Cypriot properties with 40 per cent discount off list price

Assetz International has negotiated major discounts on a selection of holiday apartments in Cyprus that have already been built. One example is the 38 per cent discount for 2-bedroom apartments at the Peyia Village development in Coral Bay, near Paphos for just £80,000.

According to Assetz International, the development offers a great financial investment in the long term either as a permanent residence or as a holiday home. The location also makes the development an attractive investment as the town of Peyia offers something for everyone.

Coral Bay

Cyprus boasts 300 days of sunshine a year and offers a mix of history, food and beautiful sandy beaches. With budget airlines now flying to the island, Cyprus is becoming a sought-after holiday destination.

Stuart Law, Chief Executive of Assetz, comments: “The economic recession of 2008 and the weakening of the British pound against the euro resulted in a dramatic fall in overseas demand for property in Cyprus and as a result developers may consider large discounts on properties.

“Now is the time for investors to pick up a property bargain before the tide turns and prices start to rise rapidly again. Cyprus is a popular destination among holiday-makers and property investors alike, and is set to experience significant property rental and capital growth over the next few years.”

Peyia Village

Peyia Village, on the south west Coast of Cyprus is just five kilometers from Coral Bay. The development boasts a communal swimming pool and offers excellent mountain and sea views. The apartments are spacious with open plan kitchens.

In addition to the superb beaches close to the development, the town has a number of restaurants and tavernas which are ideal for relaxing and enjoying some of the great Cypriot food. For those who are more active it is close to the internationally known golf courses, Tsada and Secret Valley. Alternatively, in the town of Peyia there are numerous activities available such as go-karting, paragliding or one of the many watersports the beaches have to offer. There’s really something for all members of the family.

Peyia Cottages

Assetz can supply 2-bed apartments from €90,334, reduced from a list price of €145,700.

Mortgages are available from 70 per cent LTV with rates as low as 3.5 per cent fixed for two years.

About Assetz plc (www.assetz.co.uk)

Assetz plc heads a group of well-known property investment companies offering carefully selected UK and overseas property and property funds as well as education, buying assistance, finance and after-sales service. Assetz offers expertise whether a client is seeking an investment, holiday home or both, and specialises in the UK, France, Portugal, Spain, Cyprus, Cape Verde, and Germany.

About Assetz International

Assetz International offers overseas property in selected countries including France, Portugal, Spain, Cyprus, Cape Verde,  and Germany, as well as having a dedicated Assetz Ski division. Properties range from small investment apartments in the Alps to luxury villas on the Algarve and the Cote D’Azur.

Assetz International: 0845 400 6000 or visit www.assetz.co.uk/international

© Stewart Andersen and Stewart Andersen’s Property Blog, 2009. Unauthorized use and/or duplication of this material without express and written permission from this blog’s author and/or owner is strictly prohibited. Excerpts and links may be used, provided that full and clear credit is given to Stewart Andersen and Stewart Andersen’s Property Blog with appropriate and specific direction to the original content.

Buying Spanish property safely

“After seeing many TV programmes in the UK showing the horror stories some unfortunate buyers have gone through while purchasing, I was surprised but pleased to learn there are steps people can take to safeguard their investment” says Roger Cox from Aldridge near Walsall, who recently completed the purchase of his new villa in Moraira on the Costa Blanca.

The new guarantee for buyers of Spanish homes seems the perfect solution to protect against any problems in the future. After all the Americans have used this system for years.

Roger (aged 43), lives in the UK with his family and has bought the two bedroom property as a holiday home. Continued Roger, “We were introduced to this part of Spain by friends who took us to the Costa Blanca about four years ago and we immediately fell in love with the area.

Relax and enjoy our home

“We were aware of the difficulties some buyers have faced when purchasing in Spain but at the time there seemed to be no way around the problem. However, we continued to love of Spain and finally found the perfect villa, negotiated the sale with the owner and by then Safe Purchase Spain had been launched. We completed the purchase of our property with a 20 year Safe Purchase Guarantee in place and can now relax and enjoy our home in the sun, knowing we have the rights as owners fully-protected.”

Safe Purchase Spain was devised and launched by Ian Hawkins at the end of 2009 and has already received a great deal of support from estate agents, solicitors and private vendors keen to provide financial protection against difficulties in home ownership in Spain.

“Spain is still the number one destination for Britons looking to buy abroad,” says Ian, “but continuing negative press coverage surrounding revoked building licences and demolition orders served on innocent owners has struck a dreadful blow to the Spanish marketplace. Now for the first time, the Safe Purchase Guarantee provides insurance protection against a wide range of problems that can occur after a buyer has completed his sale.

“These include such things as title defects, illegal building licences, access problems, border disputes, community problems, hidden lease agreements, fraud, identity theft, vendors’ debts amongst others. As far as I am aware, this is the first time buyers of Spanish property have had any measure of protection after they’ve purchased.”

Roger Cox (right) from Walsall, seen here with the founder of Safe Purchase Spain, Ian Hawkins

Safe Purchase Spain was recently launched on the Costa Blanca. In an effort to increase confidence, trust and visibility in a largely unregulated property market, all Safe Purchase Certified Partners sign the Safe Purchase Code of Ethics as well as statements confirming their professional experience and the fact they’ve never been convicted of fraud or financial irregularities.

Each agent includes the 20 year guarantee with every purchase and it is this approach that is set to revolutionise the way properties are bought and sold in Spain. This guarantee is underwritten by one of Spain’s largest insurance companies.

