Expats set up action group to fight Nordic banks.

September 15, 2011 – 9:05 am

Expats launch scheme to challenge Nordic banks

Expats who bought into unsuccessful equity release schemes and now face losing their properties have set up an action group to fight the Nordic banks behind the schemes.

Tempted by the offer of a salary for life and an inheritance tax reduction, organisers of Equity Release Victims Association, Ian Sherdley, 69, and Euan Armstrong, 73, used their Spanish holiday homes as collateral to buy into the equity release schemes.

The schemes were sold by independent financial advisors working the expat communities along the Costa del Sol on behalf of Denmark’s biggest bank Danske Bank and Nordea Bank SA.

They were told that if they took out full mortgages against the value of their Andalucian homes, which were fully paid for, and then gave the money to the bank to invest, their inheritance tax liability would be reduced and they’d receive a small lump sum, as well as a monthly return on the bank’s investment which would cover the cost of the remortgage and provide a small salary.

Source: The Telegraph

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Vendors need to come to terms with drop in sale prices

August 16, 2011 – 3:48 pm

Vendors need to come to terms with falling property prices in Tenerife

The vast majority of private vendors still haven’t come to terms with the drop in the value of their properties, argues José Luis Jimeno, MD of Noteges – a real estate and executive education portal.

According to Jimeno, pictured above, only vendors who drop their asking price 40pc to 50pc below the competition in their area have a hope of selling. As a result, 80pc of private vendors are asking prices that are out of the market.

Vendors on the coast, where there is a large glut of holiday homes, are even worse off. To make a sale, they will have to accept offers 60pc to 65pc below the prices they are asking today, he claims. “Private vendors are still trying to sell at boom prices,” says Jimeno, quoted in the Spanish press.

But Jimeno is not the only expert with something to say about asking prices. Juan Fernández-Aceytuno, MD of Sociedad de Tasación, one of Spain’s leading appraisal companies, recently said that sales close on average 15pc below asking prices, according to another recent article in the Spanish press. If he is right, then asking prices are not so far from reality as Jimeno suggests

Looking ahead Jimeno expects house prices to continue falling thanks to the bleak economic outlook in Spain.

His advice to vendors is far from sugar-coated. “It’s not a good time to sell, but if you have no alternative then make the sale now, because with every passing day your home will be worth less.”

That advice is particularly relevant to British vendors, who have to take into consideration exchange rates. The Euro is still strong against the Pound, benefiting British vendors repatriating capital to the UK, but the way things are going in the Eurozone, that might all change.

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

Brits considering luxury property in Tenerife and Spain again

August 10, 2011 – 5:36 pm

Luxury and prime property is selling well again in Tenerife and Spain.

Britons seeking their own slice of heaven abroad are increasingly considering luxury Spanish properties.

Experts say the sun-drenched country is once again proving popular with overseas property hunters, but they are now adopting a more cautious approach than that seen during the Spanish housing boom prior to the global economic downturn.

Buyers are seeking out investment properties that meet their precise requirements, and that has generally meant properties with a more luxurious feel. In Tenerife,  prime coastal properties are selling well.

The trend appears to be backed up by a report from the Overseas Guide Company which reveals a rise in the number of requests it has received for information about the Spanish property market.

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

Average asking prices down for resale properties say Idealista

July 15, 2011 – 10:23 am

Resale property prices fall say Idealista

Average asking prices for resale properties in the Idealista database dropped 8.2pc over 12 months to 2,179€/m2, a quarterly fall of 1.8pc.

“The latest price index from Idealista confirms a worsening in the market situation,” explains Fernando Encinar, head of research at Idealista. “The price of resale flats is falling in ever more municipalities, and the discount is getting bigger.”

The Canaries index was down by 2.9% . If you are looking for a bargain and deal with a reputable estate agent, this could be the time to take the plunge in Tenerife.

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

Sales rise for the 5th consecutive month.

April 6, 2011 – 8:22 am

G-14 signal better times ahead for property in Spain and Tenerife

The market for new homes is on the road to a mild recovery, claims the G-14 group of Spain’s leading developers. Sales of newly built homes will continue “consolidating in the coming months” said Pedro Pérez, head of the G-14. There is some basis for the developer’s optimism in the latest sales figures from the National Institute of Statistics. Sales of newly built properties increased by 7.6% from August to September, though on an annualised basis sales were down 20%.

“It’s been comforting to see sales rise for the 5th consecutive month, something that means we can say that the sector is recovering since it touched bottom in April,” Pérez told the Spanish press.

Sales are bouncing back thanks to lower prices and more selective mortgage lending by banks, argue the developers.

The recovery in sales will continue in the months ahead, says Pérez, in part because developers will make “every effort possible” to make prices more attractive.

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Time running out for second homes tax breaks

March 24, 2011 – 9:44 am

Time is running out for tax breaks on second homes

Time is running out for holiday  owners to upgrade their property while simultaneously cutting their tax bills. A £30m tax break, which cuts the cost of second homes for more than 65,000 families, is to be withdrawn next month because of EU laws. Attractive tax incentives were introduced in the eighties to encourage people to invest in quality holiday properties in Britain, after the lure of cheap Spanish packages left our many seaside resorts struggling, and in decline. They provided budding UK landlords with a meaningful subsidy towards the purchase and running costs of a second home, as well as more tax concessions when it came to selling. About 65,000 families currently own and run a holiday house in Britain under this tax regime, known as the furnished holiday letting rules, and save an estimated £30m a year in tax. But advantageous treatment of UK holiday property fell foul of EU laws, because they were deemed to discriminate against tourist accommodation in Spain, Portugal, France, Italy and elsewhere in Europe. Either the tax breaks had to be extended to all holiday properties throughout the European Economic Area (which includes Iceland, Liechtenstein and Norway as well as other EU countries); or they had to be withdrawn. The Government calculated that it would add up to £25m to the existing £30m cost of running this scheme if these overseas properties were included. By contrast, cutting this relief would bring an extra £20m into Treasury coffers. From April, losses can only be offset against future rental income and not used to reduce your overall tax bill. Source: Telegraph Online

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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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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)

Rental prices in Spain, Tenerife and Canary Islands

December 8, 2010 – 1:17 pm

October rental values up and down in Spain, Tenerife and Canary Isles

Average rental prices rose 1.1pc in October, according to data.Rents are going up at half the level of inflation, leaving landlords out of pocket in real terms 

That was half the level of consumer price inflation, which was 2.3pc in October. As a result the real price of renting a home in Spain fell by an annualised 1.2pc in October.

Rental prices rose the most in the Balearics (+1.6pc), followed by Cantabria (+1.4pc) Galicia (+1.4pc), Andalucia and the Canary Islands (1.2pc). Prices rose the least in Murcia (+0.6pc), La Rioja (+0.5pc), Extremadura (+0.1pc) and Navarre (-0.3pc).

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