Croatia: Strong sale at Dubrovnik Sun Gardens with guaranteed 4% yields

iO Adria report that it has had a successful start to the new year with six confirmed sales at its Dubrovnik Sun Gardens development in Croatia, with three more sales in the process of completion.

The developer recently launched the first phase of the development and is offering homebuyers net rental yields of 4% after HOA costs and tax in a bid to push property sales.

A one bedroom residence at Dubrovnik Sun Gardens starts at €170,000 (£143,000) for a ground floor property with garden view, up to €336,000 (£281,800) for sea view. Two bedroom residences range from €308,000 (£258,290) up to €608,000 (£509,920).

Julian Houchin, commercial director of iO Adria, says that he is positive about prospects for the Croatian property market in 2012, thanks in part to its anticipated EU accession in 2013..

He says that demand for homes in Croatia is already growing and expects that EU entry to help generate greater returns from property investments.

Houchin comments: “This [Dubrovnik Sun Gardens] is one of the few lifestyle freehold real estate resort investments available today in Europe offering a balance of personal usage and competitive net yields for owners through a sophisticated rental programme now in its third year of operation.

“[Dubrovnik] one of the most beautiful and fastest growing tourism and second home real estate destinations in Europe where early buyers can also benefit from entry level pricing and mortgage financing at Dubrovnik Sun Gardens.”

Source IEA

For more details on this development CLICK HERE

USA: Contracts to purchase US pre owned homes holds at 19 month highs

The number of Americans signing contracts to buy previously owned homes in December held near a 19-month high, showing the stabilization in the market that began in late 2011 will extend into the new year.

The index of pending home sales decreased 3.5 percent last month after jumping a combined 18 percent in October and November, figures from the National Association of Realtors showed today in Washington. It was the best back-to-back reading since a buyer tax credit boosted demand in early 2010.

“We’ve had a clear turn toward positive momentum in the housing market,” Aaron Smith, a senior economist at Moody’s Analytics Inc. inWest Chester, Pennsylvania, and the third most accurate forecaster of pending home sales. “Lower unemployment and higher confidence, coupled with record low mortgage rates, are coalescing to spur increased buying.”

The ability of the market to sustain gains in the absence of government incentives may mean housing has stopped weighing on growth. President Barack Obama yesterday proposed a plan aimed at reducing monthly mortgage payments, which would help combat a drop in home prices that Federal Reserve policy makers say is impeding the world’s largest economy.

Central bankers said today that they’ll keep their benchmark interest rate low until at least late 2014 to help stoke the economy.
Fed Statement

“While indicators point to some further improvement in overall labor market conditions, the unemployment rate remains elevated,” the Fed said in its statement. “Household spending has continued to advance, but growth in business fixed investment has slowed, and the housing sector remains depressed.”

The decrease in pending sales exceeded the median forecast of 40 economists surveyed by Bloomberg News that projected a 1 percent decline. Estimates (USPHTMOM) ranged from a drop of 8.1 percent to an increase of 7 percent.

Sales increased 4.4 percent from December 2010.

Stocks declined as forecasts at Boeing Co. and Yahoo! Inc. trailed expectations. The Standard & Poor’s 500 Index fell 0.1 percent to 1,313.4 at 11:35 a.m. in New York. The S&P Supercomposite Homebuilding Index rose 1 percent.

Elsewhere today, the U.K. economy shrank 0.2 percent in the fourth quarter as factories reduced production and services stagnated, leaving Britain on the brink of another recession, data from the Office for National Statistics showed in London.

Japan Deficit

In Asia, Japan posted its first annual trade gap since 1980 as nuclear plant shutdowns following last year’s earthquake prompted companies to import energy. A third straight monthly deficit in December capped an annual shortfall of 2.49 trillion yen ($32 billion), the finance ministry inTokyo said.

Another report today showed U.S. home prices rose 1 percent in November from the prior month, the biggest increase in six years, according to the Federal Housing Finance Agency. Nonetheless, values were down 1.8 percent over the past 12 months as foreclosures held back a recovery.

Among other recent housing figures, purchases of previously owned homes climbed 5 percent in December to a 4.61 million annual rate, the highest level since January 2011, the NAR reported last week.

