Okay, the Tenerife Hotel introduction seems to have ticked some boxes! I am tempted to see if we can put together a viewing trip for those who have replied so far. We have a brochure that we can send out on request; but, please (says the voice of painful experience) only for those who are seriously interested in investing rather than those looking for a subsidised weekend break to Tenerife!
Daniel Chavarria Waschke, managing director of Sotheby’s International Realty, says that Ibiza is a ‘wise choice’ when it comes to buying property. Indeed, bottom-fishers are a little late according to Daniel. ‘Ibiza had its recovery year in 2012, light years ahead of faltering markets on the Spanish mainland, and is already booming again. Even off-plan and in-construction property is selling at a remarkable pace.’
Richard Way, editor of the Overseas Guides Company is quoted in the national media as saying much the same, adding, ‘Ibiza has an appeal as a bolthole in the winter months. Ibiza has some of the most exclusive hillside villas anywhere in the Balearics; arguably in Spain, too.’ We are currently talking to expats and agents and developers on the island; let us know if you are seriously interested in buying there. We will have some material for you shortly.
I’m always slightly cautious when I read articles in the national press that praise a particular location and, near the end, you get a quote or two from a developer or agent who is active there. Far be it for me to say, but some investors might wonder which came first – the article and then the quotes or is it the other way round; a press release full of quotes is turned into an article and, in return, there’s a plug at the end for the developer or agent. Either way, that’s not to say it’s a bad article at all; just that you need to aware of what you are reading.
Anyway, there is a good article in the Telegraph today that may swing either way in this respect but does offer some useful tips when it comes to buying a golf property. Let’s quote, ‘Target resorts close to international airports. You want to spend your time on the fairway, not the motorway. Compare resorts in more than one country if possible. They all have their own pros and cons. Don’t assume you will get complimentary golf once you have bought the property. Be wary of resorts with a high property density. They may prove a tricky long-term investment.’ If you want to read more on golf lets, drop us a line. We can do an article for you.
If you are buying overseas, one of the first things you need to do as part of your due diligence is to check the ins and outs of buying as a foreigner. Sometimes, you are welcomed with open arms (at least for now) and on other occasions you are not that welcome at all. There is a widespread – incorrect – assumption that anything that is ‘sort of British’ (to quote a recent member looking at what he called ‘a former colony’) is the same as Britain. No! No! No!
Take Australia as an example. As property expert Eddie Chung explains, ‘As a foreign national in Australia you are subject to certain restrictions imposed by the Foreign Investment Review Board (FIRB) that regulate your ability to buy Australian property. Under the current rules, unless a specific exemption applies, the acquisition of both residential and commercial properties in Australia by foreigners will need clearance from FIRB by default, regardless of the value of the property and nationality of the purchaser.’
We are looking at doing some checklists for the early autumn for the most popular markets; tell us where you are buying in the next 12 to 18 months. We’ll add up the replies and do checklists for the most popular six to eight.
All for now, do email back if you’d like to follow up on anything covered in today’s email. We look forward to hearing from you.