Stable doors & Horses bolting

As prices appear to be steadying in the second hand property market then interested purchasers and investors are returning to levels not seen since 2007. With most economies within Europe seemingly 'recovering' – although none spectacularly, and yet this modest improvement appears to be enough to prompt buyers to think about investment in Spain again. Especially now that the world economic crisis has indicated that apart from property there are very few 'traditional' investments today which are perceived as 'safe'; and (again) Spanish property is regarded, particularly by those from other Eurozone countries, to be the safest investment they could make right now. Spain is a democracy, it's a safe place to live, it's warm too; and for many it is still less than half a day to travel – door to door.

Despite the new Spanish government increasing property transmission tax, introducing a banded system, and the threat of rising 2012 municipal tax assessments we still have clients keen to view and make offers on property for sale on Spain's Costa Tropical. Whether they be (ex-pat) French or Belgians returning to Europe from the instability of their North African residences, or Scandinavians, Russians or British looking for a bargain in this great climate – January 2012 has been a healthy month.

Spain's government has already started the process of (re)covering monies to reduce the national debt. Just last month the first minister – Mariano Rajoy – told Spanish banks that public funds would not be made available to bail out troubled Spanish bankers. He basically hinted at a public meeting held in Malaga that the banks would have to sell their stock at a realistic price – if the market price was currently rated at 100 Euros m2 then they could not insist on selling at more than this price in order to refund the original loan when the markets were much stronger and loaning more easy. At the moment the banks have not yet reacted – but expect the glut of "distressed" Spanish property to hit the market in the Spring – especially in regions like Valencia and the Costa Brava.

Hidden from the new governments agenda at the start of 2012 – was the introduction of increased transmission taxes for property sales in Spain. These taxes are due within 30 days of property exchange for all properties signed after January 1 2012 – the newly banded purchase tax regime was introduced for Andalucia (BOJA de 31 de DICIEMBRE DE 2011, Ley18/11,255) and brings costs up between 1& and 3%. Up to 400,000 Euros 8%, 400,001 to 700,00 Euros 9% and over 700,001 the tax due is 10%. Garages and storerooms also are subject to a similar banding as follows – to 30,000 Euros 8%, 30,001 to 50,000 Euros 9% and over 50,000 then 10% is due. NOTE: There are also variations in the purchase tax between different regions in Spain – ie Canaries 7%, so please check beforehand.

Spain's new Government appears to be surprising its citizens on a daily basis – with measures being introduced without any prior notification. The latest to affect being the introduction of monetary controls – in order to stem the blatant cash only payment that has been rife in many Mediterranean countries this last decade or more. As a consequence, the Spanish banks will now request the id documents of all payee's for deposits on account over 1,000 Euros. In addition there is talk of a control on withdrawals over 3,000 Euros being introduced too; and in-line with many other European nations the 500 Euro and 200 Euro note will no longer be accepted in shops and stores and those deposited in the banks by private individuals will be assigned to the identity of the payee.

A second, and more local, policy directly affects those sellers who are trying to legalise improvements or extensions to their properties prior to selling. Previously the obra nueva (new work licence) granted by the town hall and the local registered architect was enough to allow for planning – but just this last month we have learnt that the town hall must also sign a document that states that the work is allowable and more important still, that the same documents and application require to be approved by the regional planning authorities too. This in essence takes the average time for the application and approval from a few months to over a year before the notary will accept to change any registration and amendments to the property description. So, if you are a seller, who has been putting off this process on the understanding that all could be done quickly and easily as soon as you have a buyer then think again! It could mean the difference between your sale proceeding well or collapsing at the first hurdle.

January started with a dark month for Spain, unemployment rose to just over 23% in the last quarter of 2011, and then just last weekend Spanair, Spain's fifth largest airline ceased trading when it could no longer pay for fuel to run its fleet of 29 planes over 40 routes through Europe. 2,000 employees are to lose their jobs with a further 2,000 indirectly affected at the terminals of Barcelona, Mallorca and Madrid. It is estimated that the company had debts in excess of 250million Euros, of which the city of Barcelona had invested more than 150 million Euros back in 2010.

Some good news is that here on Spain's Costa Tropical signs of Spring are taking hold, with almond trees already showing their white and pink blossom, the land too is greener and the trees are developing new leaves too. Signs for a wet Easter and a hot summer are clearly a topic of much discussion with the local farmers…

This month is San Valentin – and for those of you who are die-hard romantics looking to treat yourselves to something different then why not take a look at the wide range of boutique hotels, and restaurants that are located around this part of Spain. There are plenty to choose from, and many offer great packages for a truly special romantic break. If your looking to explore wider parts of Andalucia then why not visit the area in and around Cadiz. Especially since this month see's the famous Carnaval shows in the town between the 16th and 26th of February.

Prior to the fasting and the forty days of Lent, customarily this month we have the popular celebration of Carnaval, with locals partying with street parades and masquerades, and here in Almunecar, the weekend of February 17th to 19th is Carnaval. The children's parade takes place during Friday evening, and the adults perform on Saturday. Disguises, masks, dressing up, and even cross-dressing are popular ways for concealing your identity at this festival – even at the end, when the parades disperse, you will still find revelers in bars and cafes concealing themselves behind their new found persona. So go on, take part, and forget your woes… who knows what might happen  – it could change your life!

Looking for something different to do with family and friends this month then why not invest 10 Euros, and pick up a copy of the useful pocket guide – Granada Tapas Tours: 100 Tapas Bars in Granada; researched and written by Vernon Grant & Gayle Mackie. With 18 routes of 4 bars each to choose from, and 72 bars in various parts of the city where you will be treated the same as the locals. The book guides you away from popular tourist bars, and as you stroll from one to the other (using the simple to follow directions given), then you are made aware of some of the lesser know attractions of Granada city. The book also offers 28 bars that you can drive to in the vast and varied province of Granada, including the Costa Tropical, the Lecrin Valley, La Alpujarra and some that are hidden in spectacular countryside locations. The book also offers tapas tips to ensure you get the most pleasure from your tapas experience, a glossary of the dishes you are most likely to be served and, crucially, how to pronounce them.

The book is for sale via www.guiribooks.blogspot.com ,

www.lecrinlet.blogspot.com  and

www.granadagardens.blogspot.com

And then for a more individual experience you can contact Vernon to arrange guided tapas tours and, or, tours of Andalusian gardens around the area.

For the latest news and updates, you can find me at www.twitter.com/SpainCostaTrop