Monthly Archives: November 2009

Bank of Spain contemplating changes in property matters

Banking changes on property matters in tenerife and Spain may be on the way.

Banking changes on property matters in Tenerife and Spain may be on the way.

The Bank of Spain is contemplating the idea of raising provisions made by the banks for bank-owned repossessed residential properties in Spain on to their books to 30% of asset value in 2010, from 20% due to be implemented for 2009, it has been reported…

The Spain property market has endured a torrid time over the past couple of years, following a real estate boom, with values plummeting across the country.

Banks in Spain have been accepting property from struggling Spanish property developers who would have otherwise faced bankruptcy. Last month, the Bank of Spain told the banks they would be required to double their property assets provisions to 20% from 10%.

Zorro fans soon to be guests in Spain?

 

Zorro fans soon to visit Spain?

Zorro fans soon to visit Spain?

Zorro fans could soon become guests of Antonio Banderas, spending the night at his Spanish vineyard in a new hotel - the Hollywood heartthrob is looking into opening a small hotel to encourage wine tourism to the area and help increase production.

The actor, who has starred in Hollywood hits such as The Mask of Zorro, Shrek and Philadelphia, bought a 50 per cent share in the vineyard in the famous Ribera del Duero wine area of northern Spain earlier this year. The vineyard was subsequently renamed Anta Banderas and the Spanish national clearly has big ideas to develop the business.

Speaking to the Spanish newspaper El Mundo Banderos said: ‘I have plans to revitalise this project with conferences, for example, on wine and literature, and I want to promote wine tourism. ‘In fact, we are studying the possibility of building a small hotel to welcome wine enthusiasts because it is a marvelous place.’

Visitors to the vineyard could soon spend their days touring the vines to learn more about the red and rose wines made from Cabernet Sauvignon, Merlot and local grape Tempranillo, before bedding down for the night à la Antonio.

If they’re lucky, they may even coincide with a visit from the 49-year-old star himself. The voice of Puss In Boots in the hit film Shrek already does his bit for promoting tourism to certain parts of Spain.

Every Easter he returns to his home city of Malaga to take part part in the traditional religious marches through the streets, attracting scores of adoring fans. His wife Melanie Griffith is even well-known enough referred to by Spaniards simply as ‘La Melanie’.

New homes market in Spain showing signs of recovery.

New homes sector shows a recovery in Spain, Tenerife and the Canary Islands.

New homes sector shows a recovery in Spain, Tenerife and the Canary Islands.

 

The new homes market in Spain   is showing tentative signs of recovery, according to the G-14 group of top

Spain property developers - Pedro Perez, head of the G-14 was quoted as saying  that the sales of new homes in Spain will continue “consolidating in the coming months”.

There  is some basis for the developer’s optimism in the latest sales figures from the National Institute of Statistics.

The latest data released by the National Institute of Statistics reveals that sales of newly built properties in Spain increased by 7.6% from August to September, but remain down 20% year-on-year. It is good to see sales rise for the fifth consecutive month, something that means we can say that the sector is recovering since it touched bottom in April.Spain property developers argue that sales on new homes in Spain are increasing thanks to lower prices and a greater range of mortgage loans on offer. This trend is emerging  in Tenerife and the Canary Islands also.

Brits entitled to a refund on property sold in Spain before 2007?

 

A refund may be available on property sold in tenerife and Spain by expats.

A refund may be available on property sold in Tenerife and Spain by expats.

A long-awaited ruling by the European Court of Justice means that Britons who sold property in Spain before 2007 and paid 35% in capital gains tax to the Spanish government could be eligible for a refund.

Under the country’s tax laws, foreigners who sold property owned for more than one year paid the tax at 35%, rather than the 15% levied on Spanish citizens.

In addition, Spanish citizens paid their 15% over a certain threshold, while non-residents were assessed at 35% on the entire gain. The European Court of Justice has now ruled that the Spanish authorities discriminated against non-nationals.

A group of British non-residents who sold property between June 2004 and December 2006 are represented by Spanish lawyers, Costa, Alvarez, Manglano & Associates.

Earlier this year, the firm estimated that the average amount to be reclaimed is £19,300 per person.

However, those who sold property more than four years ago may have already missed because claims for Spanish tax refunds are time limited.

