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11 posts from June 2007

June 30, 2007

Budget airlines boost Cyprus revenues

Budget airlines boost Cyprus revenues

4wallsandaceiling.com Newsletter

Source Assetz

Cyprus is one of the favourite holiday destinations for British people of all ages and backgrounds.

Its location in the heart of the Mediterranean makes it an almost guaranteed sun spot and the island offers a unique mix of heritage, nightlife and lazy sunbathing, so there is something for all the family and to suit every pocket.

The fact that Cyprus enjoys such popularity with holidaymakers has not gone unnoticed by investors. Property buyers are flooding the island with money, according to recent reports.

Simon Tweddle, spokesman for Property Secrets, an independent property market analyst, said: "I think there's quite a lot of interest in Cyprus … quite a few UK property companies are starting to get a bigger interest in Cyprus."

He added: "They're marketing Cyprus as an investment destination. I think that alone will have an effect on prices". This could spell good news for investors looking to make a purchase on the island as they may be able to acquire a property at a better price than they could have done previously.

Cypriot property prices have shown an upward trend over the past year ahead of a land tax that is due to be increased in a few months. Coupled with a lack of supply of housing stock, prices had been increasing "quite a lot - probably 20 to 25 per cent".

If the increased amount of investment heading towards the island serves to lower prices, that will spell good news for British investors, who may also to benefit from the strength of sterling at present.

Mr Tweddle advised people thinking of buying a Cypriot property to make a move as soon as possible as "there's quite a shortage of supply, because it's a small island… there's not that much land anyway in Cyprus".

Budget airlines have also proved to be good news for the investor with a Cypriot presence in their portfolio.

Panos Englezos, chairman of the Cyprus Tourism Organisation (CTO), acknowledged this with the recent announcement that he will seek to increase the number of budget carriers that have routes to the island.

Tourism is a significant contributor to the Cypriot economy, bringing in more than £1.3 billion a year, accounting for around 15 per cent of the island's GDP. Mr Englezos said new budget airline routes have already resulted in a "significant increase of arrivals from Greece, Russia and Scandanavia".

Ebook_cover

If you are interested in purchasing investment property or your own home in Cyprus, ypu should consider buying this book. It has 31 pages of the most concise information you could ever need when it come to buying property in Cyprus. From the Legal ramifications through to the Banking issues, all of which is complimented by some beautiful photographs of the island.

Available at 4wallsandaceiling.com for only £4.99.


June 27, 2007

Board now, Cyprus is ready for take-off

Board now, Cyprus is ready for take-off

4wallsandaceiling.com Newsletter

Source 7days

Nick Says...

Please take in the following body of writing. Whenever I invest I always, as I have said before, have rhyme and reason (science and maths) on my side.

The next few paragraphs denote how important timing is to your investment strategy. Hot-spots are for people who got there too late!

Don`t let this opportunity go by. If you have any notion of investing in Cyprus then you should be doing so before the big gains are had.

If you want any more information on investing in Cyprus please drop me a line at nick.tadd@4wallsandaceiling.com or go to 4wallsandaceiling.com We have designed an e-book which will be of use to you, you can find it at 4wallsandaceiling.com e-book.

There are many variables to take into consideration when making a property investment decision – particularly with regard to off-plan investments. Such variables include the market, the developer, construction timeframe, tangible product and of course finance. The finance element to an investment can be broken down into several key areas including that of currency.  One currency in particular that’s building pace this year is the Euro.

With several key countries focused on adopting the Euro, property investors must fully appreciate what it means to take on the currency.  Cyprus is one such market on the verge of switching to the Euro from its traditional currency – the Cypriot Pound.  The move to the Eurozone comes on January 1, 2008 for Cyprus and with it, changes to the economy.

But what does this mean to Cyprus and those of us looking to invest in the Cypriot property market?

Plenty.

Simply put, investing before the adoption allows your investment to flourish, as property prices will almost certainly increase after the currency switch. Membership of the Eurozone means a lot to Cyprus. It will help shield the island against economic turbulence and significant interest increases.
One of the most important reasons for Euro adoption is price stability. Price stability is the main objective of the European Central Bank’s monetary policy. Furthermore, since the Euro market is highly liquid, this will result in increased efficiency of the country’s financial sector and the better allocation of financial resources.

