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)

Canarian property prices improving according to TINSA

June 14, 2010 – 4:56 pm

Canarian property prices beginning to recover?

Canarian property prices beginning to recover?

Spanish property prices are still falling, but less with every passing month, according to the monthly house price index published by Tinsa, one of Spain’s leading appraisal companies

Average Spanish property prices fell by 4.4% over 12 months to the end of May, show the latest figures from Tinsa. Prices actually fell a fraction compared to last month, even if they rose compared to the same month last year.Should the Tinsa figures be believed, the rate of decline in Spanish property prices has been slowing since June 2009, when it peaked at -10.1%. If the trend towards smaller declines keeps up, average property prices will be stable, or even growing slightly before the end of the year.

Prices have fallen the least over 12 months in coastal areas and the Islands, areas traditionally popular with foreign buyers looking for holiday and retirement homes. Prices are down just 4.1% on the coast, and 2.4% in The Canaries and The Balearics

On a peak to present basis (since prices peaked in December 2007), prices are down 16.5% nationally, 21.4% on the Mediterranean coast, and 12.8% in the Canaries and the Balearics. So anyone buying a property on the coast today should be getting a discount of 21% on average compared to 2007.

Tinsa’s figures are based on their own valuations, not actual transaction prices. Most of these valuations have been paid for by banks, and  they might not give a true picture of property prices . 

May Index
National: 1,906
Mediterranean coast: 2,035
Balearics & Canaries: 1,641

Peak Index (December 2007)
National: 2,284
Mediterranean coast: 2,590
Balearics & Canaries: 1,881

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

Spanish property market grows once more.

May 16, 2010 – 11:17 am

Spanish and Canarian property on the risw once more.

Spanish and Canarian property on the rise once more.

The Spanish property market grew by 16% in February compared to the same month last year, according to the latest figures to be published by the country’s National Institute of Statistics
Not including social housing, there were 35,720 home sales in February, 21,368 of them newly built and 19,665 resales. According to analysts the market has touched bottom and is starting to recovery after two years of decline but the improvement is patchy and volumes are still 47% below what they were in 2007.
 
An examination of the figures shows that 79% of the increase in transactions came from just two regions. Catalonia saw a 43% increase and Madrid was up 36% while the market continued to shrink or stagnate in many coastal areas popular with foreign buyers. Malaga and Alicante saw year on year increases of 3% and 3.8% respectively and Andalucia saw a 7% rise. Granada and Cadiz were both up 14% and Valencia saw 23% growth.
 
Local figures suggest that Marbella is leading the way to recovery with figures from the town’s tax office revealing that 2,499 properties were sold in the first three months of this year, a rise of more than 200% compared to the same period in 2009 when just 820 properties were sold and the highest for four years.
 
Meanwhile, the latest property price index from Tinsa shows that prices fell by 5.3% over the 12 months to the end of March, a slight improvement on the previous month. The figures from Tinsa, one of Spain’s leading appraisal companies, are however based on their own valuations not actual transaction prices.
 
Since the peaks of December 2007, prices are down 16.2% nationally, 22.5% on the Mediterranean coast, and 13.6% in the Canaries and the Balearics. But there are no signs of foreign property buyers returning to the Spanish market. The latest figures from the Bank of S;pain show that the amount of money invested by foreigners in Spanish property has fellen to its lowest level for a decade.
 
Foreigners invested €3.7 billion in Spanish property last year, the lowest level since 1999, when it was €2.9 billion. Foreign investment in Spanish real estate was down 32% last year compared to 2008, and by 48% compared to 2003, when foreign investment in Spanish property peaked.  But the weak economy, high unemployment and enormous inventory of new houses will slowdown any recovery in the Spanish market, according to a report from PricewaterhouseCoopers and the Urban Land Institute into European property market trends.
By Angela | Posted in Economy, General, Health, Holiday, Inspirational, Miscellaneous Articles, Property, Tenerife, Things to Do, Uncategorized, Weather | Tagged , , , , , , , , , , , , , , , , , , , , | Comments (0)

The rise and fall of the Spanish property boom

April 13, 2010 – 3:12 pm

Foreign investment in Spanish property has hit a decade low

Foreign investment in Spanish property has hit a decade low

If you want to chart the rise and fall of the Spanish property boom look no further than the foreign investment figures, published by the Bank of Spain.  Foreigners invested 3.7 billion Euros in Spanish property last year, the lowest level since 1999, when it was 2.9 billion.