Also in December, builders broke ground on 470,000 single- family houses at an annual rate, the most since April 2010, according to figures from the Commerce Department.
Economy Improving

“The economy is beginning to firm up,” Douglas Yearley Jr., chief executive officer of Toll Brothers Inc. (TOL), said in a Jan. 11 interview with Bloomberg Television. “We see more people coming out to buy. The affordability has never been better.”

Three of four regions of the U.S. showed a decrease in contract signings from a month earlier, led by an 11 percent slump in the West. Pending sales also fell in the Northeast and South.

The report showed an index level for pending home sales of 96.6 on a seasonally adjusted basis, down from 100.1 in November. It was the highest two months since March and April 2010. A reading of 100 is consistent with the average level of contract activity in 2001 and coincides with “historically healthy” home-buying traffic, according to the NAR.

At the end of 2009, the Obama administration extended a tax credit for first-time buyers through April 2010 and expanded it to include some current owners. The government incentive, worth as much as $8,000, helped bolster sales of previously owned homes before they dropped off in the middle of 2010, at one point touching the lowest level in at least a decade.
Leading Indicator

Economists consider pending home sales a leading indicator because they track contract signings. Existing homes sales are tabulated when a contract closes, usually a month or two later.

Faster job creation may help push more people into the market for homeownership. The economy added 200,000 jobs in December, and the unemployment rate declined to an almost three- year low of 8.5 percent, Labor Department figures showed earlier this month.

Homebuyers are also enjoying cheaper borrowing costs. The average rate of a 30-year fixed mortgage fell to a record-low 3.88 percent as of Jan. 19, according to data by Freddie Mac.

Lower rates combined with prices that have slumped for four out of the five past years are making homes increasingly affordable. The median price of a previously-owned home declined to $166,100 in 2011, the lowest annual average since $165,000 in 2002, NAR data show.
More Affordable

The agents group’s affordability index was at 194.5 in November, second only to the prior month’s level as the highest on record. A reading of 100 means a household earning the median income can afford a median-priced home at current lending rates.

“Housing affordability conditions are too good to pass up,” NAR chief economist Lawrence Yunsaid in a statement accompanying the release. “Our hope is lending conditions will gradually improve with sustained increases in closed existing- home sales.”

President Obama is proposing a plan to help reduce monthly mortgage payments. The program will give “every responsible homeowner the chance to save about $3,000 a year on their mortgage by refinancing at historically low interest rates,” Obama said during last night’s State of the Union address. “No more red tape. No more runaround from the banks.”
Obama Plan

Costs would be covered by a fee on financial companies with more than $50 billion in assets, according to two senior administration officials who briefed reporters on the plan. Obama said “a small fee on the largest financial institutions will ensure that it won’t add to the deficit.”

The proposal follows Federal Reserve Chairman Ben Bernanke’s call for lawmakers and the Obama administration to offer more aid for housing. The Fed, which is holding short-term borrowing costs near zero and buying government-backed mortgage bonds, said in a paper sent to Congress this month that a previous Obama administration effort to make refinancing easier had failed to go far enough.

Source Bloomberg

For a great US property yielding upto 47% CLICK HERE

Spain: International buyers snap up homes in Spain

Foreign buyers spent €3.6bn (£2.3bn) on buying homes in Spain in 2011, as they took advantage of significantly discounted properties, according to data supplied by the Bank of Spain.

The figures show that foreign property investment in Spain increased by 27% last year compared to the preceding year.

With Spain’s economy in turmoil and the housing market in disarray, owed largely to a major oversupply of homes, property prices have been in freefall, attracting more bargain hunters in the process.

The hike in property sales in 2011 marks a second consecutive year of growth in international investment with 2011 beating the total value of transactions in 2010.

Many property professionals believe that the rise in foreign investment activity is a sign that property market conditions are improving.

But with about 818,000 vacant homes on the market in Spain, the existing glut of properties is unlikely to be absorbed anytime soon, despite the recent rise in demand from foreign buyers.

Source International estate agent

CLICK HERE for Spanish property bargains

Spain: Far fewer homes available in the Costa del Sol

The number of unsold new build homes on the sales market almost halved in 2011 as more bargain hunters snapped up reduced priced properties, while construction output has fallen significantly.

According to the Association of Builders and Developers of Malaga (ACP), property developers sold 10,000 new homes last year, representing about 40% of the housing stock on the market at the beginning of last year.

