Fully Booked
Apartment occupancy rises 49% in April
Lanzarote recorded the highest figures of all the Canary Islands for tourist apartment occupancy during April 2007. According to figures recently released by the Canarian Institute of Statistics.
The findings, which represent good news for many British and Irish investors who own and rent out holiday apartments on the island, revealed that occupancy levels were up by a whopping 49% on figures for the previous year. And were also seven percent in advance of occupancy levels in the rest of the archipelago.
A further report, recently released by the National Institute of Statistics also found that the Canary Islands were the second most popular holiday destination in all of Spain during the same month of April. Coming second only to Catalunya – home to the ever-popular tourist destination of Barcelona.
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Quids In
Major savings promised for Lanzarote property buyers
Prospective purchasers may now be able to save thousands of pounds when buying a property on Lanzarote. Thanks to the launch of a new financial product called Bi-Cell.
The Bi-Cell method of buying property effectively wraps Spanish property assets into a form of trust, which legitimately circumvents various property tax liabilities under Spanish law.
So enabling buyers to legally avoid payment of various costs normally associated with buying a property on Lanzarote. Such as transfer and mortgage taxes.
The potential saving for property buyers is projected to be a minimum of 6.5% rising to a maximum of 11% – depending upon individual circumstances. Representing a saving on an average €250,000 property of anywhere between €16,250 and €27,500.
In addition, property purchasers will also enjoy further tax savings when they come to eventually sell their property.
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Bright Horizons
Continued property market growth predicted for Canaries
Despite concerns over property in the peninsula, property prices in the Canary Islands will appreciate at a higher rate than elsewhere in Spain over the next few years. That´s the official verdict of an eminent economist, Ignacio Lopez Dominguez, President of Spain’s Financial Institutes and Markets Commission.
Dominguez stated at a recent conference in Las Palmas, Gran Canaria that the limited supply of land in the archipelago, combined with ongoing strong demand from British and German buyers, will continue to push property prices upwards.
And that whilst other areas in Spain may experience a slow down or even a reversal in prices over the coming years, these twin factors would ensure higher price growth in the Canaries in relation to other regions.
On The Up
Euribor hits 4.37%
The cost of mortgage borrowing in Lanzarote has just increased. Thanks to a further rise in the Euribor, the interest rate set by the European Central Bank, which provides the basis for mortgage rate calculation within the Eurozone.
Continuing an upward trend the Euribor rate reached 4.37% in May. So increasing the cost of financing a property purchase via a Spanish bank or lending institution.
This is the 20th consecutive rate rise and the Euribor now stands at its highest level in seven years. Taking the cost of the average monthly mortgage repayment from €725 to €809 (based on an the average, variable 25 year mortgage of €140,189).
Despite the latest rise however it still remains cheaper to borrow money in Lanzarote to finance a property purchase than in the UK. Where rates now stand at 5.5% – with all indicators suggesting a minimum further .25% rise during the course of 2007.
Home And Away
One in four first time buyers in UK look to Spain
Rising UK interest rates and spiraling property prices are forcing many first time buyers in Britain to look overseas for the first property purchase. With Spain emerging as the number one choice.
That’s the finding from a new report recently released by National Savings and Investments.
The survey found that 25% of first time buyers in the UK were prepared to forego gaining a foot on the property ladder in Britain in favour of buying abroad. With 20% of those considering this fly to let option opting for Spain over any other destination.
