Greece leaves British property buyers in the dark over exchange rates

by Charlotte Ashton Greece

As the Greek government finally voted to accept crushing austerity measures yesterday by a majority of 2 to 1 MPs, Robin Haynes, MD of FSA regulated and award-winning Currency Index asks what this means for exchange rates for British buyers of European property?

“The weaker Euro since the crisis escalated in November, has given Brits buying in Europe the best exchange rates since October 2010. A Pound now goes nearly 8% further than it did last summer, and with real estate prices continuing to drop across Europe, overseas property is now as cheap as it has been for many years. With the Eurozone crisis rolling on, Greece must work to accept its bailout package by March 20th to avoid defaulting on its debts.

“The Euro is expected to strengthen once the bailout is finally completed. This is because there will be, temporarily at least, stability in the debt markets, with Greece able to refinance its loans and therefore likely to stay in the Eurozone. The Euro will once again be seen as a safer currency with disaster averted, and if investors buy Euros, the price will rise giving lower exchange rates for buying the single currency.

“The short term outlook is a little harder to predict, giving mixed signals for people looking to exchange sterling to Euros, due to ongoing unrest in Greece and worries that the austerity measures may not actually be implemented. The EU and IMF have had enough of broken promises and funds will only be released to Greece when there is clear commitment to implementing the measures.

“While nobody wants to see riots in Athens, instability in the fragile political and economic environment in Greece may give further weakness in the Euro, and we could therefore see a short term spike in Euro exchange rates which buyers can take advantage of before the situation is resolved and, presumably, the bailout goes ahead.

“Eurozone finance ministers meet on Wednesday, by which time the fragile ruling coalition must say how €325m of the €3.3bn in budget savings will be achieved. Brussels also wants written commitments that the terms of the deal will be implemented, even after an election pencilled in for April.

“With this in mind, many buyers of overseas property are currently looking to fix an exchange rate in advance. This can be achieved by using a Forward Contract from a reputable currency broker, and guarantees a rate now for a transfer up to 2 years in the future, so that once the Greek problems are resolved, the sterling cost of a property elsewhere in Europe cannot increase due to a strengthening Euro.”

For more information on currency exchange and Forward Contracts contact Currency Index today on 0800 043 2623 or visit www.currencyindex.co.uk.

 

Infographic: Spain – At a Glance

by Charlotte Ashton Spain

The most popular area of Spain for property is the Community of Valencia, according to the latest At a Glance infographic from TheMoveChannel.com. The infographic, which is based upon the enquiries received by the property portal in the last 12 months, shows that buyers scour South-East Spain for real estate, with Valencia attracting 32.24 per cent of all enquiries.

Close behind is Andalucia, which received 30.84 per cent of Spanish property enquiries, followed by Murcia, which accounted for 19.04 per cent. These top three regions carve out a clear favourite corner for buyers, who look almost exclusively at homes for sale in the Costas: Costa Blanca, Costa Calida, Costa del Sol and Costa de la Luz all fall within the three regions, while Costa Brava is located in the other key popular area of Catalunia, which is ranked sixth.

The least popular areas are La Rioja and Cantabria, which saw zero enquiries across the 12 months, indicating an overwhelming focus on holiday homes near the coast rather than inland cities. Even the Community of Madrid, surrounding the country´s capital, received just 0.08 per cent of all enquiries, far behind that of rising tourist zone Galicia (0.52 per cent).

Buyers also search for sun and sand away from the mainland. Together, the Balearic Islands and Canary Islands accounted for over 12 per cent of Spanish real estate enquiries on the site. The Balearics alone received 5.13 per cent – more than the whole of northern Spain combined.

Denia, located in the popular Valencian Community, attracted the highest number of destination searches on the portal. Xabia received 3.8 per cent, with four of the top 10 destinations belonging to the Province of Alicante. Given the wider popularity of Spain´s island regions, the absence of the Canaries or Balearics from the top 10 suggests that buyers search for property by island as opposed to looking for specific cities.

