The rise of the resale – what British buyers want from the Spanish property market

The rise of the resale – what British buyers want from the Spanish property market

by Charly Spain
  • 76% of Spanish home sales are now resale properties (Ideal Homes International)
  • Overseas buyers steadily accounting for 17-19% of transactions (Ministry of Development)
  • Spanish property market growth up 1.8% year on year (Knight Frank)

Market intelligence gathered by boutique overseas real estate agency Ideal Homes International has revealed an interesting trend when it comes to Spanish second homes. It seems that Brits are turning their backs on new build properties, in favour of older, resale homes.

Chris White, Founding Director of Ideal Homes International, explains,

“We’re seeing a trend in Spain right now for British buyers opting for resale properties instead of new builds. Resale properties now account for 76% of sales, compared with just 24% for new builds. While there is still interest in new build developments from Scandinavian and Belgian buyers, the Brits are all about the resales right now.”

Many British buyers are looking for dual purpose properties when it comes to purchases in Spain. In the immediate term, they want a great holiday home that also has the potential to earn income as a holiday let. In the longer term, they want somewhere that can act as investment for their golden years, either as somewhere to escape to for a life in the sunshine or as somewhere that will grow their capital so that they can sell it to fund their retirement.

The jitters about buying second homes overseas, caused by the financial crisis of the late 2000s, seem finally to have been put to bed. Knight Frank’s Global House Price Index increased by 3% in 2015, with buyer confidence keeping both domestic and overseas property markets alive and well. Spain’s year on year growth stood at 1.8%, according to the report, with overseas purchasers accounting for between 17% and 19% of transactions since the start of 2015 (based on Ministry of Development data).

“There was a time when British buyers flocked to new build developments in Spain,” continues Ideal Homes International’s Chris White, “But the financial turbulence of the past decade has had an interesting impact on British property purchases in Spain. Confidence is back and the market is growing at a healthy pace, but the type of property that buyers are seeking has definitely shifted. The attractions of sparklingly brand new homes have given way to the warmer appeal of more homely properties. Location is key too – buyers are focused on the closest airport and beach, the nearest shops and other local amenities.”

This two bedroom apartment in La Zenia, for example, priced at €115,000, is located close to the La Zenia shopping centre, offering spacious, fully furnished and comfortable living accommodation in a great position, with the added benefit of an on-site swimming pool.

Of course, a homely property doesn’t have to mean a small property, as this five bedroom detached villa with pool and panoramic sea views shows. Just 300 m from Cabo Cervera beach and 800 m from La Mata beach, the extensive family home is split across three storeys and includes a huge solarium, TV and music room, large living room with fireplace, five bedrooms, three bathrooms (one with Jacuzzi bath), garden, two car garage and plentiful terraces. The villa is available for €790,000.

For further details call Ideal Homes International on 0800 133 7644 or +351 289 513 434, email info@idealhomesinternational.co.uk or visit www.idealhomesinternational.co.uk.

UK buyers lead interest in ‘Megacity’ Istanbul, accounting for 21.51% of all property enquiries

UK buyers lead interest in ‘Megacity’ Istanbul, accounting for 21.51% of all property enquiries

by Charly Turkey
  • Istanbul most improved emerging world city in the last five years (JLL)
  • Istanbul now ranked within the top 20 of the world’s most important business hubs (JLL)
  • UK buyers lead interest in Istanbul’s property market accounting for 21.51% of all 2015 enquiries (Universal21)

As an international hub, where East meets West, Istanbul has emerged as a city of business, culture and huge potential. The most recent report from global firm JLL confirms Istanbul’s title as one of Europe’s ‘Big Four’ megacities, standing alongside London, Moscow and Paris.

Istanbul was revealed as the most improved emerging world city during the last five years on a range of performance indicators and its economic fundamentals were highlighted as being stronger than many of its global peer cities.

JLL’s Index of Commercial Attraction sees Istanbul ranking amidst the world’s top 20 most important business hubs and that among its emerging world city peers, Istanbul stands out for having significantly improved as a trusted financial center, a home to innovation and commerce, as well as for infrastructure improvements.

