Spain back in top spot for enquiries

 

Spain and Tenerife  top the enquiry list for holiday properties

Spain and Tenerife top the enquiry list for holiday properties

Holiday lettings companies  advertising Spanish holiday homes benefit from a kick-start to 2010 with a significant increase in enquiries, some fresh accommodation stock and the fantastic news that living costs have fallen making it even more cost effective for self-catering holidaymakers in Tenerife,the Canary Islands and Spain. 

Throughout 2009, Spain vied for the top destination spot losing out much of the year to the UK. Now Spain is back with vengeance stealing the top spot back,  the Canary Islands pinch fourth  place in the popularity stakes. However, the Canary Islands continue to draw winter sun seekers on good deals and cheap flights

Spanish holiday home owners are proving savvy to this change in mood with increasing numbers offering special offers for advance bookings. This tactic is particularly good at reaching families who need to plan ahead due to the restriction of school holiday dates.

Homes in the Canaries may have greater competition for business because of the volume of holiday apartments available, but they have a truly year round market, with no seasonal fluctuation and can optimistically look to fill 35 plus weeks a year with paying guests.

New trends in property purchase to aid Tenerife?

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New trends in holidays may mean that property purchase in Tenerife can be a wise investment.

The holiday season may be over, but it appears that trips abroad this summer have inspired many of us to buy our own home overseas.

Conti, the overseas mortgage firm, report that they have just had their busiest month since the beginning of the year, with a 20% month-month surge in mortgage quotes issued during September. The value of mortgage applications submitted by the company to overseas lenders also rose to a year high.

As property prices fall across Europe, the chance of owning a holiday home abroad may never be better, and with rates at an historic low, it’s even more affordable for British buyers.

Clare Nessling, Conti’s Operations Director, says: “The ‘staycation’ trend may have reduced the number of  Britons holidaying abroad this summer, but many of those who did venture overseas have returned home with plans to buy their very own place in the sun.

“As the darker nights return and the all-too-short British summer comes to an end, it’s very easy to dream about sunnier climes. But it can be more than just a dream. Affordable prices, low interest rates, and a healthy appetite by overseas mortgage providers to lend, are all making it easier to buy property abroad. Easy access to the more traditional locations like Spain and the Canary Islands, together with good rental opportunities, are also contributing factors.”

According to Conti’s recent hot spots report, they have had 22% requests on property in Spain.  It seems that buyers are sticking to the locations they know and trust and shunning the more adventurous emerging markets like property in Bulgaria and property in Dubai.

Conti says that there’s a growing feeling of confidence amongst prospective buyers, and that savvy investors are more willing to explore overseas opportunities in their search for better potential returns on investment than they are achieving in the UK.

Less tourists visit Spain.

Less people in Spain and Tenerife mean some empty beaches.

Less people in Spain and Tenerife mean some empty beaches.

Usually during the height of the summer tourist season the main beach at Torremolinos on Spain’s Costa del Sol is packed with sunseekers, but despite the clear skies and soaring temperatures, row after row of sun beds this year lie empty. Above the beach, business at the bars, restaurants and stores selling bright red souvenir flamenco dresses and Real Madrid jerseys that line the boardwalk is slow with many outdoor patios deserted. Some shops are closed for repairs.

“This is the worst I have ever seen it. There is no one on the beach,” said Pedro Hervas who has sold freshly squeezed orange juice from a stand in the shape of a large orange installed on the boardwalk for the past two decades. “If you came here last year at this time you would not be able to get around, there would be so many cars and people,” the 57-year-old added as he pointed to the road and beach in front of his stand.

Spain is feeling the pinch of a drop in visitors, especially from Britain, its main source of tourists, as the recession leads northern European sunseekers to take their holidays at home this year or choose cheaper beach destinations like Egypt or Turkey. Tenerife has also been hit, but not as hard.