The property market in Malaga, home to the Costa del Sol, has suffered in recent years because of a chronic oversupply of homes. But the figures provided by the ACP suggest that market conditions are improving, thanks to the fall in supply.

Property sales have been boosted by dramatic price reductions, while house building activity has come to a virtual halt in the past three years, in order to allow the glut of homes on the market to be absorbed.

“Given the long lead times in the building industry, there could be an acute shortage of new housing a couple of years from now,” said Mark Stucklin of Spanish Property Insight.

He added: “Shortages will be made worse if demand recovers to its normal level of around 22,000 new homes a year, based on the size of the population. Unemployment or fear of unemployment is keeping many potential buyers out of the market.”

Source International estate agent

CLICK HERE for great property deals direct form Spanish banks

Developers in Malaga province (home to the Costa del Sol) sold 10,000 new homes in the course of 2011, almost half the stock of 25,000 new homes on the market at the start of the year, according to the Association of Builders and Developers of Malaga (ACP).

Lower house prices have helped boost sales, and a huge drop in housing starts over the last 3 years, most acute in popular tourist resorts like Marbella, means that the housing glut is shrinking fast.

Given the long lead times in the building industry, there could be an acute shortage of new housing a couple of years from now.

Shortages will be made worse if demand recovers to its normal level of around 22,000 new homes a year, based on the size of the population. Unemployment or fear of unemployment is keeping many potential buyers out of the market.

45pc of Malaga’s 200,000 unemployed are young adults who be first time buyers looking to start a family if they could afford to.

Much of the blame for this sorry state of affairs lies with politicians says José Prado, President of the ACP. “In recent years they’ve done nothing but earn a fortune from construction and made no effort to attract investors.”

Source Spanish property Insight

CLICK HERE for great property deals direct form Spanish banks

Euro: What we expect next and how you can profit from it

The Euro, a great idea if you are one of the few beneficiary's. The main beneficiary are the countries like Germany and to a much lesser extent France that benefit from a level playing field in terms of trade with other countries that usually devalue in order to make their products, be it property, cars, debt or olive oil, cheaper.

Lets take a brief look at Spain, a country I have lived in for many years and have a huge fondness for. This country has unemployment well above twenty per cent and youth unemployment above 50%. It as a property market that has crashed due to several reasons. Over development is of course a key factor, but so is the global downturn and a recession that few economies have failed to avoid.  Spain has a currency that does not reflect its economy, its plain and simple and this can never be good in periods of weakness. With the cost of exports fixed across euro members, it was always going to be the strongest exporters, especially those graced by generally high quality products, that reap the benefits. So you can see why Germany is prepared to do as much as it can to keep the Euro together.

So what happens next?. There are several possibilities. The least likely and credible is the Euro carries on in its current state. The markets, as in stock and currency markets, are rarely wrong and incredibly strong. Look at the failed Exchange Rate Mechanism (ERM). The strength of the markets and speculators forced the break of this ill thought out system. In this crazy world, when a system with some variance is proven not to work they still go ahead with a fixed system, in the form of  a single currency!. Look at the basics. A single currency cannot work when you have different economies in different stages of economic strength and weakness. How can economies with a high dependence on tourism like Spain and Greece have the same currency as strong export based manufacturing economies like Germany? Simple answer, they cant. Well they can, but then every business cycle we will get a situation like we have now. The situation was only made worse by a series of non truths along the way, and some shoddy economy management by countries wanting to get in.

Another way of sorting out this problem is a two tier Euro, where the strong economies use Euro A and the weaker ones Euro B. However, we believe this is unlikely to happen as the weaker countries wanted the strength of the euro which they will not get and Germany and France will not be able to export to the weaker Euro users as their products will be too expensive.

