Monthly Archives: October 2009

0wners forced to rent when unable to sell

October 28, 2009 – 5:00 pm
dep

Owners in Spain and Tenerife are choosing to rent out property when it fails to sell.

Property owners in Spain and the Canary Islands who are renting out their properties because they cannot sell them due to the country’s depressed real estate market are increasingly experiencing problems with bad tenants hit by the economic downturn. The number of defaulting tenants and evictions have tripled in the past two years, it is claimed.

Many of them who are having problems are expats who moved to Spain and the Canary Isles  for a better lifestyle and then became reluctant landlords because of the credit crisis, according to Paragon Advance España.

Bryn Cole, Managing Director of Paragon Advance España who have offices just outside Marbella, the Costa del Sol and Madrid said that many of these reluctant landlords have moved back to the UK and rented out their properties as they cannot sell them in the current real estate climate.

‘They have been forced into letting out their homes in order to be able to pay the mortgage and, for those investors who jumped on the Spanish property market, buying off plan, only to see it go into freefall before they could offload their investment, they have had their fingers burned and are having to let long term and ride it out,’ he explained.

His company’s research has found that the number of tenants who default on their monthly payments is increasing at alarming rates with tenants also being affected by the economic crisis and unemployment in Spain.

It can take around 18 months through the usual law system and, in the meantime, the landlord still has to pay the mortgage, utility bills and has no redress over the defaulting tenant during this time. If the landlord should refuse to pay and, for instance, the electricity is cut off, the tenant can prosecute the landlord. These facts are another good reason to rent using the services of an estate agent who can try to alleviate any problems as they arise and in so doing, protect your investment.

By Angela | Posted in Economy, General, Holiday, Inspirational, Miscellaneous Articles, Property, Tenerife, Things to Do, Uncategorized | Tagged , , , , , , , , | Comments (0)

Still pain in Spain

October 23, 2009 – 9:42 am
images2

The pain in Spain's property market continues, although some areas including Tenerife are fairing better.

Data  shows that resale Spain property values dropped at a slower pace of decline in Q2, compared to the preceding quarter.
Resale Spanish home values fell by 12.5% in the first quarter of 2009, but slowed to a decline of 11.2% in the second quarter.

The index also claim that Spanish areas traditionally popular with foreign investors, such as Tenerife, Andalucia and Murcia, are holding up well. But areas such as Madrid, Catalonia, and the Basque Country, where values appreciated the most during the boom years, experienced that largest price declines.

Despite the government data, some people  are dubious of the figures and advise caution stating that new-build Spain property prices have fallen by far more than the report suggests.

By Angela | Posted in Economy, General, Inspirational, Miscellaneous Articles, Property, Tenerife, Things to Do, Uncategorized | Tagged , , , , , , , , , , , | Comments (0)

New trends in property purchase to aid Tenerife?

October 18, 2009 – 12:42 pm
banksspain

New trends in holidays may mean that property purchase in Tenerife can be a wise investment.

The holiday season may be over, but it appears that trips abroad this summer have inspired many of us to buy our own home overseas.

Conti, the overseas mortgage firm, report that they have just had their busiest month since the beginning of the year, with a 20% month-month surge in mortgage quotes issued during September. The value of mortgage applications submitted by the company to overseas lenders also rose to a year high.

As property prices fall across Europe, the chance of owning a holiday home abroad may never be better, and with rates at an historic low, it’s even more affordable for British buyers.

Clare Nessling, Conti’s Operations Director, says: “The ‘staycation’ trend may have reduced the number of  Britons holidaying abroad this summer, but many of those who did venture overseas have returned home with plans to buy their very own place in the sun.

“As the darker nights return and the all-too-short British summer comes to an end, it’s very easy to dream about sunnier climes. But it can be more than just a dream. Affordable prices, low interest rates, and a healthy appetite by overseas mortgage providers to lend, are all making it easier to buy property abroad. Easy access to the more traditional locations like Spain and the Canary Islands, together with good rental opportunities, are also contributing factors.”

According to Conti’s recent hot spots report, they have had 22% requests on property in Spain.  It seems that buyers are sticking to the locations they know and trust and shunning the more adventurous emerging markets like property in Bulgaria and property in Dubai.

Conti says that there’s a growing feeling of confidence amongst prospective buyers, and that savvy investors are more willing to explore overseas opportunities in their search for better potential returns on investment than they are achieving in the UK.

By Angela | Posted in Economy, General, Holiday, Inspirational, Miscellaneous Articles, Property, Tenerife, Things to Do, Weather | Tagged , , , , , , , , , , , , , , , , , , , , , | Comments (0)

Tenerife to cash in on latest survey?

October 12, 2009 – 4:26 pm
Tenerife could cash in on the latest gloomy British survey

Tenerife could cash in on the latest gloomy British survey

Britain is the worst place to live in Europe, according to a study.

Although Britons earn high incomes that money is cancelled out by long working hours, poor annual leave, rising food and fuel bills and a lack of sunshine. Britons have  the highest after-tax household income of £35,730-a-year, more than £10,000 above the European average.

But most of it goes on keeping a “roof over our heads, food on the table and our homes warm”, according to the uswitch.com European Quality of Life Index.

