Finca Style Villa in Denia For Sale, 4 Bedrooms, 236 m2, 675.000 € : ultimatehomes-spain.com |
| Exterior View and 10 x 5 Pool |
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| Lush Gardens |
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| Kitchen |
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| Dining Area |
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| Lounge |
Wednesday 29 December 2010
Villa in Denia For Sale, 4 Bedrooms, 236 m2, 675.000 € : ultimatehomes-spain.com
Tuesday 28 December 2010
Semi-detached House in Denia, La Sella Golf Resort For Sale, 3 Bedrooms, 114 m2, 185.000 € : ultimatehomes-spain.com
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| Terrace and Views |
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| Master Bedroom |
Spain becomes Europe's high-speed rail leader
Spanish Prime Minister Jose Luis Rodriguez Zapatero and King Juan Carlos last Saturday (December 18th) opened the country’s fourth high-speed rail line, making the country the European leader in the technology.
The 438-kilometre (272-mile) route will slash travel time between the Spanish capital and the Mediterranean port of Valencia, Spain’s third-biggest city, from four hours to just 90 minutes.
The project, built at a cost of 6.6 billion euros (8.8 billion dollars), brings cash-strapped Spain’s high-speed rail network to 2,056 kilometres. It places Spain ahead of the 1,896 kilometres of high speed rail in France and 1,285 kilometres in Germany, home to Siemens, the world’s largest manufacturer of high-speed trains.
Zapatero says the new route, which started service to the public the next day (Sunday 19th December), “increases confidence and shows the world that Spain is a prosperous country.” The king said that it enabled Spaniards “to look beyond the crisis and economic difficulties.”
The Spanish economy slumped into recession in late 2008 due to the collapse of a property bubble that has caused the unemployment rate to soar to 20 percent, the highest in the euro zone. It posted zero percent economic growth in the third quarter and Madrid has introduced tough austerity measures in a bid to reduce chronic debt. However signs are that the cost cutting and tax increases are bearing fruit for the beleaguered Spanish state as the budget deficit for the first 11 months of the year has fallen 46 per cent from the same period last year.
The number of foreign visitors to Spain also continues to increase with government data released last Wednesday showed a rise in November for the seventh straight month despite a drop in tourists from its main market Britain.But this was offset by a slight rise in arrivals from Germany, the second most important source of tourists to Spain, and sharp rises in arrivals from France, Italy and Scandinavian countries.
Economists say the country is too small in population to make a high-speed network viable, but the government says it creates jobs — 136,000 for the Madrid-Valencia line — and cuts carbon dioxide emissions. Further lines are planned or under construction that would boost Spain into second place globally with 5,525 kilometres of high speed tracks, behind China the world leader with 13,134 kilometres but ahead of pioneer Japan with 3,625 kilometres.
Spain’s first high-speed line was opened in 1992 between Madrid and Seville, timed to coincide with the Expo 92 world fair being held in the southwestern city. Services followed in 2007 linking Madrid to the northern city of Valladolid and the southern city of Malaga, followed by a line to Barcelona in 2008.
The 438-kilometre (272-mile) route will slash travel time between the Spanish capital and the Mediterranean port of Valencia, Spain’s third-biggest city, from four hours to just 90 minutes.
The project, built at a cost of 6.6 billion euros (8.8 billion dollars), brings cash-strapped Spain’s high-speed rail network to 2,056 kilometres. It places Spain ahead of the 1,896 kilometres of high speed rail in France and 1,285 kilometres in Germany, home to Siemens, the world’s largest manufacturer of high-speed trains.
Zapatero says the new route, which started service to the public the next day (Sunday 19th December), “increases confidence and shows the world that Spain is a prosperous country.” The king said that it enabled Spaniards “to look beyond the crisis and economic difficulties.”
The Spanish economy slumped into recession in late 2008 due to the collapse of a property bubble that has caused the unemployment rate to soar to 20 percent, the highest in the euro zone. It posted zero percent economic growth in the third quarter and Madrid has introduced tough austerity measures in a bid to reduce chronic debt. However signs are that the cost cutting and tax increases are bearing fruit for the beleaguered Spanish state as the budget deficit for the first 11 months of the year has fallen 46 per cent from the same period last year.
