Spain remains top retirement hotspot

Spain and Tenerife remain top of the props

For those of you thinking of retiring abroad or relocating in 2012, Standard Life has released its latest retirement hotspots research which shows that Spain is the number one retirement destinations in the world as far as Brits are concerned. Spain is followed by Australia, USA, France and Ireland.

But while retiring abroad is a dream for many people, it does require careful planning and advice, according to John Lawson, head of pension policy at Standard Life.

He said: “Many people think living abroad is cheaper than living in the UK, but this isn’t always the case. Doing your homework in advance of moving, matching your retirement income and expenditure, and making the appropriate decisions around purchasing an annuity or using income drawdown are key considerations. Your retirement income could also be subject to exchange rates and currency fluctuations, as well as local tax laws.”

Expat children enjoy a better quality of life says survey

Expats children in tenerife have better quality of life. states survey

It has been revealed that expat children enjoy the good life and are likely to be benefiting from better education, higher safety levels and improved health and well-being as a result of their parents decision to live overseas. Expat parents report their children are more likely to be learning new languages (84%), playing more sports (47%) and spending more time with their family (53%) while on the whole, enjoying their new life abroad (85%). Living overseas appears to have a positive impact on the lifestyles of expat families; however, the UK fared less well among parents who had relocated. Overall the UK found itself bottom of the league table of the 14 countries that formed the survey sample of 30+ respondents at country-level. The UK is the worst performing country for both the childcare and the health and well-being categories when expat parents were asked to compare it to their home countries. In addition, it appears that the UK is also among the most expensive places to raise a child, ranking bottom (14th) for both the general costs of raising children and more specifically for the costs of childcare.

Expat children in the UK also appear to have the least active lifestyle since relocating. Only 24% of parents say their children spend more time outdoors since their move and expat parents in the UK are also least likely to say their children play more sport or spend less time watching TV, ranking last (14th) on each of these measures.

However, despite these relatively poor scores, 84% of parents reported that their children are enjoying their life in the UK, scoring the country 8th out of 14 in terms of how much children enjoy their life in their new country. This may relate to the fact that the UK scores top for expat entertainment in Expat Explorer’s Expat Experience 2010 report, which suggested that children can take advantage of many attractions and excursions which will help them settle in and enjoy life in their new country.

Belgium tops this year’s charts as the best location to raise children, thanks to the highly regarded childcare system and standard of education. 81% of expats based here agreed they had seen an improved standard of education in comparison to their home country while 68% thought the quality of childcare had improved. However, Belgium-based expat parents also benefit from some of the cheapest childcare, with (65%) now paying less for childcare than in their home country.

The rest of mainland Europe was not far behind Belgium’s lead, with Spain (2nd) France (3rd) and Germany (5th) all featuring within the top five of the Offshore Offspring league table. In contrast, the USA and UK hold the bottom spaces in the league table, ranking 13th and 14th respectively.

Safety of children improves with relocation. Of course the children who relocate to Tenerife have it all, sun, sea, British TV  and Playstations!

Spain still a frim favourite for property

Property in Spain and Tenerife still a favourite with buyers

The three most popular international real estate markets are still the old favourites – Spain, France and the USA, according to the latest Top of the Props report .

In troubled times, many investors return to the things they know best and that certainly seems to be the case with overseas property buyers, with the top 3 countries sharing nearly a third of all property searches on TheMoveChannel.com.

Director Dan Johnson said: “The Spanish market is awash with great deals at the moment as Spanish banks continue to try and shift property cheaply. This phenomenon is unlikely to change soon, as there is plenty of supply, while the failure of some banks in the recent stress tests, means they’ll be keener than ever to divest the repossessed stock from their balance sheets. 

“France is an altogether different market, with a much higher concentration of lifestyle buyers purchasing holiday homes because they love the country and want to spend time there – it’s not such a price-sensitive market, though buyers are still pushing for good deals.”

Other notable movers and shakers this month are Portugal, which moved above Italy in terms of popularity for the first time and Thailand, which jumped up 12 places to number 9 and moved into the top 10 for the first time.