The Euro will strengthen macroeconomic stability in Cyprus, ensuring low inflation and low interest rates currently enjoyed by Eurozone members.  The single currency brings stable prices for citizens and more opportunities for businesses.  Moreover, being part of the single currency will further promote trade opportunities in the global economy and attract a large amount of foreign investment.

Cyprus’ interest rates have already fallen considerably.  The long-term interest rates declined by some 330 basis points from about 7.5 per cent in December 2001 to just 4.25 per cent in December 2006.  Furthermore, over the same period mortgage interest rates fell 160 basis points from around eight per cent down to 6.5 per cent.  This brings very practical benefits, allowing both domestic and foreign investors to borrow money cheaply thus fuelling property purchases and spurring demand.

As a Eurozone member, Cyprus will have a currency with a global position comparable to the US dollar.  The role of the Euro in international trade, the global bond market and as an official reserve currency has increased substantially and continues to grow in importance.  The attractiveness of the Euro as a world currency means that tourists can increasingly travel all over the world with Euros in their pockets while businesses are increasingly able to trade in Euros beyond the borders of the Eurozone.

Cyprus’ property market has enjoyed strong, consistent growth in recent years with  more of the same to come and with the milestone of the Eurozone just around the corner, now is a good time to invest in Cyprus.



June 24, 2007

High UK prices benefit both domestic and overseas investors

High UK prices benefit both domestic and overseas investors

4wallsandaceiling.com Newsletter

Sourece Assetz

One of the big attractions for people looking to buy a property abroad - whether as investors or as buyers looking for a second property overseas for mixed purposes - is a lower cost of living.

The UK has a reputation as one of the more expensive countries in the world and British tourists and expatriates alike are often pleasantly surprised by the cheap prices to be found in many foreign countries.

This week, Mercer Human Resource Consulting (MHRC) has released the latest edition of its annual Cost of Living Survey. The survey takes in 143 of the world's most prominent cities on six continents.

The comparative cost of over 200 items - including housing, transport, food, clothing, household goods and entertainment - are compared. Among other things the survey, described as "the world’s most comprehensive" cost of living index, is used by companies to assess allowances for expatriate employees.

The 2007 survey concluded that London is the second most expensive city in the world, rising from fifth place last year. "Steep property rental costs, together with the strengthening of the British pound compared to the US dollar, have contributed to the city's high ranking," commented Yvonne Traber of MHRC.

In the UK, rising inflation has pushed up both prices and interest rates. This in turn has had an effect on property prices and the property market in general. The cost of obtaining a mortgage has become higher, as the base rate of interest has gone up four times in 12 months.

It was increased to 5.5 per cent in May of this year and many analysts think that this is not the last raise that will be seen, predicting the base rate to touch six per cent by the end of 2007. However, the property market has not been significantly dampened, as lack of supply has conspired to keep the prices artificially high.

In one sense, the
buy-to-let investor on the domestic scene has benefited from the increase in property prices. More potential first-time buyers have been forced on to the rentals market as they cannot afford to make a purchase at present prices. This has served to further expand the traditional core rentals market of students and young professionals.

However, the high property prices have also prompted investors to look abroad. The strength of the pound means that there are some bargains to be had overseas. At the same time, the rise of the budget airline means that more Britons are going to go abroad this year than ever before, swelling the potential number of tenants for an overseas property.

Nick Says...

Hold onto that thought. I`m currently in Cyprus looking at some opportunities. We still invest in the UK, because we have a strategy that works to give us positive cashflow. However, you should see the deals you can pick up over here...

For more information on the latest deals in Larnaca, Cyprus please contact me at nick.tadd@4wallsandaceiling.com or go-to www.4wallsandaceiling.com

Ebook_cover

If you are interested in purchasing investment property or your own home in Cyprus, ypu should consider buying this book. It has 31 pages of the most concise information you could ever need when it come to buying property in Cyprus. From the Legal ramifications through to the Banking issues, all of which is complimented by some beautiful photographs of the island.

