High end Spanish property performing well

January 31, 2012 – 9:45 am

High end property in Tenerife and Spain performing well

Despite tough market conditions for property in Spain, one company has posted its most successful operational year to date in 2011, showing the appetite for high-end Spanish real estate has not waned.

2011 saw Lucas Fox doubling its staff, opening new offices and posting record-breaking third quarter profits of 19.5 Million euros, proof of the continued appeal of Spain among the cash rich. Among the most popular areas for investment were Barcelona, the Costa Brava and Mallorca where investors snapped up boutique and luxury pads.

Aimar Valls, Head of Commercial & Investment Property commented, “In the last year we have received a dramatic rise in both the quantity and quality of enquiries for commercial and investment property. Central Barcelona is a hot-spot for hotels, hotel projects and buildings with potential for tourist apartment rentals.

And the company is also optimistic about their fortunes in 2012. Director Alex Vaughan explains, “Our transaction pipeline is already looking strong and the outlook for the year is very encouraging. We start 2012 with over 5,000 active property buyers registered from Northern and Eastern Europe, Russia, Scandinavia, the Middle East, the U.S and China.”

Source: APlaceintheSun.com

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

Spain reclaims property crown

January 9, 2012 – 5:57 pm

Spain and Tenerife property in demand

Spain has reclaimed its property crown, according to the latest Top of the Props report from TheMoveChannel. Following America’s unexpected victory in November, US property fell in popularity last month, dropping three places in the overseas portal’s chart.

That dip was all Spain needed to soar back to top spot. Buyers seemed to flock to America to avoid Europe’s troubled markets, Spain, Portugal and France charged up the table, pushing America down to fourth. In total, the top three destinations accounted for just over a third of all enquiries on the site in December.

While US enquiries fell by 7.32 per cent, Spain’s popularity dropped by only 0.18 per cent. This steady level of attention, driven by low prices and the country’s reduction in VAT during 2011, reflects the continuing demand for Spanish property from lifestyle buyers.

This proves that holiday home demand can still buck the Eurozone’s downward trend if the prices are right.  Despite Spain’s return to form, investors are still willing to look elsewhere to avoid Europe’s more troubled economies.

Managing Director Dan Johnson comments: “As 2011 ends, the fluctuations in the Top 10 show the changing buyer demands in an uncertain market. Spain has always been a traditional choice for lifestyle buyers, as evidenced by the constant level of interest in the country. In fact, for the majority of last year, Spain was the most sought-after property destination on TheMoveChannel. so its return to the top spot seems an appropriate end to the year.

“Barbados and Morocco are equally attractive lifestyle choices that are free of Eurozone anxiety, but France and Portugal’s strong performance in December is a reassuring sign for more familiar property markets. As the New Year begins, we shall see if the popularity of these European countries will be strong enough to weather the economic climate in 2012.”

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

Euribor rate falls for fourth month in a row

January 4, 2012 – 11:40 am

Euribor down again which means mortgage repayments up in Spain and Tenerife

Euribor, (12 months), the interest rate typically used to calculate mortgage repayments in Spain, fell for the fourth month in a row to end the year at 2.01, a percentage fall of 1.7pc on the previous month. Compared to the 12 months ago, however, Euribor rose by 33.4pc, meaning higher mortgage repayments for all those on annually resetting mortgages.

The European Central Bank (ECB) cut base rates from 1.25 to 1.00 during December, the second cut in 2 months since the Italian Mario Draghi took over as the new Governor. Markets were expecting the cut, and judging by Euribor’s recent trend do not expect rates to increase any time soon. As you can see from the following chart, Eurozone base rates are still significantly higher then the US, the UK, and Japan.

New mortgage lending continued to shrink in October, with new mortgage approvals down 43pc to 23,193 (and down 46.5pc by value), according to figures from the INE. It’s clear the credit crunch is well and truly back in Spain.

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

Spain’s property reign ended by America

December 12, 2011 – 10:22 am

US overtakes Spain in the property market

The reign of Spain has been ended by America, according to the latest Top of the Props report .

Spanish property used to be the favourite for buyers, with the sunny Costas attracting swarms of house hunters every year. But now there’s a new top dog as the US replaces Spain in the overseas property portal’s rankings, upsetting the market’s established order to become the most popular destination in November.

The US has long played second fiddle to both France and Spain for property buyers but in October, America leapfrogged France to become a surprise runner-up in TheMoveChannel’s chart. Now, an increase of 7.01 percent in enquiries has seen the US surge to number one, with foreclosed homes and bargain house prices eclipsing the opportunities available in Europe.

