Friday 10 February

Asking prices for re-sale properties for sale in Spain fell 9.4pc in January compared to the same time last year, according to the house price index published by idealista.com, a leading property portal.

On a monthly basis, asking prices of Spanish homes in the idealista.com database fell 1.9pc to an average price of 2,045 €/m2.

It represents the biggest fall in asking prices since before the crisis Hit Spain in 2008.

On a monthly basis, prices fell the most in Castille La Mancha (-2.3pc), followed by The Balearics, Asturias and Andalucia (-2.1pc). Prices fell the least in Aragon (-0.1pc).

The Basque Country has the most expensive asking prices in Spain (3,312 €/m2), whilst Extremadura has the cheapest (1,305 €/m2), followed by Murcia (1,306 €/m2).

This post was published on properties247

Friday 10 February

SNOW appeared on the Costa peaks such as the Puig Campana (photo) yesterday (Thursday) as a polar front that has swept across Europe hit Spain.

Weathermen say such fronts sweep across every eight years, but this will be the coldest one since 1950.

This post was published on properties247

Thursday 18 January 2012

Inland properties, still offer outstanding value. Unreformed townhouses in historic old town settings can still be purchased for €20,000 euros in this region, or totally refurbished cottages with garage, central heating and handmade terracotta floor tiles can be bought for as little as €120,000 euros.

Prices inland are equivalent to how they were 20 years ago.

Whilst Murcia has always been a top favourite with Spanish holidaymakers, it’s largely escaped international property buying attention as it lacks package holiday accommodation, remaining an essentially Spanish region. Yet the fact that it boasts more days of sun than any other Spanish mainland province and has a great local infrastructure mean that it is increasingly attracting overseas property hunters.

The prospect of a new-generation Paramount Theme Park allied with the opening of an international airport also means one thing for the area – change

This post was published on properties247

Without doubt, the best opportunity for clients in Spain is where the property has been through the first judicial auction and hasn’t sold. The bank has 21 days to complete the sale to a buyer before having to buy the property and pay all the property transfer taxes associated with the process. This is where the best deals are done.
In order to buy during the 21 days after Subasta, you must have the following in place:

• You will need your NIE number, as without it you cannot buy a property in Spain
• You will need your Spanish bank account and funds ready to complete the property purchase
• You will need a chosen lawyer in place and an exact understanding of how you wish to buy the property
• You will need proof of financial resources, to complete the purchase, to provide to the bank

There are other smaller points but the above checklists are a must. You will need to work with a professional agent such as Properties247 to make sure you can complete the transaction in the necessary time scale.
Please call, or use our contact form to arrange a meeting.

How Properties247 can help you …

When placing an investment where matters are so complex, it is important to deal with a company that you can completely trust in their capacity to execute such a process.

The following are some of the reasons why you should use Properties247…

• We have day-to-day experience of working with Spanish banks for over 25 years.
• We have unrivaled expertise in all three stages of Spanish bank repossessions
• We have  established contacts and relationships with all the major banks in Spain and judicial lawyers, built up since the 1980s
• We have access to exclusive property from select banks
• We have access to the best deals before they come available to the general market
• We have access to our internationally recognised Architecture department and construction company services for any renovations
• We have the best level of financial service for mortgages anywhere in Spain
• We have the ability to then sell your property and free your profit

To take advantage of the best Spanish bank repossessions available, please contact Properties247 on 00 44 1305 534490 or use our contact form to arrange a meeting.

This post was published on properties247

Wednesday 04 January 2012

Everyone was wondering what the Spanish government would do to help the Spanish property market as 2011 ended, and with it so the reduction in VAT (IVA) from 8% to 4% for brand new properties…

We at Properties247 are pleased  to advise that the  New Spanish Government under Rajoy, has extended the reduction in VAT from 8% to 4% for brand new properties until the end of 2012. Take a look at our extensive range of properties for sale in Spain to find a property suited to you.  This is only applicable on brand new properties, not resales.

Now, a property with a price of 200.000 EUR, will have a reduction in expenses of approximately 8.000 EUR!. With this decision, the Spanish government wants to increase the damaged sector of construction of new properties, with a high level of stock from properties for sale

In short, the initiative will be welcomed by buyers who will see a clear reduction in their purchase costs, developers who will sell a lot more stock and banks who will be financing more new property purchases.

This post was published on properties247

Friday, December 02, 2011

Spanish properties are being offered for sale by Spanish banks with up to 100% mortgages  (subject to status). These Spanish properties include penthouses, bungalows, townhouses and villas. Some with lovely sea views and some just a short walk to the beach….