Ann Robinson of uSwitch.com, said: “There is more to good living than money – and this report shows why so many Brits are giving up on the UK and heading to France and Spain.”  Perhaps now is the time to think of renting out your Tenerife property or even selling via an estate agent as winter approaches in the UK and thoughts turn to sunshine!

By Angela | Posted in Economy, General, Health, Holiday, Inspirational, Miscellaneous Articles, Property, Tenerife, Things to Do, Uncategorized, Weather | Tagged , , , , , , , , , , , , , , , , , , | Comments (0)

Advice on purchasing a property in Tenerife and overseas

October 11, 2009 – 11:05 am

The 64-page guide is available in both hard copy and online digital format (for the first time this year) and is full of useful advice for those looking to buy a property overseas.

Advice is available when purchasing property in Tenerife and overseas

Advice is available when purchasing property in Tenerife and overseas

The Association of International Property Professionals (AIPP) has released the 4th edition of its annual guide, Buying Overseas Property Safely – The Consumer Guide from the Industry Body.

The guide explains how the AIPP can help you; the top tips to buying overseas safely; the 10 questions you should ask agents or developers before paying any money and how much it costs to buy – with a few examples of properties overseas. It also explains who buyers will need to hold their hand through the process, from agents and developers to lawyers, foreign exchange specialists and financial advisers.

This year’s edition is full of useful tips along with a few ideas for avoiding common pitfalls and a full list of AIPP Members, of course, all voluntarily committed to follow our professional Code of Conduct.

“In a largely unregulated sector, our sole aim is to make the international property market a safer place in which to buy property,” explains Paul Owen, Chief Executive of the Association.

The guide will be available as a bagged supplement in A Place in the Sun magazine or you can view the AIPP Guide online.

By Angela | Posted in Economy, General, Holiday, Inspirational, Miscellaneous Articles, Property, Tenerife, Things to Do, Uncategorized | Tagged , , , , , , , , | Comments (0)

Long term buy to let back on the agenda in Tenerife?

October 4, 2009 – 12:41 pm
images8

Buy to let can be a good investment once more in Tenerife

Buy-to-let properties may not offer a short-term profit for landlords, but in the long term, they can provide a good return, according to  industry professionals. The number of new tenancies is increasing while property oversupply is dropping. If a landlord can find a house for the right price, then there is scope for a good long-term return on the capital invested.

If you’re a cash-rich landlord and you understand the market, it is a good time to get into the market if you buy the right type of property and your local estate agent  in Tenerife will be able to show you a variety of properties, from one bed apartments to villas with a sea view that should fit the bill at be at the right price.

By Angela | Posted in Economy, General, Holiday, Inspirational, Miscellaneous Articles, Property, Tenerife, Things to Do, Uncategorized | Tagged , , , , , , , , , , | Comments (0)

Traffic tickets could follow you home from your holiday in Spain and Tenerife.

October 3, 2009 – 11:41 am
spee

A ticket in the post may greet those returning from Tenerife and Spain

Britons caught speeding in Europe will soon be forced to pay their fine when they arrive back home in the UK if they fail to pay in the country the ticket was issued.The new EU legislation, which comes into force on 1st October, allows the government to chase any fines issued in Europe above €70 (£64).

Fines handed out to foreign nationals in the UK will also be enforced by authorities in the drivers’ home countries. However, all fines will be kept by the enforcing state to pay for any costs involved.

The Ministry of Justice explains: “This will not be a loss of revenue as the UK will receive the revenue from fines imposed abroad and successfully enforced over here.” The framework will eventually apply to all EU member states. So far 13 out of 27 EU member states have signed up to the framework.

The Sparks Network, which focuses on traffic enforcement in EU member states, says it welcomes the new legislation.

Sparks Network spokesman Bill Blakemore told TravelMail: “It’s not something that most drivers have to worry about as you won’t be chased for any fines under 70 euros and most European fines are less than this.’

“It’s actually good news from a British point of view as British drivers who are caught speeding in France are likely to get an on-the-spot fine.

“A lot of European countries issue on-the-spot fines but Britain doesn’t have this system. Around 200,000 speeding tickets are handed out to foreign drivers every year in the UK so they will now be enforced when the driver returns home.”

However, British drivers will be forced to pay any parking fines they acquire abroad in countries such as Spain and areas like Tenerife, unlike foreign tourists in the UK who will be able to avoid such penalties.

Mr Blakemore explains: “If you get a parking fine in Europe you will be chased for it back in the UK. Parking isn’t something that is covered by the new legislation if the fine is not criminal – this includes British parking fines and the congestion charge. It’s a weakness of this law.”

Drivers’ associations have criticised the new legislation as simply another attempt at raising revenue by the government.

A spokesman for the Association of British Drivers, Brian Gregory, told TravelMail: “This is part of the continuing jihad against drivers. The legislation doesn’t address the problem. Speed isn’t the problem, it’s bad driving.

“Speeding fines are a cash cow for the government. They’re just another way of squeezing money out of motorists. We’re interested in seeing road safety improved not just bolstering the Chancellor’s coffers.”

By Angela | Posted in Economy, General, Holiday, Inspirational, Miscellaneous Articles, Property, Tenerife, Things to Do, Uncategorized | Tagged , , , , , , , , , | Comments (0)