It is the blend of all these attributes that is attracting prospective UK buyers to the city’s growing property market. Universal 21, the largest management company based in Istanbul, has certainly witnessed a wealth of interest from UK buyers, accounting for the majority of all 2015 enquiries in comparison to any other nation.

Their most recent statistics show that interest from the UK accounted for 21.51% of last year’s enquiries, considerably higher than USA interest that ranked second with 8.34%. Adil Yaman, Director of Universal21, is confident in Istanbul’s lasting worldwide appeal. He explains,

“As a city, Istanbul has become a key player on the international stage, enhancing its potential as an investment hotspot. Not only has Istanbul’s successful transformation into a global city of business now been recognised, but its unique location and historical architecture has also allowed it to preserve an element of wonder that appeals to prospective European buyers, especially those from the UK.”

Situated in the Beylikdüzü district of Istanbul, Crest Plaza Residence recently launched by Universal21 offers an ideal investment opportunity for 2016. Crest Plaza Residence is well-located for both transport links and amenities, with the beach just a ten-minute drive away and Istanbul’s Ataturk airport only a 20 minute drive away.

Formed of only two blocks of 11 floors and a total of 199 apartments, Crest Plaza Residence boasts a wide range of facilities including fitness centre, swimming pool, Turkish bath, steam room, sauna, health club, cinema room, meeting room, BBQ terrace, games room, library and children’s playground.

Starting at £60,000, a range of spacious one, two and three bedroom duplex penthouse apartments are available. All either overlook the landscaped gardens or a newly appointed park soon to be completed and the project also has the benefit of 24-hour security.

For more information about Universal21, visit www.universal21.com or call 0203 287 8700.

Meet the man at the top – introducing easyMarkets CEO Nikos Antoniades

Meet the man at the top – introducing easyMarkets CEO Nikos Antoniades

by Charly World

Online trading services provider easyMarkets has been going from strength to strength under the leadership of CEO Nikos Antoniades. After nearly two years at the helm, Nikos reflects on the highlights of his tenure, the diversity of his staff team and the importance of being happy at work.

1. How long have you been CEO of easyMarkets and how has the company developed under your leadership?

I stepped into the role of CEO in June 2014. A lot has gone on in that time. We developed and launched our new website, blog and trading platform. We also enhanced the number of markets our clients can trade and upgraded our brand from easy-forex to easyMarkets to reflect that.

On an operational level we’ve moved towards a greater focus on Business Intelligence and automation. We reorganised our client-facing teams into three categories – globally based call centre staff that provide first point of contact with the client; client relationship managers that train and support our traders; and VIP relationship managers that provide a highly individualised level of service.

From a marketing perspective we refocused on more direct acquisition via online channels through to a comprehensive content management strategy to provide high-quality content.

We also restructured our partner programme and are soon launching our new forexAffiliate site for introducing brokers and online affiliates. We’ve become more competitive with our compensation packages and offer more tools and widgets for the partners to promote us.

2. What were your aims and ambitions when you took over as CEO for the company? Have you achieved them yet?

Every CEO comes into a company knowing they can bring certain values and standards with them. I’m a numbers guy and I need supporting data to make decisions, whether they impact on the business today or in 3 years’ time. And each company needs different approaches depending on where they are in their life-cycle. My aims are to solidify our foundations, streamline our operations, be more data driven and introduce automation so we can better focus our energies on delivering what traders need.

So far I’m satisfied with our progress. The foundations for a lot of the above have been laid and we’re already beginning to see the fruits of our labours across all our key operational metrics.

3. One of the first things many people notice about the easyMarkets team is its diversity. What do you think that having so many nations represented in the staff team brings to the company? How do you celebrate the team’s diversity within the office environment?

Our clients are based in over 160 countries around the world. We need the talent and skills in our employees to reach, engage and retain those clients. It makes for a vibrant and diverse office environment and personally I love it. I love the unique perspectives brought to the table and I particularly enjoy the many celebrations we have – including celebrating the Chinese Moon Festival, the Polish national day and our Brits this year celebrated Pancake Day. Recently we celebrated carnival which kicked off with a BBQ at work and was followed by a week of dressing up in costumes. Most of the celebrations are around food – who can complain?