What we think will happen is this. There are certain countries that will drop out of the Euro. Probably some or most members of the PIIGS (Portugal, Ireland, Italy, Greece and Spain) will leave the currency. First we, and many others, think that Greece will leave very soon. We think within the next six months. This gives opportunity, great opportunity which will be explained later. There will be big write offs by private and public lenders probably in excess of 50% by bond holders. The Drachma will replace the Euro in Greece and it will probably halve in value comparably. Greece will then be in charge of its own destiny. Its exports, albeit not extensive, will be very cheap for Europe and tourism will take off as it will be so much cheaper than other Mediterranean countries. The value of Greek property will be half what it was when it was in the Euro and the savvy investor will be snapping up property in the country buoyed not only by the value that they will see but also a burst of tourism and in turn opportunity to rent out in this now great value market. With the surge of tourism and property buyers, the economy will recover much quicker than it would be able to within the Euro. Spain will see what has happened and also bail out, and its back to the Peseta. Another great buying opportunity in property arises. The taxes bought in from the surge of property buyers in Spain would be significant before the long term effect of all the other added benefits kick in.

Ok, so it may not be that simple, but plodding through really isn't an option. S&P downgraded these countries because they were going no where. The scare mongers claim a break up of the Euro will be catastrophic for the UK. We doubt it, if it happens as suggested above and not just a break up of the whole thing. Our exports to the PIIGS isn't extensive and will have limited damage.. We managed before the Euro was with us, we will manage again.

What if I want to buy property now.? Our view is not set in stone and may not be correct,. We may have rose tinted glasses on as a break up of the euro in the way explained would be greatly beneficial to our business in overseas property as some of our most buoyant market places suddenly become much cheaper and attractive to buyers. However, remember that these falls in value are currency related. If you have already purchased make sure you have a mortgage. The reason is two fold. Firstly, mortgages are really cheap, and effectively free if you take into account the effect of inflation. Secondly, you reduce the currency risk if you have borrowings in the country that is or isn't in the Euro, assuming that the conversion rate out of the Euro is realistic. All mortgage payments after this event are then a fraction of what they were when it was in Euros, assuming you are paying for the mortgage in sterling. If these countries stay in the Euro as it is, you have neither gained or lost anything.
It should also be remembered that recent weakness in the Euro could be an excellent opportunity to gain entry into the countries that are likely to remain within the Euro such as France and Germany


These views are our own, and are not guaranteed. We will advise you on your property purchase in any way we can and we have have range of repossessed property and great deals. Just CLICK HERE to see a selection and contact us at info@lydnemproperty.co.uk and tell us what you are looking for if you do not initially see it. We will find it for you at the right price,

Spain: Costa lot less for holidays

Costa lot less! Holidays in Spain on the rise as prices at resorts drop by 40%

By SEAN POULTER.

 Spain could attract a new wave of British holidaymaker following evidence that resort prices have crashed by as much as 40% since five years ago. A fall in local prices on everything from a restaurant meal to suncream has combined with the fact that the pound is at a two year high against the euro to make the Costas more affordable.

The claims come from an annual survey conducted by the Post Office, which measures the prices of eight items in resorts across 33 destinations around the world.

Spain comes out as the second cheapest destination with a price of £37.72 for the eight items, while Sri Lanka, which has seen serious political unrest, was the best value at just £27.95.

At the other end of the scale was Australia at a staggering £115.69 for the same items, together with Barbados, Singapore and New Zealand.

The number of visits by Britons to Spain has slumped by more than three million over the past five years, coming down to less than 10.5million.

More...

• 
  

High prices, the cost of living squeeze and a desire among Britons to try new and more exotic locations have all played their part in the fall.

However, the Post Office research suggests Spain will now become more attractive, particularly at a time when people are desperate to save money.

The firm’s Holiday Money Report concluded: ‘Resort prices in the Costa del Sol are now 40per cent lower than five years ago, when we conducted the first price barometer.

‘The cheaper cost of travel to Spain will make it a compelling choice for bargain hunters. So does the rising value of the UK pound - up 6.4 per cent against the euro in the past three months.’

Getting cheaper: Falling prices mean the Costa del Sol is a more affordable option for families looking for some sun

The eight items included in the price comparison are a cup of coffee in a bar or café; a bottle of local beer; a can of Coca-Cola; a 1.5 litre bottle of mineral water from a supermarket; a bottle of suncream; insect repellent; a pack of cigarettes; and a three course evening meal for two adults, including a bottle of house wine.

The fact that the selection of items is small, while they are not bought from exactly the same outlet every year, suggests the figures can be skewed. However, they give a general indication of the shift in prices.