The drop in the pound to near parity with the euro has fueled the decline in the number of British tourists, who account for one-quarter of all visitors to Spain, as it has made spending a few days in the sun at Mediterranean resorts like Torremolinos, Benidorm , Ibiza  and the Canary Islands more expensive.

During the first half of the year Spain received 23.6 million foreign visitors, an 11.4 per cent drop over the same time last year, according to ministry of tourism figures. The number of British tourists fell 16.3 per cent during the period to 6.1 million. The Government predicts the number of foreign visitors to the country during the summer, which it defines as July, August and September, will drop by 10 per cent. The tourists who are coming are spending less than in other years, adding to the financial pain of shop and hotel owners.

Robert Downey, a 57-year-old former Glasgow taxi driver who runs a pub with a seafaring theme that serves fish and chips in Torremolinos with his wife, said his business is down between 30 and 40 per cent this year. “People used to come in at 9 o’oclock at night and have four or five drinks. Now they are coming in at 10 o’clock and having just two or three drinks. Many people are worried,” he said as he stood behind the counter of his empty bar.

Foreign visitors to Spain spent 20.9 billion euros (A$35 billion) during the first six months of the year, a 7.6 per cent drop over the same time in 2008, according to the tourism ministry.

Spain’s tourist sector accounts for around 11 per cent of all jobs and the decline in the number of foreign visitors comes as the country is in its steepest recession in decades following the collapse of its property market. Last year the country lost its spot as the second-most visited destination in the world to the United States, according to the Madrid-based United Nations World Tourism Organization. France has long been the number one destination.

Tourists began trickling into Spain after the United Nations lifted its sanctions against the country and its right-wing dictator, General Francisco Franco, in 1950. The trickle turned into a flood after the Franco regime in 1959 simplified the procedures for passport visas and customs controls in a bid to aid the development of the tourist sector.

The influx turned many seaside fishing villages that dotted Spain’s coast into concrete jungles of tower blocks which drew millions of northern Europeans on package holidays. Analysts say the dent in Spain’s tourism business is also due to a long-term shift away from these sort of sun and sea holiday packages which the country pioneered as people increasingly depend less on major tour operators and make their own independent bookings over the Internet.

Prime Minister Jose Luis Rodriguez Zapatero’s Socialist Government has responded by offering one billion euros to help the sector modernise its infrastructure as well as tax breaks and fee waivers for airlines and hotels. It has also wants to seek out new markets and diversify its traditional sun and surf tourism by boosting its focus on urban and cultural tourism.

Spain’s tourism promotion body has staged a series of “A Taste of Spain” events across Britain in recent months that showcase Spanish culture and food. Despite the recent decline in visitors, Trevor Davis, the director of retail distribution at The Co-operative Travel, Britain’s largest independent travel agency, does not think the British are starting to permanently turn away from the country as a holiday destination. “Absolutely not. We fully anticipate Spain will bounce back when the pound strengthens,” he said.  If this proves to be the case, then buying a property now in Tenerife may be a smart investment move.

Spain and the Canary Islands still popular for those seeking investment property

Brits still planning to buy in Tenerife

Brits still planning to buy in Tenerife

The USA knocked Spain off the top spot in July’s Investment Property watch chart - which tracks the level of interest in certain properties and countries from visitors to the site . Madeira island is gearing up for an influx of new visitors from all over Europe as Spanish airline BinterCanarias starts new direct flights to bring in travellers from the Canary Islands. However Spain and the Canary Islands remain popular with those looking for holiday properties and second homes in the sun.

The property pension

Research shows that up to 10 million workers are not members of a personal or company pension scheme, suggesting that even more people may turn to investing in property, now that a number of worldwide property markets appear to be at or near the bottom of the cyclical downturn.

Boosting your  pension with property in Tenerife is a great choice

Boosting your pension by purchasing property in Tenerife is a great choice

Around five million Britons are relying on property to fund their retirement, despite the fact that residential prices have fallen across the globe over the past couple of years, according to the employee benefits consultancy Foster Denovo.