4. What are the most important values in the modern workplace and why?

Be happy to come to work. Try to provide a satisfying work environment where innovation and initiative are encouraged and where no one is afraid to make a mistake – cos that’s usually when we learn the most.

5. How do you feel that the world of investment is changing – does each new generation of traders expect more than the last?

There’s a lot more knowledge about the industry than before. Traders are demanding better technology, responsive mobile friendly platforms and a wider product offering. They’re also more educated about regulations and their rights – which is a good thing in my view.

6. easyMarkets has recently rolled out a great new brand identity. What’s next for the company?

We’ve rolled out a lot of new products and features recently and we’ll be looking to optimise them. We want to provide the best risk management platform for our clients so more safety features for when they trade are on the way. We’re developing a new trading app that will enable us to engage even more with our clients. And we’re investigating the introduction of individual stock trading – that’s a really exciting new project but quite a few months away yet.

For further details visit www.easymarkets.com, email pr@easymarkets.com or call +44 203 1500 748.

 

Risk warning: Forward Rate Agreements, Options and CFDs (OTC Trading) are leveraged products that carry a substantial risk of loss up to your invested capital and may not be suitable for everyone. Please ensure that you understand fully the risks involved and do not invest money you cannot afford to lose. Our group of companies through its subsidiaries is licensed by the Cyprus Securities & Exchange Commission (Easy Forex Trading Ltd- CySEC, License Number 079/07), which has been passported in the European Union through the MiFID Directive and in Australia by ASIC (Easy Markets Pty Ltd -AFS license No. 246566).

Can a cupboard lessen your anxiety, increase your focus and reduce your stress?

Can a cupboard lessen your anxiety, increase your focus and reduce your stress?

by Charly United Kingdom
  • Traditional storage principles given new life by developer Quintain
  • Clutter impairs a person’s ability to focus (Princeton University)
  • High density of household objects leads to spikes in stress levels (UCLA)

Mention tertiary storage these days and the majority of people will think you’re talking about computers. But the principles of storage are also important when it comes to building homes, as Paul Hogarth, Head of Residential Sales at developer Quintain, explains,

“I remember a lot of places I have lived where trying to store stuff was always a major hassle. Vinyl giving  way to CDs and then later the Cloud should have made our living rooms simpler, but even with technology’s advancements we still have too much stuff and constantly try to declutter. At Wembley Park we have taken our own lifestyles – and those of our purchasers – into account and tried to design a home that works for them using the principals of effective storage.

“We split the elements into three distinct aspects: primary, secondary and tertiary storage refer to the places a home needs to store items that are used on roughly a daily, weekly or occasional basis. So many modern homes have forgotten these principles, with storage space losing out to the desire for maximum profits.”

Hogarth’s point is most clearly demonstrated when one considers the built-in wardrobes, pantries, basements and other storage areas that homes used to have in such abundance. Contrast these with contemporary, purpose-built flats in busy urban areas, where developers have sacrificed storage space from every apartment in order to cram one or two extra homes into a building. Frequently, the modern apartments look cluttered and untidy – simply because the principles of storage have been forgotten.

Yet there is another way, as Quintain has demonstrated through its contemporary new homes in London’s Wembley Park. In Emerald Gardens storage has been built into the design of the building. Architects GRID have addressed primary storage needs (i.e. storage for items needed daily, such as shampoo, washing up liquid and shoes) through plentiful cupboard space in kitchens, niched shelving in shower cubicles or bathtub enclosures and recessed bathroom mirror cabinets.

Secondary storage needs (for items like vacuum cleaners, irons/ironing boards and spare bedding) have also been addressed, with generous cupboard spaces built into the hallway of each apartment. Meanwhile tertiary storage space (for occasional use items like suitcases) is available in the building’s basement, in the form of secure lockers for residents’ use.

Having a tidy home is about more than it just looking nice. Researchers at the Neuroscience Institute of Princeton University found that a cluttered environment reduces one’s ability to focus. Meanwhile, in a separate study, researchers from UCLA found that mothers’ stress hormones spiked during the part of the day when they were dealing with the clutter in their homes – there was a clear link between high cortisol levels and a high density of household objects.

