|Real Estate Information|
European Second Home Prices Wilt in Drought
Spain and Portugal have suffered one of their worst droughts on record this summer, with consequences from empty swimming pools for the tourist to economic disaster for farmers losing their crops and livestock.
Roger Munns, Managing Director of Tribune Properties, predicts that property prices in the two European countries could drop as much as fifteen per cent in some areas as more owners decide to put their villas and apartments on the market.
'For many owners of second homes the original motivation to buy was to have somewhere they could spend time in a relaxing environment. Coupled with the thought of a good investment for the future, the market for overseas homes from buyers in the UK, Germany and Scandanavia has really taken off in the last twenty five years.
But soaring temperatures and a strain on the water supply could have consequences for their rental returns next year, which many owners rely on to meet their overseas mortgage.
Many holidaymakers want to rent a villa with a pool - but the attraction soon goes if the pool is empty. Some golf courses are having to cut down on watering their greens too, and it won't take a big fall in tourism to mean the difference between breaking even and not being able to meet the mortgage commitments for some overseas property owners.
This autumn could see more properties than usual being put on the market, with a consequential fall in prices'.
Early warning signs of a potential fall in property prices have already been seen on the Spanish Mediterranean island of Menorca, which has enjoyed better rainfall this year than the Spanish mainland and no water restrictions, but some villas being cut in price by over ten per cent.
Water restrictions on the mainland are having an impact on potential villa buyers, with many questioning the value of a swimming pool when they might not be able to use it.
Portugal has recently asked Spain for 6 million Euros in compensation, as water levels in the River Douro which runs through both countries fell below limits established in a bilateral agreement,with Portugal coming close to accusing her neighbour of stealing her water.
Good Time to Buy
'For anyone considering buying a property in Portugal or Spain, this September and October could be the ideal time to buy', say Tribune Properties. 'Unusually many properties were being reduced in price in August, traditionally a good month for sales.
We normally see villa and apartment prices being dropped mid September onwards when the tourists and potential buyers are thinner on the ground as some owners are keen to sell and don't want to wait until the following Easter before having a real chance of selling again.'
The drought isn't the sole cause of property prices falling add Tribune Properties, saying it has accelerated price falls and come on top of an already poor year for many estate agents in Europe.
'A good barometer for European property are the tax havens of Monaco and Andorra which don't rely on 'tourist' buyers, but usually have a steady supply of buyers interested in taking advantage of the zero income tax rate. Andorra is in the Pyrenees and has no water supply problem - but estate agents were twiddling their thumbs this summer waiting for buyers to show - and they didn't.
Monaco similarly has had no water supply problems, but has also seen a lack of buyers. The tourists are still visiting the Principality and hotels in Monaco and Monte Carlo have been as busy as ever, but again there is a lack of serious property buyers, and negative property inflation is quite possible in Monaco this year for the first time in a decade.
With more property available on the market we would suggest buyers draw up a list of three or four villas they have viewed and liked, and then suggesting to the owners that they would consider buying at fifteen per cent below the advertised asking price to see which ones are prepared to consider it.'
One possible answer to secure the long term tourist trade and consequential property market is to follow Malta's example of building desaliniation plants, converting sea water to drinking water, sometimes known as 'reverse osmosis'.
The Mediterranean island competes with Portugal and Spain for the attention of second home buyers, and has a healthy tourist industry - despite having no rivers and low rainfall, allowing the island to function normally even in drought conditions.
The water from this source can be used for agriculture and ensuring adequate reserves to fight forest fires for example - it might just be the answer too for the swimming pools and golf courses - and would allow a plentiful supply of high quality for domestic use.
For details of hotels in Monaco, Monaco's weather, a map of Monaco, the Grand Prix and direct contact details for the Hotel de Paris, Columbus Hotel and others visit http://www.yourmonaco.com
This RSS feed URL is deprecated, please update. New URLs can be found in the footers at https://news.google.com/news
Updated presentation for investors of INVL Baltic Real Estate Vilnius ... - GlobeNewswire (press release)
Equity is the value of your home minus what you owe on your mortgage. For example, If Joe's home is worth $200,000 and Joe still owes $170,000, then Joe's Equity is $30,000.
