Spain tries to lure buyers back into housing market

[Cornholio]

Spain tries to lure buyers back into housing market
By Sarah Rainsford
BBC News, Costa Blanca

Spain has a major housing problem: there is too much of it - 687,000 empty houses, the leftovers from a construction craze that came to an abrupt halt.

The government is on a drive to lure buyers back to the market and breathe new life into what was once a major sector of the economy.

But a property roadshow - in the UK this week - has angered some British residents in Spain.

They are still fighting to resolve problems caused by rogue developers, or the loss of large deposits on new homes that should have been guaranteed.

The British have traditionally been the biggest foreign buyers here, but the economic crisis brought business to a standstill.

House sales across the country have slumped almost 50% since 2006; thousands of British estate agents who rushed to grab their slice of the action on the "Costas" have long since packed up and gone home.

But some who sat it out say they are starting to see the glimmer of a recovery.

'Buyers' market'

"We're having our best year since before the crash," said David Davies of Blue Flag Properties in Alicante, although the national statistics do not yet reflect that.

"A lot of builders have dropped their prices to the bare minimum now. It's a buyer's market."

The government recently added an extra incentive, cutting VAT on the purchase of new property by 4% until the end of the year.

And now there is the roadshow.

BBC News - Spain tries to lure buyers back into housing market

[Goldberg Global]

Some good comments.
95% of spanish market is to the locals. Only 5% is foreign purchaser.

[alex2012]

I have also read about that and think they are doing the right thing

[camel]

The Banks or thjeir appointed agents are still acting as the boom is here. Telephone number on site are a free phone which does not accept call from outside UK, email dont get replied. Property description does not allow to establish the property details its location, & other details which are vital, most photos are of the toilet, google map link does not work.

The Banks are refusing to reduce prices. Where the property is new they are treating as old so that they can get the extra 4% VAT, the alleged discount on the property is compensated by the intrtest rates that is being charged on those mortgages. Opening & closing charges are levied.
Besides above they do not confirm if the property is legal or not ?????

[whiteknight]

The property market in Spain has seen a fantastic resurgence in January and February of this year but that is down to sensible banks releasing distressed property at market prices. Most of these clients are Nordic with some Brits, Germans, Dutch and Spanish. yes prices are 50% to 60% less than five years ago but lets be realistic the property was never worth the price asked previously. The bubble was caused by the unrealistic market prices being paid by foreign buyers (many investors who had success before in this market)(buy and sell before completion) I have no regret for them but I feel for the common man who bought his retirement home and can no longer afford to continue,