A strong Pound makes this an Ideal time to invest...

British citizens emigrating abroad could collectively be losing hundreds of millions per year through poor exchange rates and over inflated bank charges. The British Pound is currently very strong against the Euro at 1.51 to 1.00 on 15th January, making now THE ideal time to invest abroad.

Watch Those Exchange Rates!

Please dont forget that exchange rate volatility plays a key role in your Sterling transfer when purchasing large amounts of currency for your property investment abroad. It is not uncommon for currencies to fluctuate by as much as 10% over relatively short periods of time so it is important to monitor exchange rates and secure your rate in advance to protect yourself from losing vast sums of money on the day of your transaction.

However, many overseas property buyers overlook the importance of securing a good rate of exchange, while using reliable foreign exchange dealers such as MoneyCorp will literally save them thousands on the day of their transaction, from the transfer of an initial reservation fee, right up to the final payment on your property. For example, today, 15th January 2007, Sterling was strong against the Euro at 1.51 to the pound, while less than two weeks ago it stood at a mere 1.42 to the pound. By arranging their funds today, wise investors have secured this favourable rate of exchange, which can even be fixed for a period of up to two years, allowing them time for the payment of off-plan investments if necessary.

An average UK family moving abroad with assets of 250,000 could loose up to 10,000 of their funds simply by transferring their money abroad on the wrong day because they didnt pay careful attention to their rate of exchange. Without a doubt, this represents a huge loss which could be avoided simply by being aware of professional money exchange brokers, such as MoneyCorp, who will secure you the best rates.

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Valencia New Property Prices still Rising

According to one of Spain’s most prestigious valuation companies, the price of new build property in Valencia city increased by 15.6% in 2006 and the average price per square metre now stands at €2,211 which is still almost half the price of new builds in Madrid and Barcelona. Valencia is Spain’s third largest city with a population of around 800,000 that increases to 1.5 million within a 30 km radius.

Sociedad de Tasacion S.A. has more than 20 years experience in the valuation sector. Last year it valued both property and businesses worth more than €89.6 billion.

In its study of the new build market in “Spain’s 50 Provincial Capitals” it concluded that prices increased by an average of 9.8% during 2006 with the average price per sqm now standing at €2,763.

Its prediction for 2007 is that prices will continue to rise albeit not as strongly as in 2006. Increases will be more moderate especially in areas with a good supply of available building land.

The data which was used in the survey came from 315,000 properties in 7,600 different developments. Properties of more than 150 sqm and less than 60 sqm were not included nor were attic apartments due to the distorting effect which the inclusion of such properties would have given the sizable terrace space that they tend to have. Detached houses were also excluded.

In addition, the company also provides data relating to the annualized return over the last 21 years, the average annualized return being 10.7%.It estimates that there were more than 800,000 home starts in 2006.

The data regarding Spain’s 6 largest cities are as follows:

Madrid new build prices are now at €3,870 per sqm, an increase of 6.6% in 2006 and an annualized return of 10.6% since January 1986.

Barcelona new builds are now at €4,192 per sqm, an increase of 13.3% in 2006 and an annualized return of 13% since January 1986.

Valencia new builds are now at €2,211 per sqm, an increase of 15.6% in 2006 and an annualized return of 10.9% since January 1986.

Seville new builds are now at €2,445 per sqm, an increase of 15.4% in 2006 and an annualized return of 10.5% since January 1986.

Zaragoza new builds are now at €2,851 per sqm, an increase of 17.4% in 2006 and an annualized return of 11.5% since January 1986.

Malaga new builds are now at €2112 per sqm, an increase of 9.9% in 2006 and an annualized return of 8.6% since January 1986.

In conclusion, new build property in Valencia city still represents excellent value for money when one takes into account the fact that it is a good 20% cheaper than the average price per sqm in Spain’s 50 Provincial Capitals (€2,211 vis a vis €2763). It is almost half the price of new builds in both Madrid and Barcelona, being 43% and 47% cheaper respectively.

When one also considers that Valencia will play host to Sailing’s Olympics “The America’s Cup” this year from April to July with an expected global tv audience of more than 300 million viewers as well as the more than 1 billion Euros being spent on infrastructural devlopment, investing in property in Valencia becomes all the more compelling.

No holes barred as Spain and Portugal go head to head

Golf resorts are flowering from the Atlantic to the Costas. Cheryl Markosky compares the best that Spain and Portugal have to offer

Aficionados of the sport say golf can be defined as an endless series of tragedies obscured by the occasional miracle. If you like those odds, owning a home on a golf course might just be for you.

Spain v Portugal: which one is driving to the fore?

So where do you buy? In Spain, where there are 60 courses in Andalucia alone, or neighbouring Portugal, boasting some of the top-rated courses in Europe?

