Rental prices fall in Spain’s cities

February 3, 2012 – 10:25 am

Rental property prices fall in Spain and Tenerife

Rental prices fell in 77pc of Spain’s primary rental markets (cities), according to a study by Spanish property portal Idealista and the Public Rental Company(SPA).

Rents fell the most in Toledo (-8.7pc) and Oviedo (-6.8pc) but rose in Lleida (+11.2pc), Bilbao (+4.2pc), and Alicante (+4.1pc).

The average cost of renting a home in Spain declined in 2011, as you would expect with property prices falling.

In Spain’s biggest cities, rental prices fell 1.3pc in Madrid, 3.1pc in Barcelona and 4pc in Valencia.

The latest annual rental decline follows a bigger decline in 2010, so the cost of both buying and renting a homes in Spain has been getting cheaper for several years.

The study was based on 38,000 properties listed for rent in the 12 months to the end of December.

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

Spanish rental property still tops

December 9, 2011 – 10:36 am

Spanish rental property still tops with the British

Overseas property buyers can get an idea of where they are likely to find a good rental market for their holiday home from a new survey that reveals Spain has been the top destination of 2011.

The quarter three Marketplace Report from holiday rentals specialists HomeAway also shows that there has been an increase in the rentals market in Thailand and Dubai.

More British people than ever opted for Spain as their top summer destination. In terms of the number of booking enquiries for breaks in the third quarter of the year Malaga Province and Majorca claimed first and second place, followed by Ibiza in sixth place.

There was also a clear preference towards short haul destinations with nine out of the top ten destinations for summer 2011 holidays being either in the UK, or within a three hour flight distance.

Source: PropertyCommunity.com

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Attention furnished holiday let owners,only two months left to apply for a tax rebate.

December 6, 2011 – 9:34 pm

Owners of furnished holiday lets in the UK and EU may be entitled to a tax rebate for the last four years but the window to make the claim to HMRC closes on 31 January 2012.

The rebate is achieved by claiming maximum expenses and allowances against your rental income from the holiday let. This will either then reduce taxable profit, or result in an overall loss for the tax year. That loss can then be offset against your other personal income from employment, dividends etc.

Most investors and their accountants would not be aware of the rules on the relevant allowances and loss offsets to take advantage of this window of opportunity. The key questions to ask yourself are:

  • Is your furnished holiday let within the EU?
  • Was the property rented out for 70 days or more in any tax year, and for no more than 31 days to any one party?
  • Are you a UK tax payer?

If you can answer “yes” to the above questions then you should get in touch with an accountant to see what  tax rebate you can get.

 

Two weeks remain for furnished to let property owners in Spain and Tenerife to claim a tax rebate

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

Higher standard rental properties requyired in Tenerife and Spain

November 25, 2011 – 1:07 pm

Higher quality rental property required in Spain and Tenerife

Holidaymakers opting for rental properties in Spain and Tenerife are looking for higher standards from their accommodation.

This is the finding of the Campaya Rental Property Market Trends 2011 report, which revealed that visitors to the country are increasingly searching for “levels of luxury equal to, if not better than, at home”.

As a result, the organisation suggested that those who invest in a property in Spain with the intention of letting it out to tourists may need to do more when it comes to furnishing and decorating the flat or house.

However, it warned that spending extra money on kitting out a property will not necessarily lead to higher rents, because the supply of such holiday homes continues to outweigh demand.

Source: PropertyShowrooms

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

All time record visits to Spain in August

October 3, 2011 – 1:52 pm

Record numbers of visitors to Spain and Tenerife during August

In August this year 7.64 million foreign tourists visited Spain, an all-time record for the country.

According to reports from FRONTUR, August saw a 9.4 per cent increase in the number of tourists from 2010, indicating a new monthly high for the booming Spanish tourism industry.

Since the beginning of 2011, 40 million tourists have visited Spain, a 7.8 per cent increase over the same period last year. The Ministry of Industry which produces the tourist movement survey suggests that August visitor figures ‘reinforces the good prospects of Spain in 2011′ highlighted by the fourth best year in the history of Spanish tourism, a great achievement considering the economic recovery only began back in the second half of 2010.

Further data indicates that while Brits are one of the most regular and indeed loyal visitors to Spanish shores standing at 9.5 million, there has been impressive increases in numbers of other foreign visitors, with a rise in American, German and talian visitors. By destination, Catalonia was the largest recipient of foreign tourists receiving 1.9 million visitors in August, while the Balearic Islands followed closely behind with 1.8 million.

