New trends in property purchase to aid Tenerife?

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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.

Property prices start to recover across the globe.

In Tenerife and around the globe, property prices are beginning to increase once more.

In Tenerife and around the globe, property prices are beginning to increase once more.

Residential property prices across the globe are starting to recover from the downturn and even in countries  such as Spain and the Canary Islands  where there were sharp falls at the beginning of the year the decline is slowing.

The latest Global House Price Index from international property consultants Knight Frank shows that there are the first tentative signs of recovery in 33 key locations that were examined for the report.  It now appears that house prices are starting to stabilise across the world, including Tenerife.

The latest results from our Global House Price Index show values increased in almost half of the locations reporting price changes for the second quarter of the year,’ explained the head of residential research at Knight Frank. Quarterly price falls accelerated in only 22% of the locations and did not exceed 10% in any country. This compares with double-digit falls in a number of locations during the first quarter.

Dubai was worst with prices falling 47%, but slowing in the second quarter of the year to a more manageable 7.5%. There has also been a sharp slow down in the number of houses under construction.  Even the US, where the sub-prime mortgage crisis started, is starting to see a recovery. Prices increased 1.3% in the second quarter following falls of 7% in each of the previous two quarters, the report also shows. Even in Dubai the recovery looks underway. Prices are still falling in Dubai, but the decline has slowed sharply.

The report concludes that overall, it seems that prices are starting to bottom out around the world. However, the market is still fragile and patchy. One quarter of recovery is no guarantee prices will continue to increase, but for those with cash available it may well be the right time to buy in Tenerife once again whilst prices remain fairly cheap.

Spanish property tours to visit England

Spanish property exhibitions to visit England

Spanish property exhibitions to visit England

Taylor Woodrow will mark its 50th anniversary by touring England with a series of Spanish property exhibitions throughout September.

The exhibitions will offer people looking to buy property in Spain information on Spanish homes and locations, plus Spanish properties that have been reduced in price by up to 41 per cent, to reflect the recent slump in the Spain property market.

Victor Sague, Marketing Director of Taylor Woodrow de Espana, said, ” From talking with our estate agency partners in the UK, we expect there to be significant interest in these offers from both investors and second home hunters.”

Experts will be on hand to advice house hunters at each of the exhibitions, which will be held around England from Sunday 13-23 September.

There are many homes available in seaside and golfing locations throughout Mallorca, Costa Blanca, Gibraltar and Marbella,  Tenerife and the Canary Islands. A  high number of homes will be sold throughout the couple of weeks of exhibitions as it will provide house hunters one last chance to buy a quality home at a fantastic price. It really is now or never for people to take advantage of these top quality homes as these discounts will not be around for long.

Less tourists visit Spain.

Less people in Spain and Tenerife mean some empty beaches.

Less people in Spain and Tenerife mean some empty beaches.

Usually during the height of the summer tourist season the main beach at Torremolinos on Spain’s Costa del Sol is packed with sunseekers, but despite the clear skies and soaring temperatures, row after row of sun beds this year lie empty. Above the beach, business at the bars, restaurants and stores selling bright red souvenir flamenco dresses and Real Madrid jerseys that line the boardwalk is slow with many outdoor patios deserted. Some shops are closed for repairs.

“This is the worst I have ever seen it. There is no one on the beach,” said Pedro Hervas who has sold freshly squeezed orange juice from a stand in the shape of a large orange installed on the boardwalk for the past two decades. “If you came here last year at this time you would not be able to get around, there would be so many cars and people,” the 57-year-old added as he pointed to the road and beach in front of his stand.

Spain is feeling the pinch of a drop in visitors, especially from Britain, its main source of tourists, as the recession leads northern European sunseekers to take their holidays at home this year or choose cheaper beach destinations like Egypt or Turkey. Tenerife has also been hit, but not as hard.

The drop in the pound to near parity with the euro has fueled the decline in the number of British tourists, who account for one-quarter of all visitors to Spain, as it has made spending a few days in the sun at Mediterranean resorts like Torremolinos, Benidorm , Ibiza  and the Canary Islands more expensive.

During the first half of the year Spain received 23.6 million foreign visitors, an 11.4 per cent drop over the same time last year, according to ministry of tourism figures. The number of British tourists fell 16.3 per cent during the period to 6.1 million. The Government predicts the number of foreign visitors to the country during the summer, which it defines as July, August and September, will drop by 10 per cent. The tourists who are coming are spending less than in other years, adding to the financial pain of shop and hotel owners.

Robert Downey, a 57-year-old former Glasgow taxi driver who runs a pub with a seafaring theme that serves fish and chips in Torremolinos with his wife, said his business is down between 30 and 40 per cent this year. “People used to come in at 9 o’oclock at night and have four or five drinks. Now they are coming in at 10 o’clock and having just two or three drinks. Many people are worried,” he said as he stood behind the counter of his empty bar.

Foreign visitors to Spain spent 20.9 billion euros (A$35 billion) during the first six months of the year, a 7.6 per cent drop over the same time in 2008, according to the tourism ministry.