Nick Freeston of Chesterton International says Spanish courses are probably easier to play, but their Portugese equivalents are more challenging and built for true golfers.

"There are more courses in Spain," he adds, "but Portugal will continue with a reasonably healthy growth - and an element of class thrown in."

A three-bed villa at a golf resort on the Costa del Sol - or Costa del Golf, as the locals call it - starts at around £300,000, according to Freeston, while you pay less (about £270,000) on the quieter Costa Blanca. "Prices in south-eastern Portugal for the same property would be around £400,000; or expect to pay approximately £350,000 on the less established west coast," he says.

Spain has its defenders, particularly with the recent announcement that capital gains tax will be lowered from 35 to 18 per cent in January for foreign buyers (capital gains in Portugal is 25 per cent).

Chris Mercer of Mercers believes "the weather, cost of living and comfort factor are the main reasons why people choose to buy in Spain. It is a safe, stable place to buy a second home."

Chris Mann, who is selling golf property at Hacienda del Alamo Golf Resort in Murcia, says: "Portuguese is impenetrable and there is a good deal of English spoken in Spain. Spain is more sophisticated in its lifestyle, food, communications and transport. And the Spanish would say their wine is better, of course." Well, they would, wouldn't they?

Sandra and Ian McLean are selling their £160,000 three-bed semi just outside Birmingham to live permanently in a three-bed villa they bought two years ago for around £200,000 at Hacienda del Alamo. Ian, a 58-year-old former banking services manager, enjoys golfing regularly, while Sandra, 55, likes the shops in nearby Fuente Alamo and the beaches, 30 minutes away.

"The pros of living near a golf course are the views, plus the social side. We have made a lot of friends over a drink in the clubhouse," says Sandra. Service charges are reasonable at just under £675 a year; the couple also pay an annual property tax of £360. But while high densities prevail in Spain, with 700,000 new properties built a year over the last few years, quality overrides quantity in Portugal, argues David Westmoreland from Praia D'El Rey on the Silver Coast."The market is strong for property on golf resorts like ours where values have soared by 280 per cent over the last seven years," he says.

House finder Robert Pierce of The Property Finders believes the Algarve can accommodate another 10 or 15 golf courses before it is anywhere near saturation. "There are 29 courses, with four more under construction and another four being considered by the planners."

For the record, Portugal clinched our trophy by a nose, scoring a total of 16 points to Spain's very worthy 15: so it's Taylor's Reserves all round at the 19th hole.

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With tax rates now reduced, a home in Spain makes a shrewd investment, as long as you do your homework

Still plenty to gain from a home in Spain

With tax rates now reduced, a home in Spain makes a shrewd investment, as long as you do your homework

Who says nothing good ever comes out of Brussels? Britons selling their holiday homes in Spain used to be clobbered with a capital-gains tax (CGT) rate of 35%, while permanent residents (Spaniards and foreigners alike) paid only 15%. Now, under pressure from the European Union, Spain has finally changed the rules. Since the beginning of this year, all EU citizens have been liable for the same rate of 18% Spanish CGT when they sell property there.

Lower taxes should make Spanish property a better investment for nonresidents, but taxes aren’t the whole story. With stiff competition from cheaper destinations such as Bulgaria, and Spanish property prices looking a bit peaky, is it still worth buying a holiday home in Spain?

Undoubtedly yes, in my opinion, but only if you are prepared to do your research, develop investment strategies based on local market insight and take a long-term approach. Buying any old property won’t work in a market that has risen by 100% in five years and now shows signs of fatigue. But if you are prepared to make the effort to become a well-informed investor with realistic expectations — rather than basing your decision on investment tips from pushy sales reps during whirlwind inspection trips — then here are some pointers.

The Gibraltar effect

With low taxes, minimal regulations and endless sunshine, all just a couple of hours by plane from London, Gibraltar is having no trouble attracting new businesses such as internet gaming and financial services companies (rumour has it that Gib’s ambition is to become the Hong Kong of Europe). This is creating well-paid new jobs, but few of the new residents want to live on the rock, fuelling demand for quality housing over the border in Spain. Sotogrande — arguably Europe’s top residential golf resort — stands to gain the most. At least one internet gaming entrepreneur has been investing in multiple units there to use as housing for his company’s employees.

That’s not all: a new agreement between the UK, Spain and Gibraltar means that Spanish domestic flights can now land at Gib. This will cut down the journey time from Madrid by a third — a huge improvement. Madrileños are big buyers in this area — a majority of buyers at Sotogrande last year were Spanish — and easier access should boost demand.

Contrarian investment strategies in Marbella

Marbella is having a terrible time with corruption scandals, illegal building and mindless development, all of which turn off buyers. Furthermore, a glut of two-bedroom flats is stunting prices because the market cannot digest all the new properties, with the result that prices across the board are either stagnant or falling.

