Spain tops the table on interest in property once more

January 13, 2010 – 5:23 pm

Spain and Tenerife,top of the pile for those interested in property purchases

Spain and Tenerife,top of the pile for those interested in property purchases

 Spain overtook the USA in December’s

Investment Property watch chart - which tracks the level of interest in certain properties and countries

Spain and the Canary Islands, has long been a hotpot for holidaymakers from all over the world, along with retirees, second home buyers and those chasing a more permanent life in the sun. 

There are now  some great deals on prime Spanish property to be had during 2010, for those who can be bothered to do their homework and have funds. Indeed, some people will do very well.

Martin Dell, director, Kyero.com, Spain predicted that “The differing pace of economic recovery between nations will create opportunities for buyers and sellers. In Europe, the stronger German, French and Dutch economies will enable buyers from those nations to seek and aggressively negotiate property deals in the slower-to-recover European countries–Portugal, Italy, Ireland, Greece and Spain. Even though there is no currency exchange advantage for these buyers, the Euro will buy a lot more property in these PIIGS countries in 2010 compared to 2009,” he added.

Smart New Homes predicted a tentative recovery for Spain. “The new homes market in Spain is showing tentative signs of recovery, according to the G-14 group of top Spanish property developers. There is some basis for the developer’s optimism in the latest sales figures from the National Institute of Statistics which reveals the sales of newly built properties in Spain increased by 7.6% from August to September.. A sales rise for the fifth consecutive month.

“The latest Tinsa property price index for November shows that average prices fell by 6.6% over the last 12 months, down from 7.4% last month. But many in the industry point out that the index does not reflect what is actually happening on the ground as it is based on valuations, not actual transaction prices.

Analysts are warning that 2010 could see a large number of cheap properties coming onto the market in Spain and Tenerife.

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

Cheaper travel may help the Tenerife economy.

November 13, 2009 – 5:07 pm

 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

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

Brits ’still buying abroad’

July 16, 2009 – 9:14 am

Brits still planning to buy in Tenerife

Brits still planning to buy in Tenerife

Many Britons are planning to buy abroad within the next year, according to a recent survey by a global property portal.

In a recent online poll, 70 per cent of those browsing the site for overseas property claimed they were preparing to buy within the next year, with more than half of this group expecting to buy within the next six months.

However, while many are getting ready to make that commitment and secure themselves a home overseas, PropertyIndex.com has warned of the potential pitfalls of buying overseas and offers buyers some essential advice to ensure a smooth and stress-free purchase:

Decide on your budget and factor in extra costs
Before you start out on your search it’s important to ensure you can afford it and that you have factored in all the likely extra costs. There are a lot of hidden costs involved in buying a property abroad, from taxes to  agent fees, which can be much higher than in the UK.
 
Do your research and don’t buy on impulse
It’s important to spend time researching an area before you leave home. Go online and visit relevant exhibitions to get a good idea of what’s available, typical prices and what the area has to offer in terms of amenities and access. If possible, try to also visit the area at different times of year - whether you’re planning to live there yourself or rent it out, somewhere that seems an ideal location in the summer might be quite a different place in the middle of winter. Though Tenerife has sun all year round.

Never buy a property you haven’t seen
A number of buyers make this mistake, often finding themselves with something entirely different to what they were expecting when they make the first visit. Never buy a property unless you have seen it and you’ve had  checks on ownership of the property and land. A good estate agent in Tenerife should organise this for you.

Take a wider perspective
Wherever you’re buying, check out how to get there - do flights run regularly all year round, is there a choice of airlines? This is particularly important if you are planning to rent out your property and are relying on budget airlines to provide a quick and inexpensive route to your chosen location. Tenerife is well served by many such airlines.

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

Government to stimulate market by eliminating mortgage relief for higher earners.

June 2, 2009 – 3:59 pm

Government aims to stimulate property sales in Tenerife

 As part of a raft of useless gestures to deal with the economic crisis, José Luis Rodríguez Zapatero, Spain’s Socialist Prime Minister, has announced that mortgage relief will be eliminated on mortgages taken out after 2011 by borrowers with incomes of 24,000 Euros or more.

The measure is supposed to stimulate the housing market by giving buyers a reason to bring forward their purchase, rather than wait and potentially lose their right to mortgage relief.

If it were to succeed, this would help mop up Spain’s housing glut of 1 million new homes, and eliminate a fiscal incentive to buy rather than rent, something that organisations like the IMF and OECD have been calling for for some time.

Zapatero announced the measure during the annual state of the nation debate in Parliament this week as a way to deflect attention from Spain’s economic problems. In typical Zapatero style it was presented as a ‘progressive’ measure that only hits ‘high earners’.

In reality, however, the plan hits the middle class, and given property prices and incomes in Spain, will affect almost anyone with enough money to buy a home. Mortgage relief will be reduced after 17,000, and eliminated after 24,000 Euros income per annum.

The opposition leader Mariano Rajoy called it an “attack on the interests of the middle classes” and said his party would retain and increase mortgage relief to stimulate the market.

Developers have criticised the plan, calling it a negative stimulus. Though it may help them shift some stock in the short run, it will harm them in the long run, reducing the incentive for people to buy homes from developers.

Some experts are claiming that banks will be the biggest, and possibly only beneficiaries of this measure. “The banks are the ones with the key to financing and with the cheapest property,” Eduardo Molet, President of the Network of Property Experts, told the Spanish press. “But thinking that the banks will sell their stock rapidly is a mistake, as their product isn’t exactly the best,” Molet points out.