Spain’s tourist sector accounts for around 11 per cent of all jobs and the decline in the number of foreign visitors comes as the country is in its steepest recession in decades following the collapse of its property market. Last year the country lost its spot as the second-most visited destination in the world to the United States, according to the Madrid-based United Nations World Tourism Organization. France has long been the number one destination.

Tourists began trickling into Spain after the United Nations lifted its sanctions against the country and its right-wing dictator, General Francisco Franco, in 1950. The trickle turned into a flood after the Franco regime in 1959 simplified the procedures for passport visas and customs controls in a bid to aid the development of the tourist sector.

The influx turned many seaside fishing villages that dotted Spain’s coast into concrete jungles of tower blocks which drew millions of northern Europeans on package holidays. Analysts say the dent in Spain’s tourism business is also due to a long-term shift away from these sort of sun and sea holiday packages which the country pioneered as people increasingly depend less on major tour operators and make their own independent bookings over the Internet.

Prime Minister Jose Luis Rodriguez Zapatero’s Socialist Government has responded by offering one billion euros to help the sector modernise its infrastructure as well as tax breaks and fee waivers for airlines and hotels. It has also wants to seek out new markets and diversify its traditional sun and surf tourism by boosting its focus on urban and cultural tourism.

Spain’s tourism promotion body has staged a series of “A Taste of Spain” events across Britain in recent months that showcase Spanish culture and food. Despite the recent decline in visitors, Trevor Davis, the director of retail distribution at The Co-operative Travel, Britain’s largest independent travel agency, does not think the British are starting to permanently turn away from the country as a holiday destination. “Absolutely not. We fully anticipate Spain will bounce back when the pound strengthens,” he said.  If this proves to be the case, then buying a property now in Tenerife may be a smart investment move.

Spain and the Canary Islands still popular for those seeking investment property

Brits still planning to buy in Tenerife

Brits still planning to buy in Tenerife

The USA knocked Spain off the top spot in July’s Investment Property watch chart - which tracks the level of interest in certain properties and countries from visitors to the site . Madeira island is gearing up for an influx of new visitors from all over Europe as Spanish airline BinterCanarias starts new direct flights to bring in travellers from the Canary Islands. However Spain and the Canary Islands remain popular with those looking for holiday properties and second homes in the sun.

Iceland ad star flees to Tenerife

Kerry Katona enjoys a break in Tenerife with her children

Kerry Katona enjoys a break in Tenerife with her children

Whilst most of us come to  Tenerife and the Canary Islands for holidays in the sun or to buy or rent our dream home, others see it as a refuge when under extreme pressure. The face of Iceland foods Kerry Katona was seen crumpled on the pavement with her head in her hands,  looking  distraught as she was  comforted by husband Mark Croft.

Earlier, the pair were spotted walking through town with their arms  around each other. Her very public meltdown took place on a pavement in Tenerife where she has fled  after pictures were published of her apparently snorting a white substance. The reality star has already been sacked from a lucrative £250,000-a-year  job as the face of Iceland.  Earlier, Kerry had spent the day at a water park soaking up the sunshine with her children. It seems she is struggling to hold it together after a week of intense scrutiny and that the pressure became too much and Kerry ended up sitting on the floor with Mark holding her in his arms. At one point she covered her face with her hands and appeared to be crying. 

Read more on: http://www.dailymail.co.uk/tvshowbiz/article-1207790/Kerry-Katona-arms-Mark-Croft-holiday-flees-Tenerife-white-powder-scandal.html#ixzz0OiXJBySZ

Brits still keen to buy property abroad says survey

Brits and Europeans still keen on property in Tenerife and Spain

Brits and Europeans still keen on property in Tenerife and Spain

Results for the 2009 International Survey conducted by primelocation.com show that 70% of visitors to their site are actively looking to buy an overseas property, despite the current economic uncertainty. Of all respondents, 28% said that they are unaffected by the current economic situation, 22% who had delayed their plans because of the economic climate are now back in the market and hope to find a bargain, while 10% said that they are checking out the market but will not proceed just yet

Ann Wright, International Business Development Manager for primelocation.com, says; ‘This is very clear indication that people have not let go of their dreams of owning a property abroad. Indeed, it is encouraging that people are coming back to the market, possibly because of recent press reports of falling property prices across Europe.’

The primelocation.com 2009 International Survey also monitored the countries the portal’s visitors are most interested in buying in; France took top spot with 25%, Spain came second (16%) and was followed by Italy and Portugal which tied in fourth place with 11% each. The United States, Cyprus, Greece, Switzerland, Turkey, Canada and the UAE took the rest of the top 10 spots.

‘It is interesting to note that over a quarter of all respondents currently own/rent a property in France and interest in the country, which has always been the first choice amongst Brits, has remained fairly stable at 25% since 2008. Spain  and Tenerife has increased in popularity since 2008 as people respond to the reports of falling property prices

“The percentage of people looking to buy holiday homes overseas remains unchanged from last year’s survey (48%), which reinforces the notion that interest is still there despite the worsening economic conditions, “ continues Wright. “However, the number of people moving abroad permanently has decreased; this is possibly a result of the fluctuations in the value of sterling against the Euro. Also, property prices and the oversupply of rental properties in continental Europe mean fewer people are buying with a view to using the property as an investment or income generator.” Not surprisingly, coastal locations are ranked No.1 by all respondents who are currently looking to own or rent an overseas property, followed by tranquil village settings.

