Change to Mortgages to be free of charge.
Pedro Solbes, Spain's Vice President and Minister of Economy & Hacienda, recently announced his intention to modify present legislation so as to permit people to change their type of mortgage without incurring costs. He said that he would like mortgages terms to be easier to understand and that they should offer consumers more flexibility to change from one type to another without incurring any costs whatsoever.
As things are, lenders penalize mortgage changes with a commission up to 0.5% of the outstanding balance in respect of all mortgages granted from 27th April 2003, and an additional 1% for those prior to that date. Furthermore, in altering a mortgage, borrowers must also face charges in respect of Notaries and Registers.
These changes are needed to permit borrowers more flexibility at times of economic need.
The Government encourages residential tourism
It would seem that the Spanish Central Government is currently engaged at encouraging residential tourism. This message was sent out loud and clear at the Turespaña stand in London by Mr. Pedro Mejía, the Secretary of State for Tourism and Commerce.
Residential tourism is another way to attract foreign visitors and investment, the influx of foreign residents does result additional income all round.
Mejía considers that the year 2004 is a year of many changes from which there is a lot to learn and understand and take to account. He added that one has to adapt to these changes in order not to lose the market potential, although he also did say that it is difficult to calculate the level of negative effect that this may have on the hotel industry.
It takes five months to sell a flat.
A recent report by Asprima advises that the market is losing strength: sales Grez by 5.8% in 2004 as against the 7.3% of the previous year.
The high price of properties and the oversupply that still continues to be built have resulted in an increase of time needed to sell apartments, which according to data supplied by the Consejo de Colegios de Agentes de la Propiedad Inmobiliaria y la Asociación de Promotores y Constructores de España (APCE), is about 20% more than last year. That is equivalent to 5 months as opposed to 4 months last year.