As always Spain being Spain, Just because these properties cannot sell unless a big discount is offered up to 50% or, a 100% Spanish mortgage,  the Spanish Tax authorities will not recognise the discounted price and will insist you pay the tax payable on their valuation. In most cases this will be the pre discounted price. You must take professional advice so you can be sure of the situation.

Call us on (0044) (0)1305 534490 if you are unsure, or use our contact form.

This post was published on properties247

Thursday, December 01, 2011

What do most expatriates want when they come to retiring? Good weather, and low living costs…

When expats decided to call it a day they want to enjoy the good thing in life, the most important thing taken into consideration is the weather then its family commitments (2011nHSBC Expat Explorer survey)
Most expats stayed in the country they were currently living and working in, the minority planned to return home.

The best place to retire is Thailand followed by France then Spain.

This post was published on properties247

By Peter Lenga, 24th November 2011

The Spanish property market has seen a major decline in house sale prices over the past four years. However, prospective buyers should still be very wary because bargains are often not as good as they appear. what About Bank Repossessions and Distressed sales

Spain embarked on a major building program to satisfy the demand for holiday homes in the early 90’s. Many of these properties were over priced, built in poor locations enjoying few or no amenities. The majority of these properties were financed by UK or Spanish banks, with potential rents being used to help repay the mortgage. It soon became apparent there were more holiday lets available, than customers requiring them.

In recent years the demand for this type of property within the rental market has  fallen dramatically, in favour of those properties in more desirable areas. Consequently many of these homes are empty, repossessed, or previously sold at a loss by the owner. This is a result of the massive fall in the Spanish property market.

With asking prices for properties in Spain now some 30%+ lower than in 2007, buyers are returning to the market in search of repossessed and cheap property bargains  Although there are some superb Spanish properties for sale at attractive prices, the majority of properties are on developments that should be avoided. The rules are still the same – If it’s too good to be true, it probably is !

Properties247.co.uk only work with the most established developers and main agents with whom we have a long standing relationship, in order to ensure that your investment in overseas property is 100% legal and secure. We cover the whole coast of Spain including the best inland areas.

We have:

Developers on the southern Costa Blanca who have been established since 1985, with over 10,000 properties sold to date in areas such as Torrevieja, Cabo Roig, La Zenia, Guardamar, Orihuela. They are highly respected and main promoters for most of the other Costa Blanca based builders and banks.

A Realtor with 21 years experience on the east side of Costa Del Sol with access to the best new builds and resales in Calahonda, Cabopino, Miraflores, Fuengirola and alike. A senior figure within the Spanish National Association of Estate Agents, with access to most major bank repossessions as well as  offering a full rental facility.

A unique team on the Sol. This consists of architect and master builder in Marbella, registered estate agents and experienced project managers of bespoke new build projects in Marbella and the surrounding estates, such as El Madronal, and La Zagaleta.

Specialist agents in Marbella providing the highest level of service and competitive prices in Puerto Banus and Golf Valley, Nueva Andalucia.

Our partners are developers who are well established in their region, having built and sold legal Spanish properties to thousands of satisfied clients over the last two decades. All agents approved by Properties 247 have  demonstrated an intimate knowledge of their local market and hold a proud record of outstanding customer service.

This post was published on properties247

Friday 18th October 2011

Only seven weeks remain for overseas property owners to snap up property in Spain at discounted rates.

In August this year, the Spanish Government reduced the IVA (the Spanish VAT equivalent) on properties by 50% until the end of the year, making purchasers liable for only 4% of the purchase price, a saving of €4,000 on a €100,000 home. However, time is running out for overseas property investors to take up the offers, as homes need to be purchased by the 15 December in order to have time for all legal requirements before 31 December 2011.

Many Spanish developers have offered to pay the remaining VAT, making property purchases VAT free, and are now urging customers to invest.

Those wishing to buy property in Spain should invest now before it too late.”

This post was published on properties247

10 November 2011

The Bank of England today announced it is holding the base rate at its 0.5% historic low for the 32nd consecutive month.

The stable base rate is good news for borrowers, with mortgage rates having recently hit an all-time low.

This post was published on properties247

Properties247 can offer the ideal opportunity to view the property before you buy. Please visit our web site at
Properties247 Turkey Property viewing trip for more details

This post was published on properties247

At Properties247 we continually strive to update our portfolio and increase the choice of available properties. We are now pleased to be able to include properties throughout France. As confidence in our ability to provide customer satisfaction grows, more clients are choosing to advertise their properties with us. If you are looking for that perfect dream, no need to search further.  Our staff are on hand to guide you through all aspects of purchasing abroad and will help you find what you are looking for.