In percentage terms, foreign investment in Spanish real estate was down 32% last year compared to 2008, and by 48% compared to 2003, when foreign investment in Spanish property peaked.

The surprising thing is the increase in foreign investment in 2007 and 2008, when the market was already cooling fast. This might have something to do with the massive corporate property investments that took place at decadent end of Spain’s property boom, before the credit crunch struck.

Going the other way, the amount invested by Spaniards in property outside of Spain fell 45% last year to 1.8 billion Euros.

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

Confidence grows for overseas buyers

April 12, 2010 – 1:42 pm

 

Confidence grows for overseas buyers in Tenerife

Confidence grows for overseas buyers in Tenerife

 There’s a growing feeling of confidence amongst prospective overseas property buyers, according to overseas mortgage firm Conti. The firm just had its busiest month for almost a year in terms of mortgage ‘go aheads’, the point where prospective buyers take their mortgage quotes through to the application stage. These increased by 48 per cent during March, compared with the previous monthly average. 

The proportion of prospective buyers progressing from the quote stage to the go ahead stage has also increased, suggesting that buyers are becoming more serious about their intended investment.

Despite the turbulence unleashed on the UK mortgage market by the global banking crisis, Conti says that overseas mortgage providers have a healthy appetite for lending to foreign investors. But a combination of factors, not just mortgage availability, are contributing to the attractiveness of this market. Falling property prices, in some cases by up to 50 per cent, and historically low interest rates are making it much more affordable, despite the current strength of the euro. 

Clare Nessling, Conti’s Operations Director, says, “Falling property prices across many European destinations mean that the chance of owning a place in the sun may never be better, and historically low interest rates mean it’s become even more affordable for British buyers. The most popular destinations amongst our clients are still France and Spain, both of which come with easy access and good rental opportunities.

“Confidence is definitely growing, but there’s also an element of buyers snapping up bargains in traditional hotspots while they have the chance.”

Beating the poor exchange rate

According to Conti, an increasing number of British investors buying second homes in Europe are taking out euro-denominated mortgages in order to beat the poor exchange rate. This not only allows them to take advantage of cheap interest rates, but could potentially save them significant sums of money if, as experts predict, sterling appreciates against the euro over the next few years, as this will reduce the sterling cost of the property purchase.

Clare Nessling says, “A euro mortgage could be a good idea, even if you thought you didn’t need one. As you’ll only need to transfer money for your deposit and fees for now, it minimises the amount of sterling you have to exchange for the property purchase. Even if you’re lucky enough to be a cash buyer, it may be worth taking out a mortgage until the exchange rate improves, at which point you can pay it back, and ultimately reduce the price you pay for the property.”

“There are a number of other benefits associated with euro mortgages. If, for example, an investor is going to rent out their property, having a euro mortgage means that their rental income and mortgage repayments are in the same currency, and they can therefore avoid exchange rate fluctuations.

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

Searches for international property double

December 17, 2009 – 12:51 pm

In Spain, Tenerife and the Canary Islands, property searches are beginning to increase once more.

In Spain, Tenerife and the Canary Islands, property searches are beginning to increase once more.

 

The number of searches for international property in November 2009 was double the level of November 2008, signaling that this sector may have turned a corner.

Primelocation International recorded over one million foreign property searches in November, taking interest back up to pre credit crunch levels. Almost one third of searches were carried out for property in Spain, Tenerife and the Canary Islands which has overtaken rival France to become the most popular country after twelve months in second place.

The pent up demand for second home and investment purchases is likely to spill over into increased activity and sales next year if an economic recovery causes the pound to rally.

After a sustained period of rising interest in international property as a whole, I think we can be confident that foreign property purchase is now back on the agenda, in spite of certain barriers such as exchange rates and finance, which may be continuing to stall actual sales.

The total number of searches is almost on a par with pre credit crunch levels and, as the health of the economy continues to improve and consumer confidence returns, we could see a marked increase in market activity next year and a long term stabilisation of prices.

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

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.