Of course, the Canary Islands especially Tenerife has some real bargains at present, why not check out the local estate agents and grab a property at prices paid  years ago.

Spain, confirmed to be the favourite destination of potential property-buyers.

Tenerife and mainland Spain the destinations of choice for property hunters.

The hoped-for green shoots of the economy in the UK were showing their heads in Birmingham last weekend, when thousands of people turned out for the “A Place in the Sun” exhibition held at the NEC. International property shows in the UK had been in the doldrums over the past months and some of the organsisers had gone into bankruptcy owing to the overall downturn in property sales everywhere, but “A Place in the Sun”, backed by the TV programme of the same name, made a strong come-back at the NEC.

This was especially good news for Spain, confirmed to be the favourite destination of potential property-buyers. No fewer than 60 per cent of visitors indicated an interest in Spain, with France coming in a poor second despite its familiarity and geographical proximity to British buyers.  Spain’s main competitors were the USA and Australia and New Zealand, which were offering immigration packages.

Surveys of the public attending the show indicated that many buyers have been waiting for the right moment, and are now ready to make the move, as prices are unlikely to drop any further. Asked why they were looking at Spain and the Canary Islands, they mentioned, the climate, the friendly people, and enjoyable holidays in this area in the past. Buyers were also aware of the problems now facing investors who had opted in the past for destinations less well served by the airlines. While flights to many of these have been reduced or scrapped altogether during the credit crunch, Malaga and Tenerife airports  continues to be served by numerous airlines with dozens of flights every day to and from the UK.

Brits and Romanians keen to live elsewhere.

Brits and Romanians looking to live in Spain and Tenerife

You may wonder what Brits and Romanians have in common – according to new research, these two nationalities are the most likely to leave home behind and begin a new life elsewhere. Despite the UK being a popular end destination with migrants from all over the world, one in three of us would love to emigrate abroad permanently, new research has revealed.

Research firm Gallup has found that British people share the top slot with Romanians in terms of being the keenest to move away from their homeland and set up a new life elsewhere. The poll questioned people living in EU countries about their contentment with their home countries and their desire to try living somewhere else.

Despite beliefs to the contrary, the economic downturn has not had a big impact on people’s desire to move away from Blighty – the same level – 33 per cent – say that they were just as keen to begin a new life elsewhere before the credit crunch set in.

This trend is similar to what Gallup observes worldwide. With some exceptions, people’s expressed desire to migrate did not decrease meaningfully in the downturn. Instead, the main reasons people gave for wanting a new life away from their home turf were being dissatisfied with conditions in local communities. Many reported feeling discontent with the local infrastructure such as the quality of the local schools and their roads and highways. Disappointment in the government and police force were also named as factors.

The type of person looking to emigrate has not changed much over the last few years. The vast majority of people looking to emigrate were young professionals with relatively high levels of education, all of whom were dreaming of better career prospects and a better quality of life elsewhere.

Thirty-three per cent of those with secondary educations were keen to try life elsewhere, whilst 36 per cent of those with a degree say they would like to move if they had the chance. In terms of location, British people were most keen on Australia, the USA, Canada Spain and its islands.

But the research also found that us Brits appear to be all mouth and no trousers – despite the high levels of desire to want to move abroad, a tiny two per cent of us were actually considering doing so over the next year – a far lower proportion than in many other EU countries. If all of the people who expressed an interest in emigrating actually did so, the UK would be left with a severe skills shortage as its youngest, brightest and best educated hopes flew the nest to take their skills elsewhere.

Gallup’s findings show that the government needs to do more to improve the communities within the UK in order to make them a more appealing place to live and work over the coming years.

Spanish banks undergo stress tests

Spanish banks stress test

Spanish banks stress test

The EU Stress Tests were published recently and assessed whether banks will be able to survive future economic shocks.

A total of 27 Spanish banks have been subject to testing and several of the smaller banks are expected to fail. Spanish regional lenders in particular are a cause for concern, having racked up heavy losses following the collapse of the Spanish property market.

