The Tide is Turning Claim the Experts

The Tide is Turning Claim the Experts

WATCH OUT! THERE’S A BUYER ABOUT

Mike Walsh

The steadily rising pound against the euro has got more than Spain’s ex-pat community licking their lips in anticipation. The UK’s property speculators are finally getting their wallets out.

If the pound’s value continues to rise; and the consensus of informed opinion believes it will, sellers on the Costas will find more viewers. The downside is that they will not get as many pounds sterling … if they are converting.

Estate agents and foreign exchange providers are experiencing a revival of interest from those interested in buying properties abroad. The most popular locations are Spain, France, Italy and Portugal. Conti Financial Services say enquiries have jumped by 20 per-cent in recent weeks.

THE PERFECT STORM

Michael McLaughlin of Southern Comfit International says the reversal was quite predictable. “When the pound was falling to near parity reluctance to buy was perfectly understandable. The situation is now reversed and the ‘tanking’ of property prices have combined to create the perfect storm.”

The UK pound’s seemingly inexorable rise has also reversed the trend in which European property buyers preferred buying into the UK market. The tide has turned in favour of those selling and buying along Spain’s Mediterranean coastlines.

Currencies Direct, Mark O’Sullivan, the group’s director of dealing says, “We have seen a dramatic increase in the amount of money entering the international property market.”

SPAIN OFFERS MORE FOR LESS

Is the value difference between the UK improving? Michael McLaughlin thinks so. “In truth Spain has always offered more for less than has the UK. It isn’t back of the envelope accountancy to say you get twice as much for your money in Spain as you do in England; with other advantages added.”

The more pragmatic buyers appreciate that whilst the value of the pound isn’t as potent as it was several years ago, the drop in property prices on the Costas has compensated. A buyer in 2009 is actually getting as good a deal than those who bought prior to 2005, because artificial values have been replaced by reality.

Astute property buyers realise that whilst the pound is 15 per-cent weaker against the euro than it was last year, the 30 per-cent drop in asking prices is now equal to a pound set at €1.40 to €1.45.

Speculators, rather than the domestic buyer, also realise that taking out a euro-mortgage, whether they need it or not, will put them at an advantage as the rate continues to improve.

Cheaper mortgages as the Euribor continues to fall.

Girasol Homes spots more people buying as the Euribor plummets.

Positive news is that Euribor has now plummeted to below 3%, from its high of over 5.5% in September 2008. To put this in monetary terms a 25 year repayment mortgage for 150,000 Euros would have typically cost 1,013 Euros in September. This mortgage would now typically cost 792 Euros. A saving of over 220 Euros per month. Add this to the current low interest rate environment in the UK that many of your clients may be benefiting from, and the exceptional offers that are available in the market at present, and buying a new home overseas may be more affordable than many people think.

Sample of some of the mortgage deals for Spain and Portugal

UP TO 80% OF CONTRACT PRICE – RATES FROM BELOW 4% AVAILABLE FOR NON RESIDENTS

LOOKING FOR LOW DEPOSIT SCHEME UP TO 100% OF PURCHASE PRICE (MAX. 70% OF VALUATION) MINIMUM PROPERTY VALUE €350,000. IDEAL FOR DISCOUNTED PURCHASES

INTEREST ONLY AVAILABLE FOR TERM OF MORTGAGE IDEAL FOR THOSE CLIENTS WISHING TO KEEP THEIR MONTHLY PAYMENTS DOWN LONG TERM FIXED RATE MORTGAGES FROM 2 – 25 YEARS IDEAL FOR CLIENTS WISHING TO BUDGET WITH CONFIDENCE FOREIGN CURRENCY MORTGAGE - RATES FROM 1.93% (UP TO 60%) LOWEST RATES IN THE MARKET

LIFETIME MORTGAGE FOR RETIRED CLIENTS WHO WISH TO MAKE NO MONTHLY PAYMENTS!

