 euros for a private villa within the gardens.

For us living in Marbella we know this Hotel very well but lets face it its not even Marbella, its in bloody Estepona.

Anyway it’s a big PR boost for Marbella and Costa del Sol property

Fiona Gonzales of Teach Yourself Spanish

So for those of you who want to teach yourself Spanish and take the ball by the horns so to speak I came across this fantastic website click Teach Yourself Spanish to see for yourself. Now being a guy its hard not to be impressed with such a stunning lady as Fiona Gonzales and if I was going to get some advice on how to learn Spanish Id defo be getting it from her but that’s all as she is head over heal in love with her fella (lucky guy) so we will have to stick to Spanish.

For those of you who want to give Fiona a swerve but want easy Spanish lessons then get online find that Spanish course and starting mixing with the local Spanish who are wonderful people by the way.

Marbella Villas

PROPERTY COSTA DEL SOL SECRETS

1                    Manage your expectations which are really difficult for people trying to find the impossible. The property market here is in recession but it’s not a 1929 Wall Street crash and whilst you can buy some fantastic deal you can’t buy at 25% of 2007 prices but amazingly some people think you can. So get real with your expectations

2                    Find an agent you can trust and ideally deal with just that agent. Here in Spain all agents work together with other peoples properties as well as there own and if you find a good agent you can trust you can access the whole market through that agent. The benefits to this are obvious in that you wont have another agent trying to rubbish another agents property and if the agent sees some loyalty from the buyers they are much more likely to pull out all the stops to make a deal happen on the clients terms even if that it taking less commission.

3                    Know your Locations. In property Costa del Sol different locations have different prices so one property might be deemed to be better value for money in say Calahonda because the property in Marbella is €100,000 more  but in reality the better value for money and investment could well be the property in Marbella

4                    Price per square meter is a major factor you should consider when buying as to whether it’s a great deal or not. Right now you can buy some brilliant properties at under 2000 Euros per square meter and the reality is you couldn’t build them for that.

So I hope you found these tips really useful and you use them to take advantage of the Costa del Sol property recession.

Boost for Marbella

Al-Thani said after a meeting with Mayor Angeles Muñoz in Marbella that he is in advanced negotiations in a major project in Marbella, related to the tourism industry. He did not reveal exactly what kind of investment project it was.

Angeles Munoz claimed after the reunion with the Qatari sheik that this was wonderful news for the city of Marbella. She looked very excited about the plans, but could not either identify exactly what they were.

Until further information comes from the mayor or the sheik, one can only speculate what the spectacular plans consist of. All we know for know is that the Qatari will invest money into something related with tourism in Marbella. Sundream Blog is very hopeful it will create much needed employment for the citizens of Marbella.

This is great news for Marbella and this blog who has been championing the causes of our wonderful Mayor of Marbella who has been heavily criticized for self promotion and wasting public money. What we pointed out to the idiots who were criticizing her was you only needed one deal like this and you were miles ahead of the game so well done Angeles.

The PSOE party of Marbella has revealed the cost the government has spent on the printing of the Mayor’s new “AM” magazine, without counting the cost of distribution.

Marbella

In the following six months, from July to December, 59,900 Euros will be spent on printing the new AM magazine, an amount which breaks down to 9983.33 Euros per month, according to figures released by PSOE’s secretary general Jose Bernal and secretary of communication of PSOE Andalusia, Francisco Conejo. And all this without even taking into account the cost of distribution.

Bernal further claims that the town’s Mayor, Angeles Muñoz, “is not concerned about the crisis, but merely for her image.” In the magazine “where her picture appears least it was counted 27 times.” All this while the city’s debt towards small and medium sized businesses and suppliers amounted to 23 million Euros. So what these Bozo’s who criticise the Mayor fail to grasp whilst she is no doubt into self promotion like all politicians she is also doing her best to continue to promote Marbella and in reality €60,000 against €23 Million is nothing but a drop in the ocean or would these lovely people like Mayor Jesus Gill back?