Available at 4wallsandaceiling.com for only £4.99.

June 21, 2007

House price index June 2007

House price index June 2007

Click Here for House price index June 2007

Nick Says...

Click on the above for the latest House Price Index, courtesy of Rightmove.

June 20, 2007

Buy-to-let market defies the 'slowdown'

Buy-to-let market defies the 'slowdown'

4wallsandaceiling.com Newsletter

Source Telegraph.co.uk


Higher interest rates "have no impact" on the long-term health of the buy-to-let market, a new survey by Bradford and Bingley claims.

In the "largest ever" survey of UK landlords since 1996, when Bradford and Bingley were the first to offer a specific buy-to-let mortgage, the group revealed that more than half of landlords plan to increase their property portfolios.

Contrary to reports of overstretched buy-to-let landlords, the survey of almost 5,000 landlords found that only 4pc plan to reduce their portfolio of properties in the next six months.
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The survey's findings also dismiss claims that buy-to-letters are just in the market for a quick return, revealing that 50pc have been investing for more than five years, and only 7pc have been investing for less than a year.

The current most popular buy-to-let spot is Brighton, with almost a third of landlords owning an investment property in the region.

Hailed as the "jewel in the South East's crown", Bradford and Bingley claims Brighton is "enjoying the fastest rate of growth" at the moment, driven by its large student population and close proximity to London.

London follows Brighton, as the second most popular buy-to-let area of the UK.

The average landlord is "more Joe Public than Duke of Westminster"; typically male and aged between 36 and 45, with between one and five buy-to-let properties in their portfolios.

Only 10pc of the buy-to-let investors surveyed were full-time professional landlords.

The majority are "everyday people" seeking capital growth and a means to supplement their pension pots.

Andy Wiggans, director of mortgages at Bradford and Bingley, said: "Despite recent reports of a slowdown in the buy-to-let sector, our biggest ever survey of those at the heart of the market show it remains strong.

"Higher interest rates may have an effect on cash flow but they have no impact on long-term capital returns."

The most popular investment property is the terraced house, with 58pc of landlords questioned by Bradford and Bingley having at least one terraced house in their property portfolio.

According to the Council of Mortgage Lenders the average buy-to-let mortgage was £117,548 in the second half of 2006.

Nick Says...

I thought this might be of interest. It just goes to show provided you treat property not as property but as a numbers game, as with any business, the market and financial conditions cannot dictate the outcome of what you wish to gain. As the second paragraph states most "Professional" landlords intend to increase their portfolios.

With the correct education you can make money in any market, whether it be rising or falling. It's just a matter of how you apply yourself.

For any other information on property investment education Click here...

June 19, 2007

Mortgage price war looms as Halifax vows to regain top spot after market share halves

   

Mortgage price war looms as Halifax vows to regain top spot after market share halves

Building society says it will use 'tactical pricing'
Shares in other lenders fall as competition hots up

4wallsandaceiling.com Newsletter

Source The Guardian

HBOS is launching a range of new, tactically priced mortgages every three or four weeks as it fights to regain its crown as the country's biggest mortgage lender. The bank admitted yesterday that its share of new mortgage business had more than halved to 8% in the first six months of the year - its lowest level for seven years.

Halifax, owned by HBOS, has traditionally enjoyed a market share of 21% of home loans but it made a series of pricing errors in the first part of the year that led to lower sales.

Article continues
Fears that HBOS could spark a price war knocked shares in the mortgage lenders yesterday and unsettled the FTSE 100. HBOS shares fell 39p to £10.31 while Northern Rock dropped 29p to 997p, Alliance & Leicester lost 23p to £11.04 and Bradford & Bingley was down 9.25p to 397p.

"Everyone is starting to think that if HBOS starts to punch its weight it's not going to be helpful for Northern Rock, Bradford & Bingley and Lloyds TSB," said Cormac Leech, an analyst at the stockbrokers Evo.