This post was published on properties247

13 October 2011

Tyrkiet Eksperten/Scanway starting direct flights from Copenhagen to Alanya Gazipaşa Airport and bookings are already available now!…

The Turkish/Danish Tour Operator Tyrkiet Eksperten/Scanway announced at their website that they are starting the direct flights from Copenhagen to Alanya Gazipaşa Airport from 1 April to 30 October 2012.

Bookings are already available at www.tyrkieteksperten.dk Tyrkiet Eksperten will have 4 flights a week with Swedish Airliner TOR AIR will fly with Boeing 737 with 148 seats which is the largest airplane allowed to fly to Alanya Gazipaşa Airport.

More information is available at following link in danish at http://tyrkieteksperten.dk/Article.asp?WebID=142 (Opens in a new window)

This post was published on properties247

7 October 2011

The Association of International Property Professionals (AIPP) have launched their 2012 consumer guide, giving prospective house-hunters all the advice they need for a safe and secure overseas purchase.

This year’s ‘How to buy property safely’ guide will take you through the steps you need to take to make a hassle free purchase, explaining the role of the agent and the developer, the sort of questions you should be asking on inspection trips and how to make sure you’re protected against currency fluctuations, as well as countless other pieces of advice.

The advice inside is independent and easy to follow, so if you’re serious about buying a property abroad, then it’s a great place to start.

The AIPP is an independent trade association set up to regulate the overseas property industry and has over 300 members who have signed up voluntarily to a professional code of conduct which requires them to treat you, the consumer, with honesty and integrity. Looking for the AIPP logo when you purchase means you have reassurance that there is a disciplinary process to protect you if something goes wrong with your property purchase.

The guide includes a full list of AIPP members in the UK and overseas, click here to read it online. More information can be found about the organisation and their work at www.aipp.co.uk

This post was published on properties247

03 October 2011

Usually, central banks try to raise the amount of lending and activity in the economy indirectly, by cutting interest rates…

Lower interest rates encourage people to spend, not save. But when interest rates can go no lower, a central bank’s only option is to pump money into the economy directly. That is quantitative easing (QE).

The way the central bank does this is by buying assets – usually financial assets such as government and corporate bonds – using money it has simply created out of thin air.

The institutions selling those assets (either commercial banks or other financial businesses such as insurance companies) will then have “new” money in their accounts, which then boosts the money supply.

Is this printing money?

These days the Bank doesn’t have to literally print money – it is all done electronically.

However, economists would still argue that QE is the same principle as printing money as it is a deliberate expansion of the central bank’s balance sheet and the monetary base.

How does it work?

The Bank has been conducting reverse auctions for government bonds, in which the sellers compete in order to drive down prices.

The action by the Bank is supposed to have two effects. The first channel is through the direct effect on the banks’ bank accounts. With more money sloshing about in their accounts, the banks may decide to lend more to businesses and individuals, and increase the amount of activity in the economy that way.

The second channel is through the effect on the cost of borrowing. When the Bank buys bonds, it reduces the supply of those bonds in the economy. That should increase the demand for new bonds and, at the same time, make it cheaper for businesses to borrow.

Having taken short-term interest rates as low as possible, the idea would be for the Bank to push down longer-term rates as well, which are the rates that companies and individuals borrow at. These are used by companies making longer-term investments and banks setting mortgages, for example.

In theory if QE works, credit growth should pick up and businesses should find it easier to get credit. That, in turn, should help to stimulate the economy.

This post was published on properties247

30 September 2011

Monarch, the scheduled leisure airline, has increased its programme of flights from Manchester to Egypt’s Red Sea resort of Sharm el Sheikh this winter due to phenomenal demand from its customers…

The new route, which was announced by the airline in July, has been so well received that Monarch is now adding a Monday flight between 07 November 2011 and 19 March 2012, in addition to the existing flights on Thursdays, Saturdays and Sundays. The additional flights are available to book now via www.monarch.co.uk with fares starting from £173.99 return including all taxes and charges.

Commenting on the additional flights to the Red Sea, Managing Director of Monarch Airlines, Kevin George said, “We have seen strong demand for our new scheduled services between Manchester and Sharm el Sheikh in the first month of announcing the new route. As a result we are delighted to be adding an additional flight per week, bringing the total number of flights between Manchester and Egypt’s Red Sea Resort to four a week throughout the winter season.

