Holidays and Homes Blog |
You may be forgiven for thinking that now is not a good time to invest in Spanish property given all the negative media comment about the state of the economy, problems with the euro and the property market in general.
But have you noticed that those people who appear to be more successful in life are the ones who look beyond all the headlines and assess a situation from a new perspective?
How can you make the current and pending economic situation work in your favour?
1) Firstly consider that in Spain there are many villas and apartments available at bargain prices. These are new properties the developers have handed back to the funding bank and resale villas and apartments where the owners need to return to their homeland.
2) Secondly consider the possibility of a euro collapse. Sounds bad, doesn't it?
And it will put a lot of people off buying!
But Consider This If You Are a UK buyer ...
Let us say you have found a property and agreed a price of 200,000 euros that, at todays' exchange rate, equates to £165,000.
You pay a €50,000 deposit (equivalent to £41,250) and take a Spanish Mortgage for the remaining €150,000 euros (equivalent to £123,750) that you will repay from the UK in sterling ...
What could happen?
* If the euros collapses the cost of repaying your mortgage will reduce. The exchange rate is already moving in your favour and only needs to return to the value of 5 years ago (a 20% move) and your mortgage will reduce from the equivalent of £123,750 to £100,000 with a corresponding reduction in the cost of your repayments!
* If the euro collapses by 30% then the value of your mortgage will reduce by more than the value of your deposit so you will then have bought your new home in the sun with just the banks' money, and enjoy even lower repayment costs!
* Spain is still top of the list for holidays for north Europeans so if you are not buying your villa or apartment to live in then you can earn income towards your mortgage repayments and other costs by renting it out.
* You will have bought your new home at a depressed price so when the market recovers the value of your investment will increase.
So think outside of the box and see how you can make the current economic situation work in your favour!
Look! Your new home in Spain is here ... PROPERTY FOR SALE
Look! The current Mortgage Offers in Spain are here ... MORTGAGES IN SPAIN
But have you noticed that those people who appear to be more successful in life are the ones who look beyond all the headlines and assess a situation from a new perspective?
How can you make the current and pending economic situation work in your favour?
1) Firstly consider that in Spain there are many villas and apartments available at bargain prices. These are new properties the developers have handed back to the funding bank and resale villas and apartments where the owners need to return to their homeland.
2) Secondly consider the possibility of a euro collapse. Sounds bad, doesn't it?
And it will put a lot of people off buying!
But Consider This If You Are a UK buyer ...
Let us say you have found a property and agreed a price of 200,000 euros that, at todays' exchange rate, equates to £165,000.
You pay a €50,000 deposit (equivalent to £41,250) and take a Spanish Mortgage for the remaining €150,000 euros (equivalent to £123,750) that you will repay from the UK in sterling ...
What could happen?
* If the euros collapses the cost of repaying your mortgage will reduce. The exchange rate is already moving in your favour and only needs to return to the value of 5 years ago (a 20% move) and your mortgage will reduce from the equivalent of £123,750 to £100,000 with a corresponding reduction in the cost of your repayments!
* If the euro collapses by 30% then the value of your mortgage will reduce by more than the value of your deposit so you will then have bought your new home in the sun with just the banks' money, and enjoy even lower repayment costs!
* Spain is still top of the list for holidays for north Europeans so if you are not buying your villa or apartment to live in then you can earn income towards your mortgage repayments and other costs by renting it out.
* You will have bought your new home at a depressed price so when the market recovers the value of your investment will increase.
So think outside of the box and see how you can make the current economic situation work in your favour!
Look! Your new home in Spain is here ... PROPERTY FOR SALE
Look! The current Mortgage Offers in Spain are here ... MORTGAGES IN SPAIN
The economic output for the eurozone is expected to decline this year by nearly half a per cent and grow next year by about 1 per cent. In the developed world, the US, Japan and even the UK are expected to grow faster next year than the eurozone.
The US economy is expected to grow faster than any other major economy not only this year but also next. As for earnings, the contrasting fortunes of the US and Europe could not be sharper with the former surprising on the upside and the latter on the downside. This reflationary story has been reflected by the rise in the major US equity market indices to new post-Lehman crisis highs.