Buying an Unfinished Home Maybe Your Answer
For the first time "want-to-be" homeowner, purchasing an unfinished new home maybe just the answer. With mortgage interest rates still at record lows, there has not been a better time to purchase a home in decades.
Cape Coral Realtor
As the second largest city geographically in Florida, this beautiful southwestern attraction is located on the banks of the Caloosahatchee River. It also lies between the Gulf of Mexico and part of the Intracoastal Waterway.
Investing In Land
Changing social trends point to a huge rise in demand for housing within the next twenty years.With an ageing population and more single people requiring accommodation, it comes as no surprise that the government has ordered planning authorities to find more land to develop, including areas of greenbelt.
Property Investment Strategy: Securing Properties with Little or No Deposit
Property Investing often requires creative strategies to make it successful. Professional property investors often use the option contract as a tool to develop some useful investment strategies.
Dealing With Difficult Tenants
When managing residential properties one bad tenant can often undo the good work that one hundred excellent ones may have achieved. A bad tenant is a bad tenant regardless of whether they are in the West Riding, Western Australia, Westchester, Wanganui or the Western Isles.
Why Should Sellers Be Absent During Showings?
If only there were a way to sell your home without letting all those people come through. Unfortunately, the reality is that homes must be shown in order to be sold.
Home Buying: Things To Keep In Mind
So you've decided you want to own a home and now you want to begin your search for one. Before jumping into a home search, there are a few things you should keep in mind when going about buying a home.
Practical Advice for Finding Irish Castles for Sale
Have you ever wondered what it would be like to live in a castle?Have you ever dreamed of dancing in a grand ballroom that at one time was filled with princes and other nobility?If you find yourself dreaming of this lifestyle, you're not alone. Celtic castles, and all things medieval for that matter, have gotten very popular in recent years.
Ten Tips For Selling Your House
One of the biggest mistakes people make when selling a house, is not understanding real estate value. It doesn't matter at all what you think your home is worth.
Setting Goals for Real Estate Success
The power of goal setting has been well documented and communicated so before you skip over this point because you've heard it all before I'd like you to consider how well you are doing it. I'm a firm believer that you don't truly understand something until you are doing it.
How To Go About Selling Your Home On Your Own
In days of booming real estate, you would think that selling a home shouldn't be too much of a task. And if it's going to be that easy then why not do it on your own and save yourself on thousands of dollars in commissions.
Young Couple Buys Ranch with Government Money
Kirk and Tina Sczepanik had a dream. They wanted a ranch of their own.
How Long Your Mortgage Runs Determines How Much You Pay
The first thing most of us think about when the time comes to take out a mortgage on a new home is the interest rate.That's both perfectly natural and very sensible.
Real Estate Investing Contracts on Toilet Paper
Even if your real estate contract has been written on toilet paper, it's valid.Content of your real estate investing contract is what's important.
A Beginners Guide to Flipping Houses
If you're dreaming of making money in real estate, it's time to stop dreaming and get to work, because making money in real estate isn't just a vague pipedream. It can be done, even by a young and inexperienced person, when you learn how to "flip" houses.
Questions Investors Should Ask When Buying and Selling Investment Property
If you're a real estate investor, here are several questions to consider when looking at investment properties. Providing sound answers to these questions will greatly increase your profits:Why do homeowners sell for bargain prices?There are many factors that can prevent owners from being able to maintain their homes.
So, You Wanna Buy Pre-Foreclosures?
So you wanna buy pre-foreclosures? or at the courthouse steps? So many people ask us about this. Here's our '30 second seminar' on it.
5 Rock-Solid Real Estate Investment Strategies
Investing in real estate is more complex than simply buying and selling homes. To help new real estate investors to decide which strategy might work for them I put together 5 rock-solid strategies.
Selling by Owner Escrow or Closing Checklist
Home sellers should keep on top of their pending sale; especially when selling without the assistance of a real estate agent. Sometimes busy real estate agents forget to monitor all aspects of a pending sale.
|home | site map|
|© 2006 TIGER MEDIA|