Monthly Archives: September 2009

New Spanish property loans available

money-house

Loans available for property purchases in Tenerife and Spain once more

International Mortgage Brokers have announced that they are now offering Spain property loans of up to 90% loan-to-value (LTV) with rates starting from just 2.45% and low arrangement costs, when purchasing selected Spanish property owned by the banks. There are also 95-100% finance options available.Most mortgages to buy property in Spain are normally limited to 70% of the purchase price so, making this a seemingly attractive product.

The bank owns or controls many properties in Spain and has taken the decision to sell many of them at attractively low prices due to the collapse the Spain property market, with the added benefit of additional safeguards and warranties from the banks.

The company claims that no other Spanish lender offers these unique additional safeguards and that such high loan to value mortgages are only available to the public directly through International Mortgage Brokers.

Pensioners suffering from the global recession

Pensioners in Tenerife and overseas are not smiling as much since the recession.

Pensioners in Tenerife and overseas are not smiling as much since the recession.

Almost half of Britons abroad who are sending money back to the UK are aged 65 and over – suggesting that those pensioners who retired to the sun have been hit hardest by the recession and are being forced back to the UK.

Currency specialists such as Moneycorp and  HiFX has seen a 180% increase in the number of euro to sterling transactions and a 111% increase in the number of US dollar to sterling transactions in the past six months, compared to the same period last year.

Not only are more over 65s repatriating money, but they are also sending home larger amounts. This suggests that they are selling up property and returning home. In the last six months almost a third (32%) of the transactions over £70,000 have been made by over 65s. They have  calculated that British pensioners living in Europe have potentially lost out on almost €10billion of their income in the last two years due to the falling strength of sterling. When faced with this drop in their income, it’s no surprise that some pensioners are finding themselves forced to sell up.

Certainly this has been seen in Tenerife and the Canary Islands allowing the fortunate few with cash to obtain great property bargains.

Buyers looking at Spain once more

Buyers looking to return to Sapin and Tenerife

Buyers looking to return to Spain and Tenerife

Spain was last at the top in June and it returned victorious in August, claiming first place in  a monthly snapshot of the most popular countries, July’s winner, the USA,  was second. Despite being the subject of more bad publicity than virtually any other country during the credit crunch, buyers are starting to look to Spain once again.

Favouring traditionally popular destinations, international buyers are looking once more to markets such as Spain and France and Brits are proving that the love affair with Spain is far from over.

International mortgage firm Conti revealed that interest in Spanish properties accounted for 22 per cent of the total information requests so far this year, second only to France and up from 14 per cent in 2008.

Assessing the prospects for British buyers in Spain, the company said, “Buyers are in a strong position due to the number of homes available, low interest rates and the opportunity to negotiate price reductions from motivated vendors. “Sensible investments carried out on a long-term basis have a good chance of bringing in healthy returns.”

Prospective buyers are now chasing long term gains and as it had been hit so hard by the global recession, prices could remain low and offer good bargain potential for years to come. Cash buyers have been tipped as the ones most likely to be able to pick up a real bargain in the country as they don’t have to worry about mortgage financing, can bargain hard with struggling developers and can move the transaction quickly along.

The TINSA survey, which prides itself on being ‘Spain’s most reliable guide to property values,’ has found that the decline in prices has stabilized.

Spanish cities are tipped for a brighter future over the next few years, with the Assures Financieros Internacionales (AFI), suggesting that property prices in cities may rise to previous levels during 2010.

Once the glut of unsold properties in Spain is shifted, this will help to aid the recovery and push the market back up in 2010. This of course will also help the market in Tenerife too.

Problems for Spanish developer

Problems for Spanish developer

Problems for Spanish developer

The Spanish property developer Nozar has sought court protection from its creditors after it failed to reach a deal with its banks over restructuring €700m (£630m) in debt, according to Spanish Property Insight.Nozar’s move comes following four months of failed to negotiations with bank creditors. Bankruptcy or liquidation now looks likely for the Spanish property company.

Nozar is the latest Spain property developer to fall victim to a lethal combination of excessive debt and a collapse in Spanish property sales, following in the footsteps of Llanera, Martinsa Fadesa, Habitat, Tremón, Aifos, Constructora Pedralbes, Edisan, Obrum, DHO and Begar, amongst others.