The number of foreign visitors to Spain also continues to increase with government data released last Wednesday showed a rise in November for the seventh straight month despite a drop in tourists from its main market Britain.But this was offset by a slight rise in arrivals from Germany, the second most important source of tourists to Spain, and sharp rises in arrivals from France, Italy and Scandinavian countries.
Economists say the country is too small in population to make a high-speed network viable, but the government says it creates jobs — 136,000 for the Madrid-Valencia line — and cuts carbon dioxide emissions. Further lines are planned or under construction that would boost Spain into second place globally with 5,525 kilometres of high speed tracks, behind China the world leader with 13,134 kilometres but ahead of pioneer Japan with 3,625 kilometres.
Spain’s first high-speed line was opened in 1992 between Madrid and Seville, timed to coincide with the Expo 92 world fair being held in the southwestern city. Services followed in 2007 linking Madrid to the northern city of Valladolid and the southern city of Malaga, followed by a line to Barcelona in 2008.
Wednesday 22 December 2010
Why are Spanish estate agents so expensive?
It may be a couple of days before Christmas but still working and we have just listed a very nice villa in Sierra Cortina overlooking Benidorm.
However I am still surprised that many clients (sellers in this case) who are accustomed to UK estate agents' commission of 1 to 3 % often express shock at the amounts charged by Spanish agents. Our own commission rates vary between 3 and 5% which may seem high: believe it or not, we're cheaper than many of our competitors. Commissions as high as 10% are still common.
To understand the different environment of Spanish property, you need to understand the economic forces behind an estate agency. In essence, there are two: the drive to profit, pushing rates up; and the pressure of competition, pushing them down.
The upward force
While the basic job of the UK and Spanish estate agent is the same, in practice they are vastly different.
First, the Spanish move house less frequently than the British. So the volume of transactions is smaller. Secondly, the Spanish population is dispersed over a much larger area than the British. We take properties on within about a 100km radius of Alicante, sometimes more if it is a special property – but in practice it can be about an hour's drive. As a result, accompanying buyers on viewings is vastly more time-consuming than it would be in the UK.
So: fewer transactions per annum, and more time spent on each, with both buyers and sellers. Against this, the overheads of a Spanish estate agency may well be much the same as in the UK. As we are involved in international sales, indeed, our costs are higher as we advertise both in Spain and abroad, increasing the overhead.
More work drives up overheads
In addition, the Spanish agente has an advisory role that goes way beyond the function of a UK estate agent. In the UK, once the agent has obtained an acceptable offer, he will pass the matter to a solicitor. Apart from periodic checks on progress, his role is over. But here in Spain we have no real equivalent of a solicitor. As in other Continental countries, the notary is the person responsible for giving ultimate legal effect to the sale and purchase. The notary is also required to give legal advice – but he does so in an objective and informative way, rather than espousing the cause of a buyer or a seller.
Spanish law requires estate agents to adopt an advisory role. Many of our professional colleagues keep this to a minimum. However, we believe that this is an opportunity for Ultimate Homes, rather than a gap. We prepare contracts in bilingual format, guiding buyers and sellers through the preliminary legal formalities. Obviously we are aware that we have conflicts of interest, but we try to steer our way through them, making sure that both sides are aware of what is involved and telling them that they are perfectly entitled to get impartial legal advice from a third party if they wish.
All of this takes time and expertise. We do it for no additional remuneration – it comes from the commission we charge.
The downward force – competition
Obviously there is a ceiling to the amount an agent can charge. If one agent were to charge 50% where others charge under ten it is unlikely he would get much business. But I have to say that the price competition among Spanish estate agents does not appear so strong as to force rates down.
Where a seller gives his property to a number of estate agents – as is usually the case - there can be price competition among the respective estate agents. Since properties are advertised at a commission-inclusive price, it follows that the agent with the lower commission will advertise the property at a lower sale price than his competitors. It pays for buyers to shop around.
