Monthly Archives: May 2010

Optimism for Spanish and Canarian property market.

May 30, 2010 – 10:41 am

Optimism returns to Tenerife and Spain's property market

Optimism returns to Tenerife and Spain's property market

The price of re-sale property in Spain and the Canary Islands increased in January for the first time in 24 months, according to   figures and other reports suggest there are tentative signs that part of the country’s battered real estate market is coming back to life.

Prices rose by 0.6% on average, with the regions of Cataluña, and La Rioja seeing the greatest recovery in price at 4.6% and 4.5%, according to figures from the real estate portal fotocasa.es.
 
Property prices also rose in the regions of Comunidad Valenciana, up 2,2%, Asturias up2%, Baleares with a 1,9% increase, Aragón up 1,4%, Galicia up 0,9% and Madrid up 0,7%.

While another index shows that overall Spanish property prices fell by 5.5% over the 12 months to the end of January. However, these figures from appraisal company Tinsa  are based on their valuations, not on actual selling prices. Activity in the real estate market is still very depressed.

The latest figures from the National Institute of Statistics shows that year on year the market shrank by 27% in volume terms to 372,000 transactions in 2009. They have fallen 48% since 2007 when there were 715,000 sales.

December 2009 had just 28,669 home sales, the second lowest level of monthly sales on record. But compared to December last year, sales were down just 1%. ‘That’s because by December last year, the market was already deep in crisis.

From now on, annualised comparisons won’t look so bad, and won’t give any indication how far the market has fallen,’ explained Spanish Property Insight.

‘When the market hit the skids, resale transactions collapsed much quicker than new builds, which outnumbered re-sales throughout 2009. In normal market conditions, it’s the other way around. As 2009 went by the two started to converge, and in 2010 re-sales may once again overtake new builds, though it does depends on whether banks are prepared to lend to resale buyers,’ he added.

Whilst there’s little doubt that life is returning to the Spanish property market, it still remains utterly price sensitive, according to Chris Mercer, director of Mercers real estate agents.  ‘We are making it our business to find realistically priced property from motivated sellers for serious buyers who are in a genuine position to make a purchase. The reality is that decent investment properties are out there, whatever the market, it just takes some expertise and effort to find them.’

If your property is overpriced you won’t sell and you’re wasting your own time and our time, whilst also giving the buyer an unrealistic view of the market. If you’re a motivated seller able to accept a realistic price for your home, we’ll find a buyer.

He also believes that for investors renting to local people can prove fruitful. ‘If you’ve got a 20% deposit then the rent will comfortably pay the mortgage and as you’re truly buying at the bottom of the market, you have an asset that will certainly appreciate in years to come.

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

Spanish and Canarian property prices bottomed out?

May 29, 2010 – 11:27 am

Spanish property prices are still falling, but by less with every passing month, according to the house price index published monthly by Tinsa, one of Spain’s leading property valuation companies. Average Spanish property prices fell by 4.6% over 12 months to the end of April, show the latest figures. On a monthly basis, prices even rose a fraction. Should  Tinsa figures  be believed, the rate of decline has been slowing since June 2009, when it peaked at -10.1%. Should this continue, average property prices will be  stable, or even growing slightly within about 6 months.

Tenerife,Canarian and Spanish property prices bottomed out?

Tenerife,Canarian and Spanish property prices bottomed out?

Prices fell by 5.2% on the Coast, and by 3.8% in The Canaries and The Balearics – areas that interest holiday home and expat buyers the most. On a peak to present basis (since prices peaked in December 2007), prices are down 16.1% nationally, 21.5% on the Mediterranean coast, and 13% in the Canaries and Balearics according to Tinsa’s figures, prices have bottomed out and are beginning to recover.

Tinsa’s figures are based on their own valuations, not actual transaction prices. They are interesting in what they reveal about trends, and the valuations used by banks for mortgage lending purposes.

National: 1,916 €/m2
Mediterranean coast: 2,033 €/m2
Balearics & Canaries: 1,636 €/m2

Peak prices (December 2007)
National: 2,284 €/m2
Mediterranean coast: 2,590 €/m2
Balearics & Canaries: 1,881 €/m2  .

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

Britons missing out on £101million each year on international money transfers

May 28, 2010 – 8:22 pm

Poor bank rates and high charges for foreign exchange transactions mean
individuals need to be savvier when transferring money overseas. Research
by Moneycorp reveals that Brits are potentially losing over £101m a year
by not shopping around for the best deals when transferring money abroad.
Furthermore, uncompetitive exchange rates and high bank charges are costing individuals a lot of money, despite a concerted effort by most to reduce their outgoings on luxury and even staple items.