“This new flight will allow even more customers to take advantage of Monarch’s innovative ‘build your own class’ service, which offers customers the ability to tailor their flight package to their exact requirements, providing a greater sense of freedom and personalisation. Optional extras such as extra legroom seating and pre-ordered meals in addition to fantastic value fares, makes Monarch a great choice for longer flight durations such as Egypt.”

Monarch’s scheduled flights are available to book until October 2012.  Customers now booking flights will also benefit from zero debit card charge fees and a fixed fee for all credit card bookings, regardless of the transaction value or number of people travelling.

This post was published on properties247

21 September 2011

Transaction volumes are picking up in Spain with a 22% increase quarter-on-quarter according to the latest government statistics. 396,000 homes have now been sold in Spain in the past 12 months with sales accelerating in Q2 versus Q1 2011…

90,746 homes were sold between April and June this year, with new housing accounting for a third of the total transactions, the figures reveal.

Overseas property buyers continue to be a key driver says the government, with sales to “foreigners who reside in Spain” surging by 23% in the second quarter of this year to 8,514.

Alicante registered the greatest number of home purchases at 2,308 with Malaga in second spot at 1,110 sales. Santa Cruz de Tenerife experienced 599 sales and there were 567 transactions in the Balearic Islands, says the Ministry of Public transactions.

Meanwhile, according to a study of 100,000 properties recently published, Spanish property prices are starting to improve in the Costa Blanca and Costa Calida areas with Alicante and Murcia highlighted as a further two locations where prices are pushing upwards.

Spanish property prices are yet to catch up with the highs seen in 2007, the price increase is nevertheless an encouraging sign for investors in the market. Alicante, for instance, has experienced improvements in its infrastructure seeing a second airport terminal open which always good news when it comes to attracting more visitors.”

Many Developers “matching the Spanish government’s 50% tax cut on a limited stock of new properties to be delivered this year.

This post was published on properties247

21 September 2011

Turkey’s Credit Rating raises two notches, and for the first time in Turkish history, Turkey is rated as an investment-grade country…

U.S.-based Standard and Poor credit ratings agency read “The local-currency upgrade reflects our view of continuing improvements in Turkey’s financial sector and the deepening of local markets.” S&P also confirmed Turkey’s foreign-currency sovereign rating at BB with a positive outlook for the future.

With this news hitting the stock exchange markets, The Istanbul Stock Exchange National 100 index surged 4.6 percent and the Turkish Lira strengthened 1.9 percent against the Dollar. The outlook for Turkey looks very, very positive.

S&P stated that they could raise the ratings on Turkey even more should the nation manage to reduce its current account deficits and slow domestic credit growth without hampering its fiscal accounts or financial sector stability – don’t doubt on Turkey not being able to do just that. Turkey is expanding and growing at an unprecedented rate.

While Turkey is seeing their credit rating rise with S&P, other leading countries such as the United States, France, and Italy have all suffered lately with struggling economies and as a consequence seen their credit rating grade dropped by S&P. These high profile countries can only look on in envy as Turkey’s credit rating gets stronger as the whole world tries to deal with the current economic woes affecting so many countries finances.

Turkey is a country that is on the rise, in times of economic struggles around the globe, the fact that Turkey has seen its credit rating raised by S&P signifies the current strength of the nation. The impacts of this will be significant and go a long way to securing Turkish aims to be one of the world’s leading economies by 2023. Turkey is uniquely placed within the world; the future for Turkey looks healthy in times of economic crisis around the world.

This post was published on properties247

19 September 2011

Turkey is planning to ease restriction on the purchase of real estate by foreigners, according to reports in the Turkish press this morning…

Legislation is being drafted that will remove the principle of reciprocity from regulations governing real estate sales, meaning that foreign citizens will be able to buy property in Turkey even if their own countries don’t grant comparable rights to Turkish nationals.

Currently agents and developers in Turkey can get around the legislation by helping their clients to set Turkish companies but the process is costly and is a significant barrier to sale according to Philip Skorochod, director of UPPI.

“The legislation will make a huge difference.  At the moment it costs around two thousand [British] pounds to set up a company and it takes time.  The whole process is off putting and is preventing us making sales,” he says.

Under the current arrangements, international buyers from relatively open countries such as the US, UK and Germany have no problem purchasing real estate in Turkey as their countries allow Turkish nationals to invest.  The biggest opportunities will come from the Arab and Russian markets says Skorochod.