HBOS also unsettled the City by indicating it was being hit by current account customers reclaiming fees paid for unauthorised overdrafts. It is expected to take an exceptional charge in the first half, although the bank insisted it would be able to hit its target of a rise of 10% in underlying earnings per share. It is forecast to make profits of £6bn in 2007.

A mortgage price war last erupted in 2001, when HBOS and Nationwide went head to head for customers. Such aggressive tactics seem unlikely this time round as HBOS was quick to reassure investors that it was not launching products that would erode its profit margins.

Even so, HBOS was forced to admit that its tactics to keep mortgage customers had misfired. The acknowledgement is an embarrassment for Benny Higgins, who was poached from HBOS's arch-rival Royal Bank of Scotland last year to run the retail banking arm.

HBOS had embarked on a two-pronged approach to retain customers who were looking for a new mortgage when fixed-rate loans taken out in 2003 and 2004 came to an end. The first part of the strategy - to pay financial advisers a fee to re-sell Halifax products - was successful at keeping £5bn of business. But the second prong of the strategy, aimed at making products for existing customers as attractive as those sold to new customers, did not. Customers were lured away by more attractive offers from other lenders, notably Nationwide, Northern Rock and Woolwich.

With an 8% share of new business in the first half, HBOS's performance was matched by Woolwich, which had been losing market share, and it was likely to have been surpassed by Nationwide and Northern Rock.

HBOS told the City yesterday that it would return to its target levels of 15%-20% market share in the second part of the year. The lender is offering specific deals that it is altering every few weeks in a "tactical" pricing initiative.

"Not every aspect of the strategy worked for us," an HBOS spokesman said. "We acknowledge it and we've fixed it."

With the exception of the retail arm, responsible for about 40% of profits last year, HBOS said all its divisions had enjoyed double-digit profits growth.

Nick Says...

This can only be good for us ''serial'' investors. As soon as lenders start fighting for business we end up benefiting from their products. It`s what I have always said, understanding finance and how the products can be used is the key to being a successful investor. I think it`s fair to say most people find the property then get the finance... try it round the other way, understanding finance tells you where to look for property, this way you will stop wasting time on "stock" that does not work.

If you wish to get educated more about this strategy of investment, why not come along to one of our free workshops Click here...

June 16, 2007

EIU expects 3.4% growth for Cyprus in 2007

Nick Says...

This refers to the economy, however, it all is good reason to invest in Cyprus. For any other information on investing in Cyprus, Click here... or go-to 4wallsandaceiling.com

EIU expects 3.4% growth for Cyprus in 2007

4wallsandaceiling.com Newsletter

Source: The Financial Mirror

The Economist Intelligence Unit (EIU) maintained its Cyprus GDP growth forecast at 3.4% and 3.6% for 2007 and 2008 respectively, according to the Sharelink Securities & Financial Services update. The EIU believes that the downturn in tourism (as a result of soft demand in the UK) will have a larger impact on growth rates in the second and third quarters.

Low growth in the tourism sector will be partly offset by continued strength in exports of business services such as accounting. Investment growth is likely to remain strong as a result of ongoing works to upgrade the two airports, while work to construct new marinas may get under way in 2008, if the government can speed up the tender round.

Government consumption growth is also expected to accelerate, driven by the forthcoming presidential election in February 2008. According to EIU, private consumption growth will be supported by continued strong credit expansion and a fall in commercial (as opposed to official) lending rates from 2008, as local banks respond to competition from other Euro area banks. Credit growth will also help to maintain demand in the construction and retail sectors. The British agency points out that the main risk to this forecast is a sudden fall in credit growth; However it says, this seems unlikely, given that banks are enjoying strong profit growth, commercial interest rates are expected to fall further, and overall lending as a share of GDP is probably lower than in countries such as the UK and Spain.

EIU’s central forecast about interest rates is that the European Central Bank (ECB) will raise rates twice more before the cycle comes to an end at 4.25%. Rises above 4.25% would only occur if growth were to continue as strong as in 2006 and show no sign of slowing by the end of 2007. However, EIU says, Cypriot commercial lending rates, which are higher than in the Euro area, should continue to fall from 2008. The final convergence of Cyprus and ECB rates will happen in the last two months before the adoption of the Euro.

