Switch off those electrical items in flight to Tenerife

July 27, 2011 – 3:47 pm

Switch off those electrical items on the flight to Tenerife for safety.

For many travellers, the standard warnings that electronic equipment should be switched off in-flight are nothing more than a procedure, often surreptitiously, and sometimes blatantly ignored.

However, that may now be about to change, after a report surfaced in the US this week which suggested that passengers would do well to heed the warnings which have been given for so long.

The study, conducted confidentially but obtained by US news channel ABC News, found a total of 75 incidents of electronic interference which flight crews believed were linked to mobile phones or other electronic devices between 2003 and 2009.

Some 26 of these incidents were related to flight controls such as autopilot and landing gears, 17 were related to navigation equipment and 15 affected communications systems.

Source: Independent.co.uk

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

Data indicates price fall in Spain and Tenerife

February 10, 2011 – 2:15 pm

Prices may still have a way to go before they bottom out in Spain and Tenerife

Potential market investors might be interested to learn that Spanish property prices are set to decline. Will Needham, editor of Spanish Property Magazine, said: “The best data indicates that prices are still falling and will continue to do so throughout 2011.”

“The rate of decline appears to be falling, so those looking for the bottom of the market should probably continue to wait.” He added that the number of transactions in the Spanish property market look set to show a “modest improvement” as bargain properties are taken on.

However, investors might want to be aware that the high levels of unemployment, bank repossessions and other consequences of the financial crisis in Spain “are not going away”. The research follows the publication of a survey by sunshine.co.uk, which found that the country in which people feel safest overseas is Spain.

The problem for would be investors is just when is the bottom of the market? Do they wait too long and then invest on an upward curve? Certainly prices in Tenerife are excellent value now.

Source: Expatriate Health Care

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Tax rule changes to apply to overseas holiday homes

August 24, 2010 – 10:55 am
tax rules changes on second homes will have implications on rentals in Tenerife,the Canary Isles and Spain.

Proposed tax rules changes on second homes will have implications on rentals in Tenerife,the Canary Isles and Spain.

Proposals announced by the Government last week, on changes to the tax rules on furnished holiday lets (FHL) will also apply to the owners of properties in the European Economic Area if they are UK tax payers, warns accountants James Cowper

The changes proposed for April 2011 bring the taxation of FHL into line with EU law, whilst at the same time limiting the effect on the holiday industry, and include: An increase in the number of days a property needs to be let before it can qualify as a FHL. This will restrict the extent that owners will be able to use their second home and still retain the tax breaks.

Removing the ability to offset expenses against other income. For many this will increase the cost of running their second home. Stephen Barratt, private client director at James Cowper comments: “Currently a property only has to be let for 70 days and be available for 140 days to qualify for tax breaks under the FHL rules.  These had been due to be scrapped from April 2010 but were saved in the Emergency budget on 22 June.  If the current proposals are implemented, the tax breaks will be restricted or removed altogether as the letting requirements rise to 105 and 210 days respectively.

“Many in the industry think this is a way of penalising second home owners and it could force many to choose to sell their properties ahead of the April 2011 rule change.  If many people come to the same conclusion this could see a glut of properties on the market in holiday home hotspots both in the UK and overseas.”

Stephen continues: “Whilst the thrust of this consultation will cause concern for many, property investors who operate on a more commercial basis are unlikely to be affected by the proposals as they are clearly aimed at those who let their property for close to the minimum of 70 days per annum and also use it for their own holiday benefit at other times.”

“We must wait and see what is in the detailed rules, but even at this stage we can expect them to have an impact on both the industry and property prices. It will certainly impact the affordability for those who are thinking about purchasing a second home.”