Continues Ian, “What many may not realise is that in the United States, title insurance is mandatory. Put simply, you cannot raise finance against a property without it. As such the title insurance industry is worth billions of dollars and is a way of life for most Americans.”

Concluded Roger, “To be able to own a property, with this type of peace of mind, has made our dream home, perfect. Life in Spain is relaxed, the weather is good, the infrastructure excellent and of course we are only two hours flight time from the UK making it ideal for friends and family to fly out. I genuinely feel that Safe Purchase Spain is the way forward for buyers in the future.”

For more information, go to Safe Purchase Spain at: www.safepurchasespain.com or call on: 00 34 96 647 32

Safe Purchase

Exclusively available through the network of Safe Purchase Certified Partners, the Safe Purchase Guarantee is available to buyers and existing owners of property in Spain, the Balearic and Canary Islands and provides insurance cover against fraud, identity theft, illegal building licenses, demolition orders, community disputes, unfair quotas, hidden defects, vendors and builders debts, administrative procedures, access problems, hidden leases, defective property sizes, border disputes, land registry inscription problems, illegal vendors and much more.

The Safe Purchase Guarantee includes a title insurance policy underwritten by Caser Seguros, one of Spain’s largest and most well-known residential insurance companies, established since 1942. It provides cover for 20 years from the first day of ownership and up to 360,000 Euros in compensation for monetary losses.

© Stewart Andersen and Stewart Andersen’s Property Blog, 2009. Unauthorized use and/or duplication of this material without express and written permission from this blog’s author and/or owner is strictly prohibited. Excerpts and links may be used, provided that full and clear credit is given to Stewart Andersen and Stewart Andersen’s Property Blog with appropriate and specific direction to the original content.

Property and some UK Pre-Budget Report (PBR) highlights

These are a few highlights of today’s statement made by Chancellor Alistair Darling:

• Borrowing has been estimated to be £176 billion in 2010 and £140 billion in 2011
• A new ‘broadband tax’ of 50p per month is being introduced. Anyone owning a landline phone will be paying the new charge to help fund the nationwide installation of ‘superfast’ broadband to 70% of the population.
• While pensions will go up by 2.5% next April, the previous item (superfast broadband) will help to wipe out this benefit given that most people of pensionable age have a landline phone
• National insurance contributions are going up. From April 2011, all rates of NI (employee, employer and self-employed) will go up by an extra 0.5%. That’s on top of the 0.5% from the PBR of last year
• VAT will go back to 17.5% from January 2010
• 2012 will see the capping of contributions by the government to public service pensions for teachers, NHS, local government and civil service. According to the Chancellor, this will save around £1billion a year
• Banker’s bonuses: There will be temporary levy of 50 per cent on any individual discretionary bonus paid above £25,000. Alistair Darling said the banks, rather than the bankers, would pay the levy. This temporary measure comes into effect immediately and will cover bonuses paid between now and April 2010.
• The Stamp Duty holiday will end on 1 January 2010

Given that the property industry helps to drive the economy, this brief round-up of four property professionals’ comments on the Pre-Budget Report might help to clarify the effect of the end of the Stamp Duty holiday:

Charles McDowell

Charles McDowell, the prime London property consultant, buying and selling properties over £5mn in Kensington, Chelsea, Belgravia and Knightsbridge, said:

“This lame duck budget is basically political posturing prior to election.  The current Government’s war on the City does nothing but diminish tax revenues and highlights the continuing value of property as an important asset class, particularly if inflation begins to rise. The old adage ‘safe as houses’ will be more relevant than ever in 2010.”

Immediately following Alistair Darling’s pre-Budget Report, Peter Bolton King, chief executive of the National Association of Estate Agents, said:

Peter Bolton King

“The Chancellor missed an open goal with his statement. By ignoring the advice of much of the property industry there is a real danger that the property slump that has hit thousands of families hard over the past 12 months will hit thousands more, harder, in the year ahead.
“Stamp duty unfairly distorts the property market. It is prohibitive to people looking for a step up the housing market and unfairly penalises people investing in buy-to-let portfolios.

“As a first step the Chancellor should keep the stamp duty threshold as it is when the current holiday ends in December. More importantly, the Government should commit to a complete reform of the tax to produce something that is fairer for everyone.”

John Phillips, Financial Services Director of Kinleigh Folkard & Hayward, stated:

John Phillips

“Whilst the return to a 17.5% VAT level from January 1st will push more money into Government coffers, it is not likely to help house buyers looking to access a mortgage.  People will have less money free to put towards saving for a deposit, and combined with a continued difficulty in obtaining lending, will not really help those looking to purchase property in 2010.

“The extension of the Mortgage Interest Relief Scheme by six months will be of little benefit to the housing industry.  Whilst it will provide much-needed security for those who own homes and who may be struggling financially, it is less likely to give an incentive to people in such circumstances who may have been considering selling their property. This will add to an already existent shortage of stock on the sales market.”

David Adams, Chesterton Humberts’ head of residential comments:
“The Government has produced a ‘steady as she goes’ pre-Budget report with eyes firmly on the horizon. This completely belies the reality that we are dead in the water and listing badly.

The large number of bankers who’ve been considering abandoning ship may now be persuaded that it is time to move off-shore and we could see a large number of country houses come to market out of season.

“The continuing record level of taxation on property transactions will go on depressing sales across the country. The London market will increasingly diverge from the rest of the country as foreign buyers continue to take advantage of the low pound to buy into prime central London property.

“What is bemusing is that we are selling properties of high tax payers and replacing them with foreign owners who aren’t paying any tax. Who will pick up the tab?”

