Great deals for Cash Buyers in Spain

2008 was a pretty bad year for Spanish property and things look like they are going to get a lot worse before they get better. This is the first time that we have seen year on year price falls in the official index since the market started to slump in the second half of 2007.

Officially, at least, nominal property prices have not fallen since 1993.

Average property prices fell almost everywhere, though prices were still creeping up in the provinces of Sevilla (+3.4%), Cadiz (+3%), Valencia (+0.9%), and Extremadura (+0.1%), if you believe the government’s figures.

Values fell the most in the province of Madrid (-7.6%), followed by Murcia (-5.8%), Tenerife (-5.8%), and Castellon (-5.3%).

Over 10 years, however, Spanish property values are still 215% higher in Andalucía, 211% in Murcia, and 200% in the Balearics.

Property prices on the Spanish Mediterranean coast fell by 14.3% in 2008, according to the latest monthly Spanish house price index published by Tinsa, one of Spain’s leading appraisal companies.

The fall applies to both newly built and resale properties, so this is the first closely-watched index to show big falls for newly built property.

So what do all these statistics mean for potential property buyers in Spain well according to Susana Suspenda, the Marketing and Operations manager for Spanish Hot Properties

“Cash buyers should be getting a great deal in 2009 and its probably the best time to buy property in Spain with buyers moving in this year picking up the best value in distressed property sales and hugely discounted new developments from developers in trouble”.

Buenos Aires Barrios and Vineyard Villas Emerging

Wherever you look in the overseas investment property blogging world or the new holiday alternatives for beach, city or ski, eco tourism or wine tasting and steak eating, there is a new destination popping up - Argentina. Argentina stretches alongside Chile, 4000Km from Bolivia in the north to the very tip of South America at Tierra Del Fuego. In that expanse you can find the Andes, the Iguazu Falls, the Perito Moreno Glacier, arid desert plains, vineyards and lush farmland. Argentina is classified as an upper middle class income economy by the world bank and has the highest human developement index score in Latin America. An emerging market with first world credentials for the overseas investor.

I have spotted very different investment opportunities; safe as houses early investment in developments, with 100% return guarenteed in 3 years through developer buyout, or hotels for sale in Buenos Aires. I liked the look of the swankier areas (Barrios) of the capital which would be the affordable equivalent of having an apartment if the West End; Palermo is a large and lively barrio in Buenos Aires which was originally built around beautiful parks as a playground for Argentina's elite.This is a typical property for sale in Palermo.

Palermo Apartment for Sale 110sqm

A French style 2 bedroom apartment at 1900 Santa Fe Avenue in Palermo, Argentina

Features

Fireplace imported from Italy.
Bright and quiet.
Double glass in the windows.
Renovated master bathroom, with marble and jacuzzi.

2009 Property Investment Overseas Top Ten

Country Life the home of premium property has the list all drawn up;

1 Paris
Paris was recently voted best risk adjusted investment location by PricewaterhouseCooper. It is the most visited city in the world and well placed to weather the current recession. In Paris, location is everything. The third and fourth arrondissements are good areas to search, with heavy rental demand and reasonable prices compared to the more fashionable sixth.

2 Miami
The city was heavily hit by the property crash, and you can pick up good, central homes at half the price they were a year ago. Property is being sold at less than the amount it cost to build it – always a good test of value. Experts think the bottom of the Miami market has been reached – or nearly reached – so it is a good time to buy for capital growth in the mid-term. Buyers must choose well and a sensible rate of return – 4-5% - should be possible.

3 London
There are startling bargains to be had in the English capital. Riverside apartments are being shifted at half their original value, and they should let well until a capital gain is made. Another plus is that there are no currency exchange risks to worry about if you invest in London.

4 Berlin
Berlin has in fact proved to be an unexpected top destination for investment for the last two years. Property prices fell sharply with reunification and Berlin is a place where locals still predominantly rent, thus a supply of middle-class tenants. Taking a 5-10 year view, Berlin is a fantastic investment spot.


5 Spain
Despite recent problems, Spain will always be the nearest destination where you can guarantee good weather for most of the year and the infrastructure can support large numbers of British retirees. The overpriced market has, in effect, collapsed. Now spectacular bargains are available.

6 Distressed sales
Many people are in financial difficulty and are desperate to sell. Investment properties not pulling in a quick profit can be picked up at give-away prices. Another variation is to buy heavily discounted units direct from the developer.

7 Repossession
As ghoulish as this might appear, you can get hold of true bargains once homes are repossessed by banks. But, you need local advice and you should inspect the property before purchasing. Buying a repossession at auction can be expensive and it might be better dealing direct with the bank.

8 Investment in developers
Rather than buying a property with all the attendant worries, you can instead make a welcome fixed interest investment with a developer. Your money will be tied up for only a couple of years, but obviously you need to check out the status of the developer to ensure your money will be safe.

9 Commercial property in Slovakia
It may sound strange, but Slovakia has one of the most successful economies in Europe and is a recent entrant to the EU. Whether you are investing in a small corner shop or a warehouse, prices are competitive and returns good.