The researchers found resort prices have risen in two-thirds of the destinations it surveyed. The biggest rises were recorded in Kenya, where the basket was 52 per cent more expensive than a year ago, and Portugal, where the increase found was 39 per cent.

However, the report found that sterling is stronger against 29 other major currencies than a year ago, which should help offset higher resort prices.

Tourist boom: Turkey has become a popular holiday destination, but research showed it was 60 per cent more expensive than Spain this year

Turkey has seen a tourism boom in recent years on the basis of its perception as a cheap option. This year, it only placed 17th in terms of the cheapest option, while it was 60per cent more expensive than Spain.

The Post Office head of travel money, Sarah Munro, said: ‘Given that sterling is worth around 20 per cent more than a year ago against the Turkish lira, we expected to see a lower barometer cost for Turkey, especially as the country had a disappointing 2011.  

‘However, we were surprised to find that local costs have actually risen by 21 per cent and it is only the strong sterling exchange rate that is masking that increase.

‘It will be interesting to see how Turkish resorts respond to the challenge presented by Spain and Portugal. With Greek tourism also facing a fight for survival, we could see a price war  between the eastern and western Med in 2012.’

Italy came out as the most expensive European destination with the basket of items costing £89.03.

Miss Munro said: ‘The message that came out clearly from our holiday budgeting research was that 2012 will be all about affordability.  Holidays may still be a priority but they are not a necessity and people will not knowingly get into debt to fund them.  

‘The winning destinations will be those that offer good value not just for flights and accommodation, but for tourist staples like meals out and drinks.” 

‘However, it will pay people to keep a watchful eye on exchange rate movements as well as considering easy ways to save money.’ 

Source Daily Mail

CLICK HERE for great holiday deals in Spain and worldwide

Spain: Still one of the favourite destinations. Strong Enquiries

Having waved goodbye to what was a relatively tough year for the global property market, Kyero.com's latest analysis of the forever popular Spanish property market highlights some interesting findings, identifying that foreign buyers will continue to look for bargain properties focusing in Spain's best known areas.

Kyero.com's enquiry report analysed almost 130,000 enquiries made by email during the second half of 2011 showing that between July 2011 and December 2011 47.3% of enquiries for properties in Spain sat within the £50,000 to £100,000 price range.

Further statistics show that across Spain 31.6% of enquiries made wanted an apartment while 32% desired a 3-bedroom property. Meanwhile, unsurprisingly over half of enquiries - 55% - requested a pool.

Marc Pritchard, sales and marketing manager at Taylor Wimpey España, commented: "The Kyero.com report provides an interesting insight into what buyers want from Spanish property. In 2012 it is important to look at trends in buyer behavior and the interest generated regarding Spanish property to identify how to grab the attention of this year's property buyers."

Pritchard continued: "Indeed, the findings show that by province, Alicante and the Costa Blanca remain the favorite locations for foreign property hunters accounting for nearly 35% of enquiries according to Kyero.com's findings while Malaga in the Costa del Sol followed behind with 14.4%. With this in mind, we at Taylor Wimpey España feel we can meet the needs of customers not only because many of our properties are located in these popular areas but because we can deliver on property type and budget as highlighted in the report."

Source IEAT

For Spanish repossessions CLICK HERE

For the cheapest flights from all the major airlines

Spain: Spain set to sizzle in 2012

A recent survey by TravelSupermarket has shown that more than one in ten Brits plan to travel to Spain for their main holiday in 2012. And this isn’t a new trend as 13% of the 5,187 UK adults we asked visited Spain in 2011.

Spanish breaks were most popular with those in northern and Scottish cities this year with 20% of those surveyed in Edinburgh visiting the country for their main holiday, 19% in Glasgow and 19% in Newcastle. However, it looks like the country is set to be a hit with Nottingham’s inhabitants in 2012 as 19% of the adults asked hoped to go on holiday there next year.

So, where else is set to sizzle in 2012?

The flying PIIGS

Last year, TravelSupermarket predicted that the PIIGS (Portugal, Italy, Ireland, Greece and Spain) would be popular destinations among British holidaymakers and we were correct. Not only did 13% of the survey respondents visit Spain but a further 6% travelled to Portugal or Italy.