‘Planned spending levels are very similar to 2008, which further strengthens the notion that interest in overseas properties has not been significantly impacted by the economic climate. Also similar to last year’s survey results, most respondents said that they want to buy a property that requires minimal work, buyers want somewhere they can start to use and enjoy straight away,’ concludes Wright.

Primelocation.com 2009 International Survey also found that buyers prefer to use an estate agent in the country in which they are buying. UK based agents are also popular because they give the buyer the reassurance of an English speaking service and expert, reliable advice of the processes of buying abroad.

The survey results also indicate that buyers start their search on property portals, which give them access to a wide range of estate agents both in the UK and abroad. Once they have narrowed down their search they are happy to use the services of estate agents who have properties that fit their requirements.

Ronaldo house hunting

Please let me find a property in Spain!

Please let me find a property in Spain!

Retiring Britons aren’t the only expats looking for a place to live in Spain and Tenerife. Football star Cristiano Ronaldo is house hunting in Madrid following his transfer to Real Madrid from Man. United, no doubt with a hefty budget thanks to his record-breaking £80million transfer fee.

There has been much speculation in the Spanish press as to where Ronaldo would choose to live. Many expected him to buy a luxury villa in one of Madrid’s high end residential suburbs like La Moraleja or La Finca, following in the footsteps of other ‘Galacticos’ or megastars from the Real Madrid team. Beckham, for example, bought a villa in La Moraleja for £4.5m in May 2005, and is reported to have spent another £500,000 doing it up.
But it appears that Ronaldo has decided against buying, and has opted to rent a swanky city-centre apartment instead. The Spanish press reports he is looking for a 500m2 penthouse bang in the centre, fully furnished, with at least 5 en suite bathrooms, a large terrace, and a pool. Football stars tend to move on sooner or later, and by renting Ronaldo might be keen to avoid the fate of the Beckhams, who just can’t flog their villa in Madrid. After around 2 years on the market they are reported to have dropped their asking price from £5m to £3m, but still no takers.

European property sales on the up

Is this the right time to buy property in Tenerife?

Is this the right time to buy property in Tenerife?

Around £11bn  was spent on all European property transactions in Q2 of this year, up 1 2 per cent from the previous quarter, according to CB Richard Ellis (CBRE)…

What the second quarter’s activity clearly reflects is that those markets that have seen greatest price corrections are seeing most transaction activity,Michael Haddock, director of EMEA Capital Markets Research told Reuters.

This is particularly true of Spain,  Tenerife  and the UK, where investors have been attracted to the markets by a perception that they now offer good value.

Stabile property yields has been cited as one of the main reasons for the increase in property investment activity levels, with the CBRE EU-15 all-property average prime yield having risen to 6.13per cent in Q2.

Where’s my bag?

Best to split your possessions amongst luggage when travelling to holiday or buy and sell property in tenerife

Best to split your belongings into several bags when travelling to Tenerife to holiday,buy or sell property.

Airlines mishandled 42 million items of passengers’ luggage in a single year, the latest figures show.

An increasing number of bags are being delayed, damaged, mislaid or lost, according to the magazine Which? Holiday.
Experts fear that with air passenger numbers expected to reach 2.75 billion by 2011, the amount of mishandled bags could reach 50 million a year. It is perhaps adviseable to split your belongings amongst cases if you are travelling as a family to holiday, or to  buy or sell a property in Tenerife just in case one goes missing.
The majority of mishandling incidents occurred when bags were being transferred from one aircraft to another, according to SITA, a company specialising in IT solutions for the aviation industry.
Problems also arose when aircraft left before the luggage was loaded on, or when the airport code or flight number was misread on the luggage tags.
SITA said that baggage handling is at saturation point at many airports around the world.
The report by Which? Holiday also found that no-frills airlines such as Ryanair and Jet2 paid out the lowest amount of compensation to people affected.
It said Ryanair often limits payouts to £15, regardless of how long their bag has been delayed, and Jet2 refuses to reimburse people for claims under £30.
According to WorldTracer, which tracks missing luggage, 42 million bags were mishandled in 2007 compared with 34 million in 2006 and 30 million in 2005.
Which? Holiday editor, Lorna Cowan, said, “When you hand over your bag at the airport check-in you trust the airline will get it to your destination - preferably at the same time as your own arrival. Unfortunately this is not always the case.”
Airlines are responsible for checked-in baggage, although their liability is limited so passengers are advised to obtain a special declaration for valuables from the airline, or carry them in their hand luggage.
After 21 days you can claim compensation if a bag still has not turned up but the maximum is just under £1,000 - which is often unlikely to cover the full cost of replacing the items.
Research published in 2007 from insurance company Insure and Go showed claims for items stolen from luggage was on the increase.
A BBC Inside Out investigation screened the same year highlighted the problems with baggage handlers and resulted in an Essex police inquiry and tighter security at Stansted airport.