The Pain in Spain falls mainly to the British

the British with a holiday home in Spain could soon be considering selling their apartment or villa that interest rates in Spain and the United Kingdom place - the possibility of falling prices for Spanish property most likely.

Property in Spain is already about to see prices drop for the first time in twenty years, and many properties are second homes on the market could be the trigger that will see deflation in the near future.

One way of overseas property owners can protect their investment is to rent their property to holidaymakers, and many turn to this when they bought their house with a mortgage, and increase reimbursement rates increasing interest in Spain and other European countries.

But some will find this option closed to them because they either investigate the possibility for the first time, or try to increase occupancy rates of previous years while interest rates and levels of reimbursement of mortgage was lower.

Low interest rates and mortgage low prices have been key to the growth of the British people buying property in Spain recently, and affordability has been easy on low occupancy levels for leave their homes. British overseas owners are pressed on the higher interest rate after five rate hikes in the base rate of the United Kingdom during the past year, as well as higher payments on their homes.

Local authorities in Spain are beginning to take action against owners of second homes, leaving their vacation homes in insisting each property must have a residence permit - and very few do.

This is an issue that has only highlighted recently, with little or no buyers ask estate agents in Spain, if they need it - and if a salesperson knows he or she was little to say all that renting a vacation home is important to many buyers - and what could be considered a wrong answer could scuttle a deal, and the agent's commission.

But the owners can face a fine of up to 30,000 euros if they do not correct the tourist license if caught - in itself enough to see sale signs to get on the Spanish Costas.

The Daily Telegraph, a leading daily newspaper in the United Kingdom, reports that many of the 300,000 British investors in the property market overheating Spain have already turned to the lucrative vacation rental industry and many others are considering doing to facilitate their mounting financial strain.

But, seduced by the prospect of netting £ 1,000 per week in high season for a two bedroom apartment with sea views, realize that they face some drastic fines of up to 30,000 euros because " they violate the laws of tourism.

A spokesman for the Spanish Tourist Authority noted that strict conditions before properties are approved for holiday rental, but no sooner are allowed, which means leaving them to tourists is illegal.

Already several British investors in Majorca, the second most popular market for vacation home from the Costa del Sol, have fallen within the scope of Spanish law according to the Telegraph.

And while the Brits who moved to Spain during the last twenty years have seen their investments rise in value, still above the price of inflation, they could have been a bad surprise with their signs containing the property market in Spain is low, and prices may soon fall.

So dramatic price increases been over the last ten years that many homes on the Spanish Costas have doubled and more value, but a return in the late 1980's price decreases more than a mere possibility of another place or two in interest rates in the United Kingdom and Spain.


George Bush said...

British overseas owners are pressed on the higher interest rate after five rate hikes in the base rate of the United Kingdom

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