While most companies and institutions are adjusting their cost of advertising, Angeles Muñoz continues her campaign of waste so her critics would say. Her critics go further saying it’s with the sole purpose of promoting her image. In February this year, Angeles Muñoz together with the Councillor of Tourism, Jose Luis Hernandez visited New York as part of a “promotional” tour to emphasize the economic potential of Marbella. The trip which allegedly cost 21,000 Euros and again her critics say it is yet to show the fruits it has born. Opposition leaders question the effectiveness of the campaign as well as the declared costs.  Well they would wouldn’t they, our Mayor is doing the best to promote Marbella to the world when Marbella needs every penny of investment it can get and her detractors continue to criticise one of the few Mayor’s to stand up for her city with such vigor. Let’s put it another way she only needs to get one Millionaire to move to Marbella and the €100,000 that these idiots are complaining about would more than be made up in extra tax revenues and that’s before they start a business.

So if you don’t support this Mayor please tell me who would do a better job, I for one fully support her.

But after a vigorous campaign by Tory Right-wingers, George Osborne watered down demands by the LibDems to hike the headline rate to match the 40 and 50 per cent rates of income tax.

Instead, he raised CGT from 18 per cent to 28 per cent from midnight for those with second homes and shares who pay the higher rate.

In a signal that he had listened to critics who told him he would end up losing money if he sent the rate soaring, however, he made clear that the Treasury would have lost money had he put the rate even a single point higher.

In another concession, officials said the increase will be reviewed after one year to make sure that it is actually raising money. That opens the door to a rate cut next year.

Basic rate taxpayers who have second homes or share portfolios will see no change in their CGT rate when they dispose of assets. For them, it remains at 18 per cent. 

The change in CGT is expected to raise £725million this year, but official documents show that only £125million of the gain comes from direct capital gains tax revenues. The other £600million is the result of increasing income tax revenues as fewer people dodge that tax by taking their income as capital gains.

Despite the Chancellor’s compromise, critics said the tax rise could lead to homeowners ‘flipping’ their homes in the same way as MPs did when fiddling their expenses. Property owners pay CGT only on their second homes, so if they switch homes before selling they could avoid the punishing payments.

David Kilshaw, of KPMG, said: ‘The desire to maximize the main residence reliefs will inevitably increase. There is a danger that “flipping” will be the game in town and the countryside.’

The Budget also kept the threshold at which the tax kicks in at £10,100 this year, and will rise in line with inflation in future years.

The Chancellor also offered an olive branch to business, extending the CGT exemptions for entrepreneurs. Businessmen who own 5 per cent or more of their company were allowed to dodge CGT on the first £2million they earned in their careers.

They will now be entitled to £5million of tax-free gains.

Former Cabinet ministers John Redwood and Lord Forsyth, who had opposed plans to raise the headline rate to 40 per cent, applauded the Chancellor’s compromise but said it may still not raise much revenue which does beg the question why put the tax up in the first place.

So will this effect people buying property in Marbella, personally I very much doubt it as it will just be less money for those who already have it. it anything it might push them to come and live in Marbella

Property in Marbella

Luckily for some, a few property developers are already working with the town hall to reach solutions for the many thousands of homes that were built without the relevant paperwork. The first to receive their licences are almost 300 owners within the La Reserva de Marbella in Las Chapas, east of Marbella. Some of the blocks in the development were without licences, leading to problems in recent years with utility providers, mortgage lenders and other institutions.

The planning situation has improved and steps are being taken to legalise properties affected by planning irregularities, which should give a boost to the recovering conveyancing market and confidence to prospective buyers in what has been one of Spain’s property hotspots for many years.

However, success in gaining licences will leave a bitter after taste for some. Marbella’s town hall is seeking compensation from developers that flouted existing planning laws, but where developers are bankrupt, there are fears that costs will fall upon residents.

In addition, with the legalisation of property comes the obligation to pay local property taxes, and these could in theory be back-dated to the first date of occupation, giving some a hefty bill.