Our travel expert, Bob Atkinson, thinks that the PIIGS’ popularity will continue in 2012 as, despite their economies suffering from the Euro debt issues, the countries are offering great-value breaks. He said: “In tough economic times Brits often return to known quantities, so this will drive an interest in these destinations. Once Brits see the great offers available, they’ll be flocking to these ever-popular countries.”

A tough time for the METTs 

The METT destinations (Morocco, Egypt, Turkey and Tunisia) have had a tough year and our survey results show this. Despite 3% of those surveyed travelling to Turkey to take advantage of cheap all-inclusive packages in 2011, only 2% plan to travel there in 2012.
And, due to the Arab Spring, both Egypt and Morocco have seen a decline in visitor numbers. Just 1% of Brits plan to travel to Egypt in 2012 compared to 2% who took a trip there in 2011.

TravelSupermarket predict that 2012 will continue to be a slow year for these countries. Our travel expert Bob Atkinson said: “There has been some damage to the reputation of these countries but given a lot of the tourist destinations remained untouched, it is well worth keeping a look out for bargains in Morocco, Egypt and Tunisia throughout 2012.”

SLIMMAs to shine

The SLIMMAs (Sri Lanka, Indonesia, Mexico, Malaysia and Argentina) are set to be next year’s dark horse and a World Travel Market report tipped these nations to do well. Bob Atkinson agrees and said: “Our poll has shown that none of these destinations received more than 1% of British tourists last year – but I’d keep an eye on them as these could be the surprise winners if 2012 as they look to attract more and more UK tourists.”

Staycations: there’s no place like home

With so many exciting events such as the Olympics taking place in the UK in 2012, many Brits are likely to take their big break closer to home. And, although only 30% of our survey respondents have said that they plan to stay in the UK next year, this number may well rise as households tighten their belts even more. In 2011, 40% of Brits took their main holiday in the UK.

The 2012 top 10

The results of our survey show that the top destinations for holidaying Brits will be:
1. UK – 30% of people plan to holiday closer to home.
2.  Spain – 11% expect to enjoy the Spanish sun, sea and sand.
3. Europe (other) – 9% hope to take a break in a European destination other than in the UK, Spain, France, Portugal, Italy and Turkey.
4. USA – 6% want to enjoy an all-American experience.
5. France – 5% plan to hop over the English Channel to France.
6. Asia – 3% want to go to a longer-haul destination in Asia.
7. Caribbean/Mexico – 3% hope to enjoy the Caribbean and Mexican weather.
8. Italy – 3% plan to experience la dolce vita in Italy.
9. Portugal – 2% want to sip port and enjoy the Portuguese laid back way of life.
10. Turkey – 2% hope to visit the crossroad between Europe and Asia.

TravelSupermarket’s additional hot picks for 2012

• Poland and Ukraine – both countries will be appearing on our TVs when they take part in the European Football Championship over the summer. We predict that Poland will prove to be particularly popular with Brits looking to take short city breaks.
• Iceland – both easyJet and WOW will add more air links to Iceland next year. This coupled with cheap prices will make the country a popular destination for travellers wanting to experience the Northern Lights and those looking for an activity-filled short break.
• Vietnam – the country will no longer just be a destination for backpackers as the first direct flights to Hanoi and Ho Chi Minh City will begin on December 8 from Gatwick.
• Brazil – in the lead up to Rio’s Olympic Games in 2016, the country is set to increase in popularity.

Source Travel supermarket

For great property deals CLICK HERE 

UK: Student accommodation market increases by 120%

Investment in student accommodation has surged in the past year, according to a new report from CBRE. The research reveals that the market has increased by a remarkable 120 per cent, with a total of £863 million invested in student accommodation in 2011 alone.

The number of students from the UK applying for university this year has fallen by almost 8 per cent, according to UCAS, as students are deterred by the increase in tuition fees to £9,000 - three times the current fee level. But the property sector has seen investor applications rise considerably since 2009, increasing by over 100 per cent in the last two years.

Commenting on the 7.6 per cent decline in applicants for September 2011, UCAS told the Guardian that it is "too early to make predictions about the eventual demand for places for this autumn". While students may seem reluctant to pay for higher education now, the impending rise in tuition fees had the opposite effect in 2010, driving students into universities to avoid the hike in cost. Indeed, after applications decreased in 2006 following the last fee increase, the next two years saw figures rebound by 7.1 per cent and, in 2009, by 10 per cent.