David can be found on Twitter

© Stewart Andersen and Stewart Andersen’s Property Blog, 2009. Unauthorized use and/or duplication of this material without express and written permission from this blog’s author and/or owner is strictly prohibited. Excerpts and links may be used, provided that full and clear credit is given to Stewart Andersen and Stewart Andersen’s Property Blog with appropriate and specific direction to the original content.

Helping to make Spanish property purchases safe

‘Safe Purchase Spain’ has launched in Spain as estate agents, the legal profession and private owners seek to ensure that their properties have the protection of a real insurance-backed guarantee that provides legal support and financial compensation for 20 years after buyers have purchased their new home.

Ian Hawkins firmly believes that house buyers want to protect their investment against unforeseen future difficulties and he came up with the concept after working for 10 years as an estate agent in Spain dealing with clients with very real concerns

“Home buyers can now confidently pick up the keys to their new Spanish property knowing they have 20 years protection by investing in a Safe Purchase Guarantee,” says Ian Hawkins, director at Safe Purchase Spain.

“Working within a largely unregulated industry I always acknowledged the excellent work of other property professional agents and lawyers committed to advising and helping their clients. This commitment is a vital ingredient in the Safe Purchase process.

“Spain has had a lot of bad press in recent years but the country still has a great deal of appeal to foreign buyers, not least the weather, friendly locals, infrastructure and easy and cheap accessibility from the UK and Northern Europe. I genuinely feel that people want to buy here but have held back for fear of losing a major investment. This way they can buy without worry.”

What exactly is Safe Purchase and what does it offer?

Exclusively through the network of Safe Purchase Certified Partners, the Safe Purchase Guarantee is available to buyers and existing owners of property in Spain, the Balearic and Canary Islands and provides insurance cover against fraud, identity theft, illegal building licenses, demolition orders, community disputes, unfair quotas, hidden defects, vendors and builders debts, administrative procedures, access problems, hidden leases, defective property sizes, border disputes, land registry inscription problems, illegal vendors and much more.

The Safe Purchase Guarantee includes a title insurance policy underwritten by Caser Seguros, one of Spain’s largest and best known residential insurance companies, established since 1942. It provides cover for 20 years from the first day of ownership and up to 360,000 Euros in compensation for monetary losses. Continued Ian, “Buyers can have a great deal of confidence by working with companies where they see the distinctive Safe Purchase logo.

Spain attracts homebuyers from all over Europe

“All our agents offer the Guarantee as an inclusive part of their services, so it’s essentially free to property buyers. Buyers will also be pleased to know that we visit every agent personally and collect relevant information about the company and its owners. We ask them to sign our Safe Purchase Code of Professional Practice and a statement to confirm that they have not been previously convicted of any type of fraud, money laundering or financial irregularities.

“This is a first for the industry. We have also worked closely with lawyers to create a unique ‘legal protocol’ for buyers which clearly shows what they can expect from a Spanish lawyer and gives them important reference points for discussion as they pertain to a given property.”

The Safe Purchase Guarantee provides:-

• 20 years protection based on the 130 year old US model of title insurance
• Free home contents insurance for 12 months
• Savings of at least 200 euros on legal fees
• Annual savings of up to 25% on home, health, life, car and funeral insurances
• Preferential advertising rates with www.holidaylettings.co.uk
• Guaranteed exchange rates and savings on bank charges with Moneycorp

Concluded Ian, “Safe Purchase is a process that conveys confidence, trust and provides real guarantees to buyers for the first time. Spain badly needs a credibility boost, particularly when so many agents are finding it hard to sell in the current market place, and we are confident that this is the way to do it.

“Our objective is to work with those estate agents committed to industry ‘best practice’ who understand the very real concerns of property buyers after years of negative publicity for the industry as a whole. Recognising that prevention is better than cure, our Certified Agents have now added a whole new dimension to the words ‘after-sales service’.

“The Safe Purchase initiative, therefore, represents a major leap forward for property professionals and those that really matter, their clients! At last there is a way to buy property in Spain with real guarantees.”

For more information on Safe Purchase Spain, go on-line at www.safepurchasespain.com or call: 00 34 96 647 3215

© Stewart Andersen and Stewart Andersen’s Property Blog, 2009. Unauthorized use and/or duplication of this material without express and written permission from this blog’s author and/or owner is strictly prohibited. Excerpts and links may be used, provided that full and clear credit is given to Stewart Andersen and Stewart Andersen’s Property Blog with appropriate and specific direction to the original content.

Homes in Malta

Malta has gone through something of a metamorphosis in recent years. This beautiful Mediterranean island, midway between Sicily and the North African coast, has much to offer investors and is being discovered as a destination of choice for businesses, particularly those in IT services, financial and insurance sectors.

“Malta is no longer a location that is out of sight of investors, especially those who operate back office operations, e-gaming, financial services and others”, says Benjamin Muscat, CEO at Midi plc in Malta. “There’s a growing interest from these kinds of businesses. People come because they are attracted by a well-educated, predominantly English-speaking population, and also by the easy, safe and warm environment that Malta provides to a potential investor establishing a base here.

“The pharmaceutical sector, for example, is still doing very well on the island. We have created a particular niche with complementary manufacturing investments that are undertaken to support even larger investments. This is another important sector that is doing well.

The superb penthouse pool

“Malta’s economy has suffered like others as a result of the global recession. Nevertheless, in many ways, we’ve not been hit as hard as many other countries and the negligible increase in the unemployed is a clear testimony in this respect. Malta has been sheltered to a degree from the collapse of the financial services and banking sector and therefore escaped the worst.”

