08 | INDUSTRY
NEWS By Geoff Hadwick
“It’s offi cial,” the Spanish homeowners lobby group Abusos Urbanisticos Almanzora NO (AUAN) told OPP last month, “there are 12,697 illegal properties in the Almanzora Valley.” According to the pressure group, “the Minister for Housing and Planning, Josefi na Cruz, met with the Mayors of ten municipalities in the Valley of Almanzora in Almeria on Thursday to deliver the results of the Inspection of houses constructed on land not zoned for building in Albánchez, Albox, Arboleas, Cantoria, Fines, Líjar, Lubrín, Oria, Partaloa and Zurgena.” “The Minister revealed that 12,
697 ‘irregular’ constructions had been identifi ed in the Almanzora Valley alone … and, of these some 7.2% or 920 buildings have been found on specially protected land, or are less than 4 years old, or are incomplete. In these three cases the offence is not proscribed by law and the ministry has instructed the councils to ‘restore order’ as a priority.” “As for the remaining 11,777 houses,” AUAN told OPP, “Cruz
www.opp.org.uk | APRIL 2011 Almanzora has 12,697 illegal homes
this decree, which of course will not be available until after the local elections, it is impossible to say anything meaningful. However, the government has had seven years to deal with this issue and now suddenly two months before an election there is a new decree? The timing is a bit fi shy in our view and smacks of electioneering.” According to AUAN, “blaming
Shameful | is how AUAN describes the comments of the Spanish housing minister
went on to state that her ministry was working on a special ‘decreto’ or decree to defi ne a uniform set of procedures which would allow these houses to be granted an occupation license and obtain access to services in a manner described as ‘self-suffi cient’ making it clear that public funds will not be used to resolve the situation.” AUAN president Maura Hillen is
angry and can see offi cials whitewashing the whole affair. “12,697 illegal buildings in the Almanzora Valley and nobody noticed?” she says. “Did these houses
pop up like mushrooms overnight? Where was the Junta when the houses were being built? And how many people will be made homeless and/or lose their life savings if 920 houses are demolished to ‘restore order’?” “A conservative calculation would put
the fi nancial losses in the order of €90 million. Who’s going to compensate those who bought in good faith? The Junta? The town halls? “ Commenting on the Ministers
announcement of a promised decree Hillen said “Without seeing the text of
foreign homeowners for the woes of the Andalucian planning system is clearly untrue.” “In our view, the Spanish Ministry
of Housing and Planning is like the orchestra on the decks of the Titanic ... fi ddling away whilst the ship sinks taking homeowners and what is left of the reputation of the Andalucian property industry with it. It’s a shambles.” Cruz ignited the row further last
month, with comments branded as “shameful” by AUAN. She said groups like AUAN did not
know what they were defending, and said the problems stemmed from a lack of respect from overseas buyers who, she said, “were not of this country and have settled here illegally”.
Agents cash in on Florida foreclosure sales
75% of Florida’s residential property sales in January 2011 were via banking controlled foreclosures and short sales according to the figures from the Orlando Regional Realtor Association (ORRA) and local agents are adopting strategies to exploit the situation. The average sales price for a foreclosed
home was $94,500 and $75,000 for a short sale property ... asking prices well below those for regular property for sale on the open market, which averaged $145,000 in January. Colin Murphy, director of Florida specialists Torcana Ltd, told OPP that his company has developed “a two-fold strategy in this market. “One, we have targeted distressed developers directly and negotiate bulk discounts on high quality pre-tenanted properties. We promote these to our database of vacation home seekers and investors with a full after sales
service included. This enables buyers to secure properties at a discount of up to 70% on peak prices, which are thoroughly inspected before the purchase process commences.” “And two, in conjunction with high
net worth buyers, we also source and directly purchase a range of foreclosed, short sale and developer owned properties at a substantial discount (perhaps 80%) in a small section of communities over a period of time, say six months, which we refurbish, tenant and resell to regular investors at a discount of approx 65%”. “Opportunities abound in markets like
this,” Murphy adds, “but buyers should tread carefully and invest conservatively. While prices are at record lows and statistics point to a market that is bottoming out, a conservative buy and hold strategy will serve you best in the long run.” “In other words, buy, with cash, a discounted property in an established
location, enjoy a good income, treat your tenants well and hold until such time as the market shows signs of another property bubble” “A short sale occurs when a lender
allows a property owner to sell their home for less than the value of the mortgage,” he adds. “This can be a time consuming, bureaucratic process.” “A foreclosure is when a lender repossesses a property and gives buyers & agents the opportunity to purchase it in an auction. As with short sales, only professional buyers should consider this option, as title, structural, tax and
tenancy problems are often associated with distressed properties.” The latest statistics in Orlando
continue to indicate that a recovery has begun with sales of condo apartments in January 2011 26% higher than in January 2010. The offi cial number of homes for
sale or inventory is also down 9.5%. Nationally the numbers who are a month late in paying their mortgages is now at its lowest level since the recession began.” According to Mike Fratantoni of the
Mortgage Bankers Association, “the delinquency numbers are sending a very clear message … that we‘ve turned a corner and that things are improving.” Recent data from the US Census
Agents arrive | for their share of spoils
Bureau revealed that 18% of the homes in Florida, a total of 1.6 million, are now lying vacant, although this fi gure is disputed as it includes holiday homes which are not a primary residence.
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