Europe’s economic malaise merely increases the pressure to revisit budget deficit targets and so the uncertainty that has arisen is likely to dominate market sentiment for a while. There is also a risk that parliamentary ratification of the Inter-governmental Treaty on the fiscal compact may not be achieved by the end of 2012.
In the meantime, the Federal Reserve remains committed to supporting the US economy. This has made the S&P 500 a great performer throughout the risk-on, risk-off phase of recent years. In looking ahead that same effort is likely to sustain Wall Street’s performance. We are overweight US equities and overweight equities overall.
Even in this period of economic uncertainty there are exciting overseas property investment opportunities emerging in both new and traditional property markets. The vital question is 'where are the best places to invest in overseas property for 2012?'
CLICK HERE to register for one of our free seminars and learn how you can take advantage of the opportunites currently available to grow your pension fund and increase the return on your savings to 10% to 20%!
The US economy is expected to grow faster than any other major economy not only this year but also next. As for earnings, the contrasting fortunes of the US and Europe could not be sharper with the former surprising on the upside and the latter on the downside. This reflationary story has been reflected by the rise in the major US equity market indices to new post-Lehman crisis highs.
Europe’s economic malaise merely increases the pressure to revisit budget deficit targets and so the uncertainty that has arisen is likely to dominate market sentiment for a while. There is also a risk that parliamentary ratification of the Inter-governmental Treaty on the fiscal compact may not be achieved by the end of 2012.
In the meantime, the Federal Reserve remains committed to supporting the US economy. This has made the S&P 500 a great performer throughout the risk-on, risk-off phase of recent years. In looking ahead that same effort is likely to sustain Wall Street’s performance. We are overweight US equities and overweight equities overall.
Even in this period of economic uncertainty there are exciting overseas property investment opportunities emerging in both new and traditional property markets. The vital question is 'where are the best places to invest in overseas property for 2012?'
CLICK HERE to register for one of our free seminars and learn how you can take advantage of the opportunites currently available to grow your pension fund and increase the return on your savings to 10% to 20%!
Spain is heading for a return to tourism domination as the 2011 visitor figures soar towards a record 57 million, boosted by higher numbers of independent travellers staying in rented accommodation along their favourite Costas.
80% of tourists now book their own flights and accommodation. Average stay in owned apartments or rented villas is now 15 days – twice that of hotels, who have had record occupancy in 2011. Average stay rose two percent and more people came from the UK than any other country.
There are now 370,000 Brits living full-time officially in Spain, drawn by the California climate, cheap food and drink, fiesta lifestyle and above average life expectancy. 1,000s more are planning to join them after Britain came bottom in a survey to find the best place to live. The summer city riots have influenced 1,00s more to quit the UK.
A Lloyds TSB survey found 67% of Brits living in Spain “had no plans to return to Britain” and 74% claimed quality of life was better. The survey found 87% of Brits felt safer in Spain “which is a better place to bring up kids”.
Commenting on the latest official survey, a spokesman for the Spanish Government said: “We could end this year with 57 million tourists visiting our country. The figures so far show an increase of 8.5%.”
Holidaymakers stay an average of 11 days and spend EUR 90 a day, with more than half going on transport, excursions and eating out.
Many northern Europeans combine property viewing trips with a few days on the beach or golf course, according to Spanish bank specialist PropertyInSpain.Net as a well planned itinerary allows time for both. A spokesman said: “One buyer chose the property, completed the sale 10 days later and moved in for a longer stay.”
Tourism investment in Spain is at record levels with EUR 2 billion being spent on a Paramount Hollywood theme park, rail links and five new hotels in Costa Calida, where a new international airport opens next year. A EUR 400M super marina is planned for the Costa del Sol and a Seaside Railway could link beach resorts to Malaga Airport.
Spanish Property News from PropertyInSpain.Net
80% of tourists now book their own flights and accommodation. Average stay in owned apartments or rented villas is now 15 days – twice that of hotels, who have had record occupancy in 2011. Average stay rose two percent and more people came from the UK than any other country.