Britons missing out on cash when they transfer money to and from Tenerife

Britons missing out on cash when they transfer money to and from Tenerife

 

David Kerns, Head of Personal Clients at Moneycorp, comments: “While many individuals are visiting comparison websites more frequently, checking voucher code sites and consulting online consumer forums before
purchasing goods in order to save money, this mindset doesn’t seem to have extended to foreign exchange. As a result, individuals are missing out on a very large sum of money they could be saving, by transferring funds
overseas through a foreign exchange specialist rather than a bank. Not surprisingly, high street banks are cashing in as a result of this surprisingly apathetic approach.”

People buying or selling property overseas and people emigrating or repatriating will be particularly affected, though this issue will affect all Brits who are transferring money overseas. People who own additional properties abroad and make regular mortgage and/or utilities payments will also be badly affected, as every transfer is open to individual transfer charges, in addition to exchange rates.

Data from the UK’s number one property website, Rightmove Overseas, reveals that the average house price in the Costa del Sol in Spain is currently €369,860.68. With a deposit of 10% , using a high street bank rather than Moneycorp would cost an individual, on average, an extra  £558 on their deposit alone.

An individual who wants to transfer a lump sum of £100,000 to an account in Europe would lose out on an average of 1,690 by using their bank for the transfer into euros.

David Kerns concludes: “Despite the UK coming out of recession recently, individuals shouldn’t be lining the pockets of their bank managers and it’s in their best interest to maximise their investments. Prior to making any overseas payments, we always advocate that people shop around to get the best rates possible.

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

Significant interest in Canarian property by British buyers once more

May 23, 2010 – 5:39 pm

 

Significant interest in Tenerife and Canarian property by British buyers once more

Significant interest in Tenerife and Canarian property by British buyers once more

Taylor Wimpey Espana, the leading UK developer in the Spanish market has reported a significant rise in interest from British buyers seeking to buy holiday homes in Spain and the Canary Islands. Easter has traditionally witnessed a surge in interest from the UK market, April being just behind July as the best month for sales in Spain, but this year has seen a noticeable jump in enquires and sales.

Interest is particularly strong in the Costa del Sol and in the Balearics  and Canaries.

The company is also reporting that the profile of the typical British home buyer in Spain is not the traditional stereotype of a retiree. On the contrary, according to Taylor Wimpey Espana 75% of buyers are middle class executives, between 35 and 50, with a wife and children. More than 50% are looking for a second home for family holidays, attracted by the climate and culture. Although these buyers’ stays are concentrated during the summer, on average they spend between 45 and 60 days a year in Spain. Typically buyers are taking a long holiday of 20 or 30 days between July and August and the rest in the weekends throughout the year. During their time in Spain buyers spend an average of 6,300 euros a year which covers the maintenance costs of the home and food and transport (70% rent a car).

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

Knocking down British expats houses hurting Spain’s economy

May 22, 2010 – 5:36 pm

Knocking down expats homes is damaging the Spanish economy

Knocking down expats homes is damaging the Spanish economy

A Foreign Office minister warned Spain on Sunday that knocking down British expatriates’ houses was hurting its economy.  

 

 

Chris Bryant, Minister for Europe, said that the country was undermining efforts to create a recovery in its beleaguered housing market. He was speaking yesterday during a visit to south-eastern Spain to meet British expatriates who have been told that their homes will be bulldozed after Spanish authorities declared their construction illegal. The authorities there have been waging a campaign against former officials accused of allowing overdevelopment of coastal regions. Local governments issued building licences for the properties, but these were later nullified following court action instigated by a higher regional government.

Mr Bryant cautioned: “The housing market in Spain is not going to recover quickly if pictures of bulldozers knocking down expats’ homes are appearing in British newspapers. Everyone I’ve spoken to in Spain says they want to find a solution but wanting a solution and getting one are two different things.”

He said: “Obviously it’s not for the British Government to tell the Spanish what to do. But I’m pushing the message hard at all government levels that I meet here that they have got to put political willpower into these problems, whether it’s an amnesty, whether it’s a change in the law, whatever the solution is that is needed. That is the point I am pushing. I have to say also that there is an enormous difference between the Britons who just make a cursory legal deal - that is always ill advised - and those who have done everything they should or could have done but still find themselves in deep trouble.”