The headline rate of capital gains tax is 28% for higher rate taxpayers and 18% for basic rate payers, but the profit on a sale of a FHL generally attracts a rate of just 10%. There might also be an element of main residence relief in the case of a second home where the necessary tax election has been made. Depending upon the scale of the business and the timing of the sale, it might be that a sale after 5 April 2011 will still qualify for the 10% tax rate. The rules are complex and so those looking to hold on to the property beyond that date but still benefit from this favourable rate should seek proper professional advice.

Stephen Barratt concludes: “As always the detail in the legislation is crucial and at this stage we only have proposals for consultation. That said, change is in the air and it seems clear that the coalition government is looking to raise the bar before the owners of these types of properties get the tax benefits of ownership. I would urge anyone with a holiday property, or looking to buy one, to keep a close eye on developments over the coming months and on the impact any changes will have on their individual circumstances and plans. The consultation period ends on 22 October 2010 so more detail should be available shortly after.”

Clearly this will have an impact on those who own or are looking to buy with rental income in mind in Tenerife, the Canary Isles and Spain in the not too distant future.

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

Fewer holidaymakers taking to the sky this year.

August 22, 2010 – 4:40 pm
Less holidaymakers flying to Tenerife, the Canary Isles and Spain

Less holidaymakers flying to Tenerife, the Canary Isles and Spain

Substantially fewer holidaymakers have flown abroad this year than last, official figures have shown.

In the 12 months to June the number of visits abroad by British residents fell by 12 per cent from 63.3 million to 56.0 million – a drop of 7.3 million on the same period in the year before.

The figures from the Office for National Statistics are the latest data to indicate consumers and businesses are still being very cautious about spending money on travelling abroad.

The biggest drop came from businessmen cancelling trips or deciding to stay at home, with business trips falling by 19 per cent.  Holiday visits decreased by 12 per cent to 36.9 million. This shows once again how important it is to market your rental property in Tenerife in a professional manner, using a reliable agent and most important, at the right price point.

Earlier this week, both Thomas Cook and Tui, the two biggest tour operators in the country, said they were experiencing a very difficult summer. Thomas Cook admitted it had been forced to cut the price of holidays between May and July and its still had 160,000 unsold summer holidays.

Last month, The Daily Telegraph reported how camping in Britain had officially overtaken bed and breakfasts in popularity, as millions of families opt for the cheaper option of sleeping under canvas, with more than five million camping trips undertaken last year.

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

Adventure tourism on the increase

August 19, 2010 – 2:42 pm
adventure tourism in Tenerife, reaches from the beaches to Mount Teide

Adventure tourism in Tenerife, reaches from the beaches to Mount Teide

Adventure tourism, long considered  for the small group of dare devils, is becoming more mainstream, with tourists more likely to rappel down mountains, cycle or volunteer while on vacation.

These adventurers are young, affluent and spent $US89 billion ($US97 billion) last year, excluding the cost of airfare and gear, according to a study by researchers at George Washington University’s School of Business.

“You have a lot of people who want to roll up their sleeves, get involved in a culture and have a more authentic experience than just laying in the sun,” said Dr. Kristin Lamoureux, an author of the study, which was conducted with the Adventure Travel Trade Association, an industry group.

The researchers questioned 850 travellers from North and South America and Europe. Seventy percent of international travel originates in those regions. Countries with the most travellers are the United States, Argentina, Brazil, the United Kingdom, Germany and Spain.

Although overall tourism figures were down by 6 per cent in 2009, according to the United Nations World Tourism Organization (UNWTO), the study showed that when people travel, they are more likely to engage in physical activities, providing a new revenue base for tour operators.

Based on their findings and data from the UNWTO, the researchers estimate that 150 million adventure trips will be taken next year.

“There is a perception that the adventure tourism market is a very limited group of people who are seeking high-risk activity, but the reality is that it’s a much broader market than we thought … and they are willing to spend,” Lamoureux said.

The typical adventure traveller was 36 years old, spent between $US450 ($A493) and $US800 per vacation, excluding airfare, and owned a passport, according to the researchers.

The biggest source of news for adventure tourists was their local newspaper and information found through Google and Facebook.