In simple terms, when developers follow the three principles of storage, residents can look forward to greater focus, reduced stress, less anxiety and more relaxation.

Prices at Emerald Gardens start at £370,000 with first completions due spring 2016.

For more information and to book a visit to the newly launched show apartments, visit www.northwestvillage.com or call the on-site Savills sales team on +44 20 3151 8601.

Mallorca emerges as this year’s summer hotspot as British buyers return to Spain in their masses

Mallorca emerges as this year’s summer hotspot as British buyers return to Spain in their masses

by Charly Spain
  • British buyers in Spain increase by 367% in January and February compared to last year (Taylor Wimpey España)
  • British and German buyers account for almost 80% off all prime transactions in Mallorca (Knight Frank)
  • Taylor Wimpey España announces completion of new apartments on two exclusive developments in Mallorca

Having always been a favourite second home destination, early 2016 figures from leading Spanish homebuilder, Taylor Wimpey España, confirm that British buyers are firmly back in Spain and account for a quarter of the company’s 2016’s January and February sales. Overall, the total YTD sales as of February 2016 have risen dramatically in comparison to last year, with British buyers increasing by a colossal 367%.

This substantial rise suggests that British buyers are turning to the safety and familiarity that Spain has to offer when deciding on where best to buy a property overseas. According to the most recent figures from Knight Frank, it is the beautiful Balearic island of Mallorca that is attracting both British and German buyers. As the two principal nationalities active in Mallorca, they account for almost 80% of all prime transactions.

A resident of the island himself, Taylor Wimpey España’s Sales and Marketing Director, Marc Pritchard, explains more,

“We have definitely experienced an influx of enquiries in relation to property in Mallorca, with our sales numbers for this region increasing considerably. British buyers are comforted by Spain’s consistency as a second home location, and the array of properties available enables them to find the perfect property that meets all their necessary requirements. The start of this year has been extremely encouraging and we are confident that this positive trajectory will continue into the 2016 summer season and throughout the rest of the year.”

Meeting the increasing demand of Mallorca emerges as a summer hotspot for 2016, Taylor Wimpey España has recently announced the completion of brand new apartments to enjoy this summer, on two of their exclusive developments on the island. Each new property has direct access to the beach and benefits from breathtaking sea views, perfect for a summer of sunshine and relaxation in your own private holiday haven.

Costa Beach offers a unique frontline location surrounded by stunning natural beauty with numerous coves, white sandy beaches and a crystal clear and calm sea. Located at Port Vell on the north east coast of the island of Mallorca, Costa Beach is just a few minutes’ drive from Son Servera and 15 minutes from Manacor.

Consisting of two bedroom, two bathroom apartments, all of which boast spacious terraces surrounding communal gardens and a swimming pool, properties have direct access to the beautiful beach on which the development is situated. With prices starting from €235,000+VAT, all properties also come with a private garden area and underground parking space included.

Cala Anguila II is one of the last remaining developments with direct access to the beach in Mallorca. From just €254,000+VAT, all properties have two bedrooms and two bathrooms, having been designed to reflect the natural beauty of the surrounding environment whilst maximising the living space. Ground floor properties boast spacious terraces with private gardens, whilst top floor apartments benefit from private roof terraces and they have a private outside parking space.

Cala Anguila offers peaceful sandy beaches, spectacular coves and crystal clear waters for those who wish to enjoy the water sports that Mallorca has to offer. The area has a wide range of activities, giving residents the opportunity to sample the delights of the local cuisine, explore the famous caves of Drach, tackle the illustrious golf courses or simply relax by the pool and enjoy the peaceful surroundings.

For more information, please contact Taylor Wimpey España today on 08000 121 020 or visit www.taylorwimpeyspain.com. Those residing outside of the UK should call 0034 971 70 69 72.