CASHBACK MORTGAGE IDEAL FOR THOSE REQUIRING ASSISTANCE TOWARDS FEES/FURNISHINGS LET TO BUY UP TO 100% OF CONTRACT PRICE. IDEAL FOR THOSE CLIENTS LOOKING TO MOVE WITHOUT SELLING THEIR EXISTING HOME

BUY TO LET PORTFOLIO MORTGAGE - UP TO 60% OF CONTRACT IDEAL FOR INVESTORS

Contact Nigel Salmon at Girasol Homes for more details of mortgages and properties 44 1974 299055 or www.girasolhomes.co.uk

Spain's PM sees economic recovery in late 2009 - Expatica

Spain's PM sees economic recovery in late 2009 - Expatica

Zapatero predicts the economy will begin to recover in the second half of 2009

MADRID – Spanish Prime Minister Jose Luis Rodriguez Zapatero Thursday predicted the country's slumping economy would begin to recover in the second half of 2009 after suffering a difficult period.

"We are going to go through some bad months, but there is a certain and solid recovery on the horizon," he said in an interview with the television channel Cuatro.

"In the second half (of 2009) we are going to have some data that points to a recovery.... We are going to emerge to strong from this crisis."

He also predicted inflation would drop to under 2.0 percent this year and to 1.0 percent "at the most" in 2009.

Spanish 12-month inflation plummeted to 2.4 percent in November from 3.6 percent in October, hitting its lowest rate since August 2007.

Spain's economy was until very recently one of the most dynamic in the eurozone but it began to cool in 2007 as the international credit crunch hit an already weakened real estate sector, putting an end to a decade-long property boom.

It is now on the brink of recession after gross domestic product contracted 0.2 percent in the third quarter and the slowdown has led to the loss of tens of thousands of jobs in recent months, mostly in construction and the services sector.

Zapatero earlier Thursday predicted that his government's recent 11-billion-euro stimulus package would lead to a sharp rise in job creation during the first half of 2009.

"It will be at that moment, in March or April, when we will have an intense rhythm of public works under way that will without a doubt create jobs at a considerable rate," he told parliament in a debate on the 2009 budget.

Spain's lower house passed the budget, overturning a veto in the Senate where legislators had slammed the proposal as outdated given the country's fast deteriorating economy.

[AFP / Expatica]

Cheaper mortgages as the Euribor continues to fall.

Spain Business Brief - Monday December 29 2008

Cheaper mortgages as the Euribor continues to fall.

Mortgages in Spain will see their largest fall in seven years, as the Euribor rate falls to 3.4%, its greatest fall since 2001. The change means the average mortgage will be 115 € cheaper a month. Experts say that the tendency for next year will continue to be downwards.

Girasol Homes mortgage website is still expected to be ready early January - this will not only cover Spain but worldwide including Portugal, the USA and destinations which will include the UK, Turkey and even Australian mortgages. Register now or email us for a mortgage illustration at mortgages@girasolhomes.co.uk

Full article

Cheaper mortgages as the Euribor continues to fall.

Mortgages in Spain will see their largest fall in seven years, as the Euribor rate falls to 3.4%, its greatest fall since 2001. The change means the average mortgage will be 115 € cheaper a month. Experts say that the tendency for next year will continue to be downwards.

The Prime Minister, José Luis Rodríguez Zapatero, is preparing another meeting with the Spanish banks for January, with the intention that the citizens of the country benefit from the state help being given to the financial institutions. Zapatero wants to see the funds have an effect on the real economy.

The Minimum Wage in Spain will increase by 4% in 2009 to take it to 624 € a month, compared to the 600 € now. Minimum pensions are up 6% next year.

RENFE train unions have called off the strike which was planned for today after a meeting with management.
Both sides have agreed to extend the current wage deal for another year and apply a wage increase equal to that awarded to civil servants next year.

The latest victim of the Madoff broker fraud is the Spanish film director, Pedro Almodóvar and his production company El Deseo. They invested some 5% of their assets in Lux Invest, one of the affected funds. Stephen Spielberg also lost in the fraud.

Savings Bank La Caixa has announced that it is no longer in talks to sell its shares in Repsol YPF. It was thought the bank would be selling the 14% shares it has to the Russian company Lukoil, but they announced the change of mind in a statement to the National Council for Market Values.

General Motors workers are demonstrating in Zaragoza this afternoon as they have failed to reach an agreement on redundancies with management. The motor manufacturer wants to temporarily lay off 7,500 workers for a period of 17 days.

And finally, It seems the economic crisis is affecting wine sales in Spain, with sales of crianzas and reservas in bars and restaurants down 20%. However the sales of Don Simón and other cheaper table wines, often sold in cartons, are soaring up 29%.