Ignacio Osle, Sales & Marketing Manager of Taylor Wimpey España, comments, “Despite difficult economic conditions across mainland Europe, Spain is one of the most resilient holiday destinations, remaining popular with foreigners whatever the market conditions. Recently, the IMF stated that Spain will be the only country that will experience higher levels of growth next year compared to its European counterparts of France, Italy and Greece.”

The rising number of overseas visitors continues to spell good news for the property industry. Osle adds: “Mallorca is one such destination that has performed better on the property front than its mainland counterparts offering strong rental market potential.”

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

Investors in Tenerife and Spain benefit from more rental opportunities

July 19, 2011 – 12:26 pm

Rental opportunities in Tenerife increase

Investors interested in property in Spain could benefit from more rental opportunities as more Brits choose to holiday in Europe. 

According to a new study by Abta – The Travel Association, bookings to Spain have increased by 11 per cent compared to last year, showing that the destination is becoming more popular with holidaymakers.

Short breaks are also seeing more people travelling into the country, especially to Madrid, as economies around the world recover and capital has been freed up to boost overseas stays.

“During the recession, luxury holidays were substantially affected, but have now experienced a healthy comeback,” Abta said in a statement.

Source: International Business Times

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

Low rental yields in Spain.

May 23, 2011 – 9:59 am

Low rental yields (gross) imply that property prices have not fallen enough, according to new research by Idealista.com.

The highest gross rental yields in Spain are to be found in the Catalan province of Lerida (4.7pc), followed by Las Palmas in The Canaries (4.5pc) and Málaga, home to the Costa del Sol (4.3pc). These rental yields imply around 22 years of rental income to pay for the average property.

The lowest yields are in the North of Spain, with yields of just 2.9pc in the Galician province of La Coruña. That means the average property in La Coruña would cost almost 35 years of rent.

Idealista calculated rental yields per province for Q1 20011 by dividing the average rental asking-price by the average sales asking-price, both in terms of €/m2. Asking prices are not a perfect guide to market prices, but they are the best guide we have.

These figures do not distinguish between primary and holiday homes, and probably overstate expect gross rental yields for holiday-homes on the coast. Net rental yields for foreign owners are likely to be very low, in the 2pc range or less.

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

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

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

European Court could slash pension annuity rates for Brits living in Tenerife

February 15, 2011 – 11:40 am

Pension funds can be boosted by purchasing prime property in Tenerife

It is possible that on the 1st March, the European Court could rule that current use of gender to calculate insurance premiums, including pension annuities, are in breach of sex discrimination laws. If unisex rates come into force, men, whose current annuity rates are said to be up to 10 per cent higher than those offered to women due to lower life expectancy, could see their annuity rates slashed.

Nick Carlile, Founding Partner of Platinum Portfolio Builder, urges everyone, not just those approaching retirement, to consider alternative investments to provide for their retirement. Nick comments “on top of reports that annuity rates fell 3% in 2010, once again, the dreams of many for a comfortable retirement could take a further battering, as they realise their annuity rates could be cut between a further five and ten percent.

Such a change is likely to create further resentment by investors who are passing their capital to an insurance company, rather than to their heirs.” From 6th April the compulsion to buy an annuity is to be scrapped. Nick Carlile advises those capable of meeting the government’s minimum requirements and demonstrating that their fund, plus their state pension will generate an income of around £20,000 a year, to look towards investment freedom and consider alternative options for their pension pot.

“A combination of steadily rising rentals, a fundamental shortage of housing and the UK pension situation looking increasingly frightening to people approaching retirement, is presenting appealing opportunities for passive buy-to-let investors. With improved loan performance in the buy-to-let market, which grew 7% in 2010, experts have suggested that the buy-to-let market is on the front foot again and entering a period of growth.

“If handled correctly, the benefits are twofold, providing regular rental income along with increasing capital gains. Crucially, the rental income will rise over time in line with wages and prices, so in real terms you’ll be protected against inflation as you get older. Plus, unlike many annuity schemes, the assets remain untouched ready for when you decide to sell or the property will go into your estate on death which could be passed to heirs.”

This decision may change the views of those thinking of retiring in the sun in Tenerife and the Canary islands  and it is clearly worth checking what your future retirement fund may be, particularly if you are looking to buy or rent prime property in Tenerife.

Source: Platinum Portfolio Builder

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