Most adventure travellers did not own cutting edge technology like iPhones, a crucial point, Lamoureux said, in helping tour operators maximize their advertising dollars, especially in times of recession.

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

Economic woes drive overseas property interest

August 14, 2010 – 5:35 pm
Economic woes prompt property searches in Tenerife and Spain

Economic woes prompt property searches in Tenerife and Spain

The Capital Gains Tax hike and the start of the summer holiday season have had no real impact on interest in international property.

According to the latest Primelocation International Search Index, total searches for overseas property were down 7% in June but up by 138% on the same period last year.

The website therefore claims that financial pressures in the UK haven’t dampened interest, adding that other research indicates that one-third of international property searchers are looking to relocate abroad permanently.

The UK’s uncertain economic outlook could therefore be acting as spur for international househunters, particularly as many Britons are now facing more years in the workplace before retirement.

“The data, taken in conjunction with the results of the MyHomeLife panel research, indicates the increasing diversity of the international property market, encompassing investment buyers, relocators, semi-permanent movers as well as traditional second-home owners.While transactions have not yet recovered fully to return to their pre-crash levels, with finance and buyer caution remaining an issue in many cases, this broad range of different buyers is undoubtedly an important factor in explaining the current stability of the international property market.”

The Financial Times has reported that in June, Eurozone mortgage borrowing increased at it fastest pace in almost two years, indicating that confidence in property markets across the EU’s 16 member countries is returning.

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

Banks keeping property prices high in Spain

August 10, 2010 – 2:05 pm

banks keeping property prices high in Tenerife,the Canary Isles and SpainWhy have property prices fallen less in Spain than other countries that had property bubbles like the US and the UK?

One reason is because the official housing price data in Spain is flawed, but  it doesn’t explain why asking prices haven’t come down by more. A recent article in the Spanish daily El Mundo gave another reason why prices haven’t corrected as much as one would have expected: price manipulation by the  banks.

“With the majority of the big developers drowning in debt, the banks are now the ones who determine the rhythm of prices,” explains the article.

How are banks keeping price high? Firstly, by improving financing terms rather than reducing prices. “The main answer is that the banks are selling their own stock by improving their financing terms rather than dropping prices, “explains the economist José Luis Campos Echevarría. “This strategy will cost them in the medium term, but it lets them solve the big problem they have in the short term, which is to off-load properties without prices falling too much.”

And secondly, by drip-feeding their stock, rather than flooding the market. Spain may have a monumental housing glut, but banks are keeping a big chunk of it off the market. Banks are also back to the bad old practise of offering 100% financing to buyers of their stock, allowing them to attract people without any capital. “They are making the same mistakes as they did in the boom,” one expert told El Mundo.

What the article doesn’t ask is how long can this go on? As I see it, as long as the European Central Bank (ECB) continues to supply them with unlimited funds, (and the Bank of Spain stays lenient with rules on provisions). Were the ECB to turn off the money tap, banks would be forced to get money from other sources, like dumping their property portfolios at any price.

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

How to avoid foreign exchange pitfalls.

August 7, 2010 – 10:08 am
Avoid fees when exchanging money in Tenerife, Spain or the Canary Islands

Avoid fees when exchanging money in Tenerife, Spain or the Canary Islands

Families going abroad this summer are being warned that they could lose hundreds of pounds exchanging their money at the airport bureau de change.

Currency prices can be up to 9% more expensive at Gatwick, Heathrow and Stansted compared with other foreign exchange outlets, a survey has revealed. This means a family changing £1000 for a European holiday are £104 worse off buying euros at the last minute, rather than ordering in advance from a specialist firm which can find the best available rate. The company surveyed exchange rates for euros and dollars at bureaux de change at Gatwick, Heathrow and Stansted airports and also checked high street deals on offer at the Post Office and Marks & Spencer.