“Generally investors from the Arab world view Turkey both a safe haven and a place where there is no hostility towards them so this is where the legislation will have the biggest impact.  It will also improve the Russian buyer market for Turkish real estate as the process is currently cumbersome when dealing with Russian buyers,” he says.

Although there is sometimes a difference between government announcements and actual policy the country has a strong economic reason to enact the legislation as the extra direct investment is badly needed to finance Turkey’s large current account deficit.

This post was published on properties247

17 Sept 2011

More than half of British expats will continue to live abroad despite rises in the cost of living leaving them out of pocket, according to a recent survey…

The study, by currency dealer Moneycorp, shows that over 50 per cent of expats say that while they moved abroad for a better standard of living, their incomes have actually plummeted since the economic downturn.

Despite these factors, nine out of ten expats said that they would continue to live abroad, with 25 per cent saying that they would rather move to another country before considering moving back to the UK

More than half of British expats will continue to live abroad despite rises in the cost of living leaving them out of pocket, according to a recent survey

The study, by currency dealer Moneycorp, shows that over 50 per cent of expats say that while they moved abroad for a better standard of living, their incomes have actually plummeted since the economic downturn.

Despite these factors, nine out of ten expats said that they would continue to live abroad, with 25 per cent saying that they would rather move to another country before considering moving back to the UK.

This post was published on properties247

With the exchange rate now at 1.1513 your pound goes a lot further. Add this to the 4% cut in purchase tax on key ready and new build properties along with other discounts available, it’s an excellent time to get onto the Spanish property ladder.

This post was published on properties247

09  September 2011

Purchase approvals reached a 15 month high in August thanks to loosening lending criteria and an upturn in high loan to value lending, reveals the latest e.surv Mortgage Monitor…..

Approvals rose from 49,239 in July to a seasonally adjusted 49,566 in August – the highest since May 2010. Approvals were 4.3% higher than in August 2010 – the biggest year-on-year rise since May last year – reversing the long term trend of negative annual growth.

More buyers were able to secure mortgages with a smaller deposit as lenders loosened criteria. High LTV lending rose to its highest level this year, contradicting the latest Bank of England Credit Conditions Survey which said lenders would focus more on targeting low LTV borrowers in Q3.

Buyers with a deposit of 15% or under accounted for more than 10% of total approvals in August, a high for 2011, but still well short of the 22% seen in August 2008. Purchase approvals with a high LTV grew at almost twice the pace of the rest of the market in August.

Criteria loosened most at the bottom of the market, fuelling a rise in the number of lower income buyers.  Approvals increased on all price brackets below £750,000, with the greatest growth seen in typical low income and first time buyer property.

Approvals in the price bracket up to £125,000 – typical first timer property – accounted for 24% of all approvals, the highest since April.

LTVs rose fastest on the cheapest price brackets as lending conditions loosened most for low income buyers, with the average LTV on the cheapest price bracket rising from 67% in July to 68% in August.

August is usually a quiet month, but it was an unusually poor one for London as purchase approvals dropped 10% (non-seasonally adjusted) from July.

The regional picture for purchase approvals was more varied. Approvals increased in the North West and Scotland. Along with London, Yorkshire and the North East saw the greatest fall in approvals.

The fall in approvals in the capital was triggered by a decline in approvals on the most expensive property.

Approvals held up well on the cheapest price brackets thanks to a marginal increase in high LTV lending. However, high LTV lending was significantly lower in the capital compared to the rest of the country.

Approvals with an LTV of over 85% accounted for just 4% of the total number of approvals in August, less than half the national average of 10%, because wealthier buyers with larger deposits continue to represent a disproportionate share of the market, and because even a small percentage deposit represents a very large sum due to higher house prices in the capital.

The average deposit for purchase approvals in London was 41.5% in August, the highest since January, and the highest in the country, reflecting the larger pool of wealthier buyers in the capital.

Richard Sexton, business development director of e.surv said:

“The uptick in high LTV lending is encouraging, and lenders may still be trying to garner market share. But we shouldn’t get too carried away and begin hailing this as a portent of long term recovery.

“High LTV lending still lags well behind the levels we saw back in 2008, and a slight loosening in criteria only makes a small dent in the vast backlog of buyers stuck in the rental market.”

“The major high street lenders still have their hands tied by weak economic growth and stringent core capital requirements.

“The Bank of England warned many high street lenders have a high percentage of high or very high LTV lending on their books, and provisions may not adequately cover forborne loans. In practice lenders can do little to grow loan books while under pressure on capital.”