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

Brits struggle with foreign languages when on holiday

November 20, 2009 – 4:34 pm

A new study by online travel service travelsupermarket.com has revealed that more than half of British people going on holiday abroad refuse to make any effort to speak the local language. The reasons behind our laziness to learn the local lingo often include an assumption that ‘everyone speaks English anyway.’

rits struggle with foreign languages when overseas

Brits struggle to use foreign languages when overseas

We Brits are not usually known for being proficient with foreign languages though we love to travel to far-flung destinations, we are often not prepared to embrace the local language alongside the culture.

 

Many feel the problem with languages is having the confidence to try speaking in a language they are unfamiliar with,dreading getting the accent completely wrong and supplementing the word they are looking for with another word that means something else entirely. The assumption that foreigners will always speak English is definitely one most of us are guilty of making. 

The Travelsupermarket.com survey also found that 45 per cent of respondents said locals have acted negatively toward them because they don’t make the effort to communicate in the local language. Despite this, only four per cent of those surveyed said their ideal holiday would be in an English-speaking country. Tenerife clearly is the “best of both world’s” as many people on the island speak English as well as Spainsh and are delighted when ex pats try to speak Spanish to them whilst holidaying or living in the Canary Islands

The under 20s were found to be the best equipped to cope with foreign languages, with more than half saying they can speak a second language.

Travelsupermarket.com travel expert Bob Atkinson said, “Although the survey may appear to show Brits in a disappointing light, there are some encouraging signs that British holidaymakers want to make more of an effort when abroad but simply lack the confidence.” So why not try to speak in Spanish when you are next on holiday or visiting Tenerife?

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

Easier to sell Spanish property to foreign investors

November 10, 2009 – 4:58 pm

Easier for the Spanish and Canary Isles to gain investment from foreigners than vice versa

Easier for the Spanish and Canary Isles to gain investment from foreigners than vice versa

It is easier at present to try to sell Spanish property to foreign investors than foreign property to Spanish ones. At least there are still some buyers for property in Spain and Tenerife, if the price is right. Spanish investment in foreign property, on the other hand, has collapsed.

The latest figures from the Bank of Spain on cross border real estate investment reveal that foreigners invested 860 million Euros in Spanish property during the second quarter of the year, down 40% on the same period last year. The Bank of Spain’s figures include all real estate investment, not just residential investors.

Look further back, and the picture is even more demoralising. Foreign investment was down 55% compared to the second quarter of 2004, the peak of the Spanish property boom, when the rest of the world ploughed 1.9 billion Euros into Spanish real estate assets. It is now back to levels last seen in the first quarter of 2000, when it stood at 777 million Euros. The appetite of foreign investors for Spanish property has been declining since the start of 2008, after staging a minor rally in 2007.

Estate agents and developers in Spain may be feeling sorry for themselves in the current market, but they can be thankful that they aren’t trying to sell property abroad to Spanish investors, who have completely thrown in the towel.

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

Industry and Tourism ministry inject £537 million into tourist infrastructure in Spain.

March 4, 2009 – 4:50 pm

Injection of cash for tourism in Tenerife

Injection of cash for tourism in Tenerife

The Industry and Tourism Ministry in Spain has announced its decision to inject £537  million into the country’s (including its dependencies’, such as Tenerife) tourist infrastructure…

The Government has already provided £358 million for the modernisation of ageing hotels and other holiday accommodation to assist them in keeping up with more up-to-date establishments in popular sunny resorts. Now a further boost of £537 million for Property in Spain is to follow.

One of the Government’s aims is to make jobs available to huge numbers of out-of-work construction workers who lost their livelihoods after the real estate collapse of 2008.

In fact, the Spanish tourist industry accounts for 11 per cent of jobs and the Gross Domestic Product in the country as people from abroad are attracted to its sunny southern coasts.

The Ministry made the following statement, “The granting of 100 per cent of the planned credit in such a short period of time is evidence that the modernisation of tourism infrastructure is a key demand of the sector.”

Industry and Tourism Ministry figures from last month reveal that 2.6 million foreign tourists visited Spain, a decline of 10.1 per cent from last year. The decline in tourism is partly due to the recession and the decrease in value of the pound.

Britain provides the greatest number of tourists to Spain. Last year saw a significant decline in British tourists but the situation did begin to improve in January.

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