Those with cash available should consider the bargains available in Tenerife currently. Tenerife’s year round sun and climate makes it the perfect place to invest with a view to rental gain and  future increase in property value .

Spanish rescue fund for banks

Spanish banks have so far coped relatively well in light of the global financial crisis, with only one small savings bank, Caja Castilla La Mancha, having run into grave difficulties.

Spanish banks rescue plan may aid your bargain property purchase in Tenerife

The Spanish rescue fund for banks may aid your bargain property purchase in Tenerife

The Spanish Government has announced details of a rescue fund of up £85 billion  to help the country’s banks cope with a string of bad loans, including poor mortgages used to buy property in Spain, as well as help reform its banking system. But executing the plan will be difficult.

Unemployment currently stands at 18 per cent and is rising, which will further dampen demand for property in Spain. Most banks have already swapped poor debt for properties in Spain from struggling developers, which has improved the non-performing loans ratio, but may cause problems moving forward.

Clearly, if you have cash available, now could be the time to purchase that dream property in Tenerife. It may be your dream second home in the sun, an apartment to rent out, or just to use for holidays yourself. Whatever your wishes a trip to your Tenerife estate agent should be a priority if you are serious about investing in Tenerife property before the bargains disappear.

The grass is not always greener!

The Grass is always different, if not greener!

The one thing that seems to unite this growing wave of émigrés is not age, or class or even wealth, it’s the shared opinion that the UK is going to the dogs and the politicians seem oblivious or powerless to do anything to change it! This is translating into an attitude of ‘the grass is greener’ abroad and there appears a huge head of momentum for us to desert Blighty and flock to a place in the sun.

In many cases the seeds of these ‘dreams’ are sown on holiday. After a few days in the sun, unwinding and relaxing, you suspend the reality of your life back home and enter that blissful, dreamy, stress-free state of “no shoes no news”. The school runs, the office politics and the bad weather temporarily fade becoming a dim and distant memory. This is a dangerous place to be, at least psychologically. Your guard is down; all the things you hate about your life and circumstances back home are suddenly and painfully magnified by the perfect life you could lead abroad. Right here, right now, under the shade of this palm, cocktail in hand, looking out over the shimmering azure horizon. The really crazy thing is that you’re normally risk averse, sensible and sober partner, is also seeing the possibilities and actually agreeing with you for once……….

Grant and Jemima, fantasising about their escape to Tenerife….. “Darling just think for the price of our terrace house in Battersea we could buy a farm, pay off the mortgage and put £150k in the bank for a rainy day”. “Tabitha and Tarquin can learn Spanish, I can paint water colours and you can do odd jobs and a bit of writing, what do you think?” “Yes! We could grow our own vegetables, keep a few goats, pick olives and tread the grapes. It’s a much healthier outdoor life for the children. Have another glass of Rioja darling”……..

Or Kevin and Shaza from the North West of England, deciding to start afresh with their kids Britney and Dylan, by opening an ‘All day breakfast’ bar in Benalmadena. This despite the fact that their only previous experience of bar ‘work’ was getting bladdered every weekend in the local!………”Well Shaza it’s sunnier than Bolton, Blackburn or even Blackpool! The beer, fags and rent’s cheap and more people speak English here then back ‘ome. We’ve nuthing to lose!”

As an abstract dream it all works. However, as the end of the holiday looms and with it the realisation that they are going to return home, to clamber back onto the treadmill of their daily lives, the haze of optimism is soon replaced by the ‘black dog’ of reality. There is however always the lifestyle media, ably led by Channel 4’s ‘A Place in the Sun’ and ‘Pay off your mortgage in a Year’ (by seemingly trebling your debt to buy over-priced property abroad, on the assurance of a commissioned sales person that it’s a good investment), to lift your spirits. These and a plethora of other ‘foreign adventure’ programs such as BBC 2’s, ‘Get a new Life!’ try before you buy emigration program only serves to reinforce the idea, that a better, utopian existence awaits them abroad.