The EIU says that the Cyprus pound is already approaching the central parity rate. Under the planned schedule the exchange rate with the Euro will be locked in July 2007; mandatory dual pricing in euros and Cyprus pounds will run from September 2007 until June 2008; and the Cyprus pound will cease to be legal tender in February 2008. According to EIU the Euro is forecast to strengthen against both the US dollar and sterling on average in 2007-08.

Ebook_cover

If you are interested in purchasing investment property or your own home in Cyprus, ypu should consider buying this book. It has 31 pages of the most concise information you could ever need when it come to buying property in Cyprus. From the Legal ramifications through to the Banking issues, all of which is complimented by some beautiful photographs of the island.

Available at 4wallsandaceiling.com for only £4.99.


June 14, 2007

Residential property prices in Cyprus continued to rise

Residential property prices in Cyprus continued to rise

4wallsandaceiling.com Newsletter

Source: Financial Mirror


Residential property prices in Cyprus continued to rise for a fifth consecutive month in May 2007, recording a monthly increase of 1.8%, according to the BuySell Home Price Index prepared by Dr. Stelios Platis and Marios Nerouppos of MFC S. Platis.

The index reached 124.58 in May, compared with 122.44 in April, marking an increase of 9.1% increase over May 2006.

The BuySell Home Price Index, which adjusts for factors such as increases in quality, is the only house price index produced for Cyprus.

According to Financial Mirror calculations, the BuySell Home Price Index has risen on average by 9.3% year on year so far this year, compared with 5.9% for the whole of 2006. House-price growth is therefore accelerating.

BuySell reported that the “Average Home Price” in Cyprus according to the BuySell index was CYP 97,064 (EUR 166,610) in May.

The BuySell Home Price Index was created and is updated monthly on behalf of BuySell Cyprus Real Estate by MFC S. Platis. The Index is announced during the second week of each month and depicts the movement of prices at which residential properties are sold in Cyprus, based on the extensive BuySell Cyprus Real Estate database.

Nick Says...

Ebook_cover

If you are interested in purchasing investment property or your own home in Cyprus, ypu should consider buying this book. It has 31 pages of the most concise information you could ever need when it come to buying property in Cyprus. From the Legal ramifications through to the Banking issues, all of which is complimented by some beautiful photographs of the island.

Available at 4wallsandaceiling.com for only £4.99.


June 13, 2007

Buy to let landlords report demand for rented properties outstrips supply - ARLA

Buy to let landlords report demand for rented properties outstrips supply - ARLA

4wallsandaceiling.com Newsletter

Source firstrung.co.uk

Demand for rented properties seriously outstripped supply and rent levels rose during the three months to the end of May according to the latest quarterly survey of ARLA Member Letting Agents published today, June 11. These results show the shortage of properties and the continuing need for investment in the private rented sector at all levels...

Rents rose for the fourth quarter running for each type of property, including detached, semi-detached and terraced houses and flats. As a result of increased demand, void periods have fallen to an average of 24 days.

Over two thirds of all agents in Prime Central London report rising rent levels. Half of the agents in the rest of the South East say the same and in the rest of the country the proportion of agents reporting rises rose from 33% to 35%.

Seven out of ten Prime Central London agents say there are more tenants than properties. This is the highest figure seen since the ARLA surveys started six years ago. In the South East, ten percent more agents report demand is outstripping supply and the proportion in the rest of the country with a lack of supply has also risen.

Commented Adrian Turner, Chief Executive of ARLA:

"There is a shortage of all forms of housing in this country and these results show that the shortage of good quality property is also apparent in the rented sector.

The average capital asset values of rented houses rose during the past three months by 2.2% in Prime Central London, 0.3% in the Southeast and, by contrast, fell by 3.9% in the rest of the UK."

Average rented house values ranged from £885,000 in Prime Central London to £229,900 away from London and the South East.

