Sellers asking less for their homes at the cheaper end of the market

July 18, 2011 – 9:02 am

The number of vendors asking less for their homes leapt to 30,646 in May, 7% of all vendors and an increase of 73pc on last year. They reduced asking prices by an average of 8.2pc in a year.

So far this year 134,107 vendors have dropped their asking prices, 69pc more than last year and 31pc of the total.

In total, vendors are now asking 700 million Euros less in a month, 3.2 billion less this year, and 6.4 billion less in the last 12 months. That is potentially a huge transfer of wealth from vendors to buyers.

The biggest number of vendors asking less was at the cheaper end of the market, with 8.3pc of vendors with asking prices below €200,000 dropping their prices, compared to 6.5pc of vendors asking more than €600,000.

In value terms, however, prices at the cheaper end fell by an average of 8.6pc compared to 9.3pc for more expensive homes. This is the time to visit a reputable estate agent and look for that bargain in Tenerife, whether it is a cheaper property or a prime property.

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

Euribor rate falls a fraction in June

July 5, 2011 – 10:00 am

Euribor rate falls . Properties in Tenerife and Spain will cost more if mortgage rates are set now

Euribor (12 months), the interest rate normally used to calculate mortgage repayments in Spain, fell a fraction to 2.144pc in June, a percentage change of just -0.1pc on the previous month.

On an annualised basis, Euribor is now 67pc higher than it was a year ago, meaning higher monthly repayments for borrowers with mortgages resetting now.

Repayments for a typical mortgage (150,000 Euros, 25 years) will go up by around 61 Euros /month, or 741 Euros / year. That will punish many a stretched household budget in Spain.

In other mortgage news, new mortgage registrations dived an astonishing 38pc YOY in April to 31,358,, according to the National Institute of Statistics (INE). The average mortgage value fell by 3.8pc. That came on top of a 20pc fall in March. Lending is at all-time lows, which is bad news for the housing market.

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

Property demand in Spain set to soar?

June 13, 2011 – 8:40 am

Property demand set to soar in Tenerife and Spain?

Demand for property in Spain could be set to soar as banks move to sell off billions of euros worth of distressed property assets.

Analysts have estimated that financial institutions in the country control more that €100 billion (£86.7 billion) in real estate, The National reports.

Most are second homes in developments built during a ten-year construction boom targeting the same European buyers.

There are anywhere from 700,000 to a million empty apartments and villas in Spain, the majority of them in coastal areas. Tenerife has its fair share of prime property  again at reasonable prices following the market correction.

Source: PropertyShowrooms.com

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

Less stays in owner properties says IET

June 6, 2011 – 8:43 am

Less owners staying in their own properties in Spain and Tenerife say IET

Visits to Spain by British owners fell by 17pc, whilst visits by German owners were down 11pc, reveals a new report by the government-sponsored Institute of Tourism Studies (IET).

The drop in the number of tourists staying in their own properties was much more pronounced than the fall in the number of hotel bookings, which, in the case of British tourists, were down just 0.6pc last year.

The study also found that British tourists staying in their own holiday-homes spent 55 Euros/day on average, compared to 111 Euros/day average for hotel guests. Spaniards staying in holiday-homes spent an average of 21 Euros/day.

30% of Spaniards stayed in holiday-homes in 2009, compared to just 8.6pc of foreign visitors.

Holiday-lettings also fell in 2010, -13.5pc in the case of British tourists, and 13.4pc in the case of Germans. Bad news for landlords on the coast.

The decline in the number of tourists staying in holiday-homes coupled with the crisis means that “the purchase of a holiday-home is at present far from a priority for the average family,” concludes the report

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

British owners of holiday-homes in Spain paid far fewer visits last year, says a new study.

May 24, 2011 – 10:05 am

British visitors to second homes on Tenerife buck the trend in Spain

Visits to Spain by British owners fell by 17pc, whilst visits by German owners were down 11pc, reveals a new report by the government-sponsored Institute of Tourism Studies (IET).

The drop in the number of tourists staying in their own properties was much more pronounced than the fall in the number of hotel bookings, which, in the case of British tourists, were down just 0.6pc last year.

The study also found that British tourists staying in their own holiday-homes spent 55 Euros/day on average, compared to 111 Euros/day average for hotel guests. Spaniards staying in holiday-homes spent an average of 21 Euros/day.

30% of Spaniards stayed in holiday-homes in 2009, compared to just 8.6pc of foreign visitors.

Holiday-lettings also fell in 2010, -13.5pc in the case of British tourists, and 13.4pc in the case of Germans. Bad news for landlords on the coast.

The decline in the number of tourists staying in holiday-homes coupled with the crisis means that “the purchase of a holiday-home is at present far from a priority for the average family,” concludes the report.

However interest in prime property in Tenerife and the Canary Islands continues to increase and the second home visits seem to be bucking the trend of mainland Spain.

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

Only 15 billion Euros required to clean up Spain’s balance sheets

March 22, 2011 – 1:01 pm

Spain’s banks will need just 15 billion euros ($A20.69 billion) to clean up their balance sheets, the Central Bank said Thursday, rebuffing predictions by Moody’s which sliced the country’s’ credit rating hours earlier.

The shortfall, which concerns a total of 12 banks, was less than the government’s ceiling of 20 billion euros — and well below the forecast by Moody’s ratings agency of 40-50 billion euros. The Bank of Spain’s report responded to tough government measures unveiled last month that require banks to raise their minimum levels of core capital in a bid to shore up confidence in financial institutions and the wider economy. 

Under the new regulations, the banks must raise the proportion of core capital they hold to 8.0 per cent of total assets from the current six per cent, or 10.0 per cent if they are unlisted. Those that have fallen short had to reveal by March 10 how much they need to raise to meet the new requirements.

