Tag Archives: finance
French Alps ski property market reviving thanks to low mortgages and new infrastructure
The French ski property market is recovering with new build apartments, rather than chalets, are leading the way and interest boosted by new infrastructure projects, new research shows. Those choosing to buy in key Alpine resorts will also find far more facilities available such as the €36 million mini-resort Mille8 in Les Arcs, a family friendly resort within a resort with new nursery slopes, tobogganing runs, a swimming pool, spa, gym and Courchevel's €63 million waterpark and spa Aquamotion. La Compagnie du Mont Blanc announced recently that it would spend €477 million over 40 years on new lifts and pistes in Chamonix while Val d’Isère has just spent €16 million renewing lifts, pistes and restaurants on La Tête de Solaise, immediately above the town. Rock bottom Euro mortgage rates are another key factors behind the recovery, according to the French Alps Property Report from Erna Low Property. It points out that it is now possible to get a 15 year fixed rate repayment mortgage with the interest set at just 1.4%. However, it is easier to get a small mortgage than a large one at the moment. Indeed, according to Stephane Briere of French mortgage brokers CAFPI International banks would rather approve 10 €100,000 mortgages than a single €1 million one. The report suggests that activities and facilities in the summer are as important for buyers in the Alps as the winter sports. Road cycling, mountain biking and trail running have all made the summer fashionable again in the mountains, and buyers want to know what a mountain resort offers in July and August as well as winter. In part, that's because some are keen runners and cyclists themselves: but also because they're looking for better rental returns. Also leaseback schemes, which allow buyers to reclaim the VAT on their property purchase provided they put their apartment into a rental pool are becoming more flexible. In the past, most leasebacks gave owners just three or four weeks' annual use of their property. But now some allow owners 26 weeks of use along with the full 20% VAT refund. The report also says that a new wave of developments is giving buyers who are keen skiers the chance to buy back door entry to the world's most famous ski areas and make big savings in the process. Buying in Les Menuires, for example, will give the owner the whole of the Three Valleys. Meanwhile, an apartment in Tignes-les-Brevières gives access to the slopes of Val d'Isère. According to Francois Marchand, Erna Low property director, sales volumes are up, revenues are up, and so too is the average price of each property sold and British buyers are returning but they are more realistic about what buying a second home in the mountains means. ‘These days, our clients see their property purchase as bricks and mortar with benefits, a long term investment whose primary purpose is to improve their quality of life. We’re noticing more… Continue reading
Marbella proving popular with overseas buyers
More than 80% of properties bought in Marbella in Spain are bought by foreigners, much higher than the country’s average, new research shows. Overall data from Spanish registrars show that 13.8% of properties are sold to overseas buyers as of the end of 2015 and of those more than 60% were from within the European Union. But the Marbella Property Market Report 2016 from Panorama Properties Marbella, a well-established estate agency, shows the area is very popular as it is regarded as a safe and high quality destination for investment. According to Christopher Clover, the firm’s managing director, there has also been a change in where the foreign investors come from and he is predicting an influx of Iranian buyers thanks to the newly opened Iranian market. ‘Marbella has been a popular tourist destination with Iranians for decades and the property market looks set to benefit strongly from that affection over the coming years,’ he explained. At the same time there are fewer British buyers right now and this may be due to the forthcoming referendum on the future of the UK in the EU. ‘British buyers in the lower price ranges, who for years have accounted for the largest market share of foreign buyers in Spain, are sometimes pausing when it comes to purchasing their dream home in Marbella. The distraction of Britain's potential exit from the EU has caused a few to hold fire on purchasing property in other EU countries,’ said Clover. Assuming the UK remains within the EU, a surge of property purchases by British buyers in and around Marbella can reasonably be expected during the late summer months and from a medium to long term viewpoint, Clover believes that the trend of British purchasers for property in the Marbella area will not be greatly affected whether Britain stays in the EU or exits. While British buyers stop and think, Spanish buyers are using the pause to gradually return to the Marbella property market, the report also suggests. The number of Spanish residents visiting Marbella plummeted from well over 350,000 in 2006 to just over 100,000 in 2013, but numbers have since been rising, returning almost to 250,000 visitors in 2015. ‘As Spanish visitor numbers pick up and the national economy continues to improve, so too will Spanish interest in the Marbella property market. Those buying in Marbella right now are after a wide range of property types, which is precisely what the area provides,’ Clover explained. Many buyers are looking for new build properties in Marbella, but developer stopped when the economic downturn hit eight years ago. ‘However, investment groups have been quietly buying up the best building sites over the past two years, so the coming five to 10 years should see an influx of prime new build properties onto the market,’ said Clover. The report also points out that the number of sales in Marbella reached 4,390 in 2015, less than1% short of the number… Continue reading
Large drop in new properties coming onto market in England and Wales
The supply of properties for sale in England and Wales has slumped in recent years to alarmingly low levels, according to latest figures to be published. The property search engine Home.co.uk has recorded a 51% fall in the number of properties for sale in England and Wales over the last eight years, from 855,585 in April 2008 to just 415,038 in April 2016. There has also been a 26% decline in the number of properties for sale in April 2010 compared to April this year. In addition, there was a 12% decrease in the total stock of property for sale in April this year compared to the same month last year. These figures are published as the firm’s latest asking price index shows there were price rises in all parts of the UK in May, with the mix-adjusted average asking price for England and Wales jumping 0.8% since April. Further figures looking at new properties coming on to the market each month offered only a small crumb of comfort that the situation may improve, the research also shows. These latest monthly figures found there had been a modest 4% increase in the number of new properties coming on to the market in April 2016 compared with April 2015. However, this is still 43% down on April 2008's new monthly listings figures. April 2016's new properties tally of 110,031 is also 7% down on April 2010's figure of 117,803. A regional breakdown of the figures shows that every mainland UK region has seen a marked downturn in the number of new properties coming on to the market when comparing April 2008 with April 2016. In the East Midlands, South West and West Midlands, there was also a dip in supply of new properties between April 2016 and the same month last year, while two areas, the North East and North West, recorded no change at all in supply when comparing April 2015 and April 2016's figures. Greater London saw a sharp spike of 22% in supply of new listings when comparing April 2015 and April 2016's figures but this is still 53% down on April 2008 and 8% down on April 2010's figures. This shows that despite the recent surge in new listings in the capital, its overheated market is still in dire need of more properties. There was a small increase in new properties coming on to the market between April 2015 and April 2016 in the South East, but this affluent area still has a chronic supply problem. An eight-year comparison in this region reveals a 44% dip in the number of new properties for sale in April 2008 and in April 2016. Elsewhere, Scotland's new monthly property tally in April 2016 was 36% down on figures for April 2008 and in Wales the figures were down by the same proportion. The East of England and Yorkshire and The Humber saw 3% growth in new properties for sale in April 2016 compared with April 2015. However,… Continue reading
