World’s housing market has a weak third quarter

December 15, 2011 – 11:05 am

Spain and Tenerife fail to buck the trend of weaker house prices

The world’s housing markets had a weak third quarter of 2011, according to the latest survey of worldwide house price indices prepared by the Global Property Guide.   During the year to end Q3 2011, house prices fell in 25 countries (out of the 44 for which quarterly house price statistics are available) and rose in only 19.

Moreover, 26 housing markets performed more poorly during the year to the third quarter than last year, while only 18 countries performed better. 

The Global Property Guide’s statistical presentation uses price-changes after inflation, giving a more realistic picture than the more upbeat nominal figures usually preferred by real estate agents.

The world’s second strongest quarter-on-quarter house price rise occurred in an unexpected city – Vienna, where house prices surged by 5.44% during the quarter (and +4.25% on the year), continuing 6 years of nearly unbroken price rises for Austria’s capital.

The Irish housing market remains the world’s weakest performer. House prices were down 15.61% year-on-year, the steepest decline since 2008.  Quarter-on-quarter, Ireland’s house prices slid 4.25%.

Several other European housing markets experienced accelerated downturns during the year ending in the third quarter of 2011, including Netherlands (-5.20%), Portugal (-6.77%), Slovak Republic (-7.94%), Warsaw, Poland (-7.95%), Spain (-8.41%) and Bulgaria (-9.65%).

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Recovery in Spanish property market could begin in next 12 months

July 1, 2011 – 11:04 am

Tenerife and Spanish property market set to improve soon.

People keen to earn extra money by investing in property have been told that a recovery in the Spanish market could begin in the next 12 months.

Buy Association editor Paul Collins explained that investors should be cautious about purchasing assets just yet, as further falls are expected.

He said: “There is still significant inertia in the property market in Spain, with developers, agents and private sellers alike struggling to move properties.”

However, Mr Collins cited research by JP Morgan Chase & Co estimating that the industry is set to “bottom out” over the next 12 months and begin to recover.

Certainly the market in Tenerife reflects an upwards trend, particularly in the prime property  and coastal sectors. 

Source: KnowledgetoAction.co.uk

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Banks need to become better estate agents for the market to recover

December 6, 2009 – 1:07 pm
Banks need to become better estate agents in Tenerife

Banks need to become better estate agents in Tenerife

Demonised by agents for keeping prices artificially high to avoid losses, or making it harder for agents to access distressed deals, many now feel that Spanish banks must become better estate agents if the market is to recover.
Ian Waudby, chairman of investment consultancy Crest Group International, observes that the companies set up by banks are slowly making it easier for foreign buyers and agents to access stock; but he stressed that buyers need a quicker response from these companies and a faster sales process.

“The properties need to be packaged with mortgages . The websites aren’t bad but if you try to make an offer you won’t hear anything back.”   Discounting is central to the current bank-owned property stalemate, with agents saying they’re either not big enough, or only available for too short a period of time. There aren’t enough desirable properties at the distressed prices that people want. The demand is there but even if people see their ideal property they aren’t prepared to pay for it if it isn’t cheap.

Pro-active banks that price realistically will see more profit than those who wait out the market.  The big banks such as Santander could probably sit on it for 20 or 30 years but the smaller ones can’t. There aren’t enough buyers at the moment and they may have to bite the bullet and get rid of their properties.

Most agents spoken to agree that the sooner the banks bite the bullet, the sooner the Spanish homes market will recover.

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Tips when buying property overseas

November 1, 2009 – 12:22 pm

When buying property You should  spend time researching the companies in the market place – using the right professionals  and estate agents will save you time, money and stress.  is not a process to be rushed.  Time is required to research the market as a whole and your particular destination of choice.

Good tips for buying property whether in Spain or Tenerife can save money

Good tips for buying property whether in Spain or Tenerife can save money

See below five tips for buying property overseas safely, just published by the Association of International Property Professionals. The AIPP is the independent industry body for international property.

1. Independent lawyer

However good your estate agent seems, not all countries are like Spain and Tenerife and an independent lawyer should be  representing  you throughout the purchase of your property overseas in emerging countries. It is the lawyer’s job to protect you and inform you.

2. Do the numbers

Make sure you know your budget before you start looking at properties – this should include at least a provisional mortgage offer if you’re borrowing money. Don’t then be tempted to buy more properties than you can afford (particularly on off-plan properties) hoping to sell the extra properties before completion unless you fully understand the risks as well as the rewards (see point 5). If borrowing money, your repayments will stretch over several years, years in which lending criteria and borrowing costs may change. Discuss the long term repayment with a financial specialist before proceeding.

3. Beware exchange rate movement

The rates do not need to move substantially to affect the value of your purchase. When you start looking, £100,000 may buy you a certain property – a 10% drop in the value of the £ against the Euro, for example, may then put that property out of your budget. If you’ve already signed contracts to buy, this could cause you a problem. Speak to specialists in this area and secure your rate of exchange early. The rate fluctuations will also affect the costs of mortgages (if you raise the mortgage overseas and earn your income at home). Again, speak to a foreign exchange specialist to highlight the risks and to take appropriate action.

4. Use professional agents and developers

There are few, if any, guarantees when buying property, at home or overseas. Employing a professional agent or buying from a professional developer will also help you.

Ask lots of questions. 3 year old children are known for asking lots of questions (why? why? why?) and you should follow their lead when talking to agents about a purchase. Initially, focus questions on the company itself, not the properties for sale. Dig around for details on the founders of the company and the track record of the company.

Ask for client testimonials (real ones) and make sure you find out in detail exactly what service they offer. Don’t just take their word for it – ask for details on their service in writing, preferably in the form of some type of ‘Terms of Business’.

5. Remember the reward: risk ratio

If you are buying property overseas as an investment (as many people have done in recent years), you need to bear in mind that big returns may come with significant risks. Be careful to assess the possible downsides to an investment property as well as the enticing investment numbers that could be achieved if all goes to plan.

Take your time and follow these tips and there is no reason why you’ll be taking any more risk buying overseas than you do at home.

By Angela | Posted in Economy, General, Health, Holiday, Inspirational, Miscellaneous Articles, Property, Tenerife, Things to Do, Uncategorized | 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.

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Tips for Landlords

September 15, 2009 – 4:06 pm
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.

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