Brits struggle with foreign languages when on holiday

A new study by online travel service travelsupermarket.com has revealed that more than half of British people going on holiday abroad refuse to make any effort to speak the local language. The reasons behind our laziness to learn the local lingo often include an assumption that ‘everyone speaks English anyway.’

rits struggle with foreign languages when overseas

Brits struggle to use foreign languages when overseas

We Brits are not usually known for being proficient with foreign languages though we love to travel to far-flung destinations, we are often not prepared to embrace the local language alongside the culture.

 

Many feel the problem with languages is having the confidence to try speaking in a language they are unfamiliar with,dreading getting the accent completely wrong and supplementing the word they are looking for with another word that means something else entirely. The assumption that foreigners will always speak English is definitely one most of us are guilty of making. 

The Travelsupermarket.com survey also found that 45 per cent of respondents said locals have acted negatively toward them because they don’t make the effort to communicate in the local language. Despite this, only four per cent of those surveyed said their ideal holiday would be in an English-speaking country. Tenerife clearly is the “best of both world’s” as many people on the island speak English as well as Spainsh and are delighted when ex pats try to speak Spanish to them whilst holidaying or living in the Canary Islands

The under 20s were found to be the best equipped to cope with foreign languages, with more than half saying they can speak a second language.

Travelsupermarket.com travel expert Bob Atkinson said, “Although the survey may appear to show Brits in a disappointing light, there are some encouraging signs that British holidaymakers want to make more of an effort when abroad but simply lack the confidence.” So why not try to speak in Spanish when you are next on holiday or visiting Tenerife?

Property prices continue to improve.

In Tenerife and the Canary Islands, property prices are beginning to recover once more.

In Tenerife and the Canary Islands, property prices are beginning to recover once more.

 Tinsa property price index for October shows that average prices fell by 7.4% over the last 12 months. That’s the smallest fall in a year. Peak to present prices are down just 13.5%.

Even property on the coast showed a marked improvement, with year-on-year prices down just 9.9%, the first time the fall was not in double digits since November last year. Tenerife and the Canary Islands property  is beginning to improve sales wise once more.

Economic recovery indicates better real estate markets.

Tenerife property prices set to improve?

Tenerife property prices set to improve?

As parts of Europe enters economic recovery mode many real estate markets are also improving but at markedly different rates, according to a new report on trends in the investment, office, retail, industrial, hotels and residential sectors.

In Europe improving investor sentiment is driving activity forwards for a specific band of prime real estate but financing remains difficult to obtain, according to the Jones Lang LaSalle CEE City Report for the third quarter of 2009. ‘Occupier activity across all sectors has slowed compared to previous years as similar financing issues prevent or delay relocation and expansion plans.

Rental levels are beginning to bottom out in most of the core CEE markets and we expect stability to fully return throughout 2010 once the supply and demand levels rebalance,’ said John Duckworth, Managing Director of Jones Lang LaSalle in the CEE.  
‘These green shoots of recovery in the economy will still take some time to filter into the real estate markets,’ added Duckworth.

However, forecasts also suggest that the core CEE4 countries will gather momentum in 2011 and register average year-on-year growth of over 3% which is somewhat higher than the overall Europe forecast of 1%.

‘We believe that the lack of liquidity and the fall in positive sentiment that has affected CEE over the past 12 months, does now appear to be slowly changing. ‘Despite the recent positive news in the global economy, this will still take some period of time to work through into actual business confidence.

As the development pipeline continues to remain low again across all sectors, we expect a shift in balance from an occupiers market to a more balanced market in the second half of 2010 and then into a landlord’s market as we go through 2011,’ it concludes. If this report is correct that is great news for  the property sector inTenerife, Spain and the Canary Islands.

Cheaper travel may help the Tenerife economy.

 Families can expect to save several hundred pounds a year because airlines  are being forced to discount prices.

Cheaper travel may help Tenerife's economy

Cheaper travel may help Tenerife's economy

Holidaymakers can look forward to a decade of cheap travel because of the global recession, according to industry experts so for those who rent out property in Tenerife this is great news. 

 

One company estimated that the average British family spent nearly £2,092 on a holiday this year than a fall of £257 compared to 2007.

According to a Euromonitor the fall in spending has been due to families economising, staying in less comfortable surroundings and hunting for cheaper flights. In turn, this has led to companies discounting heavily as they try to cope with the dramatic drop in travel.

As a result, Euromonitor says, prices were 20-30 per cent lower this year than last and the trend is set to continue for a decade, said Caroline Bremner, the head of the research team. “People have been trading down,” she said. “The industry is caught in a vicious circle of discounting. “It will be hard to bring prices back up, even when there is a recovery, because people have got use to discounted prices.” The impact of the recession was outlined at the start of the World Travel Market in London’s docklands.