However, this does not seem to occur as much as you would expect. At the lower end of the market we are currently charging two thirds of the rates charged by our competitors. But there is no evidence that this price differential is bringing more buyers or indeed sellers. People seem to be remarkably accepting of the rate charged, regardless of its level. As a result, the downward force of price competition is less strong than you would think.
In a nutshell: Spanish estate agents by and large are more expensive than UK ones because they have more to do, with less transactions in number, than their UK counterparts, while suffering similar overheads. And it is likely to stay that way so long as price competition remains weak.
My thanks to Anthnoy at MCM Dordogne Property, estate agents in the Dordogne, France, for the inspiration to write this article.
However I am still surprised that many clients (sellers in this case) who are accustomed to UK estate agents' commission of 1 to 3 % often express shock at the amounts charged by Spanish agents. Our own commission rates vary between 3 and 5% which may seem high: believe it or not, we're cheaper than many of our competitors. Commissions as high as 10% are still common.
To understand the different environment of Spanish property, you need to understand the economic forces behind an estate agency. In essence, there are two: the drive to profit, pushing rates up; and the pressure of competition, pushing them down.
The upward force
While the basic job of the UK and Spanish estate agent is the same, in practice they are vastly different.
First, the Spanish move house less frequently than the British. So the volume of transactions is smaller. Secondly, the Spanish population is dispersed over a much larger area than the British. We take properties on within about a 100km radius of Alicante, sometimes more if it is a special property – but in practice it can be about an hour's drive. As a result, accompanying buyers on viewings is vastly more time-consuming than it would be in the UK.
So: fewer transactions per annum, and more time spent on each, with both buyers and sellers. Against this, the overheads of a Spanish estate agency may well be much the same as in the UK. As we are involved in international sales, indeed, our costs are higher as we advertise both in Spain and abroad, increasing the overhead.
More work drives up overheads
In addition, the Spanish agente has an advisory role that goes way beyond the function of a UK estate agent. In the UK, once the agent has obtained an acceptable offer, he will pass the matter to a solicitor. Apart from periodic checks on progress, his role is over. But here in Spain we have no real equivalent of a solicitor. As in other Continental countries, the notary is the person responsible for giving ultimate legal effect to the sale and purchase. The notary is also required to give legal advice – but he does so in an objective and informative way, rather than espousing the cause of a buyer or a seller.
Spanish law requires estate agents to adopt an advisory role. Many of our professional colleagues keep this to a minimum. However, we believe that this is an opportunity for Ultimate Homes, rather than a gap. We prepare contracts in bilingual format, guiding buyers and sellers through the preliminary legal formalities. Obviously we are aware that we have conflicts of interest, but we try to steer our way through them, making sure that both sides are aware of what is involved and telling them that they are perfectly entitled to get impartial legal advice from a third party if they wish.
All of this takes time and expertise. We do it for no additional remuneration – it comes from the commission we charge.
The downward force – competition
Obviously there is a ceiling to the amount an agent can charge. If one agent were to charge 50% where others charge under ten it is unlikely he would get much business. But I have to say that the price competition among Spanish estate agents does not appear so strong as to force rates down.
Where a seller gives his property to a number of estate agents – as is usually the case - there can be price competition among the respective estate agents. Since properties are advertised at a commission-inclusive price, it follows that the agent with the lower commission will advertise the property at a lower sale price than his competitors. It pays for buyers to shop around.
However, this does not seem to occur as much as you would expect. At the lower end of the market we are currently charging two thirds of the rates charged by our competitors. But there is no evidence that this price differential is bringing more buyers or indeed sellers. People seem to be remarkably accepting of the rate charged, regardless of its level. As a result, the downward force of price competition is less strong than you would think.
In a nutshell: Spanish estate agents by and large are more expensive than UK ones because they have more to do, with less transactions in number, than their UK counterparts, while suffering similar overheads. And it is likely to stay that way so long as price competition remains weak.
My thanks to Anthnoy at MCM Dordogne Property, estate agents in the Dordogne, France, for the inspiration to write this article.
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