Our changing fortunes

	This graph shows the changes in the exchange rate between the £ and the euro over a 10 year period. Actually, when we first came in 2004, the rate was even higher.
	This show the improvements made for us over the last year.

You can see the drastic effect that the financial crisis had on our finances from 2007 to the end of 2008 and imagine what an impact that meant for our living standard. Losing a third of our monthly income was hard, very hard. If there had been a corresponding drop in the cost of living it might have been OK but of course that did not happen.

This year things have slowly but steadily improved. We are not back to the heady heights of 2004 but at least we feel better off than we did at the start of 2014. Our hope is that the improvement continues. More to the point though,  we NEVER want to return to the dark days of 2007-09.

Encouraging news

It may be impossible to get a mortgage here in Spain but it isn’t all bad news on the financial front.

In the summer of 2012, Spanish bond yields were at a high of 7.621% and the risk premium was 650 base points. At the beginning of this year the bond yield was 3.97%  and the risk premium was 222. By the end of the year the risk premium had dropped to 113.The  current yield is 1.517% and the risk premium 97.3.

The result is a saving of 5,000 million euros to the Treasury and that could well improve further over the next few months when experts say the risk premium could drop to 70 base points.

An impossible situation for Spanish buyers (and sellers)

In the so called “boom” years it was easy to get a mortgage of 100% or even more to buy property on the Costa Blanca. Builders could not keep up with the demand and so prices rose almost weekly. No matter though, the banks would and did lend you whatever you asked for.

Things are very different now. House prices continue to plummet and unemployment is high, so banks are very reluctant to lend because of the high risk factor. In fact it is impossible to get a mortgage here in Spain no matter what the price, the status of the buyer etc. Some areas are worse than others – Elche tops the list but is closely followed by other parts of the Valencia/Murcia region.

Of course, without access to a mortgage, only a handful of Spaniards can contemplate buying a house even if the prices are rock bottom and represent excellent value. And those that bought at the height of the market face the depressing reality of falling values which means that the amount they owe is a hell of a lot more than the return they would get if they tried to sell. Estimates set the value of many properties bought during those golden years at 30% of the debt. The only recourse for those that have a property they no longer can afford is to try  and rent it out but then that is a saturated market. The amount they can hope to get is a fraction of what they are paying for their mortgage.

From the banks point of view this could spell disaster if people, who were unable to continue payments of their mortgage, could simply hand over the keys and wipe out their debt. That is not how it works here because there are clauses in Spanish mortgage contracts that mean you have to pay the outstanding debt even if the house is no longer yours.

If owners can’t sell their properties, then neither can the banks. In fact it is harder for the banks to sell properties because many that have been left vacant for any length of time have been vandalised. Those that have been left on our estate have been stripped completely of anything of value including doors, windows, cable etc. etc. All that is left from most is an empty shell and I dare say that would go if it was possible to salvage the bricks.

Experts say that it will be at least 2017 before there are glimmering signs of a recovery in the Spanish mortgage market. Of course, there is some evidence of a recovery in the building trade with new projects being started and those that had stalled coming back to life. Those properties though are not being bought with Spanish mortgages. They are going to foreign investors sourcing capital elsewhere.

London lit up for New Year

These pictures from the Daily Mail show some of the spectacular fireworks in London last night.

See how it dropped

It might have felt warm in the sun yesterday but out of it was decidedly chilly. As you can see from the graph, the maximum temperature recorded in Orihuela was a bare 12 degrees between 2pm and 4 ‘o clock. It then plummeted down, reaching 0 degrees by 2am.

The central heating in our house is set to come on at 4pm and normally has the place as warm as toast within half an hour. Yesterday it was struggling to reach 20 degrees by 6pm and only really got warm by about 7:30.

This cold spell is set to last until about Saturday after which it should start to become a little warmer.

A LITTLE HELP FROM THE UK

Earlier this year, George Osborne revealed plans to cut winter fuel payments to 100,000 ex pats. The Prime Minister pledged that the payments would be protected until 2015 but after the next election that could all change.

The original ruling was that you had to have lived in Britain at the age of 60 to claim but that was overruled by the European Court of Justice. That meant that Pam and I, who left Britain at the age of 57, can now claim. For the last couple of year we have received £100 each – thank you.

Like many benefits, the winter fuel payment is not means tested and therein lies the problem. There are some living in both Britain and abroad who do not need to rely upon the payment to keep warm but, by the same token, there are many who do.

For the whole of our working lives we paid National Insurance and we paid tax, more I dare say than the average working Brit. We don’t get any of the other benefits that British pensioners might receive and even pay a proportion of our prescription costs under the copago system in Valencia. Actually, because our works pensions are government pensions, we still pay income tax in the UK so we are still, in effect, contributors to the UK economy. 

The assumption made by Mr Osborne, is that temperatures in countries like Spain average 17 degrees in winter and as you can see from the graph yesterday, that is not necessarily true. Our gas bills for the winter quarters are well over 300 euros each which is probably similar to those for pensioners in Britain. I am not saying that we rely upon that payment but it certainly helps.