Ms Bremner also believes that Britain is set to follow America where the travel industry is now catering to the “funemployed” - people who, having lost their jobs, are spending their redundancy pay on the holiday of a lifetime.

Companies are offering discounts to the new army of jobless, using slogans like “laid off, take off” to win the business.

Package holidays had been on the wane with the increasing use of the internet and holidaymakers booking do-it-yourself holidays, hunting for the cheapest flights and accommodation. So if you have a property to rent or let for holiday or longer term, providing your price point is correct you should reap the rewards of this new era

Easier to sell Spanish property to foreign investors

Easier for the Spanish and Canary Isles to gain investment from foreigners than vice versa

Easier for the Spanish and Canary Isles to gain investment from foreigners than vice versa

It is easier at present to try to sell Spanish property to foreign investors than foreign property to Spanish ones. At least there are still some buyers for property in Spain and Tenerife, if the price is right. Spanish investment in foreign property, on the other hand, has collapsed.

The latest figures from the Bank of Spain on cross border real estate investment reveal that foreigners invested 860 million Euros in Spanish property during the second quarter of the year, down 40% on the same period last year. The Bank of Spain’s figures include all real estate investment, not just residential investors.

Look further back, and the picture is even more demoralising. Foreign investment was down 55% compared to the second quarter of 2004, the peak of the Spanish property boom, when the rest of the world ploughed 1.9 billion Euros into Spanish real estate assets. It is now back to levels last seen in the first quarter of 2000, when it stood at 777 million Euros. The appetite of foreign investors for Spanish property has been declining since the start of 2008, after staging a minor rally in 2007.

Estate agents and developers in Spain may be feeling sorry for themselves in the current market, but they can be thankful that they aren’t trying to sell property abroad to Spanish investors, who have completely thrown in the towel.

British expats urged not to waste their vote.

 With the election no more than eight months away, Conservatives Abroad, the international wing of the party, used its annual conference in Majorca to begin a campaign to encourage British expats to sign up to the electoral register.

British expats urged not to waste their vote in Spain,Tenerife and the Canary Islands

British expats urged not to waste their vote in Spain,Tenerife and the Canary Islands

British expats have been urged not to waste their vote in the forthcoming general election, as the two major parties seek to mobilise the large  expatriate population.  

 

Meanwhile, Labour International intends to contact all of its members by post in the coming weeks in an attempt to convince them to vote.

Anyone who has been on the electoral register in the last 15 years is eligible to vote, although it is estimated that of the 2.5 million Britons living overseas that this includes, just 0.2 per cent - fewer than 13,000 - are registered.

Philip Dunne, the Conservative MP for Ludlow and deputy chairman of the party’s international office, said that with the next election potentially the closest for many years, expat votes could be crucial in certain constituencies.

“Expats can make a difference,” he said. “There are many marginal seats where the expat vote could help deliver change. But you cannot vote unless you are registered and have appointed a proxy to make sure your vote counts.”

The party has set itself a target of convincing 60,000 British citizens living abroad to register.

Mr Dunne, a former expat in New York and Hong Kong, added that the decisions taken in Westminster still affected the lives of expatriate Britons.

“Many expats feel anger at the way Britain has been broken by Labour,” he said. “They may receive pensions, have family, property or pay taxes back in Britain, so it matters what happens here.”

Dominic Grieve, the shadow justice secretary, attended the conference and said he was “very encouraged by the enthusiasm of our supporters”.

Meanwhile, Labour International is putting the finishing touches to its international newsletter, which will include a call for all eligible voters to register.

Lorraine Hardy, secretary of Labour International, said that the low number of expats registered to vote was not a result of a lack of information available.

She said: “The English language newspapers in France and Spain publicise the fact that people should get themselves to vote, but I’m not sure many people do. It’s the same kind of apathy you get in England.”

Overseas voters can vote in one of two ways: by postal vote or by appointing a proxy, although as postal ballot papers are not sent out until 11 days before the election, it is not recommended for voters outside Europe.

The Electoral Commission recommends that voters register as soon as possible, as the prime minister could in theory call an election at any time between now and next June.  So if the expats in Tenerife and the Canary Islands want to exercise their vote, then they should register as soon as possible.  Whether you are on holiday, renting a villa or an apartment or living in your second home in the sun, please don’t waste your vote.