Spain could only stand and watch as enquiries fell by 2.38 per cent last month, despite its half-price VAT reduction on new homes until the end of the year. France, on the other hand, remained firm in third place, attracting exactly the same number of enquiries in November and October, demonstrating the country’s consistent appeal to investors.

Managing Director Dan Johnson comments: “After climbing three places in as many months, the US continues to attract more and more overseas investors. Florida remains a popular lifestyle choice and with US houses the most affordable they have been in 15 years, the troubled Eurozone just can’t compete with the low price of American real estate. It’s no coincidence that the US is the only country to rise above the four familiar European markets.

As Spain’s reign ends, America’s dominance begins. Indeed, while the industry speculates about the impact of the Euro upon the rest of the world, North America’s rise to first place is exactly the kind of stimulant the US housing market needs

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

Expat savers unlikely to see interest rates rise in the near future.

September 28, 2011 – 2:11 pm

Expats in Tenerife unlikely to see interest rates rise in the near future

Expat British savers are unlikely to see interest rates rising for some time and whatever currency they use face poor growth prospects, according to a leading UK bank.

‘Growth prospects in the UK, Eurozone and US have worsened following a series of poor economic data. This, coupled with low domestically generated inflation in those markets, makes it less likely that central banks will increase interest rates any time soon, says Trevor Williams, economist at Lloyds TSB.

‘In fact, we now forecast that the UK base interest rate will be held at its current, historically low level of 0.5% until the third quarter of 2012. In the UK, the market is becoming less focused on inflation and more pre-occupied with the prospect of weakening growth,’ he explained.

He pointed out that the UK job market, a key indicator of growth, has softened noticeably in recent months and the preferred measure of unemployment stayed at 7.9% in the three months to July, just off its highest rate in 15 years.

Source: ExpatForum.com

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

Pressures on Spain’s financial system

September 5, 2011 – 10:40 am

Spain's financial system under pressure.

Falling property values and rising numbers of foreclosures in Spain are among the factors putting pressure on the country’s financial system.

Speaking to Time World, Santiago Nino Becerra, an economist at the University of Ramon Llull, explained that Spain’s mortgage market is comparatively small compared to other nations, such as the US.

“With housing values dropping, the banks here simply can’t withstand those kinds of losses,” he stated.

Mr Nino Bercerra went on to add that because unemployment in Spain is continuing to rise, “when it comes to foreclosures, we’re going to see some unbearable statistics”.

Source: PropertyShowrooms

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

Switch off those electrical items in flight to Tenerife

July 27, 2011 – 3:47 pm

Switch off those electrical items on the flight to Tenerife for safety.

For many travellers, the standard warnings that electronic equipment should be switched off in-flight are nothing more than a procedure, often surreptitiously, and sometimes blatantly ignored.

However, that may now be about to change, after a report surfaced in the US this week which suggested that passengers would do well to heed the warnings which have been given for so long.

The study, conducted confidentially but obtained by US news channel ABC News, found a total of 75 incidents of electronic interference which flight crews believed were linked to mobile phones or other electronic devices between 2003 and 2009.

Some 26 of these incidents were related to flight controls such as autopilot and landing gears, 17 were related to navigation equipment and 15 affected communications systems.

Source: Independent.co.uk

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

Euro falls as shares slide

July 20, 2011 – 10:29 am

The weakening of the Euro is good for travellers from Britain to Tenerife

The euro dropped the most in a week against the dollar. Italian and Spanish bonds slumped, while shares slid on concern Europe’s debt crisis is worsening. Gold topped a record $1,600 an ounce and silver rose for a fourth day.

The single currency sank 0.9 percent to $1.4022 at 3:31 p.m. in Hong Kong. Yields on 10-year Italian bonds increased nine basis points, while Spanish 10-year debt yields climbed 14 basis points. The Stoxx Europe 600 Index retreated 0.7 percent and the MSCI Asia Pacific excluding Japan Index lost 0.7 percent. Standard & Poor’s 500 Index futures fell 0.6 percent. August- delivery gold rallied for a 10th day and silver jumped 2 percent. Wheat and corn both declined at least 1.3 percent.

European leaders are holding a special summit this week as they seek to contain the region’s debt crisis, after eight of the region’s banks failed stress tests and European Central Bank President Jean-Claude Trichet reiterated the ECB won’t accept as collateral bonds from a nation that defaults. President Barack Obama continued to reach out to lawmakers in both parties this weekend in search of a deficit-cutting deal as the Aug. 2 deadline for raising the U.S. debt ceiling looms.