The infographic also reveals the search behaviour of buyers on Google across the last 12 months. Users hunting for Spanish real estate tend to use general phrases, such as "property for sale in Spain", while the most commonly searched type of property is "houses for sale in Spain". Search activity peaks during the spring and summer months, but "apartments for sale in Spain" attract the most attention in the second half of the year, appearing in almost 1000 more searches from August to October than from February to April.

Editor Ivan Radford comments: "Spain: At a Glance continues our series of infographics by giving a new angle on another familiar property destination. While the popularity of the Spanish Costas is well-known, the contrasting lack of attention paid to property in areas away from the coast is quite striking to see.

"It´s also curious that searches for apartments increase during the last six months of the year. This could point to a surge in seller activity as well as a spike in buyer interest. Overall, the statistics are a reminder that even during the Eurozone crisis the traditional lifestyle buyer profile lives on."

 

 

Click here for the full infographic.

Notes to Editors

Founded in 1999, TheMoveChannel.com is the leading independent website for international property, with than 400,000 listings in over 100 countries around the world, marketed on behalf of agents, developers and private owners.

The website address is http://www.themovechannel.com and the office address is 24 Jack’s Place, Corbet Place, Spitalfields, London, E1 6NN.

Contact Dan Johnson on 0207 952 7650 for further information.
 

 

“QE not good news for overseas property buyers.” Expert commentary from Currency Index

by Charlotte Ashton United Kingdom

Robin Haynes, MD of FSA regulated and award-winning Currency Index, offers his expert comment on today’s quantitative easing by the Bank of England:

“The Bank of England’s £50bn extension to its quantitative easing (QE) programme today is not good news for overseas property buyers. Injecting more money into the economy has the effect of diluting sterling, and the Pound tends to suffer, giving us lower exchange rates for sending money abroad.

“Sterling is particularly vulnerable at the moment, since the underlying UK economy is still weak – for example we saw negative growth in the last quarter of 2011. Exchange rates have been propped up by weakness in other economies, particularly in the Eurozone, where the single currency has been struggling as the sovereign debt crisis rolls on.

“So while the recent problems in Europe and also in the USA have given overseas property buyers better exchange rates than they might expect, many clients are now locking in their rates using forward contracts, to make sure they are not exposed to a depreciating Pound in the coming months. Currently, rates for buying Euros are nearly 8% better than in July 2011, and for US dollars, over 3% better than a month ago.

“As a note of caution, a year ago when Euro rates were up at 1.20, the Pound quickly fell back, losing over 8% by the summer and giving overseas property buyers a serious headache. Fixing exchange rates in advance is easy with a reputable currency broker, and can save a small fortune.

“We may well see more QE in the coming months if the Bank of England thinks it will help the economy, and that is not a recipe for a strong Pound as the year rolls on.”

For further insight and commentary contact Robin Haynes at Currency Index on 0800 043 2623 or visit www.currencyindex.co.uk.
 

A Rising Star: Albania marks 100th Anniversary of Independence

by Charlotte Ashton Albania

Having achieved strong economic growth in recent years on the back of a services and construction boom, 2012 marks the 100th Anniversary of Independence of Albania from the Ottoman Empire in 1912. Indeed, reaching 100 years of independence holds a special significance for this rising Balkan star.

In a speech to mark the centenary of independence, Albanian Prime Minister, Sali Berisha stated: “We have remained together through all circumstances. Deep in the hearts of Albanians there is the principle of “one nation, one stance”. Nothing can divide the spirit of a country”.

To further mark this celebratory event, the Dajti Alpino Touristic Association have decided to embark on one of the most challenging missions known to man – being the first ever Albanian team of climbers to place the national flag on the peak of Everest.

Ravin Maharajah, Partner in Lalzit Bay Resort & Spa, the 5* resort under construction on the stunning Adriatic coastline of Albania comments,

“As one of Europe’s most talked-about holiday destinations and investment territories, it is somehow appropriate that Albania is coming to prominence as the centenary of its independence approaches and conquering Everest is a wonderful way to symbolise the struggle, courage and determination that Albanians have executed over the years.  This is a very important year for Albania.