Now, the occupancy rate for student accommodation in the UK is at 99 per cent, says CBRE, with the conutry's growing rents increasing yields for investors by 5 per cent in London and 4 per cent nationwide.

"Student accommodation is more attractive than many other asset classes in the current climate and we have seen increasing interest from relatively new parties seeking to diversify their portfolios," the CBRE report adds.

Indeed, with the number of student applications from outside the EU increasing by 13.3 per cent and the buy-to-let market continuing to grow, university halls are set to become even more crowded.

CLICK HERE for student accommodation investments

Spain : Spanish VAT reduction extended and is on holiday homes

The condition excluding newly-built holiday-homes from VAT reductions appears to have been dropped.

When the Socialist Government introduced a VAT reduction on new homes sold last year, from 8pc to 4pc, the People’s Party, then in opposition, promised to extend the reduction to the end of 2012, but only on primary residencies up to a certain price.

But now that the PP are in power it appears that they have dropped these conditions, which can only be good news for holiday-home buyers looking to take advantage of the crash in Spain’s new home prices.

The decree extending the VAT reduction to the end of the year, published in the official Government bulletin (BoE) on the 31st of December, made no mention of any extra conditions, meaning that VAT on all new home sales, whatever their use and value, will only be charged at 4pc during 2012.

Source Mark, Spanish Property Insight


Lydnem comment


Great news!! All new properties (not registered previously) will only face 4% IVA (VAT) instead of 8% until the end of 2012. This is very good news for the new build properties but also for the market as a whole as it draws attention to it. Dont miss the best properties and best mortgage facilities while they are still available and the Bank of Espana allows the banks to offer high loan to value properties


CLICK HERE  for some great examples

USA: Property prices set to end the year down

Residential property prices in the United States continued to drop towards the end of 2011 with the latest figures from CoreLogic showing that national home prices fell 1.4% in November, the fourth monthly fall in a row.

On a year on year basis prices, including distressed sales, fell by 4.3% compared with November 2010, the information and analytics company’s November Home Price Index also shows.

This follows a decline of 3.7% in October 2011 compared to October 2010. Excluding distressed sales, year on year prices fell by 0.6% in November 2011 compared to November 2010 and by 1.6% in October 2011 compared to October 2010. Distressed sales include short sales and real estate owned transactions.

‘With one month of data left to report, it appears that the healthy, non distressed market will be very modestly down in 2011. Distressed sales continue to put downward pressure on prices, and is a factor that must be addressed in 2012 for a housing recovery to become a reality,’ said Mark Fleming, chief economist for CoreLogic.

Including distressed sales, the five states with the highest price gains were Vermont which was up 4.3%, South Carolina up 2.8%, District of Columbia up 2.1%, Nebraska up 1.9% and New York up 1.7%.


Including distressed sales, the five states with the greatest price falls were Nevada where prices were down 11.2%, Illinois was down 9.7%, Minnesota fell 7.8%, Georgia was down 7.7% and Ohio down 7.2%.

Excluding distressed sales, the five states with the highest price increases were Maine and South Carolina, both up 4.9%, Montana up 3.8%, Indiana up 3.3% and Louisiana up 2.4%.

Excluding distressed sales, the five states with the biggest price drops were Nevada which was down 8.8%, Arizona down 4.9%, Minnesota down 4.7%, Idaho down 4.1% and Georgia down 3.6%.

Including distressed transactions, the peak to current change in the national HPI from April 2006 to November 2011 was -32.8%. Excluding distressed transactions, the peak to current change in the HPI for the same period was -23.1%.

Of the top 100 Core Based Statistical Areas (CBSAs) measured by population, 77 are showing year on year declines in November, three fewer than in October.

For great property deals hand CLICK HERE

Croatia: Set to join EU

The former Yugoslav nation of Croatia has wrapped up its accession talks with EU officials, and should become the Balkans' first member of the bloc by mid-2013, a move that is sure to boost values for property owners.

As the last round of discussions came to a close yesterday, EU Enlargement Commissioner Stefan Fuele said the body was pleased with Croatia's efforts to reform its economy and political system since it broke from Yugoslavia. "In 20 years of independence, Croatia has changed tremendously", Fuele told reporters in Brussels. "It has made impressive progress in meeting EU membership criteria. Today, this has been rewarded." 