Over 14 million Britons went on holiday abroad between July and September 2009. If half of these travellers exchanged just £500 spending money at an airport bureau de change before going on holiday to Europe, they could be saying goodbye to £493 million pounds.

Specialist providers apart, the best exchange rate for buying euros was at The Post Office Phil McHugh, senior foreign exchange dealer said: “Our survey highlights the big difference in currency exchange rates offered between the high street, airport bureaux de change and specialist providers.

“People often plan their foreign holidays well in advance, shop around for the best deals and book early to save money, yet they seem to leave their common sense at the airport drop off when it comes to changing holiday cash.

“Travellers should take a few minutes to check exchange rates online or over the phone in advance of their holiday and arrange with a foreign exchange specialist for their money to be delivered to their home or work, saving themselves time, hassle and cash in the process.”

Tips for those coming to Tenerife regarding currency exchange include,  think ahead about your currency needs and avoid changing your money at bureaux de change, particularly at airports. Shop around for the best rate – don’t just automatically go to your bank or post office. Specialist providers can offer much better deals. Beware of hidden charges and high commission rates. A good headline rate does not necessarly mean the best value for money.  Avoid poor exchange rates by taking travellers cheques or currency cards with you instead of using credit or debit cards for large purchases. Travellers cheques or currency cards can also help avoid the hefty fees banks and credit card companies charge for using ATMs overseas.

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

Tenerife, Canaries and mainland Spain appealing to Russians

August 4, 2010 – 1:42 pm

Spain, Tenerife and the Canary Isles, have  not lost their appeal with affluent Russian buyers, finds a new study. Along with Bulgaria, Turkey, The US and Israel, SpainRussian's finding property in Tenerife, the Canary Islands and Spain to their liking. is one of the most popular overseas destinations amongst affluent Russian house-hunters, according to a study by real estate agents  and mortgage brokers Lowel.

Russians buying in Spain spend between 50,000 and 150,000 Euros on flats, and 300,000 plus Euros on Villas. At the very top end, Russians in Spain have some of the biggest budgets of all, often in the multi-million Euro bracket.

Nevertheless, Russian demand is feeling the pinch of the economic crisis this year. Russians are expected to spend 9.3 billion Euros – 10% less than last year  on property abroad.

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

Spanish banks undergo stress tests

August 3, 2010 – 10:25 am
Spanish banks stress test

Spanish banks stress test

The EU Stress Tests were published recently and assessed whether banks will be able to survive future economic shocks.

A total of 27 Spanish banks have been subject to testing and several of the smaller banks are expected to fail. Spanish regional lenders in particular are a cause for concern, having racked up heavy losses following the collapse of the Spanish property market.

Gregory Butcher, chairman of Ocean Village Gibraltar, said: “Being based here in Gibraltar and operating daily in the property and financial markets we are aware of both the ‘real life’ situation and in sharp contrast, that shown in the Spanish financial institution’s quarterly results.

“The benchmarking used in valuations of property assets in the appraisal of bank lending in Spain is flawed and as a result overvalues the property assets and hence shows less impairment.

“Spain’s financial institutions subsidise the mortgages on sales of their own repossessions to then gain higher capital prices than buyers would normally pay and appraisals then take those sales as the basis of valuations across a bank’s entire property book.

Butcher stated that these overvaluations are then used by the bank appraisers and in the EU’s stress tests.

Spain has an overhang of 610,000 unsold new homes, together with 1,100,000 resale homes currently for sale in the private market represent some years supply (414,000 homes were sold in 2009). The number of repossessions expected this year is 180,000.

As such the overhang of unsold stock in Spain is proportionally more than in the USA, which itself is into the third year of a significant property price correction. Butcher said:”a substantial price correction is now required to sell on the overhang which will not have been reflected in the EU stress tests.

“The UK and USA have had their banking crisis and Spain faces proportionally a greater one, arguably with less resources but it appears it is also intent on attempting a postponement.”

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