And now... latest news from Southern Spain...

• The spectre of the mass demolition of Spanish holiday homes has been in the headlines, following proposals announced by the government in Madrid aimed at protecting the country’s coastline from overdevelopment. At issue this time, though, are not just a handful of dodgy buildings in Marbella, but thousands of properties up and down the coast and islands that have been built illegally too close to the coastline. Judging by some of the headlines, you would think the bulldozers were already revving up their engines to get to work. So is it true that the proposals will lead to mass demolitions that could affect thousands of British owners, and what does it mean for potential investors thinking of buying today? ... This is an extract from Mark Stucklin's excellent article in the Times newpaper - the short answer is NO but for a full account of the article go to www.timesonline.co.uk/overseasproperty 
• 2009/10 and 2011 have been so far  difficult periods as the Credit Crunch has created ramifications around the world. In southern Spain, agents are reporting the market in 2011 is slow following the falls of 2009/10, but depending on area and type of property there are still some hot spots.                         
•  So does it still make sense to invest on the Costa del Sol ? 

• Capital Gains Tax: As from 1st January 2007 Capital Gains Tax has been  reduced from 35% to 18% for non residents (and this rate is applied to residents as well (formerly 15%). When you sell, the Notary will send 3% (previously 5%) of the declared selling price to the tax authorities (Hacienda) and pass to you the remaining 97%. This 3%  represents a downpayment towards your capital gains liability and is reclaimable if your tax is less than this amount.
•  The Spanish peseta was withdrawn on 28 February 2002, but many businesses over 8 years on, including estate agents, still will quote pesetas and Euros. The changeover to the Euro did not impact prices or sales; any 'mattress' money has long, long gone!
• Demand and Prices have softened with the recent weakening of £ sterling v. the Euro; whilst the £ Sterling previously had continued to buy around 1.40 - 1.45 Euros to £1, the current weakening to around 1.10 - 1.15 especially in the current tight financial situation is likely to stay with us whilst the Bank of England keeps bank lending rates low to help recover from the slowdown in the UK economy
• The £ sterling is unlikely to recover back to the rates of 2003 to 2005 and so it does mean that properties in Spain are costing more, over and above the trend of prices. However we have now seen Spanish property price growth slow down and in some areas to fall to compensate. The slowing down of price increases as some people hold their buying decisions, does start to make this a buyers market. That said, one should remember that although we British make up a big chunk of buyers, the rest of Europe - West and East, are buyers too.
  
  Many economists view that the current exchange rate - at around 1.15 Euros to £1 - is probably a realistic valuation. This level is getting back to recent historical rates that existed with the old Spanish peseta - one might remember around 200 pesetas to £1 which was considered a good rate; the current rate would still be the equivalent of around 207 pesetas to £1 - so still a good rate.
  
  So what does all this mean - it means this is still a good time to buy.
  
• Remember your buying decision is not just about price. It is about enjoying one of the best climates in Europe, enjoying a low cost of living, having an unmatchable quality of life. For all this, Southern Andalucia & the Costa del Sol are difficult to beat.
  
  Useful Links to other websites
  This section lists the names of websites providing useful information on Spain, Andalucia and the Costa del Sol.To visit these sites just click on the name.

www.fga.org - the website of the Golf Federation of Andalucia providing a list and details of all the affiliated golf clubs in the region.

Our Nobounds Overseas country sites:www.french-leaseback-investment.co.uk; www.moroccanestates.com; www.aegean-estates.com;