10 Morocco
A more adventurous location, but Morocco appeals for several reasons: it is close, French-speaking and has good weather almost all year round. The Moroccan government has made a commitment to improve the country’s infrastructure and there are three different markets here: on the Mediterranean and Atlantic coasts and in Marrakech

There were also very cheap flights with the budget airlines to Morrocco last Autumn so it is not so far out of the way, no jet lag and a flight time similar to Cyprus. Morrocco is also building golf resorts and gated community resorts, so its safe but with that element of the new and unknown. If I were going to Africa though I would cost in the extra flight time and cost and go for the Gambia.

Weak Pound makes UK Top Overseas Property Destination

The pound has been falling against the US Dollar and the Euro recently, this means that UK residents may find it more expensive to buy anything in abroad. However, on the other side of the Channel Europeans find themselves in the position where the low property prices in the UK and the high value of the Euro against the pound could be an attractive proposition.

The word parity is being talked of, which is the point where the pound and the Euro are equal in value at this point Europeans could be looking at a nice return for their money by investing in the UK property market next year. This is because it is the opinion of the experts that 2010 could be the turnaround point for the property market.

Once the market begins to swing in the other direction, then anyone who has invested in it will be seeing some fantastic returns on their initial investments. This makes the UK a very interesting place to look at for property investment especially as there are some predictions that the market is set to fall a further fifteen to thirty per cent during 2009.

Polands Interest Rates Cut

Poland’s central bank recently cut its benchmark interest rate by 0.25% to 5.75%, joining a number of emerging markets that have lowered rates recently in a move to bolster economic growth.

Most analysts expected the National Bank of Poland to leave rates unchanged. This was the central bank’s first move since it raised interest rates by 0.25% in June. Following the rate cut, the Polish zloty edged up +0.4% against the euro.

Win Thin, senior currency strategist at Brown Brothers, said: “Retail sales and industrial production have slowed sharply in recent months, so the need to ease is clearly there. Indeed, the entire region will continue to cut rates as we move into 2009, especially after the surprise cuts by Hungary and Turkey earlier this month.”

Several emerging markets have cut rates in recent days, as the global financial crisis continues to take a significant toll on their economies.

Poland Property for Sale
Gorczewska Park, Poland, Warsaw.

1 bedroom Apartments, 47sqm

Price: € 132,418 Reference No: Warsaw JWC005

Górczewska Park is modern housing estate in Wola Quarter of Warsaw. Situated between Górczewska and Olbrachta Streets in Warsaw. Created by the best architects. This location will become the most attractive part of the Warsaw owing to vicinity of shopping and entertainment centre and planned underground station. The best investment! Promotional prices! Following stages of the planned construction final: 2nd 2009.

North Cyprus as the new European Emerging Market

Buying investment property in North Cyprus is becoming increasingly popular for overseas property investors, and several reasons for this boom in investment can be identified, reasons that go beyond explaining the interest of individual buyers purchasing investment property and make clear the surge in property development by companies eager to cement their position in the rejuvenated North Cyprus property market early.

The backdrop against which the current boom in both property and land values, along with the number of investors being attracted to the North Cyprus property market, should be explained is the revived push toward reunification that the election of Demetris Christofias to the presidency of the Greek Cypriot Republic of Cyprus this February.

House prices in Northern Cyprus - which has been separated from the southern Republic of Cyprus since the Turkish military intervention of 1974 - are far far lower than those in the rest of Cyprus and lower still than those in other popular holiday destinations where investment in overseas property has followed the holiday makers.

The disparity in prices is largely due to the division in the island, a division which has limited the trade and development opportunities that have been attracted to the island, thus constraining property prices as well as every other aspect of the cost of living in North Cyprus - a cost which is extremely favourable to those people not looking to purchase an investment property but rather to buy their dream second, or even retirement home.

With reunification house prices between the disparate property markets of the Republic of Cyprus and Northern Cyprus will consolidate, meaning that property in Northern Cyprus currently valued at, on average for a two bedded villa, around £110,000, will shoot upward to approach those house prices on the same island - but just the other side of the Green Line - which are, on average, almost double those in the North. What this means for property investors is that North Cyprus property investments stand out against the stalling, matured markets that characterise Europe generally.

Not only that but the North Cyprus property market specifically stands out to investors from the UK, as property in North Cyprus is purchased in pound Sterling as opposed to the Euro. For investors thinking about making an overseas property investment this is a huge boon, as the exchange rates have not be too kind for those purchasing Euros for pounds for a little while now.

Of course, rising property prices are not entirely reliant on reunification, although it is undeniable that investors wishing to see the steepest returns on their investment will do so in a post reunification Cyprus. The general attitude to the current round of reunification talks is that the poses the best chance yet for the island to reunify.

Only this week the immediate possibility of a reunified island cane to the fore of the news when the Greek Cypriot Minister for Commerce, Industry and Tourism, Antonis Paschalides commented on the initiation of attempts to find natural gas reserves - reportedly by 2012 - and how this endeavour reflected on the diplomatic attempts between Northern Cyprus and the Republic of Cyprus.

France Property Investment Market Remains Stable

France has seen such continued – if steady – increases in property values, mainly because it never really became swept up in the overseas investment boom. In the last 2-3 years thousands of savvy people with a pound to spare decided to put their money into overseas property, but did so, mainly in off-plan properties in emerging markets where prices were incredibly low, and the opportunity presented itself for immediate high-level gains and incredible rental yields. France never exactly offered an abundance of these properties, and so has and will remain to be one of the favorite places for people [especially Brits] buying a resale property as a holiday home.