“Indeed, Albania is a mysterious nation, where new tourism projects such as our 5* Lalzit Bay Resort and Spa and other major infrastructure improvements are transforming the country. Albania will have one of the most impressive road networks in the Balkans, with every community having access to a national road within 15-25 minutes. As well as this, Albania known as the ‘Small Norway of the Balkans’ thanks to its excellent water resources will be building 443 hydropower stations due to start in 2020 while energy and mining will continue to be two of the nation’s biggest sectors helping  encourage further development and growth throughout the country.”

For those thinking about investing in property, the apartments at Lalzit Bay Resort, Albania will provide a wonderful investment opportunity. Only moments away from the beach and situated in beautiful private gardens, the stunning resort villas are designed to be the ultimate beach properties in Albania. These spacious and stylish properties will afford private swimming pools a beach club, BBQ area, tennis courts and restaurants priced from just €38,000.

For more information please contact Lalzit Bay on 0845 125 8600 or visit www.lalzitbay.com.

 

London homeowners go for gold as new Olympic lettings service launches

by Charlotte Ashton United Kingdom

Its official, the race is now on as London homeowners seek to cash in on the estimated 500,000 visitors flooding into London this summer to witness the 2012 Olympic Games.

Taking a leaf out of the former Spurs and Arsenal defender, Sol Campbell’s book, who will be renting out his Chelsea townhouse for £75,000 a week, around four times its value throughout the Olympic Games; Londoners have begun advertising their Olympic properties to take advantage of the expected fivefold increase in London rental prices according to industry experts, Knight Frank.

James Davis CEO of leading lettings agency, Upad comments,

“The lettings market surrounding the Olympics is quite simply huge. From the 27th July until the 12th August 2012, London will be awash with tourists all in need of accommodation. Whilst hotels are expecting a boom in occupancy levels, more and more visitors have expressed interest in staying in private accommodation.

“Homeowners with centrally located London homes suitable for Olympic VIPs as well those seeking accommodation close to the Olympic Park will see demand for short-term rentals sky rocket allowing homeowners the perfect opportunity to reel in excellent financial rewards.”

For homeowners contemplating letting their properties during the 2012 Games, the team at Upad have launched a new dedicated Olympic lettings service for £250 + VAT.

For this flat fee Upad will advertise your property on Rightmove, FindaProperty, Zoopla, Gumtree and many more property websites for as long as it takes to secure your guests. You will receive applicant’s details and speak to them directly to arrange terms. Upad will help you to write a great description and even visit the property to take professional photos if you really want to achieve top dollar on your Olympic let.

With less than six months until all eyes will be on London and the opening ceremony, contact the experts at Upad today on 0333 240 1220 or visit www.upad.co.uk for more information on the new dedicated Olympic lettings service for £250+ VAT.

 

Spain still reigns for FX but transactions back to the UK rise to nearly a fifth

by Charlotte Ashton United Kingdom

Whilst Spain remains the most popular destination in terms of volume of currency transactions in 2011, interestingly, the UK takes second place with 18% of transactions according to the latest data compiled by FX specialist, Currency Index.

Almost a quarter of all FX transactions in 2011 (24.99%) were sent to Spain, unsurprising given the country’s appeal as a top holiday and second home destination. However, while France took the third spot with 14.83% of all transactions followed by the US in fourth place at 9.01%, one of the most surprising results was the volume of transactions sent to the UK last year.

Robin Haynes, MD of award-winning Currency Index explains,

“18.10% of FX transactions, nearly a fifth, last year were made back to the UK. This is most likely a result of people returning home from overseas or in a few cases sending currency to UK-based Euro/USD accounts for example, which can be overseas properties where a lawyer’s client account is in the UK for example. In addition, part of these transactions will be business clients repatriating income and also individuals earning money abroad.  It really is a mixed bag but of note none the less.

