The Telegraph reports on how there is a great opportunity fro Brits going to the US to buy property

Falling American property prices and a historically weak dollar have combined to offer Britons a host of transatlantic bargains in the midst of the financial crisis.

Credit crunch to last until 2009, says Treasury

Houses and holidays in the US have fallen significantly in price, meaning thousands of British investors who bought there over the past couple of years have lost money.

In parts of Florida, developers have cut condominium prices by up to 40 per cent since the credit crunch hit last summer.

However, the financial turmoil has opened up an opportunity.

Matt Glazier, the head of international developments at Winkworth, the London-based estate agent, said property deals were there for the taking.

“In Tampa we have got a development where the developers are already slashing prices by 30 to 40 per cent compared to a year or even eight months ago,” he said.

“There’s nothing wrong with the people or the developments, but they just built too many.

“If we go to the developers with any offer, they will take it - that’s the reality.”

In Tampa on Florida’s Gulf coast, sea-view two-bedroom condominiums that were selling for £240,000 have come down to £200,000 in the past few months.

Repossessed properties in Miami, including beachfront homes, are being sold for half the market price of a year ago.

The $2 pound is also favouring travellers, especially with sterling buying little more than €1.25 on the Continent.

While many American and Caribbean package deals are not as cheap as last year, travel agents said excellent prices were available.

European breaks have got proportionately more expensive.

Research this month showed that average hotel prices last year were £83 a night in France and £79 in Spain. Since then the pound has weakened considerably against the euro, further pushing up prices.

Tags: property, florida

Here’s a personal note from spanishpropertyinsight

This is rather a pet hate for me. When I first came to andalucia Spain, 13 years ago in February 08, the law was the same as now - everyone working has to be registered, even the lowliest self employed. You had to pay tax and more importantly IVA (vat) at 16% of ALL your income, there was and still is no mimimum exemption threshold level like the UK.

Which of course is a big shock when you first move here and are scratching to make a living. My husband and I took ‘advice’ and were told to be careful if advertising etc as the authorities were likely to call you, book you and then serve you with a denouncia when you turned up to your appointment! In those days, Sur in English was the main english paper and there were hardy any adverts for services or entertainers etc so it was easy for the authorities to find you.

Of course it was rather easy to tell if they did call you as their heavy spanish accent rather gave the game away! But needless to say people were getting caught and fined.

However, the fine was 5000 pesetas (as I recall) which in old good money was around 4000 sterling. Quite hefty, but then again we worked out if we got away with it for 6 months, then anything else earned was a bonus!

We got around the legislation a little as in those days you could ‘buy’ a contract of employment, pay your own tax and be somewhat legal (gosh I hope I dont get into bother for all this now!!) and on the back of my husbands, I got my own residencia - like gold dust at the time!

Anyway, after a couple of years to be honest, we decided to go legal and incorporated a company, with all that cost and signed up to paying the social security, which is now 245 euros each per month AND an accountant (gestor) which costs 100 euros per month. So minimum outlay is over 600 euros per month before eating. Then 18% tax and also 16% iva on top. Books have to be submitted every 3 months as well and you cannot roll on profits or anything, you are taxed on the earnings and thats that!

Tags: spanish, property

In order to answer some concerns people have about buying property in Spain we set up an intereview with our practising English Spanish lawyer based in Spain, Des Sparkes.

Click here:
Spanish lawyer conversation
Runs for approx 30 minutes

Des answers questions such as:
How can I stop my property being grabbed back by the authorities?
How can I know for sure I am dealing with a fully qualified lawyer?
How do I avoid all the sales pressure and take time to make my decision?
Are there things I should watch out for when I go on an inspection trip?

Des recently took part in a BBC program so we thought you’d like the benefit of
some of his knowledge.
Des is available at www.sparkeslawyers.com

Good Deals On Spanish Property

Dian at Kyero has just posted this piece on illegal builds causing many agents to go out of business.

The housing market in Spain is receiving bad press but there are some good deals available if you do your homework.

With an increasing number of illegal builds coming to light, thousands of estate agents going out of business, and lots of properties failing to sell, many investors may be thinking now is not a good time to buy a property in Spain.

However, one of the contributing factors to the property glut is a surplus of newly-built, over-priced apartments and villas on the costas. After a decade of property prices rising at astronomical rates the market is now beginning to steady, but many properties are still being priced unrealistically.

According to an article by Mark Stucklin, in The Sunday Times recently, although the majority of these properties have sea views they have been built in poor locations, and as there is an oversupply of property in these areas at the moment, many of the sellers, who bought these homes off-plan several years ago, are being forced to reduce their asking price. There are so many identical homes for sale the only factor which will differentiate one property from another is the price. Caixa Catalunya, a Spanish Savings bank, has estimated up to 500,000 newly built properties remain unsold.

Although villas are in shorter supply, problems in the market with flats means prices are being pushed down for villas as well.

Andrew Lupton, of Stacks Relocation Spain, was quoted in the article as saying: “Prices for attractive villas in the upmarket enclave around Javea, on the Costa Blanca, are already 20 per cent down.

“You can now get a lovely four-bedroom villa, with a pool, on a plot of 800 square metres for £300,000. A year-and-a-half ago it would have cost you £380,000.”

However, planning approvals for new detached properties are falling considerably faster than for flats, according to new figures from the Spanish Ministry of Development. This could lead to a shortage of villas, which will help strengthen prices in the future.

The article advises buyers to head south for the best bargains. Andalucia has some particularly enticing prices at the moment, with a brand new four-bedroom Penthouse in Nerja, with a roof-top pool and sea views, reduced from £720,000 to £510,000.

The best deals to be had are on the coast, but this is also pushing prices down further inland.

Mark Stucklin, advises potential buyers to try and negotiate a good price. They may be surprised at what they can get for their money, particularly if the owner is looking for a quick sale.

Tags: spain, builds, property