Q: Where are all the bargains? A: Overseas!

Can we step up and say we have heard some, er, good news about the property market?

Nationwide has reported house prices (UK) up for the third month in a row. The actual figures are reported to be a rise of 1.3% in July. This may sound low but it actually constitutes the highest climb in a quarter since February 2007.

Another aspect that has been underlined recently, is that there may be a risk of longer term property supplies due the sharp decline in housing construction.


Banks avoid losses
Britain’s taxpayer-owned banks are selling repossessed property assets. Is this good news? Apparently not; according to The Times (24th August 2009) the banks are selling these distressed assets to their own subsidiaries!

This neat little manoeuvre enables them to negate cashing in at the bottom of the market, and to enjoy the inevitable returns in years to come. Looks as if ‘our ‘bailed-out banks continue to share the spoils amongst themselves.

We also read in the Sunday Times (23nd August 2009) home sales in America jumped at their fastest rate in 10 years during July!

Tim Landseer-Brooks from Compass Amazing Resorts says ‘It could emerge that the genuine opportunities lie in the overseas markets, especially The Costa del Sol & Florida’.


Now the Sunday Times has pitched in with an encouraging article about overseas property. Is it time to dive back into the overseas property market?

Portugal Exits Recession

Official figures show that Portugal, together with Sweden, has exited recession in the 2nd quarter of the year. The country's economy grew 0.3 percent in the three months to June.

German and France led a suprise rebound out of recession last week - a further sign that a global economic recovery is taking hold.

Algarve A-Listers!

In previous posts we have mentioned celebrities Cristiano Ronlado holidaying and Angelina Jolie house hunting in the Algarve. Today we focus on why the rich and famous seem attracted to this stunningly diverse region and what role Southern Portugal plays in their celebrity lifestyles.

For years Portugal has been overshadowed in terms of quantity by the neighbouring Spanish Costas but the Algarve managed to maintain its modesty. With strict building laws ensuring en mass construction was controlled, it now boasts a reputation of its own in terms of quality and hold its appeal to many A-List celebrities. Sir Cliff Richard has been an Algarve advocate for decades together with footballers Alan Shearer and Michael Owen, Irish pop band Boyzone front-man Ronan Keating, singer Bonnie Tyler, health queen Rosemary Connolly, and popular UK TV presenters Charlie Dimmock and Carol Smillie.

Steven Gerrard and his family own a home in the Central Algarve, the Beckhams are said to be huge fans and former England footballer Teddy Sheringham and Formula 1 race driver Rubens Barrichello are also property owners. Robbie Fowler, Gareth Southgate and football coach José Mourinho also add to the list of celebrity home owners.

Other celebrities, such as David Seaman, preferred to invest in the Western Algarve, attracted by its natural wilderness and rural beaches where famous faces including Prince William, pop band Blur’s Alex James and rock legends Metallica’s base player Robert Trujillo have all been spotted surfing.

It is only recently that several international brands have emerged such as Hilton, Formula 1 and Nikki Beach, as well as mainstream brands like Starbucks and Subway. So while the Algarve, with its chic restaurants, boutique hideaways and exclusive hangouts may have earned itself a reputation of being something of a ‘cool’ celebrity playground, it remains true to its down-to-earth roots that offer the rich and famous the privacy to be who they want to be far from the glare of the media’s lenses, an inconspicuous destination that can effortlessly outshine its more glamorous rivals by simply being itself and giving its visitors the opportunity to do the same.

Opportunity Knocks!

Much has been said of the oversupply problem in Spain, that so much new property has been built in Spain it will take years to be absorbed by natural market forces and demand.

However, this highlights one thing for people interested in buying in Spain: Opportunity! If any industry suffers oversupply the natural result is that the price goes down.

Supply and Demand

In Economics at school we learned that supply and demand was all about how much money chases how many products. In a nutshell if there is only one product on offer then ALL the money is needed to buy it. If there are two products, then half the money and so on.

In Spain there are many many properties on offer which means that you need less money to buy any one of them.

When to buy

In previous posts we analysed whether we should wait to buy or take the plunge now. We suggested taking the plunge now. This is not to say that you don't look before you leap! It also shouldn't mean that you start to view so much property that you are unable to decide.

The truth is that if you have some money to invest and you are interested in a property for your own use, there has probably never been a better time to purchase.

At Amazing Resorts we suggest people research the market well, request sound advice from us and then come out to look. Be prepared to make offers but remember, offers should be made with a view to completing quickly. The only reason prices have dropped or developers are willing to negotiate is because they want, or need, to sell.

One man's meat...

It might sound unfair or even callous but one man's meat is often another man's poison. In this overseas market there is an abundance of properties bought by people who may now be overstretched. This forces them to sell at almost whatever price they can get. They can no longer afford the luxury of waiting for the market to "come back". This is where you can act and secure a great deal.

Bank "Repos"

This is a strange area. Is it worth looking at bank repossessions? In many ways it is. However, if you had several houses and couldn't keep up with the payments on all of them, would you let the best ones be repossessed or the worst?

With this in mind, Amazing Resorts concentrates more on bank stock that is the result of debt / equity swaps. These are usually a smaller collection of units within an existing development. They can consist of only five or ten units that the bank has taken from the developer to pay off some debts and provide cash flow to him. These are by far the best units because the bank will come in and choose.

if you were the bank and could choose some property, would you go for the best or the worst?

Exactly.

Contact us on

info@amazingpropertyinspain.com  download our guide "Overseas Property Guide 2009: Spain is the new Spain".