Rented flats did less well, with the average asset value across the country down by 1.3% for the three month period. Asset values for flats ranged from £501,000 in Prime Central London to £210,000 in the South East and just £153,000 in the rest of the country. However, flats showed a slightly higher gross return.

Despite the rising rent levels, the average weighted returns are down marginally from 5% to 4.8% for houses and from 5.1% to 5% for flats. .ARLA believes this to be a reflection of continually rising house prices during the quarter.

Tenants continue to stay in rental properties for an average of well over a year. They remain in the same property for the longest in Prime Central London at an average of 17.7 months. This compares to an average of 15.2 months for the South East and 14.2 months elsewhere. These figures have shown little change for the past two years.

Said Adrian Turner:

"Even though it still needs more investment, the Private Rented Sector is continuing to provide choice in housing and a safety valve for the housing market, particularly now, at a time of mixed expectations for future strong rises in house prices."

The ARLA survey of member letting agents is the largest survey of its kind in the Private Rented Sector, with 463 letting agents responding to this quarter's survey. The survey is supported by the ARLA Group of Buy to Let mortgage lenders: Bank of Ireland, Cheltenham & Gloucester. GMAC RFC, Mortgage Express, NatWest and Paragon Mortgages.

Nick Says...

I've found another one to compliment the last blog...by chance. I thought you would like to know.

However...

Knowing there are tenants and finding them are two different things. Most landlords go and find the deal first, however, we at 4wallsandaceiling.com know this is the wrong strategy. Firstly you must find the demand...THEN create the supply. Finding the demand can be tricky but with education this can be made quite clear where they (the tenants) are to be found, thus making your investment a lot less riskier... Education makes your investment lower risk. Property investment does not have to be high risk provided you get some knowledge.

The answer is to get yourself educated. If you want to come on one of our free workshops Click here.

Rental demand outstrips supply

Rental demand outstrips supply

4wallsandaceiling.com
Newsletter

Demand for rental property far outstripped supply in the three month period ending May 31st 2007, according to figures released today by an industry body.

A survey of Association of Residential Letting Agents (Arla) members found that many had been forced to turn potential tenants away due to a lack of available properties.

All types of property - including detached, semi-detached and terraced houses as well as flats - were in increased demand. Demand was particularly pronounced in the capital, with over two-thirds of landlords in central London reporting rising rent prices.

Those operating in the surrounding south-east regions reported much the same figures, while across the nation as a whole, agents reported rent hikes of between 33 and 35 per cent.

Rising demand means that the average void period for a buy-to-let property in the UK is now just 24 days, according to Arla. Tenants are on average staying in rented properties for over a year, with the longest times being recorded in central London at an average of 17.7 months. The south east logged 15.2 months and the rest of the nation just over 14.

Adrian Turner, chief executive of the body, commented: "There is a shortage of all forms of housing in this country and these results show that the shortage of good quality property is also apparent in the rented sector.

"The average capital asset values of rented houses rose during the past three months by 2.2 per cent in prime central London, 0.3 per cent in the south east and, by contrast, fell by 3.9 per cent in the rest of the UK."

Arla recently profiled the average buy-to-let investor as a mature investor, over 35 years old and someone who is cautious and looking for a secure long-term investment. The body claimed that more and more people are being attracted to the market and predicts that the number of tenancies on the market is set to grow by around three per cent each year over the next ten years.

According to figures released last week by the Council of Mortgage Lenders, 330,000 buy-to-let mortgages, worth a total of £38.4 billion, were taken out in 2006. Mortgage lenders, adapting to the increasing popularity of property as an investment, are also increasingly offering a mortgage product billed as let-to-buy, that allows the investor to borrow against the value of their home to secure a rental property.

Nick Says...

This can only be good news to us Landlords. If you have read The Kate Barker report you would know this information does not surprise me. When demand outstrips supply by the numbers quoted, not only does it effect property prices but rental prices as well... we've got to live somewhere, even those who cannot buy.

If you would like some training with investment property... and you should, keep in touch with us at 4wallsandaceiling.com or come on one of our training evenings Click here...

Or e-mail me here solutions@4wallsandaceiling.com

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