“For those who can get mortgages, the good news is that fixed rate deals seem certain to remain particularly cheap.

“The UK has been like a fortress in repelling the international economic contagion, which is good news for borrowers as it means repayment rates will stay low for some time to come.”

David Newnes, director of LSL Property Services,  said:

“Improving affordability is having a welcome effect on lenders¡¦ confidence in the ability of borrowers to service their debts.

“But the cheapest deals are still only available to those able to muster at least a 30% deposit. It is good news that high LTV lending is increasing, but it¡¦s rising from a very low level and will have to continue rising for some time before we’re likely to see a sustained revival in the market for first-time buyers.

“Schemes like first-buy are having some effect in improving mortgage availability, but the collective effect is still not enough to make a real difference to prices at the lower end of the market”.

This post was published on properties247

06  September 2011

Over 111,000 foreign citizens now own property in Turkey, according to recent reports from the country’s Land Registry.

Brits are the highest represented among the 111,000 purchasers with over 35,000 of us owning a Turkish property. The country is also popular with German and Greek property hunters who follow close behind on the list. In total citizens from 89 countries around the world now own a Turkish property.

The most popular areas for foreign investment were the Antalya region (Antalya, Belek, Side and Alanya) with over 40,000 foreign owners, and the Mugla region (Fethiye, Bodrum and Dalaman) with over 20,000 foreign owners.

The prices of property in Turkey have been steadily increasing as a result of the high demand. In particular new build properties, which are especially popular with foreign buyers, are up 7% from this time last year. However, sales prices across the board have risen by 0.83% and many popular areas such as Antalya have risen in price by 0.64%. Even rental prices have reportedly risen by an average of 0.36%.

This post was published on properties247

24  August 2011

America’s beleaguered housing and mortgage sector can see non-distressed home prices stabilising, mortgage performance rates improving and negative equity remaining strong, according to a new report from analysts CoreLogic…

And agents working in the American overseas property market agree. they are definitely at the bottom of the market, moving slightly upwards in price

California-based Corelogic’s “U.S Housing and Mortgage Trends” report, out this month, maps a correlation between the housing market, the economy and consumer confidence. According to CoreLogic, “as the housing market goes, so does the economy. The housing market impacts the economy in many ways”.

The report insists that the housing market can be taken as a measure of consumer spending and therefore consumer confidence. Thus, along with the slowdown of the housing market in the second half of 2010, and the slowing economy in the second half of 2011, there came  depreciation in consumer confidence.

According to the Bloomberg Consumer Comfort Index, consumer confident was minus 46.8% in mid July – the lowest since May 2011. Only 6% of consumers said that the U.S economy is doing well, which marks the lowest figure since April 2009.

The drop in consumer confidence may be due to joblessness, with unemployment rates soaring above 9%, declining home prices and increasing rates of foreclosure.

And the recent S&P/Case-Shiller Home Prices Indices shows that the value of properties in 20 U.S cities dropped by 4.5% in May 2011, from May 2010. This is the largest annual drop since November 2009.

Property market has an effect on the economy as a whole. However, the effect of consumer confidence is more psychological. People are relatively poorer. In the good days there was more equity, and thus more consumer confidence, but not everyone took equity out.  Properties sold a lot better psychologically. The standard of living today may not have changed, but psychologically, because of equity depreciation, people are spending less money.

The link between house prices and economy is relevant, however.  50% of people spend less because of a psychological drop rather than a drop in income and standard of living

This post was published on properties247

22 August 2011

The cost of buying property in Turkey is rising steadily according to the latest figures from the ReidIn Turkey Residential Property Price Index. And property hunters are also searching for larger properties…

Sale prices increased by 0.83% across Turkey overall, increasing by 1.05% in Istanbul, 0.84% in Izmir and 1.02% in Kocaeli during July 2011. There were also rises of 0.32% in Adana, 1.02% in Ankara, 0.64% in Antalya and 0.66% in Bursa.

Rental prices are also on the up, increasing by 0.36% in Turkey overall.

The data also revealed the popularity of new builds, which are especially in vogue with those from overseas and second home owners. The numbers buying new homes increased by 1.2% from June to July and are now 7.29% higher than this time last year.

The numbers looking for larger properties also increased, it has been reported. For example, there was a 0.65% increase in those looking for 126 to 150 square metre properties, and a 1.16% increase in those hunting for 151 square metres and above.

This post was published on properties247

20 August 2011

An interesting article and follow-up interview by Globaledge today.

