The overall growth and decline of individual world markets in the real estate sector during 2009 provided excellent insight for predicting the expansion of letting markets during the coming year. The strongest activity for increases was found in the lettings markets, where continued favourable outlooks are expected in the majority of world markets.

Countries that fared the worst during 2009 saw only slight declines, where the significance was low in comparison to the previous year’s decline. This factor alone offers a positive light with the knowledge that the worst of the crisis in the world real estate market appears to be entering the light of recovery.

Whether 2010 offers extensive overall improvements in comparison to 2009 still remains to be seen, yet investor confidence is growing as market rebounds offer positive expectations. Sustainable markets that were experiencing positive growth prior to 2007 have remained the favourite contenders for investors planning to enter buy-to-let markets in 2010. (more…)

The popularity of purchasing a buy-to-let property along the coastal resort towns in Spain has lead to a variety of misunderstandings and general confusion regarding the rights of owners and tenants. Understanding Spanish rental contracts can assist with both owners and tenants to know the extent of their rights and obligations.

The extensive number of English speaking expats along the coastal resort areas has lead many tenants and landlord creating contracts in English. It should be noted that difficulties may be faced when using an English language contract, especially if any issues need to be bought to the attention of lawyers or the courts. Requesting a Spanish language contract is highly advisable and if the tenant or owner does not understand what is in the contract, going through the details with a lawyer, hired translator or trusted friend fluent in Spanish, will assist with full comprehension of the details.

Details that all contracts need to cover include the full names of the property owners and the tenant, along with their identification numbers and the address of the property. The contract will also need to include the length of the agreement and the amount of the rental payments. There are many other areas that both landlords and tenants should ensure are covered in the contracts to avoid future issues, rather than agree upon verbally. In fact, verbal agreements tend to cause the majority of problems which can be avoided by considering everything that may affect each party in the short and long term. (more…)

The emerging market opportunities that made Spain one of the world’s most sought after investment markets are well and truly in the past. Having exploited every available opportunity to keep the market alive in its incredible and seemingly never ending inclination of prices, interest and demand, the inevitable fall began.

Spain was no longer an emerging market; the country had spent the previous decade of booming infrastructure and strong demand. The moment had arrived for the real estate market to establish stability with a much needed price correction. Speculative buying ceased as increasing numbers of foreign owners became lifestyle clients, with a predominant shift from retirement aged Northern Europeans, to considerably more working aged buyers.

As prices fell considerably, potential buyers held back waiting to see how far the prices would continue to drop. Arranging financing, job security and property valuations were no longer as optimistic as in previous years, all combining to create the present day problems to those wishing to enter the market. (more…)