U.K. Budget 2016 and the Impact on Sterling: What to Expect

U.K. Budget 2016 and the Impact on Sterling: What to Expect

by Charly United Kingdom

With the 2016 U.K. Budget descending upon us, market participants are anticipating another wave of austerity from the Conservative majority. While there’s plenty of speculation about pensions, tax relief and petrol duties,[1] U.K. Chancellor George Osborne has made it clear that the government will seek further spending cuts to safeguard against a volatile global economy.

“We may need to undertake further reductions in spending because this country can only afford what it can afford and we will address that in the Budget, because I’m absolutely clear we’ve got to root our county in the principle that we must live within our means and we have economic security,” Mr. Osborne said during a trip to Shanghai in late February.[2]

For traders, the budget announcement is a time of great anxiety. The need to balance technical indicators with market fundamentals and political reactions make trading the pound especially challenging during this period. That’s why sterling often trends downward in the weeks leading up to the Budget announcement. As the image above (Source: Yahoo! Finance) illustrates, the GBP/USD exchange rate begins or continues its descent in the weeks leading up to the Budget. This is usually accompanied by a large rebound in the days and weeks following the announcement.

U.K. Budget Dates

  • 2016 Budget: March 16
  • 2015 Budget: March 18
  • 2015 Summer Budget: July 8
  • 2014 Budget: March 19
  •  2013 Budget: March 20
  • 2012 Budget: March 21
  • 2011 Budget: March 20

Price action leading up to the 2016 Budget on March 16 indicates a similar downtrend. However, it should be noted that the pound’s freefall in early 2016 reflects ongoing fears about Brexit. According to analysts, the pound could be in for a 20% drop should Britons vote to quit the European Union in June.[3] Against this backdrop, the pound is expected to remain under pressure in the coming weeks leading up to the Bank of England’s policy meeting on March 17. Given the lack of high profile U.K. or U.S. data over the next two weeks, political reactions to the Budget statement and BOE will dictate the performance of the GBP/USD.

How to Prepare

Like any other fundamental event, the U.K. Budget statement is considered both a risk and an opportunity. Volatile news events like a budget statement allow for great speculative opportunities, especially through the options market, which is generally more cost efficient than other markets. Options allow traders to profit from both rising and falling market conditions via calls or puts, respectively. They also allow traders to specify their risks upfront so they’re not exposed to bigger losses in the event the market goes against them. Some brokers like easyMarkets provide guaranteed stop losses during day trades and negative balance protection that ensure traders don’t enter into debt on a bad position. These tools are essential for trading effectively during highly volatile events like budget statements.

 

Risk warning: Forward Rate Agreements, Options and CFDs (OTC Trading) are leveraged products that carry a substantial risk of loss up to your invested capital and may not be suitable for everyone. Please ensure that you understand fully the risks involved and do not invest money you cannot afford to lose. Our group of companies through its subsidiaries is licensed by the Cyprus Securities & Exchange Commission (Easy Forex Trading Ltd- CySEC, License Number 079/07), which has been passported in the European Union through the MiFID Directive and in Australia by ASIC (Easy Markets Pty Ltd -AFS license No. 246566).

[1] Alice Foster (March 4, 2016). “When is the budget? Predictions, what to expect.” Express UK.

[2] Kate McCann (February 26, 2016). “George Osborne warns of deeper cuts to public spending in Budget.” The Telegraph.

[3] Daniel Johnson (March 1, 2016). “The Pound Strengthens, but How Long will the Rally Last?” Pound Sterling Forecast.

Sun shines on Spain as Taylor Wimpey España reports double operating profit for 2015

Sun shines on Spain as Taylor Wimpey España reports double operating profit for 2015

by Charly Spain

Leading Spanish homebuilder, Taylor Wimpey España has released end of year results for 2015 that highlight the significant progress being made in the Spanish property market. The most recent figures show Taylor Wimpey España delivered an improved operating profit of £10.0 million for 2015, an impressive 138.1% growth on 2014’s £4.2 million, and an operating profit margin of 17.2%.

The company, which has been building homes in Spain for over 50 years, completed 251 homes in 2015 which is a substantial 53% increase compared to the previous year. The average selling price of these properties has also seen a rise of 26%, from €250,000 to €315,000. Such positive statistics emphasise the Spanish property market’s success in 2015.