Full article from http://www.typicallyspanish.com/news/publish/article_19433.shtml

Exchange Rate Update for Overseas Property Buyers

Foreign Exchange Morning Market Commentary

US unemployment numbers showed a massive jump, way ahead of expectation in the non-farm payrolls. 533,000 were added to the claimant counts against an expected 320,000 and confirmed that recession in the US is well and truly entrenched. On the back of the that, nations that rely on exports such as China, Japan, Germany and the UK are looking more pessimistic.

The massive injections of cash liquidity and monetary easing by global central banks are likely to feed through to the real economy in the spring of 2009. In the meantime it is likely that the UK economy will continue to deteriorate. There is very little economic data out this week from the UK with just retail sales and UK trade numbers released tomorrow.

Current interbank prices as follows:

GBPEUR: 1.1590

GBPUSD: 1.4935

GBPDKK: 8.6250

GBPSEK: 12.1460

GBPCHF: 1.8078

GBPZAR: 15.2166

GBPJPY: 139.75

USDEUR: 0.7759

GBPAUD: 2.2530

GBPNZD: 2.7507

GBPCAD: 1.8722

My thanks to Bruce Borrie for this information.

Visit http://spanishpropertybargains.blogspot.com for excellent property opportunities in Spain.

DECEMBER MORTGAGE DEALS

SPANISH MORTGAGE DEALS DECEMBER 2008

UP TO 100% OF PURCHASE PRICE (MAX. 70% OF VALUATION)
MINIMUM PROPERTY VALUE €350,000. IDEAL FOR DISCOUNTED PURCHASES


INTEREST ONLY AVAILABLE UP TO 40 YEARS
IDEAL FOR THOSE CLIENTS WISHING TO KEEP THEIR MONTHLY PAYMENTS DOWN LONG TERM


FIXED RATE MORTGAGES FROM 2 – 25 YEARS
IDEAL FOR CLIENTS WISHING TO BUDGET WITH CONFIDENCE


FOREIGN CURRENCY MORTGAGE - RATES FROM 1.93% (MAX 60%)
LOWEST RATES IN THE MARKET


LIFETIME MORTGAGE
FOR RETIRED CLIENTS WHO WISH TO MAKE NO MONTHLY PAYMENTS!


CASHBACK MORTGAGE - FIRST OF ITS TYPE IN SPAIN
IDEAL FOR THOSE REQUIRING ASSISTANCE TOWARDS FEES/FURNISHINGS


UP TO 80% OF CONTRACT PRICE
AVAILABLE FOR NON RESIDENTS LOOKING FOR LOW DEPOSIT SCHEME


BUY TO LET PORTFOLIO MORTGAGE – MAX 60% OF CONTRACT
IDEAL FOR INVESTORS


http://www.girasolhomes.com/ourservices.php

Exchange Rate Update for Overseas Property Buyers

Here is my new regular blog site on the vagaries of foreign exchange - it's a confusing picture with all of those city traders trying to scrape their huge bonuses, however we do have a panel of experts to help us with all of the Foreign currency markets.

We also announced yesterday we have new Foreign Currency Exchange Mortgages via our Mortgage Department in Spain. For more details go to http://spanishpropertybargains.blogspot.com/

With thanks to Bruce Borrie from Baydonhill Foreign Exchange

Sterling dipped yesterday against the US Dollar and Yen as worries over the health of the global economy prompted investors to dump riskier assets. Both the FTSE100 and Dow Jones headed south as they shifted their proceeds into the US dollar.

Official data released yesterday confirmed the UK economy shrank by 0.5% in the 3^rd QTR, and household spending fell by the largest amount in a decade. The Nationwide reported this morning that UK house prices fell by 0.4% on the month and that the rate in which they were falling had decelerated slightly. All eyes will now look towards the meetings of the European Central Bank and Bank of England next week as the outlook for interest rates will once again hold centre stage. I would imagine that the Bank of England will cut again in response to the continued downturn in the economy.

Current Interbank Prices as follows:

GBPEUR: 1.1924

GBPUSD: 1.5387

GBPDKK: 8.8750

GBPSEK: 12.2924

GBPCHF: 1.8465

GBPZAR: 15.1944

GBPJPY: 146.39

USDEUR: 0.7750

GBPAUD: 2.3630

GBPNZD: 2.8077

GBPCAD: 1.8894

Please let us know if you require any further explanations on any or all of the above.

The New Girasol Homes Overseas Mortgage site should be up next week.