Concluded Muscat, “While we have not been spared the doom and gloom and the downturn in terms of real economy, at least we were not hit too hard, no doubt because of the very rigorous regulatory regimes that we have in Malta and the prudent approach taken by local financial institutions over the years.”

A hospitable population

Malta has much to offer businesses looking to relocate. The island’s international airport enjoys excellent connections with all major European capitals and many large cities making it easily accessible. Due to the size of the island, most places can be reached by road from the airport within an hour at most.

For those choosing to own a home or set up business in Malta there are many advantages; superb weather, fascinating history and culture, beautiful clean sea and beaches, a hospitable population and a very favourable tax regime.

The view from the Clubhouse

Malta also benefits from a very stable and secure real estate market that is in some ways protected by the limits imposed by its actual size as the smallest EU state. Foremost among the new real estate projects on the island is the €450 million Midi Project which includes the new mixed use development at Tigne Point situated on the north-east coast of the island.

Many amenities

These stylish waterfront homes are beautifully appointed, offering owners extensive views of Malta’s capital Valletta, a landscaped, car-free central Piazza or the sparkling Mediterranean. Almost totally ‘pedestrianised’, with all roads and car parking spaces situated underground, Tigne Point’s many amenities include a residents’ clubhouse and fitness centre, a shoreline pool and the island’s latest retail centre, The Point, a shopping destination anchored by UK retail giants Debenhams. This is a secure and gated exclusive environment set in landscaped gardens surrounded on three sides by the sea.

Tigne Point is only 20 minutes from the airport or a short boat ride from the capital. The whole project comprises luxury apartments and penthouses, state-of-the art-offices, retail, sports and leisure facilities all within a 30-acre car free environment.

T10 is the latest release with prices for two bedroom apartments starting from £360,000 and stunning, open plan penthouses, each with a private infinity swimming pool, from £1,333,000

Information on Tigne Point is available at http://www.tignepoint.com or by calling: +356 2065 5510

Midi PLC: €450 million, 44-hectare development is Malta’s most ambitious property regeneration project. More information can be found at http://www.midimalta.com

Malta
www.travelsupermarket provides readers with the best ways to get to the island:
There is one airport in Malta (Malta International Airport) served by a variety of carriers from the UK on non-stop flights.  These operate year round and are up to daily depending on airline and time of the year.  Frequencies are greater during the summer period:
Easyjet from Gatwick, Newcastle and Manchester

• Ryanair from Luton, Bristol, Leeds/Bradford and Edinburgh
• Air Malta from Heathrow, Gatwick, Stansted, Birmingham, Manchester and Glasgow
• Bmibaby.co.uk from East Midlands
• Charters also operate from many UK airports with tour operators such as Thomson.co.uk and flythomascook.com, mainly in the summer months of May to October.

Flight times to these airports are just over three hours.
Prices are from as little as £35 return when sales on are with carriers such as Ryanair.  Average fares are around £80-£150.

See http://www.travelsupermarket.com

All services are economy only except for Air Malta, which also offers a business product called Club Class.

© Stewart Andersen and Stewart Andersen’s Property Blog, 2009. Unauthorized use and/or duplication of this material without express and written permission from this blog’s author and/or owner is strictly prohibited. Excerpts and links may be used, provided that full and clear credit is given to Stewart Andersen and Stewart Andersen’s Property Blog with appropriate and specific direction to the original content.

Fifth month of house price growth fuels recovery, says Poll of Polls

October was the fifth month of consecutive house price growth, with the average property price increasing by 0.7% from September 2009, according to the latest Chesterton Humberts CEBR Poll of Polls.The average house price in England and Wales is now £171,218, a rise of £1,262 during September. The average house price is now £26,152 lower than its peak at the start of 2008.

House prices rose across all countries and regions of the United Kingdom. Prices in Scotland are now higher than they were a year ago. The annual decline in house prices continues to ease, with prices now -3.2% lower than a year ago compared to a revised contraction of 5.4% over the year to September.

All of the four main property types experienced similar increases in prices over the month. The prices of detached housing and flats bother rose by 0.7% in October, in line with the national average. The price of the top 20% of properties by value increased by 1.7% over the month, whereas, prices of the bottom fifth rose by only 0.5%, continuing the trend of faster growth in more expensive areas.

Robert Bartlett, Chesterton Humberts’ CEO, comments: “This month’s house price Poll of Polls supports our belief that the property market will experience a fractured recovery, with the London market and the top 20% of properties by value continuing to increase more rapidly than other areas and lower value properties.

Commented Robert Bartlett, CEO of Chesterton Humberts: "The outlook is generally more positive. We expect an increase in stock which will give rise to a steadier rate of increase in house prices as the wider economy improves.”

“In London, where the market dropped by between 30% and 50% if currency fluctuations are taken into account, recovery has already begun, with some areas already achieving peak 2007 prices in certain prime streets. This growth has been driven by the significant numbers of foreign purchasers who continue to benefit from the weak pound sterling and are keen to invest into what is traditionally seen as a safe haven for foreign money. The ongoing shortage of stock has also meant that the strong demand has assisted in the price recovery as competitive buyers bid up prices.

“In other parts of the country, recovery may take longer to accomplish although the continuing stock shortage is supporting prices in many regional markets. The risk of further declines outside of London is exacerbated by asking price inflation, caused by inexperienced agents desperate for instructions giving unrealistic quotes to prospective sellers.  Buyers will not pay over the odds for properties coming to market overpriced.

“The outlook is generally more positive.  We expect an increase in stock which will give rise to a steadier rate of increase in house prices as the wider economy improves.”