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

Clock ticking on Expats tax refunds

May 21, 2010 – 4:35 pm

 

Owners in Tenerife need to hurry to reclaim tax

Owners in Tenerife need to hurry to reclaim tax

Expats who paid out too much tax on their Spanish property sale may be entitled to a rebate amounting to thousands of euros.

The potential capital gains windfall for British expats who sold property in Spain before 2007 comes after the scrapping of a discriminatory Spanish tax law.

The  pound   is now  weak against the euro, and the clock ticking on  refunds, all claims must be filed by 21st November this year. With a weakening pound and a steady euro, this welcome tax refund can be maximised by British expats who can make a claim and exchange their money as soon as possible. When yearly interest is taken into consideration on property sold as long ago as 1997,  considerable sums of money can be returned and saved.

It will be great for expats to get their cash back, but even better if they can use the current exchange rate to their advantage and get the most from their unexpected windfall.

Capital gains tax paid by British expats who sold Spanish property before 31st December 2006 was charged at a ‘non-residents’ rate of 35 per cent, compared to just 15 per cent for Spanish residents.

The Spanish government changed the law in 2007, after the EU declared it discriminatory, but an estimated ten thousand British expats had already overpaid. Now they are entitled to a refund.

The claims deadline for those who sold property between 1st Jan 1997 and 31st December 2006 has been set for 21st November 2010, under a one year statute of limitation. 

Dimas Cuesta from Lexland, a law firm that has already secured rebates for British expats, added: “The legal process requires expert advice, which is fundamentally important to the chances of a successful claim. British expats looking to be reimbursed should act now, before the claims deadline.” Expats who think they have paid too much tax on their Spanish property sale should  see how much they may be owed as soon as possible.

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

Spanish property market grows once more.

May 16, 2010 – 11:17 am

Spanish and Canarian property on the risw once more.

Spanish and Canarian property on the rise once more.

The Spanish property market grew by 16% in February compared to the same month last year, according to the latest figures to be published by the country’s National Institute of Statistics
Not including social housing, there were 35,720 home sales in February, 21,368 of them newly built and 19,665 resales. According to analysts the market has touched bottom and is starting to recovery after two years of decline but the improvement is patchy and volumes are still 47% below what they were in 2007.
 
An examination of the figures shows that 79% of the increase in transactions came from just two regions. Catalonia saw a 43% increase and Madrid was up 36% while the market continued to shrink or stagnate in many coastal areas popular with foreign buyers. Malaga and Alicante saw year on year increases of 3% and 3.8% respectively and Andalucia saw a 7% rise. Granada and Cadiz were both up 14% and Valencia saw 23% growth.
 
Local figures suggest that Marbella is leading the way to recovery with figures from the town’s tax office revealing that 2,499 properties were sold in the first three months of this year, a rise of more than 200% compared to the same period in 2009 when just 820 properties were sold and the highest for four years.
 
Meanwhile, the latest property price index from Tinsa shows that prices fell by 5.3% over the 12 months to the end of March, a slight improvement on the previous month. The figures from Tinsa, one of Spain’s leading appraisal companies, are however based on their own valuations not actual transaction prices.
 
Since the peaks of December 2007, prices are down 16.2% nationally, 22.5% on the Mediterranean coast, and 13.6% in the Canaries and the Balearics. But there are no signs of foreign property buyers returning to the Spanish market. The latest figures from the Bank of S;pain show that the amount of money invested by foreigners in Spanish property has fellen to its lowest level for a decade.
 
Foreigners invested €3.7 billion in Spanish property last year, the lowest level since 1999, when it was €2.9 billion. Foreign investment in Spanish real estate was down 32% last year compared to 2008, and by 48% compared to 2003, when foreign investment in Spanish property peaked.  But the weak economy, high unemployment and enormous inventory of new houses will slowdown any recovery in the Spanish market, according to a report from PricewaterhouseCoopers and the Urban Land Institute into European property market trends.
By Angela | Posted in Economy, General, Health, Holiday, Inspirational, Miscellaneous Articles, Property, Tenerife, Things to Do, Uncategorized, Weather | Tagged , , , , , , , , , , , , , , , , , , , , | Comments (0)

Four in ten retiring Brits considering moving abroad.

May 15, 2010 – 5:42 pm

Retiring Brits consider heading for Tenerife and Spain

Retiring Brits consider heading for Tenerife and Spain

New research from the Foreign Office divulges that more than four in ten Brits nearing retirement age are considering doing it abroad, and once again crime and weather are to blame for the record number of over 55s wanting to leave the UK. Each year around 200,000 Brits leave for foreign shores. Official Foreign Office figures reveal that a third choose Australia or New Zealand whilst more than a quarter went to Spain or France. Weather is the main driver, particularly this year after a snow-strained winter, one of the worst in decades.

