A Happy Luxury Rental Home
If you are looking for an overseas long term let property it
can be tempting to get caught up in the heat of the moment
and choose one which is not suitable for your requirements.
You see a property listed on a Spanish estate agents website
and just fall in love with it without thinking the whole
deal through. Many people underestimate the level of work
that needs doing to a property and they fall in love with
its charm and low rental price without thinking of whether
they have the budget or the time to do it up and this type
of property can end up as a millstone around the neck,
rather than a happy home. Other people fall in love with the
huge garden, one they could never afford back home, and they
then have to spend their time pruning and mowing, cutting
and weeding, instead of relaxing in the sun around the pool.
Another common pitfall is to rent a property which is too
far away from the local amenities. When you fall for a
property on the internet you usually do not have a good idea
of how far it is from the shops, bars and even neighbours;
even when you see it in real life and rush to make an offer,
you do not realise until it is too late that you are totally
isolated. Here follows some recommended websites:
Lessen the Stress
If you have made the momentous decision to move overseas, it
can be hard to see the wood from the trees as there is so
much planning that has to be done for a successful move. It
is not just a case of calling the overseas furniture
removals company, as there is so much more to a stress-free
move. Firstly you have to decide what you take with you and
what you will sell or leave behind. Shipping can be
expensive so only take what is necessary and if you have not
used an item in the last couple of years, chances are that
you do not need it! Raise some extra cash for the move by
selling what you can in the local paper or at car boot sales
and then give away what you cannot sell as there is no point
taking it with you. This is to be a new part of your life so
start afresh and only take what is essential and what it is
difficult to buy down there. In order to help you with your
move, evaluate how much it will cost to transport an item
down there, versus how much it would cost to buy new there
and you may find yourself making some surprising but
rational decisions. Start afresh with the basics and only
transport what you have to for your new life. More info on
what you need when moving overseas:
- Currency
exchange services - a vital service offered to all
who may emigrate, gain a better than bank rate of
exchange from Currency Today Limited.
Spanish Mortgage Update
The past 7 days have seen a number of changes
affecting the Spanish market.
Bankia the new bank made up of a number of
Caja’s with Caja Madrid and Bancaja being the two
biggest have gone on a road show to promote purchase
of shares as they go for a full stock market
listing. Their bad debts have been hived off into a
bad bank but there is still much debate how much
funding this bad bank may need. The markets
anticipate a difficult listing.
One of the outcomes of this merger and listing is
that for the time being both banks and the other
associated smaller banks have withdrawn from non
resident completely. Whilst Caja Madrid was never a
big player in this market Bancaja was a major non
resident lender and their removal from offering
loans will have a big impact on overall
availability. It is anticipated they will still
offer the 80% with nothing to pay for 3 years to
buyers who buy bank owned stock or bank funded
developments but outside of this all non resident
lending has been withdrawn.
Sol Bank (Sabadell Group) who are the only lender
left at 70% for non residents was downgraded by
Moody’s last week. This will put pressure on the
cost of funds for the Sol Bank which will almost
certainly be reflected in increase in margins above
Euribor being offered. As yet the impact has not
been felt but the standard rate of 1.25% above 12
month Euribor will come under pressure in the
following months.
12 month Euribor rate stabilised a little in June
moving from 2.08% to 2.14% this is the smallest
monthly increase seen for a few months and may
indicate the market has largely compensated for the
expected ECB rate rise before end of year.
The Spanish Government are coming under renewed
pressure to change the repossession laws to assist
the vast amount of Spaniards struggling to pay their
Spanish mortgage. Whilst most of the measures being
bounced around will have little affect or no benefit
to a non resident Spanish mortgage holder the idea
of raising the price the banks must take property
over at from 50% to 60% of actionable value would
help reduce outstanding debt in a default situation.
Information on the auction and repossession process
and its implications can be found on
www.imsmortages.com Spanish mortgage specialists
or you can contact IMS on
heather@imsmortgages.com for a free information
sheet.
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