Douglas McWilliams, Chief Executive of CEBR, comments:

“Some commentators believe that house prices will dip again in 2010 and 2011 on the back of rising unemployment and weak economic growth. We believe that this view ignores other factors that are pushing prices in the opposite direction. Mortgage conditions have improved substantially since the worst of the crisis and lending continues to edge up.

“With base rates on hold, mortgages will remain relatively cheap albeit with post-credit crunch loan-to-value rates and higher risk premia. Furthermore, the supply side of the market will remain tight into the medium term – the current shortage of property on the market may be causing short term supply issues, but in the medium term the current shortage of new house building will also come into play.”

 

Visit http://www.chestertonhumberts.com for more information.

The Chesterton Humberts’ Poll of Polls brings together the leading house price indices to capture a unique look at properties for sale and that have been sold, in effect creating a medium value for house price polls. This report has been produced by Chesterton Humberts and the centre for economics and business research (CEBR).

With a network of 60 offices across the UK, including 27 in London, Chesterton Humberts is one of the UK’s leading property consultancies. The company also has a significant international presence with eight offices around the world, including St Tropez, Gibraltar, Mallorca, Lake Como, Singapore, Abu Dhabi, Sydney and Brisbane.
CEBR is an independent economics and business research consultancy established in 1993 providing forecasts and advice to City institutions, government departments, local authorities and numerous blue chip companies throughout Europe. The contributor to this report is economist Benjamin Williamson.

© Stewart Andersen and Stewart Andersen’s Property Blog, 2009. Unauthorized use and/or duplication of this material without express and written permission from this blog’s author and/or owner is strictly prohibited. Excerpts and links may be used, provided that full and clear credit is given to Stewart Andersen and Stewart Andersen’s Property Blog with appropriate and specific direction to the original content.

Spanish property news

Spain’s Costa Cálida – price properties well and they will sell

The property buying public are after bargains and that’s exactly what they’re getting on the Costa Cálida. Price two bedroom terraced villas on an established golf community from as little as 50,000 euros (approximately £46,000) and they will sell.

Director of Mercers’ Mazarron office, Gerard Rees, explains, “The bottom line is that price drives sales and our discounted properties offset any exchange rate concerns. In euro terms, prices at our most popular resort, Camposol Golf, have fallen by about 30 per cent.  Meanwhile the vendor is content with repatriating increased funds back to the UK. While buyers may have dried up on other Costas, here on the Costa Cálida we have no shortage of lifestyle buyers who are unaffected by the recession and looking to take advantage of bargains.”

Gerard continues, “On Camposol Golf in particular we have resale properties priced about the same as new in 2002. Loan-to-value rates currently being offered by Spanish banks are also back to their old levels.  For UK buyers this means now around 50 per cent – 65 per cent and for Spanish nationals 65 per cent plus. Although not good, this is exactly how it was for us in the 1990’s right up until the early 2000’s with most of our buyers borrowing in the UK, having the cash or a combination of the two.  So really we are going back seven or eight years in terms of pricing and bank lending.

Once lending increases then house prices will return to where they were 18 months ago within a fairly quick time frame. In the meantime prices have certainly bottomed out.”

 

Rosa Villa is a real bargain on the Costa Calida

Rosa Villa, Camposol, Mazarron, Costa Cálida

 

With Camposol Golf’s average Rosa style villa selling for 155,000 euros, this 95,000 euro example is Mercers’ best bargain. Comprising two bedrooms and two bathrooms, the detached home is on a 400m² corner plot providing plenty of scope for a swimming pool.  The property is delivered fully furnished, is fitted with air-conditioning and has a spectacular rooftop solarium with views across the countryside and surrounding mountains.

Price just 95,000 euros (approx. 86,000 pounds)

Neptuno Villa, Camposol, Mazarron, Costa Cálida

Neptuno Villa is on the market for €160,000

Exceptional three bedroom three bathroom Neptuno style villa set on a 285m² plot within the popular Camposol Golf resort.  The detached home has all extras from hot and cold air-conditioning to a solar panel for hot water and satellite television.  The rooftop solarium has wide countryside views and furniture including white goods and a luxurious outdoor Jacuzzi is included in the asking price.

Price 160,000 euros (approximately £146,000) and open to offers

Contact Mercers on 00 34 968 199 188, UK Local Rate 0845 017 7805, email ccsales@spanishproperty.co.uk or visit www.spanishproperty.co.uk

Spanish property buyers could save thousands of pounds following UK agent’s link with leading foreign currency specialist

News of a link forged between the Cheltenham-based Spanish property firm The Almanzora Group and leading foreign currency and international payment specialist Axia FX of London means that the buyers of new properties in resort, village and beach locations in south-east Spain could save thousands of pounds.

The Almanzora Group – which acts exclusively as the principal agent in northern Europe for the for the development companies comprising the Almanzora Bay Group which is building in the Almeria region of Spain – says that its new partnership with Axia FX will give potential buyers a fast-track link to currency exchange rates which could save them significant sums on the cost of buying their properties.

They are at Desert Springs, Europe’s only international award-winning luxury family resort and championship desert golf course, the traditional fishing village Villaricos and nearby Playa Marques, known for its seven kilometre long Great Sandy Beach, El Playazo.

Simon Coaker, The Almanzora Group’s sales and marketing manager, says: “We are selling properties ranging from apartments, townhouses and cottages to villas, beach houses and country houses at prices from €178,000 to more than €1 million, but with the Euro and Pound Sterling virtually at parity, favourable exchange rates are essential when calculating the total purchase cost.