Chris Mercer,  comments, “At a time when many fear Britain is losing its national identity, the irony is that pockets of Spain display the real essence of Britishness“. Where Britain has gradually lost its community spirit, destinations  in places such as Tenerife has it in spades.  There’s also the added value of being able to receive a UK pension in a Spanish bank account.

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

Trim the costs of owning a property overseas.

May 14, 2010 – 4:25 pm

Over a million Brits currently own a home overseas, with France and Spain being the most popular destinations. However the global economic slowdown has hit homeowners not only at home, but also abroad as the cost of maintaining a property has increased -over a fifth of owners (21%) are struggling to meet the increased costs, according to latest research from a currency firm.

Trim the cost of maintaining your property in Tenerife by following a few simple steps

Trim the cost of maintaining your property in Tenerife by following a few simple steps

85% of overseas property owners say the cost of maintaining their property has gone up in the last 12 months, so you should attempt to reduce the cost of being an overseas property owner.

 

 

Whilst mortgage rates may have gone down for many owners, the overall cost of owning a property overseas (including local taxes, utility bills, maintenance costs etc) has continued to grow and the rising costs of ownership have been magnified by sterling’s depreciation and the continued market nervousness over the hung parliament following the General Election  Many homeowners are also seeing their rental income from a holiday home hit, as the number of potential tenants decreases with more people opting for ‘stay-cations’ in their home country. 

Two years ago the average overseas home owner transferred £10,000 a year to meet maintenance costs (including overseas mortgage payments) and provide spending money when they visit their second home. However as the pound has taken a beating against all the world’s major currencies, they now have to convert significantly more in order to meet the costs associated with their international property such as maintenance costs, mortgage payments, utility bills and local taxes. 

For example, in October 2008, £10,000 would have bought you €12,900.  To receive the same amount of Euros today, a Brit has to transfer £11,896, almost £2,000 more.  People making regular currency transfers should set up a Regular Payment Abroad plan with a currency broker  such as Moneycorp that allows you to lock into an exchange rate for up to 12 months ahead so you know know exactly how much is being transferred every month.”

According to the research, almost 70% of holiday home owners are missing out on vital income by not renting out their overseas property. Almost half of those that do rent it out only do so to friends and family who traditionally pay less than other tenants.

Overseas home owners have to pay ongoing taxes on ownership, such as local taxes or even tax on rental income.  This is usually payable in the country where the property is located, but if you are a UK resident, such income also needs to be recalculated into Sterling and is taxable in the UK, regardless of where it is paid, with any appropriate relief given in the UK for taxes paid abroad. Each country will tax the income according to its own rules, so sometimes more allowances are available abroad than in the UK or the tax rates abroad may be lower, but the higher tax liability will be due.  However, there may be ways of reducing your tax bill, but whatever you do, you only pay tax when you make money. Spending money unnecessarily to save tax can often be a false economy It is important to make sure that you claim whatever allowances you are entitled to.

People who take advice before buying their property abroad often manage to make their purchase more cost-effective than those who buy without taking advice so you should at the very least check the advice of a reliable estate agent.  

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

Move to Tenerife for a better quality of life.

May 2, 2010 – 11:11 am

Moving to Tenerife may improve the quality of your life

Moving to Tenerife may improve the quality of your life

 According to research by NatWest International, a good life/work balance under-girds the sentiment, with 87% of respondents rating their personal balance in these areas as excellent or good. The annual survey, which is undertaken with the Centre for Future Studies, asks expats to assess 16 “life experience” factors in order of importance and to indicate levels of satisfaction with each one. Nine out of ten British expatriates say moving overseas has given them a better quality of life.

 For Britons abroad, financial security and financial wellbeing occupied sixth and eighth place respectively, with the natural environment, climate, culture and leisure, healthcare and education taking priority. In addition, the number of respondents who said they would return to the UK fell to 19% in 2009, from 26% a year earlier, despite the financial pressures of the global economic downturn.

Natwest International’s head of personal banking, Dave Isley, comments, “The fact fewer expats say they will return to the UK in the future, compared to three years ago, proves that the pace of life, work life balance and earning potential abroad means life as an expat is sunnier in more ways than one - and that they are weathering the financial storm.” The study also revealed that professional expats typically earn over £20,000 more than their peers in the UK, with 92% reporting a salary increase over the past three years.

So moving to Tenerife or one of  the Canary Islands may be the best decision you ever make.

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