But Edward Kay, 43, from London, is bullish about Marbella even as the market falls. Kay, formerly an investment banker with Merrill Lynch, is hunting down detached and semidetached beachfront properties, priced to sell, anywhere near Marbella.

“The glut of apartments is depressing the whole market, and distorting prices for other types of property,” he says. “As a result, you can pick up villas for less than they cost to build. Prices may fall further, but I don’t mind because I’m confident that the properties I’m buying will one day be worth a lot more. Based on fundamentals, this area has a great future.” Fincas in southern Catalonia The price guides produced by Kyero.com, a leading Spanish property portal, show that Tarragona, in southern Catalonia, has emerged as a popular region with buyers. A new airport under construction nearby in the province of Castellon should help fuel demand for property around the Ebro River delta, one of Spain’s most beautiful regions.

Newly built villas on the coast are often wildly overpriced, but fincas (country properties) with a few hectares of land, not far from a village, still represent good value. “If it’s just land with planning permission, then prices start at about €30,000 [about £20,000],” says Mary Sidman, director of Catalunya Property Services. “Fincas with a habitable house start at about €200,000 [£132,000]. Younger buyers, families with children, are coming here for a change of life, and that demand is not going to disappear.”

Flight to quality

Buying off-plan proved to be an unpleasant experience for many homebuyers and investors alike in recent years, due to the flaky conduct of countless mediocre developers. A difficult market, and risk-averse buyers, should cause a flight to quality, which will benefit developers with good reputations. You will have to do your homework to identify the best developments, and don’t rely on an estate agent for your information.

So much for what you should buy: what should you avoid? For a start, keep away from two-bed flats in mediocre locations on the Costa del Sol. There is a surplus of these, and prices need to fall further before the market clears.

Patience is also required. It used to be possible to make a quick killing by “flipping” properties bought off-plan, but this is no longer the case. Spanish property is not a good short-term speculative investment because transaction costs are high, at about 10%, both when you buy and sell.

A final word of warning: as Bill Blevins, of tax specialists Blevins Franks, points out, if you are a UK resident buying in Spain, you are still liable for British CGT — 40% after allowances if you are a higher-rate taxpayer. In other words, you may have to pay less to the Spanish, but will end up paying correspondingly more to Gordon Brown.

And, be warned, keeping your Spanish property dealings secret from HM Revenue and Customs is becoming more difficult. British and Spanish tax authorities are starting to cooperate, and the taxman is snooping on you like never before.

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THE TOURIST INDUSTRY COMMENCES THE YEAR 2007 SEASON AT FITUR

• A total of 845 exhibitors, more than 13,100 companies and nearly 89,000 net square metres of exhibition define the first grand worldwide tourism event of the year.

• 43% of direct participants are from abroad, attending the fair from some 170 countries/regions

• The fair's official newspaper, known as FITUR NEWS, will be distributed for the first time at the fair on the days set aside exclusively for the trade. There will be three different issues (one for each day), which will bring together the most important events that take place during this edition of the fair.

FITUR will once again bring the tourist industry together at its twenty-seventh edition, which is due to take place between 31st January and 4th February. This new edition, which is characterised by its growing international dimension and more professional approach on the days set aside exclusively for the trade, is the first grand world event on the tourist industry calendar, one that provides participants with an ideal opportunity to boost their commercial strategies. In this respect, IFEMA will make all ten halls at Feria de Madrid available to members of the industry, bringing together some 845 direct exhibitors and 13,190 represented companies from 170 countries/regions within a net exhibition area measuring 89,000 square metres.

The International Tourism Trade Fair once again becomes one of the most important points of reference for the travel industry, providing all its participants with an ideal setting in which to define their strategies, exchange impressions and opinions and present their new products and destinations ... in short, the fair will provide them with an excellent opportunity to discover the current state of the tourist industry. Furthermore, FITUR, the second most important tourism fair in the world and the most important fair for Latin America, has introduced a series of initiatives and new features that will enhance its effectiveness as a leading centre for business. In this respect, the organisers have boosted a range of new computer-based tools and tightened the access controls on the days set aside for professionals, thus making FITUR the very best framework in which the participating companies can achieve their objectives.

In effect, in the general growing context of the fair, the considerable international stature stands out at FITUR, reflected by the fact that 43% of the direct exhibitors are foreigners.

For further information visit: http://www.ifema.es/ferias/fitur/default_i.html

Growth in Low Cost Flights Increases Tourism

The increase in passengers on low cost airlines can explain most of the rise in tourists visiting Spain last year. Passenger numbers on low cost flights to Spain were 14.7% up over the year while traditional airline passenger numbers rose only by 3.8%. The increases seen in Spain by Ryan Air, Easy Jet and Air Berlin were up by 15.1%, 10.1% and 6.4% respectively.

Source: http://www.eyeonspain.com