There are now 370,000 Brits living full-time officially in Spain, drawn by the California climate, cheap food and drink, fiesta lifestyle and above average life expectancy. 1,000s more are planning to join them after Britain came bottom in a survey to find the best place to live. The summer city riots have influenced 1,00s more to quit the UK.
A Lloyds TSB survey found 67% of Brits living in Spain “had no plans to return to Britain” and 74% claimed quality of life was better. The survey found 87% of Brits felt safer in Spain “which is a better place to bring up kids”.
Commenting on the latest official survey, a spokesman for the Spanish Government said: “We could end this year with 57 million tourists visiting our country. The figures so far show an increase of 8.5%.”
Holidaymakers stay an average of 11 days and spend EUR 90 a day, with more than half going on transport, excursions and eating out.
Many northern Europeans combine property viewing trips with a few days on the beach or golf course, according to Spanish bank specialist PropertyInSpain.Net as a well planned itinerary allows time for both. A spokesman said: “One buyer chose the property, completed the sale 10 days later and moved in for a longer stay.”
Tourism investment in Spain is at record levels with EUR 2 billion being spent on a Paramount Hollywood theme park, rail links and five new hotels in Costa Calida, where a new international airport opens next year. A EUR 400M super marina is planned for the Costa del Sol and a Seaside Railway could link beach resorts to Malaga Airport.
Spanish Property News from PropertyInSpain.Net
Congratulations to the Holidays and Home Sponsored Paintball Team who came 2nd overall in the competition held at Victoria Wood, Crawley on Saturday 15th October 2011.
Here is our magnificent team ...
Jorjia, Katie, Haedyn, Ashley, Peter, Ceri, Denise, Tony, Simon and Sam.
For many of the team it was a first time experience so to come second was an amazing achievement.
Well done to you all!
Here is our magnificent team ...
Jorjia, Katie, Haedyn, Ashley, Peter, Ceri, Denise, Tony, Simon and Sam.
For many of the team it was a first time experience so to come second was an amazing achievement.
Well done to you all!
The majority of Brits who let their overseas properties out are generally happy with the rental return that they receive, according to fresh research by Currencies.co.uk
The study from the specialist currency broker shows that up to four out of five second home owners are happy with the returns they earn on overseas homes.
The average annual rental income on second homes abroad is currently stood at £9,500, while around 16 per cent of homeowners earn over £15,000 a year, the research shows.
The company conducted the research after seeing a 32 per cent increase in the number of its customers buying properties in Europe in the last three months, compared to the same period in 2010 and expects this trend to continue if Sterling strengthens against the Euro.
Tom Higham, Director at Currencies.co.uk said: “Buying a second home abroad can potentially be risky with buyers having to negotiate different legal systems and currencies.
“However with average annual rental income of £9,500 and maintenance costs of £2,200 clearly those who get it right are seeing strong returns on their investments and just one in five are concerned about the returns they are earning.
“Our own experience shows growing interest in second homes abroad as the Euro weakens against Sterling and this research confirms that second home owners are generally seeing strong returns.”
The study from the specialist currency broker shows that up to four out of five second home owners are happy with the returns they earn on overseas homes.
The average annual rental income on second homes abroad is currently stood at £9,500, while around 16 per cent of homeowners earn over £15,000 a year, the research shows.
The company conducted the research after seeing a 32 per cent increase in the number of its customers buying properties in Europe in the last three months, compared to the same period in 2010 and expects this trend to continue if Sterling strengthens against the Euro.
Tom Higham, Director at Currencies.co.uk said: “Buying a second home abroad can potentially be risky with buyers having to negotiate different legal systems and currencies.
“However with average annual rental income of £9,500 and maintenance costs of £2,200 clearly those who get it right are seeing strong returns on their investments and just one in five are concerned about the returns they are earning.
“Our own experience shows growing interest in second homes abroad as the Euro weakens against Sterling and this research confirms that second home owners are generally seeing strong returns.”
 
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by A Place in the Sun @ in Property Sales |
9 out of 10 young people in the UK want to buy their own home, according to a YouGov survey, but 70% believe that it’s harder to buy now than it was 20 years ago.