“In Q4 2011, there was a 15% increase in people bringing money back to the UK probably due to the Euro crisis which sparked panic and saw people moving money back to locations seen as safe havens.”

Indeed, the Eurozone sovereign debt crisis has caused fear to spread but for those considering buying property abroad, the reduction of the value of the single currency means that now is in fact one of the cheapest times to buy a place in the sun.

Haynes comments,

“There is a lot of confusion and scaremongering going on in the Euro at the moment but in spite of this, overseas property buyers should rest assured that the single currency devaluation will mean that they will currently be able get over 8% more for their money than if they were buying Euros in July last year.

For more information on currency exchange contact the experts at Currency Index on 0800 043 2623 or visit www.currencyindex.co.uk.

 

CURRENCY WATCH – FEBRUARY 2012

by Charlotte Ashton United Kingdom

Robin Haynes, MD of Award-winning Currency Index looks back at exchange rates in January 2012 and the headlines likely to be affecting rates in February for buyers of overseas property.

For buyers of property in the Eurozone, the ongoing sovereign debt crisis has provided the best exchange rates since October 2010, with the Euro exchange rate improving 0.85% in January after a strong improvement towards the end of 2011. The only currency rate to gain more than the Euro was the US Dollar, where rates improved 1.72% in January.

Elsewhere the underlying weakness of sterling was evident, as the Pound lost ground in January against the New Zealand Dollar (4.44%), South African Rand (1.89%) and Australian Dollar (2.18%). Investors have been switching funds to these currencies during uncertain times, increasing demand and therefore reducing the exchange rate – not great news for people emigrating further afield.

With UK economic growth falling back into negative territory, an impending recession is unlikely to help the Pound’s cause in the coming months either.

The Currency Index Volatility Measure also shows that the Rand and New Zealand dollars were the most volatile currencies in January, with swings from high to low of 5.05% and 4.69% respectively. The Euro and US Dollar were also volatile (2.2% and 3.31%), showing that volatile conditions in financial markets have given property buyers more to think about when buying their currency. Contacting a reputable currency company will help individuals buying abroad to understand these movements and buy at preferential rates.

 

January 2012   Change Volatility
US Dollar USD +1.72% 3.31%
Euro EUR +0.85% 2.20%
Thai Bhat THB +0.50% 2.215%
Candian Dollar CAD -0.13% 2.24%
Swiss Franc CHF -0.54% 3.06%
South African Rand ZAR -1.89% 5.05%
Australian Dollar AUD -2.18% 3.23%
New Zealand NZD -4.44% 4.69%

 

Overseas property buyers should be aware of key events coming up in February which are likely to affect exchange rates and therefore their overseas property prices:

 

• Ongoing: Greek debt negotiations & agreement of bailout
• Friday 3rd: Eurozone retail sales & US unemployment
• Thursday 9th: Bank of England Quantitative Easing decision & UK trade balance
• Friday 10th: US trade balance
• Tuesday 14th: UK inflation & US retail sales
• Wednesday 15th: UK unemployment & Eurozone GDP
• Friday 17th: UK retail sales
• Wednesday 22nd: Bank of England minutes
• Friday 24th: UK GDP
• Wednesday 29th: Eurozone inflation

 

Applying the exchange rate change to recent changes in local property markets around the world reveals the real change in cost to British buyers of property around the world.

 

    Currency Property Overall Change Price
Portugal EUR -0.85% -2.88% -3.73%  
USA USD -1.72% -1.61% -3.33%  
Spain EUR -0.85% -2.15% -2.18%  
Greece EUR -0.85% -0.89% -0.89%  
Thailand THB -0.50% -0.50% -0.50%  
France EUR -0.85% 0.24% 0.24%  
Australia AUD 2.18% 1.02% 1.02%  
Switzerland CHF 0.54% 1.93% 1.93%  
New Zealand NZD 4.44% 2.60% 2.60%  
Canada CAD 0.13% 3.59% 3.59%  
South Africa ZAR 1.89% 4.22% 4.22%  

 

Applying the exchange rate change to recent changes in local property markets around the world reveals the real change in cost to British buyers of property around the world.