This has to represent a good start on hopefully the first of many homes to be legalised under the all new PGOU

The town hall says that compensation from developers and urbanisations can also be in terms of donating land for public use and maintaining areas as public green spaces and parks.

If you need any advice or help concerning property in Marbella why not give us a call.

An up-to-date report as of 1 June 2010 on how the worldwide economic crisis affected the property for sale in Spain Market in Marbella, the London of Andalucia

By Nick Stuart, Managing Director of Spanish Hot Properties, Spain’s number one virtual and established Real Estate Agency

Marbella property in 2010

JUNE 2010

Whilst we are now out of recession with the possibility of actual price rises by the end of 2010 we need to go back to 2007 which was the real beginning of the Spanish real estate recession a good year before the critical events of September 2008 and the following months, the property market in Marbella was suffering severely, as throughout Spain and the rest of the world, especially in the lower end of the market, and especially with newly built properties.  

In Costa del Sol, the market for new build “off plan” touristic properties peaked in 2004 and has been on a descending curve since then, reaching crisis proportions last year. Nationally, the demand for new homes hit its peak in mid-2007, according to national statistics, (with reliable statistics still lacking from the Government) the Bank of Bilbao Vizcaya Argentaria estimates that at the end of 2008 there was a glut of between 800,000 and 1,400,000 new unsold homes in Spain (19/12/08, http://prensa. bbva. com), including the Coastal properties, with an estimated 24,000 living units on the Costa del Sol (Diario Sur Domingo, 04/01/09), which will take years to be absorbed.

The World Financial Meltdown, starting in mid-September 2008, changed the scenario

The rapid slowdown commencing in September 2008 began to affect buyers of Luxury properties not only in Marbella but globally. This had a very adverse effect as up until this point there was still a demand for luxury property even though the Spanish property recession had already begun back in 2007.

How much have prices dropped from their peak prices?

Properties most severely affected are the least expensive (under €700,000), comprising principally newly built properties but not excluding resales, in the less consolidated areas. They have gone down in price from their peak values in 2005-2006 (defined as real sales values, as compared with asking prices, of similar properties at their highest historical point) by generally 30% to 40%, but in some cases, even up to 50%.

As they say location is everything and properties in this price range achieving the best prices in a shorter selling period are located in better areas, and are usually resales, have descended in value from 15% to usually not more than 25%.

Real Estate priced from €700,000 to €2,000,000 have seen a 22%-27% decline from their peaks (again, less so in the best areas) while those priced at up to €3. 000. 000 have suffered a lesser drop of 15%-20%. In the higher price brackets: fewer properties are for sale and although owners may be receptive to reasonable offers, in general they have the financial wherewithal to “hold out” if necessary. There are and will be some very good buys as, in some cases, even very wealthy owners simply want to “move on”. Very special “one of a kind” properties, with unique characteristics, qualities and location, have not been substantially affected by the crisis, provided their asking prices are sensible and now things are leveling off.

The pricing of Marbella property by their owners, in most price categories, is now far more realistic than in the past. This process has been complicated, as usual, by some agents who tell owners what they want to hear, rather than explaining the realities of the market. Most sellers, however, have already sharply reduced their original asking prices, but many potential buyers do not take this into consideration when they place an offer.

What is selling? 

In the quality resale market it is not so much about over-supply but more a factor of how badly and how quickly does the seller need to get out that is driving the market. The reality is today we have far less so called distressed owners than we did in 2009 “

There have obviously been sales since last September, but generally at substantially reduced prices, with the notable exception of truly unique properties which cannot be easily reproduced, or which a buyer has not wanted to risk losing by delaying. Many potential buyers think that vendors will drop their already reduced prices an additional 25% to 50%, without careful analysis of either the current market, intrinsic value, historical value, reproduction cost, or comparable sales being made right now. The result is that such offers simply throw a bucket of cold water on most sellers, and do not engage their interest to negotiate.