A cold end to the year

A wave of cold air has descended on the province causing the thermometers to drop by up to eight degrees. Here on the coastal plane that means lows of about 2 degrees but further inland it is much colder. In Pinoso the low was 0.

In Castellón there were even colder temperatures recorded like –6.7 in Fredes and –6 in Vilafranca. The lowest temperature in Valencia was –5 in Turis.

The cold snap will last until Epiphany when temperatures will rise again and could reach 20 during the daytime.

What would be worse is the possibility of rain. Thankfully, that is not forecast.

Upping the stakes

Diego Carillo Soler, Director of the Bigastro Symphonic Band, moved their performance up several rungs last night.

You may have noticed the inclusion of Thomas Doss’ Sidus in the programme. I had never heard of either him or it until last night.

A LITTLE BACKGROUND OF THE COMPOSER

Thomas Doss was born 1966, in Linz, Austria, into a musical family (both parents were active orchestral musicians). His undergraduate degree was in music education at the Brucknerkonservatorium Linz, with an emphasis in trombone, composition, conducting, and piano. Subsequent studies took place in Salzburg, Vienna, Los Angeles, and Maastricht (Limburg). Doss made his début with the Wiener Kammerorchester in 1988. He held residencies with various opera houses and festivals, working as both conductor and composer with, amongst others: the Brucknerorchester Linz, Philharmonisches Orchester Erfurt, Wiener Kammersinfoniker, Westfälisches Sinfonieorchester, Philharmonisches Orchester Budweis, Südböhmische Kammerphilharmonie, Wiener Kammerchor, Neue Philharmonie Frankfurt, and the Österreichisches Ensemble für neue Musik. Doss is known for collaborating with artists from many different genres, such as Harri Stojka, Chris de Burgh, Thomas Gansch, John Williams, Steven Mead, Christian Maurer, as well as many others. His passion for wind and brass ensembles has taken his expertise and talent around the world. He has maintained a close relationship with Mitropa Music (distributed by De Haske Hal Leonard) since 2001 and has published numerous scores and CDs with them. Teaching and coaching have also become an increasingly important part of Doss’s work. Many of his students are award-winners at international competitions. He also leads workshops and master-classes at institutes across Europe, such as the Konservatorium Groningen (Netherlands), Lemmensinstitut (Belgium), Konservatorium Gent (Belgium), Universität Mainz (Germany), Musikuniversität Wien, and Anton Bruckneruniversität Linz (Austria). Doss has been the coordinator for the “Ensembleleitung des Oberösterreichischen Landesmusikschulwerk” since 2006. He is professor of conducting at the Vienna University Conservatory and at the Monteverdi Conservatory in Bolzano, Italy and has been a consultant for institutes looking to improve and further their conducting programmes. Numerous sound storage media, prizes and awards line his musical way.

Among his many works, Sidus is categorized as a “difficult to very difficult” piece for symphonic woodwind. I think the musicians in the band would agree with that. I believe that they intend to include it in their programme for a forthcoming competition. If it wows the judges as much as it did the audience last night, then they are sure to win a coveted prize.

Batten down the hatches

Along with a distinct drop in temperature, we could experience some strong gusts of wind over the next day here in Bigastro. Unlike Britain though, we are hardly likely to see any snow.

The Daily Mail paints a dramatic picture of the snow that fell over the Midlands and Yorkshire in particular and talks of further snowfall and temperatures plummeting to –10 degrees. The reality will probably be not quite as bad as that. When it rains, the Daily Mail describes it as a torrential downpour; when it is sunny, the Mail says it is a heatwave hotter than Spain and when it snows, the country plunges into Arctic conditions.

The Russians are going

The economic crisis in Russia is set to have a profound effect on this region of Spain. Russia spends over 500 million euros a year on the Costa Blanca, that is a lot of revenue to lose.

First there is the export of fruit, vegetables and quality leather goods from the area which accounts for 106 million euros. The Costa Blanca also exports, among other things;  marble, fertilizer, oils, perfumes, canned vegetables, fruit juice, furniture, lamps and pottery – even musical instruments. 

Then there are the tourists who were on a rapid increase over the last year but are now in decline. !61,000 Russians arrived at El Altet in the last year and they bring money with them to spend in hotels, bars, shops etc.

Lastly, there is real estate. Wealthy Russians were buying homes in the area at prices over 500,000 euros, an average of 918,000 euros per house. Set that against the average investment of other nationals at 126,170 euros and you can judge how important the Russian business was to this area.

Now that I call funny

For the benefit of my Spanish readers, the cartoon puts a twist on the word frankincense (one of the gifts from the 3 kings) and turns it into Frankenstein (the monster).

Pam and I at Christmas

We went for lunch to La Herradura (the horseshoe) restaurant in Los Montesinos. You have the same menu every year but hey, you’d get the same meal in any restaurant in England on Christmas Day. Ours was typically Spanish. Here are just three of the courses we enjoyed.

And here is the entertainment. Two flamenco shows.

Another Christmas has arrived

When you get to a certain age, you’d think that Christmas would lose its appeal. I am happy to say that has not happened to me yet. I am still looking forward to opening the presents under the tree to see what surprises the girls have found for me. I am also looking forward to my Christmas dinner.

