Spain roundup – dream job alert, market update and…

Suomma says he’ll simply ask the successful application to test the comfort, location, degree of sunlight and other factors in the homes they’re staying in, in exchange for an all-expenses-paid trip down south. from Spain. This is designed to ensure that the company offers the best luxury apartments and homes for those looking for a second home condominium in Spain.

The “unique job opportunity” will allow the winner and his travel companion to travel all over the “Côte du Soleil” and fully immerse themselves in Mediterranean culture. Here, according to the company, they can soak up the view from the Balcony of Europe or sip sangria while sitting alongside the marina in Puerto Banús.

The role includes the following for two people: return flights – up to £600; accommodation costs – estimated at £4,000 for 21 nights; food and drink allowance – up to £600; spend money – £1,500 (to check local excursions); vehicle hire – £2,000; and a new camera – £650.

There are a few pitfalls however, with those wishing to apply having to be flexible between September and October to travel to Spain for the three weeks. The winner will also be considered for further testing in the Balearic Islands next year.

The winner is also required to take plenty of photos, keep a daily video diary, and blog about their experiences to “give an honest review of each of the condo properties.”

Suomma says applicants should be verbal, charismatic, creative, outgoing (enough to confidently vlog about their stays) and have a great sense of humor.

Entrants must be at least 18 years of age, have a valid passport, and be required to complete the submission form before the deadline.

“If there was ever an ultimate dream job that involved traveling, this is it,” commented Borja Badiola, CEO and co-founder of Suomma.

“We have already received over 5,500 applications for the position in just a few weeks, and are delighted to be able to give someone and a friend the chance to effectively holiday in Spain for three weeks at our expense.”

Review of the Spanish real estate market Q1 and Q2

Here, Sean Woolley, Managing Director of Cloud Nine Spain, presents his review of the Spanish property market in the first two quarters of 2022.

“It’s been a great start to the year for us and most of the agents we speak to on a daily basis. We’ve all still met the pent-up demand that was left over because people couldn’t come here due to Covid. However, it’s interesting to see that it doesn’t seem to be running out of steam and there are a lot of people coming in to look at properties, making decisions very quickly and having decent budgets.

“We are seeing a complete mix of nationalities and less reliance on the British. In the second quarter, 21 different nationalities bought, showing the cosmopolitan and diverse nature of the market here. The currency market also makes things much more interesting for a variety of buyers, with the Canadian dollar and the US dollar both being very strong against the Euro. In July, the euro fell to its lowest level in 20 years against the dollar. So now is the perfect time for US investors to use their dollars to buy a euro asset.

“There is now a shortage of stock on some developments and some of the most popular areas, following the post-Covid boom. For example, Four Seasons at Los Flamingos has 96 apartments and penthouses and at any time on a development of this size you will have between five and ten percent of the inventory available for sale. But rather than the five to ten units we expect to sell, there is absolutely nothing available and I now have a waiting list of development buyers. If you are considering selling on low bid projects, now is the perfect time to do so!

“There is a similar situation in Los Arqueros, which is a lovely golf resort on the road to Ronda, which has hundreds of properties but only two or three for sale. Señorio de Marbella on the Golden Mile is in the same position, with three properties available out of around 100 units, so people have to move very quickly when something hits the market.

“At the high end of the market, I see a lot of price reductions. Now don’t get excited because it won’t be a sellout here, but rather a market correction from price inflation due to huge demand from overseas buyers towards the second half of the pandemic.

“This period saw people paying what they needed to be in a certain place, whereas now we have a more considered type of buyer in the market as a sense of normalcy returns. These buyers take their time, which leads to a slight price correction in the mid-high and high levels of the market.

“Like I said, it’s not a distressed market at all, but I think there’s a bit of sense and normalcy coming back to the market. We’re seeing some small adjustments that make it a cheaper and more attractive to buyers.”

For a more in-depth analysis, you can watch the latest Marbella property market update video on YouTube to know more.

Increase in Spanish mortgages taken out by British buyers

There has been an increase in the number of Britons taking out Spanish mortgages, according to new research from Lucas Fox. The company found that there had been 13% in the past 12 months alone.

The results showed that the average loan size of UK buyers is 70% loan to value, which typically represents a value in euros of 800,000.

According to Lucas Fox, the average price of properties bought by UK buyers has also increased by 15% over the past year. It is currently at 1,056,278.9 euros. *Source: Lucas Fox, July 2022).

Additionally, the research found that even cash buyers are taking out finance to leverage their Spanish property purchase and acquire more expensive properties.

The firm argues that the cost of capital is relatively cheap at present, while the appreciation value of properties in a better location, with a good level of amenities, is higher.

“Recently there has been a dramatic increase in the number of Spanish banks lending for the purchase of real estate, which has led to the provision of very attractive conditions. Normally mortgages of up to 70% are available for non-residents and 80% for residents (i.e. those who pay their income taxes in Spain),” said Mohammad Butt, director of the Lucas Fox office in Barcelona.

“For customers residing outside Europe, some banks prefer to lend less, although it depends on the customer’s profile. Interest rates are still attractive and have remained very affordable over the past four years. However, with rates set to rise soon, customers should file their claims now. »

He added: ‘Our mortgage brokers are continually evaluating the loan options available, so they will know which mortgage and which lender is right for buyers, avoiding the minefield of often confusing financing options.’

Lucas Fox also shared some key tips on getting a Spanish mortgage:

  • There is only one main difference with mortgages for non-tax residents in Spain – the loan to value is around 70%, while tax residents in Spain can get around 80% LTV

  • It is best to hire a mortgage broker who will research the entire market for you. It will also make a huge difference in the ease and speed of the mortgage application process and ensure that you are guaranteed the best possible terms. Brokers achieve this by working with a network of trusted contacts at each lender, from branch managers to business managers.

  • Spanish banks are more cautious with sterling income and therefore may lend a lower LTV amount in order to hedge their risk. If your main income is not earned in euros, there is a law that says that if the pound sterling in this case drops by a certain amount against the euro, then you can ask the bank to convert the mortgage into a sterling mortgage. It is highly unlikely that the currency will swing by the amount needed to trigger this.

  • Taxes are different from region to region, which greatly affects overall costs. As a general rule, outside Madrid, we recommend allowing between 12% and 14% of the price depending on the region. For Madrid expect around 10% stamp duty – property tax is less than 6%.

  • All property buyers absolutely need a NIE number (Spanish Identity Number). It is strongly recommended that you appoint a solicitor to help you with the buying process and they can also apply for the NIE number on your behalf.

  • A formal mortgage application will require documentation proving your identity, income, taxes paid in recent years, assets and debts, which will usually include a credit report from a credit reference agency.

  • Make sure to carefully analyze the market before buying a property. The Spanish real estate market can fluctuate, so this should be taken into account.

  • Read the fine print in mortgage agreements, especially if you’re using a bank, because sometimes a mortgage can seem good at first, but can end up being quite expensive at the end of the mortgage term.

About Matthew Berkey

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