As a result first time buyer numbers have fallen from 600,000 annually a decade ago to around 200,000 last year. And with fewer new homes being built, nearly five million people are now on local authority waiting lists where homes are partially subsidised.
With these figures in mind, it could be a great time to invest abroad. A recent survey from Natwest International Personal Banking found that 83% of people who worked abroad felt that the experience gave a boost to their CV, and with rising tuition fees, many young Brits are also considering moving abroad for education. The good news is that there are plenty of bargains to be had in the overseas property market.
Property in Spain for example has fallen dramatically in price this year as a result of IVA, (a VAT equivalent) being slashed on all new build properties. In order to capitalise on this, many developers are offering significant discounts on properties or enticing buyers with 100% mortgages. The average price of a UK property is currently £221,110 which in London may only buy you a studio or one-bedroom flat. A brand-new four bedroom detached three-bedroom two-bathroom villa with a pool in Murcia can be yours for an average of £167,000.
If you’re thinking of buying a property overseas, then visit A Place in the Sun Live which takes place at NEC Birmingham between the 30th September- 2nd October 2011.
As a result first time buyer numbers have fallen from 600,000 annually a decade ago to around 200,000 last year. And with fewer new homes being built, nearly five million people are now on local authority waiting lists where homes are partially subsidised.
With these figures in mind, it could be a great time to invest abroad. A recent survey from Natwest International Personal Banking found that 83% of people who worked abroad felt that the experience gave a boost to their CV, and with rising tuition fees, many young Brits are also considering moving abroad for education. The good news is that there are plenty of bargains to be had in the overseas property market.
Property in Spain for example has fallen dramatically in price this year as a result of IVA, (a VAT equivalent) being slashed on all new build properties. In order to capitalise on this, many developers are offering significant discounts on properties or enticing buyers with 100% mortgages. The average price of a UK property is currently £221,110 which in London may only buy you a studio or one-bedroom flat. A brand-new four bedroom detached three-bedroom two-bathroom villa with a pool in Murcia can be yours for an average of £167,000.
If you’re thinking of buying a property overseas, then visit A Place in the Sun Live which takes place at NEC Birmingham between the 30th September- 2nd October 2011.
To Buy or Not To Buy?
Hesitating about buying a property in Spain?
If you are this is understandable given the recent negative publicity surrounding the property and financial markets.
However, you should think again ... !!
Property prices regularly fluctuate but historically the underlying trend is always up.
Because of the recent negative publicity the demand for Spanish property is currently lower and prices have fallen!
Although some property owners who would prefer to sell are choosing instead to rent out their properties for the time being there are still many people wanting to sell for various personal reasons so why wait for the prices to go up again?
Most of the owners who need to sell are shrewd enough to acknowledge the current market conditions and are pricing their properties competitively.
At the moment the euro is very strong against the pound making it more expensive to buy euros and the cost of buying a Spanish property higher to someone from the UK with funds in sterling.
UK owners of Spanish properties will, in most cases, be bringing the proceeds of their sale back to the UK so these owners can afford to reduce the price of their property still further knowing that they will have the same amount in sterling as they would have had at a higher selling price but with a weaker euro.
Use the current situation to work to your advantage!
If you are using sterling to pay either the deposit or the total cost then be sure to use a specialist currency exchange company who will not only give you a better exchange rate than the high street banks but, for a 10% deposit, can fix your exchange rate. If you prefer, you can tell them to buy your euros if they fall to a pre-arranged price thus protecting yourself against changes in the rate.
So does it make sense not to buy now when the alternative is to wait and buy when the prices have increased again?
By buying now you could own a property that has the best potential for increasing in value.
Also, when interest rates fall again, the cost of ownership will become much lower.
All you have to do now is to find the competitively priced property that meets your criteria, buy your euros at the best rate and you are on to a winner!
But ...
* how do you ensure you have the best selection of properties to choose from?
* how do know which properties represent the best value?
* how do you learn about the all the legal and administrative regulations to ensure your purchase is safe?
* how do you take advantage of the currency exchange services?
The answer is to employ the services of a Buying Representative specialising in Spain.
A Buying Representative is independent of all agents and builders and represents you, the buyer, in all aspects of finding and buying your property.