News of a link forged between The Almanzora Group and Axia FX means that the buyers of new properties like these in south-east Spain could save thousands of pounds.

“With Axia FX having access to Interbank rates, they can ensure the prices the client receives are much better than they would have received from their bank, providing him or her with considerable savings. In fact, for Almanzora’s clients, Axia FX will guarantee an improved rate compared with that received from any high street bank.

David White, managing director of Axia FX, said: “We will ensure that clients of The Almanzora Group always receive excellent service and we are able to fix quoted rates for up to one year in advance.”

For more information about the properties available, call The Almanzora Group on 01242 680299 or visit http://www.almanzora.com

For full details of the services offered by Axia FX, call Tim Sullivan, head of private clients: on 0207 093 7852 or visit http://www.axiafx.com

Axia Fx

Axia Fx was formed in April 2006 and commenced trading in June 2006 with the sole aim of making Foreign Exchange as simple and cost effective as possible. Having started life alongside a parent company, it has recently become a privately-owned company under the stewardship of David White.

The company’s head office is in the Canary Wharf area of London ensuring the company has first hand access to all market information gleaned through its global network of traders, economists, officials and market participants.

The Almanzora Group

The Almanzora Group, a subsidiary of the Robert Hitchins Group, acts exclusively for the development companies which comprise the Almanzora Bay Group. The Almanzora Group Ltd is the principal agent in northern Europe, including the UK and Ireland, marketing new properties developed by The Almanzora Bay Group in resort, village and beach locations.

http://www.travelsupermarket says the best ways to get to Spain are:

There are many non-stop flights into Southern Spain as follows:

• Malaga – the major gateway with multiple daily non-stop flights year round from up to 20 UK airports with Easyjet, Ryanair, Monarch, British Airways, Aer Lingus, bmibaby, jet2, Flyglobespan and flybe
• Granada – non-stop flights with Ryanair from Stansted, Liverpool and East Midlands – frequencies vary but operate year round
• Almeria – non-stop flights with Monarch from Birmingham and Manchester with Monarch, Easyjet from Gatwick, Ryanair from Stansted, bmibaby from East Midlands and jet2 from Leeds. Most services on this route are summer only
• PLUS Gibraltar – non-stop daily flights with Easyjet from Gatwick, British Airways from Heathrow and Monarch from Luton and Manchester

Flight times to Southern Spain are two and a half to three hours
Prices are from as little as £5 one ways when seat sales are on with carriers such as Ryanair. Average prices are around £80 to £150 return.

For more information, go to: http://www.travelsupermarket.com

© Stewart Andersen and Stewart Andersen’s Property Blog, 2009. Unauthorized use and/or duplication of this material without express and written permission from this blog’s author and/or owner is strictly prohibited. Excerpts and links may be used, provided that full and clear credit is given to Stewart Andersen and Stewart Andersen’s Property Blog with appropriate and specific direction to the original content.

French property and mortgage watch — October 2009

French property prices rise by 0.1% during September

Prices now 2.8% higher than six months ago

Number of French mortgage enquiries through Athena Mortgages up 21% Q3 on Q2

French mortgage completions at Athena Mortgages up 14% Q3 on Q2

The French residential property market is continuing to show signs of stabilisation. While prices* fell by 1% during Q3 as a whole, they rose by 0.1% during September, resulting in a total positive return for the period April to September 2009 of 2.8%. Returns for the 12 months to September 2009 have now pulled back to a respectable -7.8%.

Unlike the UK, however, a history of prudent lending in France (lenders do not allow borrowers’ total outgoings on finance payments to exceed one third of their total gross monthly income) has meant

St Cezaire

mortgage finance is still readily available.

While mortgage finance in the UK remains extremely difficult to secure, especially at higher LTVs, the French banks continue to lend to borrowers with smaller deposits, even up to 100% LTV. This level of LTV is also available to non-resident borrowers, both for second homes and investment properties and is proving highly attractive given the ongoing weakness of sterling.

Mortgage completions

Interest in the French property market among UK-based investors is soaring as a result. In Q3 2009, Athena Mortgages saw a 21% rise in mortgage enquiries on Q2, which in turn was up 42% on Q1. Mortgage completions in the third quarter were also up 14% on Q2. Many British property investors are now looking across the Channel to add to their portfolios given the difficulty securing (competitive) finance at home.

The buy-to-let sector in France is attracting particular interest from investors at present, as depressed prices are boosting yields significantly in many areas. In the Normandy town of Alençon, for example, gross yields are 7.5%, while in the medieval town of Poitiers, western France, they are currently 7%. Nevers in central France boasts the highest gross yields, currently, of 7.6%. Other towns of note include Clermont Ferrand (6.8%) and Tours (6.4%).

For second home buyers, now is an ideal time to buy into some of the most desirable towns and cities of France at significantly discounted prices. For example, prices in the highly sought-after destinations of Biarritz, Cannes, Perpignan and Nice are all approximately 10% lower than a year ago.

Lending constraints

A growing number of UK investors are also placing French leaseback properties into SIPPs, something that can be arranged through several French lenders. To this end, Athena Mortgages is currently working closely with French tax specialists, Sykes Anderson, and Liberty SIPP.

John Luke Busby, director, Athena Mortgages (http://www.athenamortgages.com) comments: “There is a degree of correlation between the UK and France, at present, in the sense that both property markets are clearly stabilising. However, while the UK property market remains very difficult for investors to access given ongoing lending constraints, there is now a real appetite to lend among the French lenders, who have suffered much less than their British counterparts.