Javier Ballester, Managing Director for Taylor Wimpey España, is confident that the market will continue to thrive this year, commenting,

“The start of the year has been extremely encouraging and with international demand rising again. The growing talk of a potential Brexit is yet to have an impact as British buyers are responsible for the most sales so far this year, and there is nothing to suggest that this trend will not continue throughout 2016. Our latest figures show Spain is still very much top of the list for many potential buyers and we are very excited to see what the next 12 months hold for the market.”

Early 2016 figures from Taylor Wimpey España confirm that British buyers are definitely back in Spain, accounting for a quarter of 2016’s January and February sales. An ever popular region with British buyers is the Costa Del Sol and this week also saw the launch of Taylor Wimpey España’s newest project, Horizon Golf. Situated in the beautiful Valley of Mijas, Horizon Golf is Taylor Wimpey de España’s second development at La Cala Resort within the complex’s famous Campo Asia golf course.

With prices starting from €375,000, the private gated development offers 55 terraced homes, all have 3 bedrooms, 2 bathrooms and a cloakroom, with stunning panoramic views over the golf course and La Cala de Mijas. Horizon Golf features luxury finishes including fully equipped furnished kitchens, air conditioning, designer bathrooms, bedrooms with motorized blinds, and secure, fully lined wardrobes.

All properties benefit from 24-hour security, the communal gardens and swimming pool, as well as three 18-hole golf courses, a hydrotherapy centre and spa, a golf school (La Cala Golf Academy) and an array of sports facilities all close by. Residents can reach the beautiful beaches of the Costa del Sol in just 10 minutes, with Malaga airport only 30 minutes away.

For more information, please contact Taylor Wimpey España today on 08000 121 020 or visit www.taylorwimpeyspain.com. Those residing outside of the UK should call 0034 971 70 69 72.

The sunshine safe haven – why UK buyers can’t get enough of Portuguese property

The sunshine safe haven – why UK buyers can’t get enough of Portuguese property

by Charly Portugal
  • Safety and security is no. 1 priority for UK holiday makers this year (TravelZoo)
  • Steady Portuguese housing market sees 2.5% price rise projection for 2016 (RICS/Ci)
  • The Algarve is Europe’s cheapest beach resort (Post Office)
  • Portugal offers wholesome family fun at low cost (Ideal Homes Portugal)

The tragic events in the resorts of Tunisia and Egypt over the past year have rocked the foundations of holidaymakers around the world, so much so that UK travellers now consider safety and security to be the most important factor when it comes to booking their holiday destination. The changing shape of holidays has been revealed by a survey from TravelZoo, where 30% of respondents rated this as their number one priority.

One of Europe’s safest and most popular summer holiday destinations is Portugal, as resident Chris White, Founding Director of Ideal Homes Portugal, explains,

“Portugal offers a real safe haven for UK holidaymakers. The country lacks the political tensions that exist between many nations and instead offers a wholesome, family environment that is perfect for those looking for sunshine, beaches, water parks and a great Mediterranean diet.”

Portugal is one of the destinations flagged up by TravelZoo as enjoying a rise in bookings as holidaymakers’ priorities shift. Of course, finances are still a big consideration for many families when it comes to holiday destinations, which is another of Portugal’s advantages – it is one of the best value destinations in Europe. In fact, the Algarve is Europe’s cheapest beach resort, according to the Post Office Worldwide Holiday Costs Barometer 2015, and the second best value destination globally.

One item that offers excellent value for money in Portugal is property. From a two bedroom apartment with sea views in Albufeira for €110,000 to a stunning three bedroom country retreat complete with swimming pool and grounds including two lakes for €650,000, the sun-kissed country offers bargains to suit every budget.

The stability of Portugal’s housing market offers further reassurance to holiday home buyers looking for a safe haven in the sunshine. The January 2016 Portuguese Housing Market Survey from RICS/Ci observes that price expectations point to steady gains over the course of 2016, with house price inflation expected to be around 2.5% in both Lisbon and the Algarve.