Your Buying Representative will negotiate with the vendors, agents, builders, solicitor, notary, etc. with you, and on your behalf, and it is also quite common for a Buying Representative to assist the buyer in other incidental tasks such as buying a car or having a telephone installed.
In the UK these companies are called "Buying Agents" and usually charge a fee of hundreds, or even thousands, of pounds for advising and assisting you through all the stages of finding and buying your property.
If you are buying in Spain this service is available 'free of charge' from Holidays and Homes!
Holidays and Homes are only paid if you purchase a property through them and this payment is made by the vendor as a share of the agents fee. This arrangement ensures that Holidays and Homes are totally independent and have no vested interest in which vendor you buy from.
Holidays and Homes have access to thousands of new and resale properties and will spend a considerable amount of time and effort searching and researching on your behalf with the agents and builders. All they ask in return for providing this free service is that you allow them to be your representative for all you property purchasing negotiations and that you do not approach any agents or builders directly yourself.
Contact Anthony in the UK or Leslie in Spain for more information and to find out how Holidays and Homes can help you.
Hesitating about buying a property in Spain?
If you are this is understandable given the recent negative publicity surrounding the property and financial markets.
However, you should think again ... !!
Property prices regularly fluctuate but historically the underlying trend is always up.
Because of the recent negative publicity the demand for Spanish property is currently lower and prices have fallen!
Although some property owners who would prefer to sell are choosing instead to rent out their properties for the time being there are still many people wanting to sell for various personal reasons so why wait for the prices to go up again?
Most of the owners who need to sell are shrewd enough to acknowledge the current market conditions and are pricing their properties competitively.
At the moment the euro is very strong against the pound making it more expensive to buy euros and the cost of buying a Spanish property higher to someone from the UK with funds in sterling.
UK owners of Spanish properties will, in most cases, be bringing the proceeds of their sale back to the UK so these owners can afford to reduce the price of their property still further knowing that they will have the same amount in sterling as they would have had at a higher selling price but with a weaker euro.
Use the current situation to work to your advantage!
If you are using sterling to pay either the deposit or the total cost then be sure to use a specialist currency exchange company who will not only give you a better exchange rate than the high street banks but, for a 10% deposit, can fix your exchange rate. If you prefer, you can tell them to buy your euros if they fall to a pre-arranged price thus protecting yourself against changes in the rate.
So does it make sense not to buy now when the alternative is to wait and buy when the prices have increased again?
By buying now you could own a property that has the best potential for increasing in value.
Also, when interest rates fall again, the cost of ownership will become much lower.
All you have to do now is to find the competitively priced property that meets your criteria, buy your euros at the best rate and you are on to a winner!
But ...
* how do you ensure you have the best selection of properties to choose from?
* how do know which properties represent the best value?
* how do you learn about the all the legal and administrative regulations to ensure your purchase is safe?
* how do you take advantage of the currency exchange services?
The answer is to employ the services of a Buying Representative specialising in Spain.
A Buying Representative is independent of all agents and builders and represents you, the buyer, in all aspects of finding and buying your property.
Your Buying Representative will negotiate with the vendors, agents, builders, solicitor, notary, etc. with you, and on your behalf, and it is also quite common for a Buying Representative to assist the buyer in other incidental tasks such as buying a car or having a telephone installed.
In the UK these companies are called "Buying Agents" and usually charge a fee of hundreds, or even thousands, of pounds for advising and assisting you through all the stages of finding and buying your property.
If you are buying in Spain this service is available 'free of charge' from Holidays and Homes!
Holidays and Homes are only paid if you purchase a property through them and this payment is made by the vendor as a share of the agents fee. This arrangement ensures that Holidays and Homes are totally independent and have no vested interest in which vendor you buy from.
Holidays and Homes have access to thousands of new and resale properties and will spend a considerable amount of time and effort searching and researching on your behalf with the agents and builders. All they ask in return for providing this free service is that you allow them to be your representative for all you property purchasing negotiations and that you do not approach any agents or builders directly yourself.
Contact Anthony in the UK or Leslie in Spain for more information and to find out how Holidays and Homes can help you.
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