Most of all though, I can’t wait to see the excitement on the face of my granddaughter as she discovers what Santa has brought for her this year.

My neighbour Pepe

	Having tried the cornet, Pepe decided that a saxophone would be easier to learn.  Pepe has now become so proficient that he  has joined the Junior Band. It will only be a matter of time before we see him playing in the symphonic band.
	The musicians parading around the streets to accompany Santa Claus.

RIP Joe Cocker

Joe Cocker has died of lung cancer at the age of 70.

Born and brought up in Sheffield, he was for me at the time, a local lad made good. I confess that I’d never heard of him during his early career when he played with his brother in groups which eventually became Vance Arnold & the Avengers. My first recollection of Joe was when he formed the Grease Band, they were popular locally in Northern clubs. I heard of him but never got to see him perform.

HIs was one of the defining performances in August 1969 at Woodstock. He sang With a Little Help from My Friends complete with unearthly screams, hideous grimaces and seemingly uncontrollable body gyrations. Pam and I saw him in much later in Germany during a three day concert. He was brilliant on stage, still gyrating, still grunting and still hammering out the lyrics like he meant them.

Many successful artists at that time were singer songwriters. Joe relied on others to write but gave his own personal interpretation to the tunes.

Among my favourites are: Feelin Alright, With A Little Help from My Friends, The Letter, Don't Let Me Be Misunderstood, You Are So Beautiful, You Can Leave Your Hat On, She Came In Through The Bathroom Window, When the Night Comes, Unchain My Heart and Delta Lady.

I could have sworn that he had an LP entitled Cocker Happy but that is apparently not true.

Was it you?

Every ticket with the number 13437 you bought for the Christmas lottery would mean you were now 400,100 euros better off.

None of our neighbours are likely to be included in that list though because we know that the winning tickets were sold elsewhere.

Locally, one ticket for one of the fifth prizes was sold in Orihuela Costa and another for the fourth prize in La Murada. Three tickets for the second prize were sold in Callosa de Segura. Each of those three tickets are now worth 125,000 euros.

For those who had no luck this year, there is always next or you might want to try your luck at El Nino, the son of El Gordo. 

I stand no chance

El Gordo, the fat one or Christmas Lottery is an obsession for many Spaniards. It is their chance to become millionaires and so they buy tickets like they are going out of fashion. With 2,240 million euros in prizes to be distributed, the chance of winning are a lot higher than in most other lotteries.

Two years ago, the chances were even higher when the pot was 280 million more and in those days you were not taxed on the winnings. Now, every prize over 2,500 euros is taxed at 20%. None of that has put anyone off though. The average spend on lottery tickets in Alicante province is said to be 65 euros per person, lower than last year.

In the past I have bought the odd ticket for the lottery and once I got my stake back because my number ended in a 5. However, I am not a gambling person and never have been. We did buy tickets for the National Lottery in England when it first was introduced and I even ran a syndicate at school for awhile but it soon became obvious that it was just money down the drain so I stopped contributing.

Having not bought a ticket for El Gordo, my chances are nil – zilch, zero, nada. I content myself with the knowledge that I haven’t wasted the 65 euros or more that others have. If one of my neighbours or friends wins, I will congratulate him/her and expect nothing in return.

The draw has been running for just over 40 minutes now and there are no signs of gasps or sounds of champagne corks flying yet. 

There you have it

The programme for Christmas in Bigastro.

I will be down to see the junior band accompanying Santa around the town in the hope of catching my neighbour Pepe playing saxophone.

I do have one question though. On the posters for the Christmas concert by the band it says 8pm but on this poster from the Town Hall it says 7pm. Whilst we don’t want to arrive at 8 and miss it, neither would we want to be there at 7 and wait for an hour outside.

I will ask my friend Christopher who plays flute in the band and get back to you. 

Tocomocho and estampita

Two Spanish scams that have been around for a number of years but still catch people out, especially the elderly.

Tocomocho is a lottery ticket scam. Basically you are offered a lottery ticket by one of the scammers. An accomplice then appears and just happens to have a list of winning numbers which includes the one offered to you. Impressed, you buy the ticket for a lot more than its face value. Of course the whole thing is a fake and the ticket turns out to be worthless.

Estampita involves two or more people, one of whom acts dumb. He offers you a high value bank note which he says is just a worthless estampita or holy picture card. He explains that he has many more of these. The accomplice convinces you to buy the “holy cards” but guess what, only the top one is a genuine bank note, the others are worthless scraps of paper.

To those who read my blog

I hope that you all have a very merry Christmas and a a happy New Year. Pam and I are here for both and look forward to a pleasant but at the same time peaceful rest. We will, of course, be in touch with our family via Facetime to keep up with the hectic celebrations back in England.

Santa can be scary

Not just Santa, but those three Kings can frighten young children to death. 

No matter how much you tell them he is a nice person that brings you presents on Christmas Eve, the sight of a man in a huge white wig and beard can be very intimidating when you are little.

Just look at the face of this young girl in Bigastro taken by Eli Ortuno last night.