Significant Decline On Madrid Real Estate Price

Significant Decline On Madrid Real Estate Price The National Statistics Institute or INE has noted that the costs of Madrid Real Estate have fallen around 14.4% in this second quarter of 2012 if it is in contrast with the fact in 2011 in the same interval. Because the statistic was published by INE in 2008, this percentage becomes the biggest decline. In contrast with the first quarter of 2012, the reduction of the costs is two points higher.

Nevertheless, this reduction doesn't occur in Madrid only, but also some places in Spain such as Catalonia, Basque country, Aragon, Balearic Islands, and Navarra.

Some economic professionals argue that this phenomenon is the twin impact of global financial crisis.

Besides, euro zone debt crunch requires aside in this situation as well. The spanish language real estate is hard to be sold. Some properties which are not selling are individuals in the outside of cities.

Individuals properties are extremely tough to sell. Similar to individuals properties, properties in coastal resort areas don't entice the customers either. Mr. Casas as an expert in higher-end residential market in Madrid says that the costs in these kinds of area have dropped 10 till 15 percent in the last three years. In general, costs of properties in Spain drop 30 percent or even more.

Mr. Casas also says that some buyers are coming from other international locations such as Mexico, Russia, and Venezuela. Only few buyers are from the United States. However, there are many Spaniards who buy properties in Madrid as well. Every buyer has his or her own intention in purchasing the properties. Some of them determine to buy them as property investment Spain. They notice that properties are beneficial financially. Therefore, they can gain profit by eventually selling.

The others would like to buy the property for their children attending a university in Madrid. It is more beneficial to buy a property instead of rent it because they can sell it when their children have graduated. Indirectly, it can be said as an investment.

Before acquiring Madrid Real Estate, it is well-recommended employing a lawyer in advance. The buyers only need to pay the lawyer no less than $1,000. The lawyer has understood any requirement connected to The spanish language law. At the closing, a notary will be required to make sure that the property has been transferred based on the law in Madrid. Buyers from another country can apply for a mortgage in a The spanish language bank. However, they have to know that more cautions from the bank will be carried out due to economic crisis. Before 2008, almost all domestic and foreign mortgage applicants were offered some types of financing. Nowadays, only 20 percent of applicants will receive the financing. In this case, individuals who have been residing in Spain for long time will have a wider opportunity to get financing.

Besides the cost and fee for the lawyer, the buyers have to consider about tax. If they want to be bothered with complicated necessities in purchasing a property, they can choose to contact an representative which provides brief or long-term leases. It becomes a good selection for individuals who want to stay in Madrid for a interval of time for instance for students or professionals.

Madrid Real Estate