The next step for the country is the signing of an Accession Treaty, which will be drawn up by the end of this year. It will then have to be ratified by all 27 existing EU member states before Croatia can officially become part of the bloc on its planned accession date, July 1, 2013.

Lydnem Comment

EU membership is good for countries such as Croatia. It makes it easier for non Croatian's from other EU countries to live and work for and they get a lot of aid as a country. It is more debatable for more developed countries such as the UK who seem to just put money in and not take it out.  A positive for property investors in the country 

CLICK HERE for property in Croatia 

Spain: Property has reached the bottom BBVA

At the end of last year, chief investment officer at the private banking division of BBVA Enrique Marazuela told the Reuters Global Wealth Management summit that the housing market in coastal regions of Spain is starting to recover in terms of transaction volumes.

Though Marazuela said that new wealth creation should not be expected in the short and medium term in Spain, he said that some areas of Spain’s battered real estate sector were close to reaching a bottom in valuations.

Property on Spain’s coasts, where the market is largely driven by British and other European second-home buyers, has already stabilized, he said.

“Now what we have seen is that the houses on the coasts . are starting to recover not so much on prices but in transaction volumes and that is coming from European citizens that want to have a second house in Spain.

Source Bancaja

Lydnem Comment.

For some time now we have thought that the Spanish market is at or near its bottom. it is hard to say exactly when the bottom occurs, it doesnt ring a bell, as they say. There is a glut of property held by the banks but even they say that a third of it will never sell as it is rubbish. We feel that this figure is conservative, very conervative. We see what they have and it is only good for demolition. So with a property market near or at its low it is time to seriously look as the best properties sell first. Also, a recent surge in sterling against the Euro has reduced sterling prices by around 10% in recent months. Take a look HERE or tell us what you are looking for by completing this FORM and we wil send you properties fitting your criteria. Act now while the banks still offer good mortgage loan to values, it will not last!! 

CLICK HERE for spanish repossessions

Turkey : Istanbul prices are surging as buyers remain hungry for turkey after Christmas

Photo credit: Erman Akdogan

Istanbul property prices are surging as buyers remain hungry for Turkey after Christmas.

Values of prime houses in the Turkish capital are rising, according to figures released by Castle Research. "Strong demand for apartments" has driven up prices, says the Turkey Real Estate Investment Outlook 2012 report, with developments proving increasingly popular over the past nine years: in 2003, off plan properties were selling for US $1,500 per square metre; now, those figures have skyrocketed, with real estate fetching $10,000 per square metre.

"No matter how you analyse it, those price increases represent significant market strength," Castle said, adding that the data only represents that top end of the market.

Indeed, Turkey is starting the year in a position of strength, as international buyers keep up their taste for Turkey's property, ready to either resell for profit or rent out and capitalise on the market's buy-to-let demand. Even Turkish companies are making a move toward the capital's real estate, adds Castle, where rates of return are now "higher than they earn on their bank deposits".

Visitors are getting greedy for Turkey, too, with tourism figures also heating up. According to Xinhuanet, the country's Culture and Tourism Minister predicted last week that they will welcome 32.5 million tourists in the coming year. As foreigners keep gobbling up accommodation, it is no surprise that the economy is expected to continue expanding, albeit at a slower rate, with 4 per cent growth forecast by the government for 2012, following last year's boom of 7.5 per cent.

Turkey's coast is seeing the highest number of tourists, becoming stuffed with real estate developments ripe for consumption. This glut of feasting has led to some resale values declining due to an overcrowded plate, but investors that bought before 2005 "are enjoying solid gains", Castle finds, while current buyers can still find rental yields of 5 per cent in popular hotspots.

Meanwhile, in the capital, apartment blocks are seeing rents jump by up to 10 per cent per year, with gross yields firmly in double figures. There was a decline last year in UK and North European buyers biting at Turkey's real estate, but Castle's report reveals that there is a "steady interest [from British and Scandinavian investors] at the upper-middle price bracket, and also from young professional British buyers at the low end of the market."

Christmas may be over, but as Turkey remains piping hot at the beginning of 2012, investor appetites are set to get even stronger.

Source The Move Channel

Feeling hungry for property in Turkey? CLICK HERE