Other sales have been made between reasonable buyers (looking for a very good deal), and reasonable sellers, (looking to make a sale and move on, often to another property).   Further sales are being made by those willing to trade up or down.   These types of sales will continue throughout this difficult period.

Quick Overview of 2009

For me Kristina Szekely called the market exactly right in an article she wrote in late 2009 when she asked the question are we at the bottom of the market and she basically said were pretty close to it but if you wait to be sure that we have hit rock bottom then your choice will be limited. That is the reality of 2009 with the best properties and most distressed sales been taken from the market and in 2010 the amount of choice is much less even though you probably can still buy at 2009 prices.

Experiences of 2010 and the future for the rest of the year

The serious buyer is out there striking a deal but unfortunately we have a serious problem with unrealistic buyer and before too long 2010 will have passed them away. As stated earlier in the report we now have less choice than we did in 2009 which makes buying much harder to come to terms with and there is also the reality that the best deals are certainly not seeing a Spanish Hot Properties website and are being sent out to those people who are in a position to buy and who have already registered there interest. On properties above €700,000 we expect to see price rises as early as October this year and probably 6 months to 12 months later for properties under that figure. One other factor that the recession has done to the international property market in Costa del Sol has changed the focus of the international property buyer with a lot of working class Irish and UK citizens returning home and more middle class UK citizens deciding to come and live in Spain and in the main they are coming to Marbella whereas before the large percentage of these Internationals were based in Mijas Costa so much so that the registered number made 47% of the total population for the Municipality of Mijas and in reality it was probably closer to 65% but that is now changing.

So overall cream always rises to the top and Marbella is set to come out of this recession stronger than even and your Marbella property buyers on a tight budget has 4 months to buy or probably miss the boat for a considerable amount of time.

Marbella Luxury

A pretty simple question I posed to a colleague the other day is what people actually want to buy property in Costa del Sol & Marbella. A pretty simple question and one I am having a great difficulty understanding. Obviously I am talking about those people who are in a position to buy not those who would like to buy but unfortunately are not in a position to buy property in Costa del Sol.

If you look at the factors first hand another question one could ask is what else could change to make things better for people to buy. Let’s look at the reasons you should buy now.

• Euro/Sterling exchange rate the most favourable it has been for a very long time.
• Property prices have officially stopped falling in Costa del Sol as claimed by official sources.
• Quality property prices are unlikely to fall any further you may get one or two really distressed deals but it really is one or two.
• Prime location property prices to start rising in 2011 maybe before in Mallorca.
• The best deals as a whole were bought is 2009 when nearly all the distressed properties were taken from the market.
• You can buy properties for less than you can build them for right now.
• The reality is if you buy well now, you won’t lose money unless you buy really badly and that won’t happen if you use Sundream.

So considering all of the above what is holding you back from buying right now? Could it be one of the following?

• The press and economic data tell you prices are going to fall further.
• You want the same value in the property you missed out on.
• You believe if you hold out you will get a better deal.

Well unfortunately if these are your reason then I respectfully think you are wrong. What the people who spout on about economic data and the fact that banks will have to liquidate there stocks don’t fathom is that its stock no one wants. It’s only those on a very limited budget who have the choice of buying the bank stock or nothing that are potential buyers.

If you missed out on a property the sooner you get your head round it and look at the market today and the market in the future the better off you will be. Reality is the longer you leave it the more likelihood is you will be getting less for you money.

Its time to engage reality If you really want to buy in Spain 2010 is the time to do it and if you do why not give us a call.  If you think by holding on any further you will get a better deal then I wish you very good luck.

Costa del Sol Property in 2010

Interestingly the Islands and the coasts are fairing the best which isn’t surprising at all in that the market in these areas have been heavily supported by International buyers taking advantage of the fantastic property deals which he have seen first hand in Costa del Sol and Marbella.

We could even start to see price rises at the start of next year. We just hope you come round to our way of thinking and believe our message that 2010 is the year to buy before its too late