For example a British cash buyer can now pick up a bargain in Portugal for nearly 4% less than in recent months, or a saving of over £6,500 on a property which was on the market for €200,000 towards the end of 2011. The countries where emigrating or buying overseas are becoming significantly more expensive, are New Zealand, Canada and South Africa, due to an appreciating currency value and/or significant local increase in property prices.

For more information on currency exchange please contact the experts at Currency Index on 0800 043 2623 or visit www.currencyindex.co.uk.

*Based on data from Global Property Guide 2011
 

60 Seconds with James Davis, CEO of market leading online lettings agency, Upad

by Charlotte Ashton United Kingdom

What is your role?

Founder & CEO of www.upad.co.uk

What is Upad in a nutshell?

Upad is the UKs largest online lettings agency. We help landlords nationally to let and manage their properties, and because we’ve grown so large, we can pass on massive savings to landlords.

How is it different to other lettings agencies?

Our landlords are generally experienced buy-to-let professionals who like to stay involved in their property. They will for instance, meet and show tenants around their property themselves, so they can make an informed decision on the best tenant.

Upad allows landlords to purchase only the services they need. For example if they already have photos, we don’t charge them for more. Successfully letting a property doesn’t require a high street office or a fleet of cars, so we cut out all the fat making the process efficient and affordable.

What do you see happening to UK rents in 2012?

We believe there will be a modest 2-5% increase in rents outside of London, while in London rents will hike up to around 5-10%, propelled by events such as the London Olympic Games. Indeed, there will almost certainly be a ‘renter swell’ and we will soon forget what the meaning of a ‘first time buyer’.

What will be the greatest challenge for landlords this year?

The capping of housing benefits will cause a massive upheaval in many areas. Even if landlords let privately, local markets will change. It´s hard to measure knock on effects and unintended consequences of regulatory changes. Availability of funds proves to be an ongoing problem and with the economic forecast looking grey, I would definitely suggest that landlords do whatever they can to stay cash positive.

If you had £100k to invest in B2L, what you buy, where and why?

I would purchase a 3 / 4 bed property in Swansea, ideally SA1 or SA5 postcodes, as the yields no longer stack up for me in most parts of London.

There is a huge quantity of stock available there, many of which are ripe for total redevelopment work. There are healthy grants available if the property has been empty for 2 years and reduced vat rates on works. Housing Benefit tenants still ´work´ there too – I´m looking to sell some of mine in London soon due to the recent capping.
 

Farmland – The new Green Gold of 2012

by Charlotte Ashton United Kingdom

As any savvy investor will know, land is the most valuable asset we have. Of the 30% of the Earth’s surface which is land, just over half is used for agriculture however with the global population rising fast, passing the 7 billion marker only last year, and large areas of farmland previously used for food production being transformed into fields of bio fuel crops, the pressure on our food supply is becoming concerning.

Even today’s most prolific philanthropist Bill Gates has turned his attentions to the issue of global food shortages, redistributing funds from his own Gates Foundation to the research, development and protection of agricultural lands and techniques.

Both at macro and micro level, as we all have experienced in our local supermarkets and as stated in the Knight Frank Wealth Report 2011, food and soft commodity prices have hit record highs with UK wheat prices reaching £200 per tonne in 2010. There is simply not enough food being produced to meet demand and with the OECD estimating the production must increase by 70% before 2050 to satisfy global population growth and changing consumption trends, will farmland be new the green gold of 2012?

As a tangible asset, farmland is highly appealing to investors, especially those cautious of volatile stocks, shares and bonds. Not correlated with mainstream asset classes, investment in agricultural land is based simply on supply and demand and similarly to gold, has remained one of the most robust asset classes in recent times.