St Maximin Market

For a growing number of British property investors, France is fast proving the place to be, particularly given the availability of 100% mortgages, which circumvents the punitive exchange rate.

“Crucially, there is also significant innovation at the product level. For example, we have recently launched a ‘next generation’ hybrid mortgage product in conjunction with a major French bank. With a typical rate of 3%, the new product enables borrowers to split their mortgage amount into an interest-only portion and a repayment portion, which represents a perfect balance between the potential shortfall of a capital repayment loan and the speculation of the interest-only route.

“With extremely competitive borrowing rates, attractive prices and genuine product innovation, there’s a real buzz to the French property market at present.”
Source: *FNAIM

For second-home, leaseback, buy-to-let and equity release mortgage products, visit the Best Mortgages section http://www.athenamortgages.com/French_Mortgage/Best_French_Mortgages.php of the Athena Mortgages website.

About Athena Mortgages

Athena Mortgages is a specialist French mortgage broker offering French mortgages from a large panel of French lenders for non-French residents. An integrated team of multilingual professionals, with twenty years’ plus experience, helps non-residents and ex-pats find the right mortgage for properties in France. Athena Mortgages can source 100% finance for leasebacks, buy-to-lets and second homes, and also offers equity release and re-mortgaging options.
Working closely with many French property developers and agents who choose Athena Mortgages for the clarity and simplicity of presentation and service provided to their clients, Athena Mortgages takes pride in finding the best offer for clients until the date of signature for the property.

To speak to Athenba Mortgages, call + 44 207 474515

© Stewart Andersen and Stewart Andersen’s Property Blog, 2009. Unauthorized use and/or duplication of this material without express and written permission from this blog’s author and/or owner is strictly prohibited. Excerpts and links may be used, provided that full and clear credit is given to Stewart Andersen and Stewart Andersen’s Property Blog with appropriate and specific direction to the original content.

Expats still feeling the pinch…but it doesn’t hurt quite as much!

Halifax International has launched the Expat Mood Monitor II, revealing the impact of the credit crunch and attitudes to working abroad

Results launched today from Halifax International’s second Expat Mood Monitor survey reveal that expats around the world are still feeling the impact of the global slowdown – but the situation seems to be stabilising overall.
In January 2009 over half (52%) of expats had noticed a decrease in their disposable income over the previous 12 months – six months on and this figure has increased to 59%. However, in other areas the picture has not altered too dramatically. Earlier this year 88% of expats had noticed an increase in how much they were paying for food; today that figure stands at 90%. The survey also revealed heartening news for investors – the number of expats experiencing a depreciation in the value of their investment portfolios increased by only 1% to 63%.
James Gairdner, marketing and product director at Halifax International, comments on the research,
“As countries around the world tentatively report a return to growth, it seems that the situation for the millions of UK expats living and working abroad is also stabilising.
“The onus should now be on providing the right range of savings products to help expatriates to position their investments in the right way.”

James Gairdner, marketing and product director at Halifax International

Fuel to the Fire

For the first time the Halifax International Expat Mood Monitor survey asked expats how much they are paying for fuel now compared to at the beginning of the year and identified that a huge 74% of respondents are paying more for petrol. Of those that have experienced an increase, a staggering one in seven is contending with an upswing of more than a 25%.

Working Knowledge

The Expat Mood Monitor II also surveyed expats regarding work and employment abroad. Despite having a reputation for working longer hours than the rest of Europe, Brits actually found that the hours demanded in a working week were the same abroad (34%) as they were in the UK. However a lucky one in six are working a full 15 hours less a week. Working abroad was also found to be a more relaxed affair than working in the UK; 52% said it is much more relaxed where they are now versus only 17% that felt the UK’s working culture was more laid-back.
With expats working less hours abroad and enjoying a more relaxed atmosphere when they are in the office, is there anything that expats miss about being employed in the UK? When asked that question 31% of expats said that ‘getting things done efficiently’ was what they missed most. Other factors expats missed about working in the UK included:

·         Office banter (15%)

·         Standard of technology (13%)

·         Only 5% missed the pay packages available in the UK job market

However the survey also asked what expats missed least about working in the UK. These included:

·         The commute (39%)

·         Red tape (25%)

·         Office politics (19%)

·         Five per cent said the thing they missed least about working in the UK was their old boss!

“Clearly there are small and large differences between the working life and culture of the UK, and what can be found through overseas employment. How well expats are able to deal with and adapt to these differences will affect how rewarding the overall experience will be,” comments Gairdner.
Four hundred expats living all over the world were surveyed on how the credit crunch has impacted on their lifestyles for Halifax International’s Expat Mood Monitor. This is the second Expat Mood Monitor which will be released every six months to provide a barometer of the financial and lifestyle issues facing expats today.

About Halifax International
Halifax International provides simple offshore savings to British expatriates through internet and telephone banking services. The savings accounts are available in sterling, euros or US dollars and are specifically designed to meet the needs of British expatriates who are resident abroad. For more information please visit http://www.halifax-international.com or call 01534 846555.

© Stewart Andersen and Stewart Andersen’s Property Blog, 2009. Unauthorized use and/or duplication of this material without express and written permission from this blog’s author and/or owner is strictly prohibited. Excerpts and links may be used, provided that full and clear credit is given to Stewart Andersen and Stewart Andersen’s Property Blog with appropriate and specific direction to the original content.

Landlords Increasingly Positive about Property Prices but Remain Hampered by the Mortgage Market

Young Index (Q3 2009)

Latest results from Young Group’s Young Index show the continuation of a rising trend; increasingly positive sentiment among buy-to-let landlords that property prices will stabilise and rise over the next 12 months.

