Spain 's Minister reviewing measures on housing in Spain and Tenerife
José Blanco, Spain’s Minister of Development has announced new measures to sort out the property market and improve housing accessibility.This could mark a change in Spain’s attitude towards the property rights of foreign investors.
Appearing before the Parliamentary Housing Commission to explain his department’s priorities for housing, Blanco said steps will be taken to make Spain more attractive to foreign buyers. “With an eye on the international market, we will take steps to reinforce the legal protection of people who buy a home in our country,” said Blanco.
One step will be to protect people who buy in good faith from the negative consequences of buying an illegal home, unless the legal problems were recorded in the property register. Blanco revealed that there will be international press conferences to win back the confidence of potential investors, and give sales a boost. There will also be steps to help the industry to build more of the type of homes that foreign investors might want to buy. One of his department’s main objectives is to help reduce Spain’s glut of newly-built homes, which is weighing down on the market.
Blanco hopes to reactivate the moribund construction sector, creating jobs and demand for housing to help digest glut. Blanco also spoke of the need for further price reductions to make housing more affordable and deal with Spain’s excess housing inventory. “The principal way to get the stock absorbed is one of the market’s own mechanisms, to offer more competitive prices for those types of homes and land where the over-supply is more evident.” In other words, prices will have to fall where there is an over-supply.
He also said that the “days of speculating with land and housing are gone and aren’t coming back.”
Sounds very positive, particularly the part about protecting investors who buy problem properties in good faith without being made aware of the legal difficulties. So many ex-pats lost huge sums in the costas through just such negligent sales.
On a more positive note, its also worth remembering that its currently a buyer’s market. I just agreed to buy a house valued at €210K for €180K, that’s 15% below bank valuation.
To boot I had my application for a ‘young person mortgage’ from the Bolsa de Vivienda Joven (under 35′s) accepted. Meaning I can enjoy a tracker mortgage at euribor +0.5% with just 0.1% opening commission. This has saved me a further €2K minimum on purchase costs.