“What you have at the moment is a lot of indecision,” Simon Flood, chief investment officer at Lion Global Investors Ltd., said in a Bloomberg Television interview from Singapore. “The biggest risk that concerns investors at the moment is what is going to happen in the U.S. People are obviously watching the developments in Europe.”

However a weak Euro is good news for tourists travelling to Tenerife from outside the Euro zone.

Source: Bloomberg Business Week

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

Euro value falls after Greek government lose support for a further financial rescue package

June 17, 2011 – 1:20 pm

Euro falls against currencies making Spain and Tenerife cheaper for most people to visit at present.

The euro dropped the most in almost six weeks against the dollar after the Greek prime minister’s government lost political support as the European Union struggled to break a deadlock on a second financial rescue for the nation.

Europe’s shared currency fell versus most of its major counterparts, except for Sweden’s krona, Norway’s krone and Denmark’s krone, which dropped as commodity prices slumped. Demand for assets linked to economic growth also eased after reports showed slowing manufacturing in the U.S. Sterling fell versus the dollar after a report showed Britain’s jobless claims rose in May more than economists forecast.

“There is a lot of noise going on in Europe and in Greece,” said Sara Yates, a foreign-exchange strategist at Barclays Plc in London. “What we’ve seen from the opposition party, that they don’t seem to be on the same page wanting to push through fiscal austerity and more privatization, that is worrying.”

The euro fell 1.8 percent to $1.4181 at 5 p.m. in New York, from $1.4440 yesterday, after touching $1.4156, the lowest level since May 27. It weakened as much as 2 percent against the dollar, the biggest intraday drop since May 5, when it fell as much as 2.1 percent.

Source: BusinessWeek.com

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

European Central Bank rate decision

May 11, 2011 – 1:55 pm

Euro stays virtually unchanged for travellers to Tenerife,Spain and Europe

A shortened trading week in the United Kingdom as well as the main focus for analysts being on the Bank of England and European Central Bank rate decisions gave rise to range trading dominating the market for the early part of last week.

The Pound fell across the board on Tuesday before settling into the weeks ranges after the release of weaker UK PMI manufacturing data. The main concern for markets is the stability of economic growth in Britain and how this impacts the Bank of England’s ability to manage inflationary pressures. The PMI manufacturing index fell to 54.6 from 56.7 which was a downwardly revised figure and triggered a selloff in Sterling due to the negative impact the figures had on interest rate hike expectations. Market are now speculating that the BoE may move back to a more dovish position and thus hold interest rate until early next year, although these expectations are frequently revised the impact on the Pound is obvious, the market sold Sterling. Market expectations were reaffirmed by later releases of construction and services PMI that weakened as well. The monetary policy decision from the Bank of England offered no surprises with interest rates of 0.50% and the £200bln asset purchase program both remaining unchanged.

The Euro saw little movement ahead of the ECB’s rate decision on Thursday as traders we focused on future interest rate expectations and divided on whether the next move higher by the ECB would come in June or July, this kept markets somewhat reluctant to take any positions ahead of the policy announcement. The European Central Bank kept interests on hold at 1.25% as expected but a shift in tone from ECB President Trichet during the post decision press conference where he took a less hawkish stance weighed heavily on the single currency. Trichet did not use any of the traditional ‘code words’ market have come to expect to signal further rate hikes rather opting for stating the Governing council would ‘monitor very closely’ developments in inflation. The result is an expectation amongst analysts that no rate hike will occur in June and that July is now more likely.

The Dollar had a number of influencing factors last week in the form of a broad-based commodity selloff and weakness in the Pound and the Euro due to changes in interest rate expectations. Silver has in recent months been pushed higher for the same reasons as gold; geo-political tensions, global economic uncertainty and the unprecedented cash injections by the Fed but the commodities movements have been far more exaggerated making it more attractive to speculators who took Silver sharply lower this week and triggered a knock-on effect slide in gold and oil, thus aiding Dollar gains. The ECB’s pause on interest rate hikes created Euro weakness that aided the Dollar further but US fundamentals in the jobs market came out to the downside putting the brakes on the Greenback trend higher until the release of stronger Non-farm payrolls figures. The data came out at 244K from the previous 216K that gave rise to initial Dollar strength but expectations remained that ultra-loose monetary policy from the Fed would continue which capped any gains made. 

Source: Baydonhill FX

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