Spain's Housing Crisis Deepens

This interesting N.Y. Times video explains why the markets cannot afford to let Spain, the world's 12th largest economy, follow the same path as Greece.

Unlike the U.S. housing bubble, which was dominated by creditory subprime lending, in Spain it was more the enthusiasm of buyers from across Europe who were attracted to second-home properties, that fed the real estate boom. As a result of this massive overbuilt sector, banks are now so heavily exposed to real estate, real estate services and construction that almost 40% of all their bad loans are from this sector.

Unfortunately, according to Gretchen Morgenson, Spain lacks the policy tools to resolve this massive housing crisis because it is in the Eurozone and cannot monetize its debt as the U.S. was able to do.

Leaving the Euro would not be a solution to these problems for an economy the size of Spain. The domino effect would be inevitable, Italy being the first to suffer its effects.

Watch the N.Y. Times video: http://nyti.ms/LpeVgN

Luar na Lubre: Camiño de Caión

Luar na Lubre, one of Galicia's best-known folk music bands has just released its new album "Mar maior", which includes the song "Camiño de Caión" (on the way to Caión).

Today the group performed the song live on the Spanish Public Radio Station (Radio Nacional de España) on the show "En días como hoy"

You can find the song lyrics on Luar na Lubre's website: http://www.luarnalubre.com/letras_disco.php?cat=226&id=180&idioma=es

The EU requests that Spain remove tax breaks for home buyers

It's one of lime and one of sand for Spain's current real estate market scenario.

On a negative note, we find the European Union's harsh criticism of Spain's fiscal policy, especially regarding tax deductions for home-buyers.
We should soon witness to what extent the possibility of a Spanish bailout — which still clouds Europe's skies — or the inevitable recapitalization of Spain's banks, mark government policy regarding tax exemptions for home buyers, a likely rise in the VAT rate or a further adjustment in housing prices. With this outlook, Europe's request may soon become Europe's demand.

On a more positive note for mortgage payers is the decrease of the Euribor rate in the month of May. As you can see the good news fits into just one, short sentence.

For the full story (in Spanish):

bruselas pide a españa retirar las desgravaciones por compra de vivienda (idealista.com)

Un alivio de 730 euros para los hipotecados (ventadepisos.com)

Breathtaking Galicia

You live there. You work there. You see some of those places every day. Yet sometimes it's only when those sites are photographed or shot  in such a spectacular way that you realize just how beautiful your country, region, city or village really is. Enjoy Televisión de Galicia's (TVG) promotional video, which you can also view on the website of CIRCOM (European Association of Regional Television).

Foreign investment in Spain's struggling economy

The Galician government has just announced that the Chinese company Beijing 3E is contemplating a €270 m. investment in an oil recycling facility in A Coruña's outer harbour "Punta Langosteira" (located near Caión). The company has agreed to conduct studies on the feasibility of building the plant in Punta Langosteira, the provincial capital's outer harbor. Reactions were not long in coming. As soon as the news was out the provincial capital’s mayor, Carlos Negreira, said the agreement was “…the white hope for the Galician job market.”

Read more: http://technorati.com/business/article/hope-for-spains-struggling-economy/#ixzz1w8xtai5U

This news follows yet another optimistic announcement regarding a contract that was signed earlier this week between the Galician government and Pemex —the world’s 4th largest oil company —for the building of 14 tug boats. 

Read more: http://technorati.com/business/article/hope-for-spains-struggling-economy/#ixzz1w8tt79Qc

As the Spanish press shows, not everyone is in such happy spirits:

El País

Feijóo pide perdón a Pemex por las dudas de la oposición

europapress
Unha empresa china estuda invertir 270 millóns en Punta Langosteira

With the prospect of these major companies investing in the area, I see the land we're selling--and the apartment--as an even better real estate investment. Think about it. Should you let these opportunities slip you by?

Nice news for Spanish real estate. It seems that Spain still tops the list for British citizens wanting to invest in a second home. Let's hope it stays that way.Click here to read more on PropertyWire.com

Simiocracia (de Aleix Saló)

Book-trailer for "Simiocracia, Crónica de la Gran Resaca Económica", published by DeBolsillo. This is part of a series of videos and comics that explore the causes of the current financial crisis in Spain. More information at http://www.aleixsalo.com

Finding a home with no mortgage or monthly rent.