Nozar’s financial difficulties illustrates that the Spanish mainland property market is still facing difficulties whilst neighbouring Tenerife and the islands seems to be over the worst.

Investors sticking to proven locations like Tenerife following global market downturn.

The index which tracks the level of interest in certain properties and countries from visitors to the site has seen changes.

British buyers stick with traditional locations like Tenerife after the credit crunch.

British buyers stick with traditional locations like Tenerife after the credit crunch.

The United States was knocked off the top spot in August’s Investment Property watch chart

France, a favourite with British investors and holidaymakers,claimed victory in August.

Industry experts are busy predicting that traditional locations will emerge victorious from the global market downturn and that is good news for Tenerife. Mortgage specialist, Conti, found that British investors are sticking to ‘proven’ locations that offer less risk. Spain is a  traditional hotspot. The credit crunch has been particularly hard on Spain, with hoards of unsold apartments lying unfinished as developers fell foul of the credit crunch. Now, huge discounts have led to the bargain hunters circling again, pushing demand for Spanish property back up.

For France and Spain, enquiries have increased considerably with the countries accounting for 53 per cent of all 2009 enquiries so far, compared with 29 per cent in the same period last year. British buyers are sticking to the more traditional overseas locations, especially those with history of providing good rental returns. The smart investor is no longer simply looking to where the best bargains for a swift return can be found, but to where security lies for a longer term investment and Tenerife certainly meets these criteria. perhaps it is time to visit your Tenerife estate agent and see what bargains are available again.

Tips for Landlords

A reputable agency will help a landlord manage the property

A reputable agency will help a landlord manage the property

As a growing number of accidental landlords continue to enter the market,  a guide has been produce which

offers new landlords advice on all aspects of the lettings market from tips on selecting a lettings agent to information on the ongoing obligations and responsibilities of being a residential landlord.

Choosing a letting agent -  A good lettings agent can not only help you in finding your tenant but they can take over responsibility of collecting rents and organising repairs and that saves a great deal of hassle.

Deciding what rent to charge – be realistic. Take the agent’s advice on what is an achievable rent and look at local newspapers and property websites to see what else is available and at what price. The current oversupply of rental property may mean accepting a reduced rent but a competitive price will reduce the voids!

Get the Tenancy Agreement in place – before finding your tenant you need to think about any restrictions you wish to put in place. However, try not to be too tough – if you exclude smokers, pets, students, small children and short term lets, you will narrow the market for your property considerably! Be sure that you explain these points to your agent as well.

Ongoing responsibilities - one you have a tenant in place, as a landlord you have a number of ongoing responsibilities. You must ensure any necessary repairs are carried out efficiently and the property must be well maintained. You must ensure the safety of all gas and electrical appliances and all furnishings adhere to the necessary fire safety regulations.

The advent of the accidental landlord is a trend that is expected to continue. While many amateur landlords entered the market prior to 2008, keen to make their fortune in what seemed to be a world of ever rising house prices, this year we have seen an increasing number of homeowners opt to rent out their previous home, rather than sell at a reduced level and Tenerife is a good example.

The guide is  to assist those who are new to the lettings market and are unsure of their legal obligations. With an array of responsibilities and regulations that must be adhered to, entering into the lettings market is not a decision that should be taken lightly. For those with limited experience, hiring a lettings agent is a must and there are still many reputable agencies in Tenerife.

Spanish property tours to visit England

Spanish property exhibitions to visit England

Spanish property exhibitions to visit England

Taylor Woodrow will mark its 50th anniversary by touring England with a series of Spanish property exhibitions throughout September.

The exhibitions will offer people looking to buy property in Spain information on Spanish homes and locations, plus Spanish properties that have been reduced in price by up to 41 per cent, to reflect the recent slump in the Spain property market.

Victor Sague, Marketing Director of Taylor Woodrow de Espana, said, ” From talking with our estate agency partners in the UK, we expect there to be significant interest in these offers from both investors and second home hunters.”

Experts will be on hand to advice house hunters at each of the exhibitions, which will be held around England from Sunday 13-23 September.

There are many homes available in seaside and golfing locations throughout Mallorca, Costa Blanca, Gibraltar and Marbella,  Tenerife and the Canary Islands. A  high number of homes will be sold throughout the couple of weeks of exhibitions as it will provide house hunters one last chance to buy a quality home at a fantastic price. It really is now or never for people to take advantage of these top quality homes as these discounts will not be around for long.