For years cash-rich and land-poor nations have been purchasing agricultural land in overseas shores such as the US, Australia, Russia and South American nations in order to protect themselves from food scarcity as well as enjoy the lucrative returns. And now this trend has sparked a desire for individual investors to own their slice of farmland be it in the Yorkshire Dales or the Uruguayan interior.

Ray Withers, CEO of international investment agency Property Frontiers, which specialises in alternative asset classes, comments,

“As an investor myself I always consider the fundamental elements of supply and demand behind any investment. Today the pressure we place upon our land is vast and global food shortages are cleanly apparent which suggests to me that investing in high performance agricultural land, in the right location and via the right investment structure would be a wise and ethical choice in 2012.”

For many including Withers, the vast farmlands of South America are the preferred choice for investors due to the productive climate and soils. Politically calm and economically stable nations such as Uruguay have established and productive agricultural lands with foreigners owning up to 25% of food production land.

Opportunities are now abounding in these nations for investors to capitalise on low land prices and the ever growing global demand for food. For more information about investing in farmland, the new green gold, contact the experts at Property Frontiers about their exclusive new investment opportunity on +44 1865 202 700 or visit www.propertyfrontiers.com.
 

Albania named as Hot Destination of 2012

by Charlotte Ashton Albania

 

The Balkan nation of Albania was relatively unknown a couple of years ago and if mentioned, it was most certainly not as a holiday destination. But things are changing rapidly with this enigma of a country repeatedly hitting the travel headlines these days for all the right reasons.
 
In 2011 the auspicious Lonely Planet guide put Albania in at #1 in their ‘Best in Travel for 2011’ list. Shortly after, London’s very own global business newspaper, The Financial Times dubbed Albania one of the year’s most intriguing prospects for emerging travel.
 
And now, getting 2012 off to a flying start, Albania has been named by MSN Travel as one of the Hottest Destinations of the year. In at 4th position, Albania makes the prestigious shortlist compiled by one of the world’s longest established travel companies – Cox and Kings and ABTA Travel Association.
 
Perhaps best well-described as ‘a country awakening from a long, oppressive hibernation’, Cox and Kings herald Albania as a:
 
“Landscape of almost heart-wrenching beauty, rugged mountains, snow-capped for much of the year, towering above unspoilt white sand beaches and green mysterious valleys.”
 
This beautiful description conjures up a vivid portrayal of untouched lands just waiting to be explored. Like the people of Albania, who have been previously hidden behind a blanket of communism and corruption, the nation is now emerging as a hidden European gem.
 
MSN Travel says of Albania:
“Bordered by Greece, Macedonia, Kosovo and Montenegro, Albania is nestled in the heart of the Mediterranean but has long been ignored as a travel destination after years of being shuttered in communist isolation. But the world is slowly awakening to its potential as both a beach and historical destination with miles of coastline along the Adriatic and Ionian Seas, and historic archaeological ruins that trace the country´s history back through the to the Bronze Age.”
Ravin Maharajah, Partner in Lalzit Bay & Spa Resort, the 5* resort under construction on the stunning Adriatic coastline of Albania, comments on the latest accolade awarded to this country:
 
“We started this venture in Albania, carrying out the exploratory work for the resort in 2008. We were extremely confident of the success that will come out of Albania as it heads away from oppression and towards modern Europe. Our early forays into the country led us to a land of plenty. There is an abundance of sunshine, white sandy beaches, crystal clear warm waters, beautiful mountain ranges and above all a kind, warm and generous population.
 
“We have been bowled over time and time again with the efforts that the Albanians are making to push their country forward, make changes and improve the infrastructure.”
 
The apartments in Lalzit Bay Resort are moments away from the beach and situated in beautiful private gardens. The villas are designed to be the ultimate beach properties in Albania – spacious, stylish and with private swimming pools.
 
Priced from just €35,000 for apartments, for more information contact Lalzit Bay on 0845 125 8600 or visit www.lalzitbay.com.