Tag Archives: africa
Second home owners returning to Portugal, particularly the Algarve
The availability of cheap finance, investment in infrastructure, appealing tax initiatives and a return to sensible pricing has prompted renewed activity in the Algarve’s property market. Overall, the Portuguese property market’s decline since the economic downturn of 2008 is well documented. Prices in some locations popular with overseas buyers have fallen by as much as 50% in peak to trough terms. But sales volumes and prices have responded, albeit in two phases, according to the latest analysis from international real estate firm Knight Frank. In 2013 the firm saw vendors start to adjust their prices, which led to an upturn in transactions. By 2015 the Algarve recorded its first annual increase in prime prices since 2008 and Knight Frank’s west Algarve office reported a 32% increase in sales in 2015 compared to 2014. The report says that what set the Algarve apart during the downturn was the continual investment in infrastructure. The upgrade of the coastal A22 motorway, for example, has opened up the western Algarve while the improvement to the E1 from Lisbon and Porto and the €32 million expansion of Faro Airport have helped boost economic confidence. Further development is planned at Vilamoura and Quinta do Lago. The report points out that British, Irish and German buyers are still evident in the Algarve but French, Scandinavian and non- Europeans, including South Africans and Chinese, are also increasing in number. A surge in French interest has been seen in the last two to three years with many citing Portugal’s Non-Habitual Tax Residency regime (NHR) as a key incentive. Introduced in 2009, the NHR exempts non-residents spending 183 days a year in Portugal, or those with a primary residence in the country, from income tax on non-Portuguese incomes, including pensions, salaries and capital gains for a period of 10 years. Another initiative, Portugal’s Golden Visa, by far the most successful of the European schemes in existence, has seen inward investment focus on the Lisbon area rather than on the Algarve. To date Chinese buyers account for 79% of the 2,853 visas granted since 2012. The report also points out that there is now a greater focus on the Algarve’s investment potential compared with before 2008. The Algarve’s 37 championship golf courses are responsible for over 50,000 rounds of golf a year and their season extends beyond that of the traditional summer rental period, running from February to May and again from September to November. And it adds that new development is evident once more particularly at the eastern end of the Algarve, but prime projects need to be anchored by a 5-star hotel brand or a championship golf course to pull buyers away from the more established locations such as the Golden Triangle area which stretches from Quinta do Lago to Vilamoura and Vale do Lobo. Continue reading
A good school comes top of home buying priorities in UK
Good schools have come out top in a survey of parents in the UK asked about their priorities when choosing a place to live. Some 72% of parents placed a good local school among their top three, followed by 37% favouring somewhere with good transport links and 33% highlighting the importance of a community feel, according to the research from Redrow Homes. Being close to family members came fourth overall but, while this was a big priority for 33% of mums, only 22% of dads saw it as important. When children were asked what's most important to them about where they live, 60% said it was being near to their friends, followed by 49% who liked to be close to school while 47% valued having lots of parks and green space nearby, and 17% who thought being near facilities such as a cinema was vital. Parents were also asked about their dream home and what they look for most in the property itself. Some 54% chose a new build, either in the city, country or suburbs. The research found that not everyone is happy with their current home with only half of those living in an old house in the country saying this is their dream home type and a quarter actually admitting they dream of living in a new build in the country. Some 65% of those who already live in a new build in the country, city or suburbs say it's their dream home type. In terms of what they look for in the property itself, outdoor space came out overwhelmingly on top with 74% picking a garden as one of their top three desirable features, followed by 44% wanting off-street parking and 39% storage space. A modern fitted kitchen with integrated appliances and a house that is economical to run were also popular attributes, chosen by 23% and 22% respectively. The research shows how important choosing the right home and neighbourhood is for people buying a home, according to Dave Bexon, group sales and marketing director for Redrow Homes. The research also found that when asked what they liked most about their own homes, children chose their bedroom, with almost three quarters placing it among their top three. Maybe to be expected, personal space becomes more important as children get older, with 81% of youngsters aged 11 to 16 choosing their bedroom among their favourite things about their home, compared to 69% of children aged four to 10. A garden came second, with 45% of all children surveyed saying it was one of the things they liked most, followed by the living room. Continue reading
Scotland sees strongest first quarter for home lending since 2008
Home lending in Scotland increased by 7% in the first quarter of 2016, the strongest first three months of a year since 2008, new figures show. A breakdown of the data from the Council of Mortgage Lenders shows that on an unadjusted basis home owners borrowed £1.8 billion, down 22% quarter on quarter but up 1% year on year. They took out 13,500 loans, down 22% on the previous quarter but up 7% compared to the first quarter 2015. First time buyers borrowed £660 million, down 24% on the fourth quarter 2015 but up 10% on the first quarter last year. This totalled 6,200 loans, down 23% quarter on quarter but up 11% year on year. Home movers borrowed £1.1 billion, down 21% quarter on quarter and down 4% compared to a year ago. This totalled 7,300 loans, down 22% quarter on quarter but up 4% on the first quarter of 2015. Remortgage activity totalled £780 million, down 1% on the fourth quarter 2015 but up 13% compared to a year ago. This came to 6,400 loans, down 5% quarter on quarter but 5% up compared to a year ago. ‘Seasonal factors often affect lending levels in the first quarter of the year, but there are encouraging indicators in Scotland, as all lending types showed growth year on year,’ said Carol Anderson, CML Scotland chair. She pointed out that 2016 saw the strongest first quarter in a year for house purchase lending since 200. ‘With affordability conditions continuing to be favourable, we would expect gradual year on year growth in Scotland to continue throughout 2016,’ she added. While the figures show that it was the highest total borrowed for house purchases in the first quarter of a year since 2010 in Scotland, it was also the highest total borrowed for remortgage in the first period of a year since 2011. The CML report says that this was mainly driven by home movers who took out the highest amount of loans for house purchase in a first quarter of the year since the first quarter of 2008. Affordability metrics for first time buyers in Scotland remains better than for the UK overall. The amount borrowed this quarter compared to the previous was £97,795 compared to £130,500 in the UK overall, from £100,000. The average household income of a first time buyers was £33,381 compared to £40,000 in the UK overall, from £34,066 meaning income multiple in Scotland was 2.97 down compared to 3.01 the previous quarter and the UK average of 3.46. Affordability metrics for home movers in Scotland also remains better than for the UK overall. The amount borrowed this quarter was £136,000 compared to £172,295 in the UK overall, from £135,789 the previous quarter. The average household income of a home mover was £51,149 compared to £56,104 in the UK overall, from £50,815 meaning income multiple in Scotland was 2.68 down compared to 2.73 the previous quarter and the UK average of 3.2. Continue reading