Different idea in Spain to attract customers

Different ideas to attract custom

Different ideas to attract custom

A Spanish restaurateur, fearing a drop in business due to swine flu, is seeking to pull in customers by offering a sanitised — and hopefully virus-free — environment.

Miguel Angel de la Cruz, manager of the Mesa y Placer (Table and Pleasure) eatery in Madrid, said he was forced to act ahead of a feared ‘second wave’ of swine flu this northern autumn, which is “more dangerous to business than the economic crisis”.

“We are facing a very difficult autumn. We have therefore had to try and anticipate the impact of the H1N1 flu which has completely paralysed the sector in Mexico,” said de la Cruz.

So, instead of a free aperitif, his customers receive disinfectant hand gel and a sanitised napkin before reading menus that are covered in plastic to reduce the risk of contamination.

The meals are prepared by chefs wearing surgical face masks, and all staff must have their body temperatures checked before starting work to ensure they do not have the flu.

De la Cruz said another Madrid restaurant in the same group, Plato y Placer, in a more touristy district of the city, has introduced the same measures.

There, “the Japanese, who are very careful about hygiene, make up a large part of the clientele. They are coming less, but with these measures we hope they will return”, he said.

It was unclear how effective the antiseptically clean ambience would be in combating swine flu, which has killed at least 21 people in Spain since it arrived in Europe in April, nor whether they would attract custom.

Spain’s health ministry has not yet issued any advice for the restaurant sector, but recommends frequent handwashing and discarding tissues after using them, to combat the virus among the general public.

“An anti-tobacco law would save more lives than a dose of disinfectant gel, but it’s still better than nothing,” said Jose Carlos, a 43-year-old government worker as he ate lunch at Mesa y Placer with a colleague.

A visit to bars in the Plaza Santa Ana, one of the main tourist spots in Madrid’s old town, showed customers continue to use their fingers to eat tapas, tasty Spanish snacks, and drop their used tissues on the floor rather than throwing them away.

“We are not going to stop living or change our habits because of the flu,” said one, Marina, 42.

Hugo Vasquez, a manager of the Naturbier bar and restaurant, said establishments are waiting to “receive the information booklets from the health ministry, because there is a lot of uncertainty.”

He said “sales have not been too affected by the economic crisis because of tourists,” but said swine flu “scares us more than the recession as foreigners are likely to come less often”.

Tenerife Webcam in Las Galletas

pink-parrot-cafe-las-galletasExcellent webcam with a view of Las Galletas harbour and  the sea-front walkway, owned by The Tenerife Property Guide (one of the largest sites to find properties to buy or rent, businesses to buy or rent, Long Term or Holiday Rentals, Off Plan opportunities and Plots of Land in Tenerife).

The camera is situated above Martin and Lillian Proud’s  Pink Parrot Cafe (pictured) on the esplanade in Las Galletas, a pretty little Canarian fishing village on the south coast of the island.

The TPG would like to thank Martin and Lillian, who have kindly allowed us to route the webcam feed through their computer!

To see what the weather is like in Las Galletas at the moment, why don’t you take a look!

Boost for Spanish mortgages?

Euribor is now 75% lower than it was this time last year, when it stood at 5.323%, leading to significant savings for Spain property owners with a mortgage.

Mortgage boost for Spain and Tenerife?

Mortgage boost for Spain and Tenerife?

Euribor, the interest rate normally used to calculate mortgage payments in Spain, fell to a record low of 1.334% in August, down from 1.41% in July.

The cost of financing the purchase of a property in Spain has been falling month-on-month for almost a year, with the Euribor having depreciated for eleven consecutive months, setting a new record low in each of the last six months. Euribor has gone from record high to record low in the space of a year.

Thanks to the latest drop in Euribor, the average owner of a property in Spain and Tenerife with a mortgage can expect to save around €316 (£276) per month, or more than €3,800 (£3,230) per year, on mortgages that reset around now.

However, there is evidence to suggest that most banks are not passing on falling rates to customers, opting to raise margins instead.

Mortgage experts do not expect Euribor to drop much further from here, certainly not below 1%.