I take my hat off to Mr Ballaster, who seems to be telling things as they are, not how he would prefer them to be. Who knows? This kind of honesty could even restore a little confidence in the Spanish property market.  Regarding… the language and nationality of buyers, Kyero.com receives visitors in these rough proportions:

• English 44%
• Spanish 20%
• French 12%
• German 7%
• Dutch 7%
• Italian 5%
• Danish 2%
• Portuguese 2%
• Russian 1%

Here’s the Globaledge article and interview:

British buyers remain conspicuous by their absence.

This was the damning conclusion of an article on international real estate on Property Wire this week.

So is the British lifestyle buyer market really dead?  Has the economic gloom and the scare stories in the UK media permanently put an end to the British desire to own a property in the sun?

Not according to Taylor Wimpey Espana boss Javier Ballester who I interviewed earlier today.

“The market is smaller but the British are still buying.  A house in the sun is still an aspiration, it’s just that fewer people can afford it and the ones that can are extremely discerning” he says.

Here is an extract from our conversation.  In is an interesting read for anyone selling into the UK buyer market.

AR: How are sales volumes compared to previous years?

JB: We are selling about 75% less than in 2008.  2009 was the worst year in our history but things picked up in 2010 and this year, we are slightly ahead of where were in 2010 so we are positive.

AR: Which areas are selling well and which ones are not?

JB: Mallorca is the strongest market, followed by the Costa Del Sol.  The Costa Blanca is difficult due to oversupply.  Luckily our stock on the Costa Del Sol is in Marbella which has not suffered as much as other areas from over construction.

AR: Which nationalities are buying?

JB:  The UK is still by far our biggest market.  Around 50% of our buyers are British followed the Germans and other Northern Europeans.

AR:  The brand must help you in the British market?

JB: Yes it certainly does.  It helps with trust which is especially important with so many horror stories in the media.

AR:  Who is buying?  Is it the retirement market which is strongest?

JB:  The majority of our buyers are over 50 and are purchasing for lifestyle reasons.  Not everyone is retiring but most are slowing the pace of their lives down.

AR:  Are you pricing aggressively?  How have your prices changed over the years?

JB:  We were quick to react in 2007 and watched the experience of the US so we cut prices quickly.  Our prices are around 30% to 40% below their peak with greater reductions on the mainland than in Mallorca.

AR:  What the key price points in your market?  What sells and what does not?

JB:  Anything over €300,000 is difficult, by that I mean it takes longer to sell.  Property prices in the €200,000 to €250,000 sell much more quickly.

AR:  What is your view on the future of property prices in Spain?  With such high unemployment and the banks yet to off load so many properties, the outlook can’t be good?

JB:  I agree the local market is difficult and prices will probably continue to fall for some time.  People cannot get access to finance and real wages are falling.

The second home market is different.  Our buyers are putting down deposits of 40%.   The market we aim at is very cash rich and demand is steady for property in good locations.  Prices may fall a little but the fundamentals are strong.

AR:  Would you not agree that many of the so called holiday homes built in Spain are not fit for purpose and should be knocked down?

JB:  It depends on where you are.  There are certainly many properties built inland that will never sell.  Nobody wants property in ugly places no matter how cheap it is.

AR: Finally what would your advice be to agents and developers looking to sell into the British buyer market?

JB:  There is a market.  A house in the sun is still an aspiration for the British, it’s just that fewer people can afford it and the ones that can are very discerning.

What I would say is that it is actually very difficult to get hold of good stock.  Most of the good property held by the banks has gone already and what remains is of low quality.  Also the banks do not care about after sales service which is extremely important for lifestyle buyers.

Finally, it takes time, you cannot do everything in one day.  Doing things properly requires time and patience.

This post was published on properties247

19 August 2011

Spain cuts property tax on new properties

The Consejo de Ministros have this morning reached an agreement to reduce VAT on new properties from 8% to 4% as an ” exceptional and temporary” measure which will be maintained until 31st December…

The Minister of Development, José Blanco and the Economic Vicepresudent, Elena Salgado, presented the measures today, explaining that the implementation of a low VAT rate is intended to try and incentivise purchasers into buying new properties, a property purchaser buying for 200,000 euros saving 8000 euros on the purchase price due to the new VAT rate…

The Minister said that there are areas where there is high demand for new constructions to begin, and actual shortages of homes in some City locations, but that construction start-ups were frozen due to the volumes of money tied up in unoccupied properties which had already been completed.

