Interest in foreign property purchase booming again says Moneycorp

April 1, 2011 – 9:56 am

Interest in purchasing Tenerife and Spanish property on the rise

Interest in foreign property purchases is once agan booming amongst British buyers, with  Rightmove and foreign exchange specialists MoneyCorp both reporting a large surge in enquiries. Real estate enquiries rose by 53 percent in February  Rightmove reports, with Spain retaining its popularity as a second home destination despite its much publicised housing collapse.

Certainly this increase in purchasing  is being seen in Tenerife and the bargains which exist at all levels, even in the prime property sector are now being snapped up by savvy purchasers

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

This Spanish hotel really is rubbish!

February 1, 2011 – 1:28 pm

This hotel in Madid really is rubbish!

Madrid’s most unusual hotel has opened. It really gives a new meaning to the words, “That place was rubbish.”

The Save the Beach Hotel, constructed of 12 tonnes of litter collected from Europe’s beaches, is open to the public as part of the city’s International Tourist Fair. Designed by German artist HA Schult, the hotel, located in the city’s central Plaza de Callao, aims to raise awareness over pollution in the Med’s summer tourist resorts. 

“It shows the damage that we are causing to the sea and coast”, said Schult. “We live in an era of trash, and we run the risk of becoming trash.” Mexican beer brand Corona has also jumped on the campaign, giving competition winners the opportunity to spend the night in one of the hotel’s five bedrooms.

The International Tourist Fair has proved to boost further foreign interest in the flagging Spanish market, where real estate prices remain at record lows. However, a report conducted by Spanish property portal Kyero found that properties in the bargain lower end of the market (50,000 euro and below) saw an increase in enquiries.

Maybe time to look for  that bargain property in Tenerife or any of the Spanish islands?

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

New measures for the property market in Spain and Tenerife.

December 17, 2010 – 4:38 pm

Spain 's Minister reviewing measures on housing in Spain and Tenerife

José Blanco, Spain’s Minister of Development  has announced new measures to sort out the property market and improve housing accessibility.This could mark a change in Spain’s attitude towards the property rights of foreign investors.

Appearing before the Parliamentary Housing Commission to explain his department’s priorities for housing, Blanco said steps will be taken to make Spain more attractive to foreign buyers. “With an eye on the international market, we will take steps to reinforce the legal protection of people who buy a home in our country,” said Blanco.

One step will be to protect people who buy in good faith from the negative consequences of buying an illegal home, unless the legal problems were recorded in the property register. Blanco revealed that there will be international press conferences to win back the confidence of potential investors, and give sales a boost. There will also be steps to help the industry to build more of the type of homes that foreign investors might want to buy. One of his department’s main objectives is to help reduce Spain’s glut of newly-built homes, which is weighing down on the market.

Blanco hopes to reactivate the moribund construction sector, creating jobs and demand for housing to help digest glut. Blanco also spoke of the need for further price reductions to make housing more affordable and deal with Spain’s excess housing inventory. “The principal way to get the stock absorbed is one of the market’s own mechanisms, to offer more competitive prices for those types of homes and land where the over-supply is more evident.” In other words, prices will have to fall where there is an over-supply.

He also said that the “days of speculating with land and housing are gone and aren’t coming back.”

By Angela | Posted in Economy, General, Health, Holiday, Inspirational, Property, Tenerife, Things to Do | Tagged , , , , , | Comments (1)

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)