“Overall, 12 banks must increase their capital, for an amount totalling 15.15 billion,” the Bank of Spain said in a statement.

Source: Sydney Morning Herald

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Golf in Spain at a reasonable price?

March 16, 2011 – 9:56 am

Cheaper golf in Spain and Tenerife?

Golf has always been perceived as an elitist sport and the properties that surround the fairways often have inflated price tags to match – but not at Camposol Golf. At this established 18-hole course in Murcia, completed key-ready two bedroom homes are available for just 50,000 euros, that’s less than 43,000 pounds. Surely this is Europe’s cheapest golf resort?

Chris Mercer, Director of Murcia-based estate agents, Mercers, which has been on the ground in Camposol for 14 years, comments, “When I tell people that they can buy a two bedroom home with roof terrace for 50,000 euros or a detached villa with swimming pool for 125,000 euros, they are genuinely astonished. These are neither brand new nor off-plan, there is no waiting period or additional list of costly extras from swimming pools to air-conditioning, landscaping to furniture. Instead these properties are in an established golfing community with a vast range of on-site amenities at your disposal. Folk should literally be queuing up.”

Golf course and friendly Clubhouse aside, the Camposol community is divided into four geographical sectors with various commercial centres hosting all kinds of bars, pubs, restaurants and takeaways as well as a full-size household name supermarket and petrol station. There is a health centre, post office, hair and beauty salons and, a real jewel in the Camposol crown, a chic four star Spa Hotel.

Chris continues, “Based on price and what you get for your money alone, Camposol Golf is unbeatable. Even better, the current climate dictates that people are buying at the bottom of the market so not only will they pick up a bargain but also reap the rewards of capital appreciation when the market picks up.

“And ‘pick up’ it will as we are literally ten minutes’ drive from the freshly announced Paramount Pictures-branded Theme Park predicted to attract up to three million tourists each year. This will certainly have a ‘Disney effect’ for property prices in the catchment area. And, for those cautious of Spanish property fearing its legal status, be reassured that Camposol Golf is clean and you will get full title deed as well as banks happy to offer mortgages.”

Surrounded by the imposing mountains of the Sierra Espuña National Park and beautiful underdeveloped Spanish countryside, the coast is just 15 minutes away with mouthwatering seafood restaurants, sheltered Blue Flag sandy beaches, attractive marinas and some stunning rocky coves tumbling into turquoise waters. Alicante International Airport is just over an hour to the north whilst even closer San Javier/Murcia Airport is only 35 minutes away. A third brand new airport at Corvera is in the final throes of construction with an opening date penciled in for summer 2011.

Hopefully, the next project will be in Tenerife as golf is getting expensive on the island and healthy competition would no doubt improve  the pricing situation greatly.

Source: Mercers

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Spanish mortgage rates rise again

March 7, 2011 – 9:41 am

Spanish mortgages rise again.

Euribor (12 months), the interest rate generally used to calculate mortgage repayments in Spain, rose to 1.714pc in February, from 1.55pc in January, a monthly change of +10.6pc. On an annualised basis, Euribor is 39.9pc higher than it was a year ago, meaning higher monthly repayments for borrowers with mortgages resetting now.

Repayments for a typical mortgage (150,000 Euros, 25 years, Euribor +0.25) will go up by around 35 Euros /month, or 400 Euros / year. That will punish many stretched household budgets in Spain.

The final figures for 2010 show new mortgage lending fell by an annualised 7.4pc in 2010 (volume), the 4th year in a row of declining lending. On the positive side the decline has slowed down compared to the fall of 22pc in 2009 and 32pc in 2008.

Overall lending was down 7.8pc in value terms, with the average residential loan value last year at 116,860 Euros, down 0.8pc compared to 2009. The average new mortgage interest rate was 3.87pc, down from 4.59pc in 2009.

There are many bargains around in Tenerife and the Canary Islands due to the state of the world’s economy. A reliable estate agent will be able to lead you to good value property  and also the best deals  on the mortgage front.

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

Buying homes in Tenerife are back in vogue for buyers from Northern Europe

March 1, 2011 – 12:18 pm

Buying homes in Tenerife is back in vogue

After years of absence, Northern European buyers are back buying homes in The Canaries, if data from local real estate companies is to be believed. British, German, and Scandinavian buyers made up 20pc of the market in the last year and a half, according to reports in the Spanish press (Provincias).

Resurging demand is being driven by stronger economies in the North coupled with lower property prices in The Canaries. Beach-front properties between 110,000 and 120,000 Euros are most in demand, particularly in Tenerife’s prime property areas, such as Adeje and Fanabe.

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

Spain plan to part nationalise weakest banks

January 24, 2011 – 9:30 am

Spain to consider nationalising weaker cajas

Spain plans a part-nationalisation of its weakest savings banks as it seeks to reassure investors a rescue will not weigh on its deficit, sources and reports said on Friday.

A source familiar with the matter told Reuters the government will force debt-laden savings banks to become conventional banks and seek stock market listings to persuade skittish investors that they are good investments.

The state-backed bank restructuring fund (FROB) would then take stakes in the banks - known as cajas - which fail to attract private investment, the source said. Up to now the FROB has functioned as a lender to the cajas.

High levels of bad property loans at the savings banks is seen as a major risk for Spain’s government as it aggressively cuts its budget deficit to stave off fears it will need an Irish or Greek-style rescue from the European Union and International Monetary Fund.

Estimates of the cost to recapitalise the savings banks range from 17 billion euros (14.4 billion pounds) to 120 billion euros, with consensus falling in the 25 billion to 50 billion range.

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