Gregory Butcher, chairman of Ocean Village Gibraltar, said: “Being based here in Gibraltar and operating daily in the property and financial markets we are aware of both the ‘real life’ situation and in sharp contrast, that shown in the Spanish financial institution’s quarterly results.

“The benchmarking used in valuations of property assets in the appraisal of bank lending in Spain is flawed and as a result overvalues the property assets and hence shows less impairment.

“Spain’s financial institutions subsidise the mortgages on sales of their own repossessions to then gain higher capital prices than buyers would normally pay and appraisals then take those sales as the basis of valuations across a bank’s entire property book.

Butcher stated that these overvaluations are then used by the bank appraisers and in the EU’s stress tests.

Spain has an overhang of 610,000 unsold new homes, together with 1,100,000 resale homes currently for sale in the private market represent some years supply (414,000 homes were sold in 2009). The number of repossessions expected this year is 180,000.

As such the overhang of unsold stock in Spain is proportionally more than in the USA, which itself is into the third year of a significant property price correction. Butcher said:”a substantial price correction is now required to sell on the overhang which will not have been reflected in the EU stress tests.

“The UK and USA have had their banking crisis and Spain faces proportionally a greater one, arguably with less resources but it appears it is also intent on attempting a postponement.”

A good result for sterling in the property market

The value of overseas properties owned by Brits actually rose by more than £2.6bn, according to research. In many countries, the devaluation of sterling against the local currency was greater than the drop in property prices.

Sterling exchange rate  means a profit for British property sellers in Tenerife and Spain

Sterling exchange rate means a profit for British property sellers in Tenerife and Spain

Property prices fell across much of the world last year, but looking at property in France, Spain, Portugal, Italy and the US. In France, for example, where prices declined by an average of 6.63 per cent in 2009, the Euro gained 13.22 per cent against the pound, giving an estimated 98,000 British owners an average gain – in sterling terms – of £10,373 per property. In Spain the fall in prices was even greater, but British owners are still looking at a profit in sterling terms.

There has been a lot of volatility in the currency markets recently and many expect this to continue. This is having a huge impact on the value of property owned by British people abroad and in many cases it is more influential than price changes in the local property markets.The research also highlights the need to get your timing right with overseas property purchases, and to consider forward foreign exchange contracts, as opposed to relying on spot prices

Buyers looking at Spain once more

Buyers looking to return to Sapin and Tenerife

Buyers looking to return to Spain and Tenerife

Spain was last at the top in June and it returned victorious in August, claiming first place in  a monthly snapshot of the most popular countries, July’s winner, the USA,  was second. Despite being the subject of more bad publicity than virtually any other country during the credit crunch, buyers are starting to look to Spain once again.

Favouring traditionally popular destinations, international buyers are looking once more to markets such as Spain and France and Brits are proving that the love affair with Spain is far from over.

International mortgage firm Conti revealed that interest in Spanish properties accounted for 22 per cent of the total information requests so far this year, second only to France and up from 14 per cent in 2008.

Assessing the prospects for British buyers in Spain, the company said, “Buyers are in a strong position due to the number of homes available, low interest rates and the opportunity to negotiate price reductions from motivated vendors. “Sensible investments carried out on a long-term basis have a good chance of bringing in healthy returns.”

Prospective buyers are now chasing long term gains and as it had been hit so hard by the global recession, prices could remain low and offer good bargain potential for years to come. Cash buyers have been tipped as the ones most likely to be able to pick up a real bargain in the country as they don’t have to worry about mortgage financing, can bargain hard with struggling developers and can move the transaction quickly along.

The TINSA survey, which prides itself on being ‘Spain’s most reliable guide to property values,’ has found that the decline in prices has stabilized.

Spanish cities are tipped for a brighter future over the next few years, with the Assures Financieros Internacionales (AFI), suggesting that property prices in cities may rise to previous levels during 2010.

Once the glut of unsold properties in Spain is shifted, this will help to aid the recovery and push the market back up in 2010. This of course will also help the market in Tenerife too.

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.