It seems that there is a push and pull effect in action. The push to leave is driven by people’s negative perceptions of their work/life situation at home in modern Britain: - bad weather, high taxes, increased immigration to the UK (ironically), crime, European regulations (loss of power to Brussels), high cost of living, poor schools, poor health service, the pensions crisis. Also New Labour’s style/spin over substance (now being copied by the Conservatives), lack of a credible opposition party, long working hours, traffic congestion etc. Basically it appears that the materialistic, consumption driven, rat race we are all caught up in at home, has led us to an overwhelming sense of helplessness. This feeling of not having sufficient control over our lives leaves us feeling unhappy about the quality of life we are leading. We feel unfulfilled and guilty about the sort of present, let alone the future, we have created and are creating for our children. These feelings manifest themselves as increased anxiety and stress levels and this is one of the main causes of so many people looking for an escape route or way out.

On the other hand there is the pull to arrive in a new sunny place and start a new life: - better weather, lower taxes, lower crime, a slower pace, lower cost of living, better schools, good health care and generally a better quality of life. Immigrants! Well we’re the immigrant, so what’s the problem?

It appears many wage slaves are saddled with an omnipresent sense of “so much more of life’s millstone to tread”, ahead of them in Britain. They view a life in the sun with rose tinted glasses, as if to blind. This rose tinted view is encouraged and enhanced by the polar opposites of what people want to escape from and what they believe they are escaping to. This is to ignore the perceived wisdom, that when you live and work in a place where you’ve previously holidayed, the place you thought you knew and understood as a tourist, is often very different in reality. This is to state the obvious, but often overlooked fact, that living and working abroad is a whole different circumstance from holidaying, down timing and chilling.

Tenerife’s home owners gain during market downturn?

The downturn in perennial hotspot Spain’s fortunes has been given a lot of column inches lately. Still it’s not all doom and gloom - in fact, if you are a second home owner in Tenerife, the current crisis could well be a blessing in disguise…

Spain has topped the list of Europe’s most popular countries to emigrate to more times than I can remember.

The sun, sand and sea has proved a killer combination and tourists and investors have flocked to Spain and its island terrirories in droves, causing property prices to sky rocket.

Then the credit crunch came and prices in Spain started to fall, compounded by a glut of unsold apartments built by overenthusiastic developers eager to cash in when the market was piping hot.

Average house prices have fallen by around 6.5 per cent year on year, it was reported last month and experts have predicted that the decline will continue well into next year with an annual fall of around nine per cent.

So, with prices falling and no sign of an upturn in the near future, buyers are not entering the market, which

Santa Cruz Opera House

Santa Cruz Opera House

opens up a good opportunity for second home owners as more and more people look to rent rather than buy.

With the demand for rental accommodation rising, due to people finding it both harder to secure mortgage financing and reluctant to buy into an unstable market, second home owners who do want to rent out their home should see stronger demand and higher returns than ever.

Some are waiting to see what property prices do and if the Euro/Sterling exchange rate improves, while others are still trying to sell their UK home in order to finance their property purchase in Tenerife.

Cash buyers who are ready to move fast want to be in the location in which they want to buy in case a real bargain does come onto the market. Buyers who don’t require mortgage finance can snap up a bargain as many desperate vendors and developers are reducing prices by as much as a whopping 30 per cent.

Locals are also wary of the current market and are looking towards the rental sector, something which is traditionally dominated by tourists and expats looking to start a new life in the sun.
Prior to the economic crisis that is sweeping the globe, only a tiny minority of Spanish nationals opted to rent on holiday rather than purchase their own homes. But, as often happens in a crisis, things change and more and more Spaniards are now joining the hoards of tourists and expats enquiring about rental properties in Tenerife.