Increase in demand for Spain’s holiday and accomodation

February 27, 2012 – 10:38 am

Rental properties in demand in Spain and Tenerife

An increase in the demand for holiday accommodation in Spain last year has resulted in more and more Spanish home owners preparing to rent their properties out this summer, providing a welcome boost to the property market.

According to a report from holiday home rentals website HomeAway, booking enquires for Spain in 2011 increased by 27% in comparison with 2010. As a result, a greater number of British and European buyers are acting now and purchasing a home in Spain with a view to capitalising on this growing rental demand.

Marc Pritchard, Sales and Marketing Manager of Spain’s leading house builder Taylor Wimpey España, says “The growth of the rental market has made Spain once again a popular destination for property buyers to invest in, particularly given the readjustment of property prices and abundance of cheap flights. We have seen an exceptionally strong start to 2012 with sales in January markedly up on the same period last year.

Mallorca is tipped to be a top performing Spanish destination seeing as it registered the highest number of overnight hotel stays in 2011, with 41.6 million, according to data from the National Statistics Institute. Tenerife is also expected to remain a firm favourite.

By Angela | Posted in Economy, General, Health, Holiday, Inspirational, Miscellaneous Articles, Property, Tenerife, Things to Do, Weather | Tagged , , , , , , , , , , , , , , , , | Comments (2)

Spain and Tenerife look popular for holiday home rentals in 2012

February 20, 2012 – 10:48 am

Spain and Tenerife property holiday rentals increase for 2012

More Spanish holiday home owners are looking to rent out their properties this summer with data showing that the supply of holiday rental accommodation in Spain grew sharply in the last quarter of 2011.

Demand from holiday makers has stayed strong, according to the UK’s largest holiday home rentals site HomeAway. Its latest report shows that Spain is the tenth best performing market in terms of growth in inventory on its website, the first time the country entered the top ten last year.

Due to the tough resale market in 2011 it would seem more Spanish holiday homeowners looked to rent out their properties to help cover costs, it suggests. Now, as property prices are largely thought to have bottomed out, Spain is again becoming one of the most attractive investment options for Brits.

The country also performed well on the demand side too. Overall, booking enquiries for Spain in 2011 were up 27% compared to 2010 and Malaga was the fifth most popular destination for holidays in the last quarter of the year.

Source: PropertyCommunity.com

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

Developers ask government for mortgage interest tax relief on holiday homes

February 1, 2012 – 11:51 am

Developers ask for reduction of tax on properties in Spain and Tenerife

The G14 association of Spain’s leading developers says it will ask the Government to introduce mortgage interest tax relief on holiday homes to stimulate demand and deal with Spain’s   empty new holiday homes on the coast.

The Government has just reintroduced mortgage interest tax relief on main homes, despite the fact that it favours owner-occupiers at the expense of those who rent, and makes it harder for Spain to reach its stated goal of increasing the rental market. Developers want a similar tax break for holiday homes.

Some industry voices like Antonio Carroza  have wasted no time in describing the request as “irresponsible”. He believes it is wrong to use public money to subsidise “large developers so they can sell second homes that should never have been built,” he said, quoted in the Spanish press. In any event the tax relief would only apply to Spanish residents, not foreigners buying holiday homes in Spain and Tenerife.

The G14 has also called on the Government to reduce the ITP sales tax on resale properties.

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

3.4 Million Spanish homes are empty.

December 2, 2011 – 11:08 am

Too many empty homes in Spain

3.4 million Spanish homes lie empty, 13pc of the total housing stock  according to a new report from IDC. There are 676,000 empty homes in Barcelona and Madrid alone. Of the two, Barcelona has the biggest problem.

This is a “worrying situation with very negative consequences, principally a huge cost,” explains Carlos Parra, Director of IDC, quoted in the Spanish press. The empty homes are neither for sale nor for rent.

At the same time, tens of thousands of homes are being repossessed, and millions of young adults can’t afford their own home.

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

Spanish property owners see mortgage repayments rise

September 14, 2010 – 4:26 pm

Mortgages repayments in Tenerife on the rise

Spanish homeowners are likely to see their mortgage payments rise over the coming months after the nation’s benchmark rate for loans, Euribor, rose 1.42 per cent in August, which could lead to more distressed properties coming to the market.

The rise marked the first increase in loan rates since October 2008 and is likely to squeeze Spanish homeowners further as almost nine out of every ten new Spanish mortgages are floating rate, reports Business Week.

Repossession orders in the nation already jumped to 27,621 in the first quarter, from 23,433 a year earlier and this upward trend is likely to continue.”You can’t expect Euribor to stay at the current low levels for ever and what really matters now is the rate of ascent,” Raj Badiani, an economist at IHS Global Insight in London, told the news provider.

The troubled real estate market in Spain and the Canary Islands could provide an opportunity for property investors hoping to find a home in Tenerife or find propertyfor rent or sale in Tenerife or the Canary Islands for a bargain price.

From the highly interesting Property Showrooms site

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

A chance to rent before you buy in Spain and Tenerife

June 6, 2010 – 10:30 am
A chnace to rent before you buy in Tenerife and Spain

A chance to rent before you buy in Tenerife and Spain

Clydesdale and Yorkshire Banks have joined forces with Spanish bank, Caja Mediterraneo (CAM), to give Britons thinking of buying a property in Spain the opportunity to rent before they buy.

In addition, the scheme allows for rent to be discounted from the purchase price of a property should a tenant opt to buy within two years of taking out a lease.  The lenders can also offer property investor with a taste for Spain legal services provided by a UK-based solicitor with experience in Spanish property, and a Spanish bank account with access to CAM bank’s English Internet banking service.

According to Clydesdale and Yorkshire, a house in Spain is more affordable than ever right now, with discounts of up to 50% on previous asking prices.  Last month, Primelocation.com reported a sharp rise in overseas property searches, with Spain taking second place in the top ten destinations, behind France.

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

No place like home?

December 21, 2009 – 4:30 pm
The strong euro has changes plans for those living and wishing to live in Tenerife and Spain

The strong euro has changes plans for those living and wishing to live in Tenerife and Spain

It seems there really is no place like home. New research has discovered that UK expats are returning home in their droves as the weak pound has sent the cost of living in the Eurozone soaring.Over the last year, there has been a huge rise in the number of expats living in Europe looking to return home to the UK.

Research  for home-movers, has seen an uplift in demand for removal quotes from those expats wanting to relocate back to the UK – a big turnaround from the exodus of Brits in recent years to enjoy warmer climes and cheaper property prices elsewhere. The number of people requesting quotes to move to the UK has increased by 37 per cent, while there has been an 18 per cent decline in the number of people moving from the UK to the continent in the space of a year

Spain has  seen an exodus in the past year, with a 39 per cent increase in the number of quotes to move to the UK. Traditionally the most popular haven for British expats seeking to retire in the sun, Spain has suffered from a devastating property crash, leaving many owners with depleted equity and high living costs due to UK pensions being paid in pounds not euros.

Many expats have had their dreams shattered by the current economic crisis and are finally realising that they can no longer afford to live in Europe with the weak pound. For those who kept their options open by retaining a property in the UK the situation is not so desperate but for many who sold up completely and are now unable to sell their European home, their only option is to rent back in the UK.

We have seen a sharp decline in the number of people moving out to the continent in the past twelve months as a result of the weakening pound and stretched finances in the UK. This has resulted in many would-be expats putting their aspirations of retirement in the sun on hold until the markets recover.

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