Until some of the stock of properties was liquidated, lending on new construction was at a standstill, the immediate need being to clear some of the existing stock to stimulate renewed market movement.

According to the latest figures published by the Institute for development, there are 687,523 new homes as yet unsold throughout Spain, as against the 688,044 of the previous year, a reduction last year of only 0.08% in the stock of empty properties.

And sales activity continues to fall. According to the National Institute of Statistics, sales of new properties declined by 10.1% in the first six months of this year, compared to the same time period last year.

The Government desperately need to restimulate economic activity in the construction sector.

According to data presented by Eurostat, construction contracted in Spain by 43.7% in June, and the contribution of construction to the GDP of Spain has fallen from 10 to 4%.

Last year the government raised the VAT level on new properties from 7 to 8%, stimulating a flurry of activity before the increase was implemented as buyers rushed to beat the deadline.

Elena Salgado said that the backpaddling was a “positive” step which would increase government VAT revenues on house purchases, as at the moment the level of incoming revenue was “zero”.

She had already initiated conversations with the European Commission about the decision to lower the VAT rate to the end of the year.

The Government hopes that this decision will stimulate movement in the property market and help the construction industry to regain enough liquidity to start building again.

The President of the G-14, Pedro Pérez, applauded the action of the Government , saying that in his opinion the move would help to restimulate a sector “punished by the economic crisis.” In a communication issued this afternoon, he said that the reduction in IVA could give ” an impulse” to the sale of properties already built, ” which could accelerate the reduction in the stock of properties.”

However, he also added that for a “relaunching of the sector” to occur, better access to financing and loans was required, for which he requested increased activity from the ICO, Instituto de Crédito Oficial.

Initial reactions from agents were that it would make little difference as substantial discounts could be negotiated in a buyers market, but that any initiatives were welcome.

The decreased rate will only apply to new, not second hand properties.

This post was published on properties247

18 August 2011

Sharm El-Sheikh Airport chairman Jad-Alkharim Nasr announced the highest number of flights and tourists arrived at the airport on Sunday since the January 25th revolution, KUNA has reported. Nasr added that a total of 90 charter flights carrying 15,000 tourists arrived at the airport on Sunday; this is an all-time record for one day. The number of flights represents a sharp rise of 35% compared to the 70 flights of the previous Sunday. The occupancy rate aboard the flights reached 100% which is unprecedented, he said.

This post was published on properties247

15 August 2011

Agents and developers in Turkey are reporting a increase in international sales thanks to the introduction of affordable new Mortgage deals…

By partnering with European banks, Mortgage Solutions are offering up to 90% loan-to-value mortgages, which can be particularly difficult for foreign citizens to obtain within Turkey.

This post was published on properties247

Thursday 11th August 2011

Colin Murphy who specialises in selling property investments around the world, takes a trip to one of the world’s fasting growing property markets in Europe and is impressed with his findings…

I went on a fascinating scouting trip two weeks ago. I hadn´t visited this country in about five years, so I was very keen to see how it had changed.

This is the sixth most visited country in the world and tourism is growing at a breakneck pace. It is home to tens of millions of young and well educated people. It is the 9^th largest recipient of foreign direct investment, well ahead of more hyped up rivals such as Brazil, Mexico and Thailand. It is the 15^th largest economy in the world and the only big economy to have matched China and India´s eye watering double digit GDP growth figures last year.

This country recovered very quickly from the financial crisis, and its banking system is extremely robust. In fact, Moody´s, Fitch and Standard & Poor have been quietly upgrading its credit rating, while generating headlines for doing the opposite to others.

In its biggest city a property boom is in evidence everywhere. Thousands of new residential and commercial towers are springing up in practically every district. This is not Dubai – there is no speculative bubble driven by foreign investors. Demand is being driven by locals who want somewhere to live.

Real estate prices in this balmy Mediterranean climate are less than half the price of similar properties in Spain, France or Italy.

In my opinion, this is the most exciting real estate market in Europe by a mile. It is probably one of the hottest markets on the planet.

The country I am referring to is Turkey – a democratic, secular, republic with an incomparably rich and ancient cultural heritage.

With a population of 75 million and an average age of just 28, Turkey has become a major tourist destination with almost 30 million visitors a year (more than the UK).

It´s economy expanded by 11% between Q1 2010 and Q1 2011, the third fastest in the world.

Turkey is a prominent member of the G20, a long standing member of NATO (2nd only to the US in troop size) and is in full membership negotiations with the EU.

This post was published on properties247