Seventy seven per cent of investors believe that London property prices will be at current levels or higher by this time next year (an increase from 57% in the previous quarter and up from a low of 36% in Q4 2008) and 51% of landlords expect the same to be true of UK property outside the capital (up from 42% in Q2 2009 and just 12% a year ago). But despite this increasingly positive 12 month outlook, the expected pace of market recovery remains fragile. Landlords forecast an average property price rise of less than 1% for London property and a fall of 1.62% for UK property outside the capital.

Figure 1

London remains the preferred location for investors; 53% are considering buying additional property in the capital within the next 12 months (a similar level to the previous quarter although still down from the peak of 64% in Q1 2008). This compares to 26% of investors who are considering adding UK property outside of the capital to their rental portfolios.

However, the results from the Q3 2009 survey of investor market sentiment show that the percentage of investors who expect to acquire additional properties over the forthcoming 12 months is stabilising (see figure 2).

Figure 2

Neil Young, CEO of Young Group, points out: “Our Young Index results for Q3 show that landlords are increasingly positive about the property market; a rising proportion believe that capital values are set to increase over the next 12 month, albeit by a very small percentage.  From a practical point of view, it appears that landlords are fully aware of the current difficulties in securing buy-to-let mortgage funding to acquire additional rental property and the proportion of those who expect to add to their property portfolios is levelling off.” Fifty seven per cent of landlords cited a lack of access to appropriate mortgage finance as the main barrier to additional property acquisitions, comments included:

• “Buy to let mortgages must be available for the market to pick up”

• “I see property for sale at good prices and want to snap up good investment stock, but just can’t get mortgages at appropriate LTV ratios”

• “Buy-to-let won’t swell again until mortgages are more freely available”

The prevailing scarcity of mortgage funding has been highlighted by Paragon Mortgages who report that at the end of August 2009 there were 196 buy-to-let mortgage products available, a fall from 218 in May 2009 and a staggering 94% reduction from August 2007 when the credit crunch began.
Neil Young comments; “To some extent the number of available buy-to-let mortgage products is irrelevant, what’s needed is a sensible approach to lending with appropriate products, stability, consistency and certainty.
“No one is suggesting that buy-to-let lending should return to the days of excessive credit and lax due diligence, and it would be hugely irresponsible to do so. But investors are increasingly frustrated that even when taking a conservative approach to investment purchases there is still a high degree of uncertainty, and little consistency, over whether a mortgage offer will be advanced.”

Rental Market Bolstered

Young Group’s estate agency business, Young London, highlights the effect of reduced mortgage finance in bolstering the rental market.  Despite press reports of an overabundance of property offered for rent from ‘reluctant landlords’ who are unable to sell, ‘reluctant tenants’ [those who are renting property until they are able to secure a residential mortgage] are bolstering the rental market.  Young London’s letting team has seen tenant enquiries rise by 24% over the past quarter alone and the occupancy rate for property let through Young London is currently higher than 99%.

Neil Young sums up: “Landlords with the right property in the right location who are realistic about their rental expectations are benefiting from the current market conditions, seeing positive cashflow as a result of low interest rates and rental income that has not significantly reduced, despite the Association of Residential Letting Agents (ARLA) reporting last month that available rental stock was 48% higher than a year ago.  Many landlords are eager to grow their portfolios but are unable to do so due to the current lack of available mortgage funding.  Instead, landlords are sitting tight; the average period that they expect to hold their property investments has risen to 12 years.”

Young Index: Headline Results for Q3 2009

• Ninety eight per cent of investors intend to hold their residential property investments for the next 12 months.  Forty four per cent intend to hold their assets for at least 10 years (up from 41% in Q2 2009) and 27% of private residential property investors intend to retain their property investments for the next 20 years or more (up from 25% last quarter).
• On average, residential property investors now intend to hold their investment assets for the next 12 years, two years more than this time last year.
• Fifty three per cent of investors are considering purchasing additional residential property assets within London during the next 12 months, compared to 26% who are looking at opportunities in the UK outside of the capital.
• The outlook for London property prices is stronger than for the rest of the UK. 77% of investors believe that London prices will be at current levels or higher by this time next year (up from a low of 36% in Q4 2008).
• The expectation for the pace of property price recovery is conservative.  Landlords forecast an average property price rise of 0.73% for London property – and a fall of 1.62% for UK property outside the capital.
• Fifty one per cent expect UK property prices outside of the capital to be at current levels or higher within 12 months; the first time since the start of the credit crunch that the majority of respondents point to a UK-wide positive price sentiment.
• Twenty two per cent of respondents expect the Bank of England base rate to be at the current all time low of 0.5% in 12 months time and 98% believe that it will remain below 2.0%, well below the long term average of 5.0%.  According to Young Index Q3 2009, the average interest rate outlook for Q3 2010 is 1.16%.
• Fifty per cent of respondents cite a lack of lending in the mortgage market as the principal barrier to investment property acquisitions.

About Young Index:

Young Index is a quarterly gauge of market sentiment within the buy-to-let sector, polling Young Group’s client base of around 500 active investors who hold UK investment property.
For more information, go to Young Group: www.younggroup.co.uk

© Stewart Andersen and Stewart Andersen’s Property Blog, 2009. Unauthorized use and/or duplication of this material without express and written permission from this blog’s author and/or owner is strictly prohibited. Excerpts and links may be used, provided that full and clear credit is given to Stewart Andersen and Stewart Andersen’s Property Blog with appropriate and specific direction to the original content.