According to an article published in the Spanish newspaper El País, experts are searching for an alternative to private debt, so that we can have access to a home without being tied to either a mortgage or a monthly rent. It seems that even in times of crisis such as these, there's still room for optimism and innovation in the real estate market.

For our most skeptical readers, below we've included a link to the full article published in El País and a short summary in English translated by the author of this blog. In addition, you can find further information on the U.K. government's Rent to HomeBuy scheme here and to A2Dominion and their guide to low cost home ownership.

"Estable como la compra y accesible como el alquiler" (artículo de El País)

http://economia.elpais.com/economia/2012/04/03/actualidad/1333471421_074947.html

"As stable as a purchase and as affordable as a rent

No, this is not a riddle. In London, for those searching for a home there is an alternative to buying—too demanding financially— and to renting, often considered unstable. This is why the Research Group on Access to Housing has just returned from the U.K.

This multidisciplinary and multinational group of experts lead by Dr. Sergio Nasarre, Professor of Civil Law at the State University of Tarragona Rovira i Virgili, addressed the Spanish General Council of Law this week regarding a third scheme.

Few family incomes are able to face housing payments in Madrid, much less in London. There we find two possibilities. The first is the gradual acquisition of a home that is either on the open market or state-subsidized. Buyers start by purchasing a 25% share in the equity on the property and then progressively demonstrate their capacity to pay. The second possibility: Why make a permanent purchase of a home that you will only use, let's say, during your professional life? The answer to this question is temporary ownership. After a certain period, the property is returned to the seller; until then, the temporary buyer is the owner: it is considered an investment and may be freely sold or mortgaged in much the same way as a partial purchase.

…/"

As Fragas do Eume

A bird's eye view of As Fragas do Eume.
Simply stunning!

The video was filmed a few years ago, before the April 7 wildfire partially destroyed this natural woodland.

Our natural resources are the backbone of our economic prosperity, our health and our wellbeing. We can all do something to help preserve them.

A near-zero energy house in Spain

Villa Ana, a sustainable private residence, was designed by architects Iván López Veiga and Juan R. Iglesias Babío in cooperation with Annabella Ortiz, José Álvarez and the engineering studio Indugal. The goal of this group of experts is to become the first Breeam Es certified sustainable building in Spain. This green construction project is located in Santiago de Compostela.

I’ve always imagined a project like Villa Ana on the landlot we offer on this blog and the idea of a near-zero energy house sounds very tempting, especially now that the electric bill has gone up again.

Are any of my readers ready and willing to take the plunge and create something like this green construction project in Caión? It would be adding to the already high environmental and landscape value of the village’s natural surroundings.

Luxury and beauty in a seaside apartment

 I can't believe that no one has yet made the property investment of their life by purchasing the landlot on sale here!

Maybe it's because my readers prefer a fully furnished, luxurious apartment in the same spectacular setting of Caión. If what you're searching for is a beautiful home with incredible seaviews, high quality finishes, top of the line wood flooring plus an unbeatable location in the heart of the villa, then you've surfed into the right blog post. To see details of this wonderful apartment, visit my ads on idealista.com and tucasa.com

 Don't let this opportunity slip past you.

I have a feeling that it's not going to last.

Biting ants and other mardi gras delicacies from Galicia

Carnival in Galicia

Carnival in Viana do Bolo

Wouldn't you just love to be here in Galicia, enjoying one of our best celebrations of the year: the Carnival or Entroido, as we call it.  Celebrations have been going on for some weeks now and will end officially  this coming Wednesday, February 22nd with the burial of the sardine. This festival is just one more reason to invest in Galicia!

Some of my favorite places to enjoy the Carnival (besides Caión of course) are Manzaneda (picture on the left), Viana do Bolo (photo on the right), Laza, Xinzo and Verín.

I came across a page that shares some very interesting information "...about biting ants, torched hay, men in lingerie and ample amounts of cow bell." Just click on the image below to visit it.

Manzaneda