Portugal’s proximity to the UK is another important factor when it comes to those booking holidays or looking for a second home in a safe haven overseas. Frank Brehany of HolidayTravelWatch observes,

“Given the awful events in 2015, it is no surprise to me that UK holidaymakers will want to experience less of the exotic and more of the familiar, feeling more secure if they holiday closer to home; it’s a natural consequence of last year.”

With Portugal ticking so many boxes – safe, sunny, fabulous beaches, stunning golf courses, low cost of living and just a short flight from the UK – it’s easy to see why many holidaymakers this year will be sunning themselves on the beaches of the Algarve, rather than heading further afield.

For further details call Ideal Homes Portugal on 0800 133 7644 or +351 289 513 434, email enquiries@idealhomesportugal.com or visit www.idealhomesportugal.com

The impact of Brexit on overseas property investment

The impact of Brexit on overseas property investment

by Charly World
  • Global real estate reaches value of $217 trillion (Savills)
  • Brexit debate impacts doubly on overseas property investment (easyMarkets)
  • Sterling down 20% against its high of 1.7159 in July 2014

With the referendum on Britain’s membership of the EU now looming, the financial impact of the uncertainty is already being felt. From the value of the pound to the state of the stock market, the Brexit debate is posing challenges for the UK.

One area with the potential to suffer particularly from the uncertainty of the Brexit question is overseas property investment. Nikolas Xenofontos, Director of Risk Management at leading online trading services provider easyMarkets, observes,

“Overseas property investment is likely to suffer doubly as a result of the discussions around Britain’s EU membership. The decreased value of the pound means that buyers can get less for their money, meaning some will hold off from an overseas property purchase until sterling recovers. Meanwhile others will pause until the outcome of the referendum is known. Buying a holiday home in Europe that you plan to retire to one day doesn’t have quite the same appeal when you don’t know whether you’ll still have the freedom to move to that country when the time to collect your pension comes.”

The referendum has already hurt sterling, with the pound falling to a seven-year low against the US dollar on 21 February. In fact, the pound lost 1% against all 16 of its major trading peers, while the pound-to-dollar exchange rate reduced by more than 5% in the first two months of 2016 and is down a massive 20% since its high of 1.7159 in July 2014.

Should Britain actually leave the EU, Swiss bank UBS has projected that the move might drive the pound down to parity with the euro. This would have a major impact on the number of Brits buying property overseas, with many opting to wait until the pound recovers, which few analysts are predicting would happen anytime soon.

One approach to overcoming the lingering uncertainty is to hedge against undesirable movements in exchange rates by using options. easyMarket’s Nikolas explains,

“Say you’ve arranged to buy an apartment in Spain that costs €100,000 and you agreed to pay for it in 4 weeks’ time, using your savings of £78,600. This means that you need the EUR/GBP exchange rate to be below 0.7860 in order to insure the full €100,000 for the purchase. If for example the exchange rate rises to 0.9000 in 4 weeks, your £78,600 will be worth only €87,000.

“By purchasing a ‘call option’ with a four-week duration and strike rate of 0.7860 you can ensure that if the EUR/GBP exchange rate in four weeks is above 0.7860, you will be able to cover the deficit with the profit made on the call option. In case the exchange rate after four weeks is lower than 0.7860, and hence the current market rate is better for you, you will let your call option expire without exercising it as your savings will be enough to cover the property cost in euros. You will only lose the small premium you paid for the option/hedge but profit from a better exchange rate.”

Of course the global property market is about much more than just UK buyers. According to Savills, residential real estate around the world has a value of $162 trillion, including $54 trillion of investable real estate and $108 trillion of non-investable. The firm calculated that global property value in 2015 amounted to 2.7 times global GDP, observing in its Around the World in Dollars and Cents report that property accounted for around 60% of all mainstream global assets.

While a Brexit would not impact massively on such large scale figures, the local impact on the overseas property market – particularly in popular locations such as Spain and France – would certainly be felt. Indeed, the ongoing Brexit debate means that the market is already facing a great deal more uncertainty than it was just a few short weeks ago.