Mortgage relief in Spain is only available to residents with mortgages on their primary residence. As such, Zapatero’s plan will have little impact on the second home market on the coast. Nevertheless, it could affect Britons and other foreigners relocating to Spain and buying a main home with a mortgage, if they have incomes above 17,000 Euros per annum.

Eliminating mortgage relief does little to address the real problem of the Spanish property market, namely that too much inappropriate, unattractive, and overpriced property has been built, especially on the coast in mainland Spain, whilst in Tenerife this is not a problem.

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

Buying that dream home in Paradise

May 5, 2009 – 8:45 am

 

Tenerife property can supply your dream home

Tenerife's prime property can supply your dream home

Today’s economic state may mean buying a dream home in a sunny tropical paradise such as Tenerife may be more affordable but it’s still not cheap in certain other areas and when you compare the costs then Tenerife begins to look  a bargain.

Property prices on the more popular and developed islands reach over one million US dollars for a house and lot near the beach. In its latest survey of Caribbean property prices, the Global Property Guide reports that prices in highly-developed areas such as Bermuda and Bahamas exceed £4,800 per square metre. Coastal properties in Barbados are also expensive, at around £4,600 per square metre, while in the British Virgin Islands (BVI) and the US Virgin Islands (USVI), real estate prices are around £3,400 per square metre.

The cheapest Caribbean properties are found in Jamaica, Aruba and Dominican Republic, with prices ranging from £890 per square metre to £1,030 per square metre for houses near the beach.

Despite these high prices, Caribbean properties are now considerably cheaper than some coastal properties in Mediterranean Europe. Apartment prices in Barcelona are around £6,800 per square metre - more than twice the price of apartments in Bahamas or Cayman Islands.

In addition, it should be noted,  that some of these islands impose restrictions on foreigners intending to purchase properties. Licenses are required and this adds to the overall purchase cost.

When you compare the costs of high quality front line beach property  in Tenerife to these, then it is clear what  bargains can be found. In addition, the islands close proximity to the UK in terms of flying time is another bonus.
Take the time to look at the bargains available from your estate agent. Whether it is a one bed apartment, to a luxury villa with a pool overlooking the beach there are plenty of bargains available in Tenerife at this present time and without the restrictions that some of the “fashionable islands” impose .

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

How about turning your hand to property renovation?

March 27, 2009 – 12:37 pm

Renovation in Tenerife can result in your dream home

More and more people in Tenerife are now looking for a renovation project which has plenty of scope for personalisation and transformation.

There is currently a decline in the number of people buying houses on large developments in Tenerife and Spain generally but it seems that people’s passion for taking on a property renovation project has in fact increased.

As well as being able to control the development of the property, another benefit is the financial aspect, as ruins and older property are much more affordable and you can also plan the work in stages as and when funds become available.

This suits those who cannot raise the funds to purchase in any other way, those who like the thought of buying cheaply in a weak market and adding real value, and those who no longer feel good about spending money they don’t have in the form of a mortgage.

If it is your dream to find the perfect renovation property in Spain then here are some tips to consider:

Think about why you are buying the property and let this guide you. If you’re buying a property to live in, the practical aspects of everyday life will be more important to you than whether the home has room for a pool, which is essential if you are buying a holiday home or rental property. You also need to think about the accessibility of the property, its proximity to essential amenities and services such as electricity and water supplies. Ultimately, you need to do research to make sure you have planning permission granted to enable the renovation to take place.

Get a reputable estate agent or lawyer on board to help you find the right kind of vendor. They will also check whether the property is being sold free of any debts or claims against it. The land title needs to be carefully investigated to ensure you’re buying what you think you are, that land boundaries are identified and that there’s no chance anyone can impound the property or lay claims to it in the future, or prevent you from developing it.

Look realistically at your finances before you proceed. You will need to be able to afford to buy the property in the first place and pay for the renovation work. Get quotes from builders that include professional fees, final finish and any money you’ll have to pay for planning permission, building regulations etc, then have a  contingency budget ready, just in case.

Be realistic about how long the entire project will take - and remember it could take months to get the permissions you need to start and secure the services of a builder you  want to do the work.  Anything from the weather to public holidays can and will affect build time, so don’t set unrealistic time goals.

Once you’ve transformed your Spanish old property or even ruin into the palace you’ve always dreamed of, what are you going to do with it? If you want to let it out you’ll need to market it. If you want to live there permanently, have you sold your UK property? If you want to resell it for profit, can you afford to potentially ride out any period of economic downturn such as the world is currently experiencing?

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

Long-haul flight tax doubles. Good news for Tenerife?

December 3, 2008 – 4:26 pm

Holidays to Spain are likely to grow in popularity as destinations such as Australia and Singapore are hit by flight tax hikes…

Chancellor Alistair Darling’s new Air Passenger Duty rate changes mean flying to Europe will cost £12 in two years’ time compared to the £85 it will cost to fly to destinations including Australia, Singapore, Cambodia and Argentina.

Victor Sague, Sales and Marketing Director for Taylor Woodrow de España, said, “Despite the continued competition from newer emerging markets such as the Far East, Spain has and continues to be one of the most popular choices for holidaymakers and those looking to buy a home abroad.

“This tried and tested location has gained a long-standing reputation when it comes to savvy property investment, and its popularity is likely to grow following the chancellor’s Air Passenger Duty rate changes as holidaymakers look for rental properties closer to home.”

 ”Far flung destinations such as Australia may have their perks but Spain has an excellent climate, stunning beaches and scenery, sites of cultural and historical interest, and is also quick, easy and cheap to get to from the UK.”

By Angela | Posted in Tenerife | Tagged , , , , , , , , , , , , , , , , , , , | Comments (0)