For further details visit www.easymarkets.com, email pr@easymarkets.com or call +44 203 1500 748

 

Risk warning: Forward Rate Agreements, Options and CFDs (OTC Trading) are leveraged products that carry a substantial risk of loss up to your invested capital and may not be suitable for everyone. Please ensure that you understand fully the risks involved and do not invest money you cannot afford to lose. Our group of companies through its subsidiaries is licensed by the Cyprus Securities & Exchange Commission (Easy Forex Trading Ltd- CySEC, License Number 079/07), which has been passported in the European Union through the MiFID Directive and in Australia by ASIC (Easy Markets Pty Ltd -AFS license No. 246566).

Mallorca set for a hole in one as the island emerges as top European golf destination

Mallorca set for a hole in one as the island emerges as top European golf destination

by Charly Spain
  • Mallorca to host 2016 International Golf Travel Market
  • Tourists played 600,000 rounds of golf in Mallorca in 2015 (Asociacion de Campos de Golf de Mallorca)
  • Taylor Wimpey España’s new Marina Golf development located next to Mallorca’s iconic Santa Ponsa III Golf Club

The beautiful Balearic island of Mallorca is preparing to set the golf world alight as it plays host to the International Golf Travel Market (IGTM) this November. Emerging as a leading European golf destination, this international event will attract a global audience who will come to discover all that Mallorca has to offer, from the first tee off to the 19th hole.

During 2015, tourists played 600,000 rounds of golf on the island and the Asociacion de Campos de Golf de Mallorca (ACGM) are excited for this figure to continue to grow. Federico Knuchel, president of the ACGM is passionate about golf in Mallorca and is looking forward to welcoming this year’s IGTM. He explains, “We would like to increase [the rounds of golf played on the island] by five percent every year. We think Mallorca offers real quality and value for golfers and we are hoping to show that to as many people as possible.”

Leading Spanish homebuilder Taylor Wimpey España is answering this growing demand for access to Mallorca’s stunning golf facilities with its new project Marina Golf. Located next to the iconic Santa Ponsa III Golf Club, their most recent residential complex offers direct access to one of Mallorca’s most exclusive golf courses. Marc Pritchard, Sales and Marketing Director, explains more,

“The IGTM event will showcase Mallorca as the idyllic location for golf, with at least 300 days of sunshine a year and a choice of over 20 picturesque courses suitable for golfers of all abilities. We have definitely noticed an increase in enquiries for property on the island. With Mallorca becoming an essential stop on the golf tourism world circuit, we would expect this growth to continue on a positive trajectory as more and more potential buyers look for properties within walking distance of the island’s best golf courses.”

Alongside the glorious sunshine and scenic fairways, Mallorca’s golf courses can also provide their visitors with a healthy workout, without the regimented gym environment. A report by Walker Research Group, LLC for the World Golf Foundation and GOLF 20/20, revealed that the total caloric expenditure for an 18-hole round is approximately 2,000 calories.

Outlining golf’s overwhelming health benefits, the study went on to show that when walking 18-holes of golf, blood glucose levels fall by up to 20% in young people, 10% for those who are middle-aged, and 30% for more senior players. Combining valuable exercise with enjoyable leisure time is further increasing the popularity of Mallorca’s golfing industry, which is set to reach new heights this year.

Marina Golf is in an excellent location, surrounded by some of the ACGM’s top golf courses on the island including Golf Santa Ponsa I, II and III, which are right next to the development, as well as the Golf de Andratx, Golf de Poniente and Bendinat Golf.

With prices starting from just €400,000+VAT, this Mediterranean style village has spacious, 3 bedroom properties with private terraces, gardens and private parking spaces. In the communal area there is a swimming pool for the exclusive use of owners, surrounded by a solarium area with views over the golf course and a large communal garden. There are also changing rooms, showers and toilets.

Every townhouse has 3 bedrooms and 3 bathrooms, with air conditioning, under floor heating in the bathrooms, double-glazing, a security oor, TV aerial and satellite dish. In order to ensure the maximum amount of light the properties are southwest facing and have several terrace areas so the sun can be enjoyed for most of the day.

For more information please contact Taylor Wimpey España today on 08000 121 020 or visit http://taylorwimpeyspain.com for more information. If you reside outside of the UK you will need to call 00 34 971 706 244.