International Property News

Official figures released in March from the Cape Verdean National Statistics Institute (INE) show that the number of hotel units across the archipelago rose by a mighty 9.6% year-on-year, from 178 hotels in 2010 to 195 in 2011. Even more interesting is the fact the hotels are getting larger to cater to demand with the number of rooms rising a huge 34.1% for the same period.

Adam Cornwell, Managing Director of Feltrim International promoting real estate on the Islands, comments, “Cape Verde is one of the fastest growing tourist markets in the world and inevitably the hotel industry is responding. These 17 new hotel establishments added 7,900 rooms and 14,000 beds to 2010 figures, yet there’s still plenty of room for growth as tourist arrivals continue to increase by around 20% per annum. It is projected that Cape Verde will reach half a million tourists annually by 2015 and one million by 2020 as northern Europeans wake-up to the potential of this mid-haul winter sun destination.”


This news comes hot on the heels of a positive report from holiday rentals website HomeAway. Not only did Cape Verde enter the top ten holiday destinations for the first time, but it ranked an impressive fifth most popular destination for booking enquiries between October and December 2011. The website said it was a hot mid-haul market emerging as a strong winter sun rival to the Canaries and highlighted the increase in hotels, charter flights and package holidays over the last few years. Skyscanner also ranked Cape Verde highly, in third place, on its list of emerging destinations in 2011.


With additional hotel units of course comes additional employment opportunities in Cape Verde and the same report stated that employment within this sector increased by a welcome 27.6% from 2010 to 2011. Geographically, the Islands of Sal and Boa Vista boast the greatest number of hotel units, 44.7% and 31.1% of the total respectively – a number of them now of five star rating to cater to the demand from discerning guests after the ultimate in luxury. Boa Vista in particular is working hard to maintain its ‘five star status’, emphasizing quality over quantity, and keeps a tight control over build density to protect the environment and promote sustainability for investors and locals and avoid over-saturation.

Joining the five star fraternity is the Santa Mónica Beach Resort & Spa on the Island of Boa Vista. With many of the 1,140 units available for sale on a freehold basis, the Resort combines a five star hotel with luxury one and two bedroom apartments and two to five bedroom villas each with private pool.

As an indication of its excellence, some serious heavyweights have put their name to the project including Wyndham, the largest hotel operator in the world, to handle guest services and rental management alongside ESPA, a global award-winning Spa operator, to provide blissfully relaxing treatments and products.

Santa Mónica Beach Resort & Spa will have a range of gourmet seafood, oriental and fine dining restaurants, childcare services and on-site coaching at the tennis complex alongside mountain biking, big game fishing, diving, windsurfing, sailing and 4x4 safaris in the local vicinity. A championship standard golf course is planned for alongside the Resort. Meanwhile the beach at Santa Mónica is well known as one of the world’s key turtle nesting sites as well as being a breeding ground for humpback whales and home to many native and migrating bird species.

Hotel occupancy, according to the Government, is currently 90% and there is no low season due to average daily temperatures consistently hovering between 21ºC and 30ºC which is warmer and more reliable than even the Canary Islands – excellent news for strong rental yields. Boa Vista’s International Airport takes direct 5.5 hour flights from Glasgow, Gatwick and Manchester and flights from Bristol and Stansted are to be added giving UK visitors greater flexibility. Direct flights to Cape Verde are also in place from Lisbon, Madrid, Milan, Frankfurt, Brussels, Boston and beyond which again helps boost rental yields.

For a limited time early investor discounts of 30% for cash buyers mean prices start from just 83,300 euros for a one bedroom apartment and 325,500 euros for a detached three bedroom villa. Finance options of up to 90% are available making ownership of a one bedroom apartment achievable from just an 11,900 euro deposit. There are also rental and leaseback plans offering up to 7% fixed income with allowances for personal use. Santa Mónica Beach Resort & Spa also qualifies for SSAS and SIPP purchase via fully managed hotel suites from 85,000 euros (official valuation 162,000 euros) with ten-year guaranteed 7% rental income. Licenses and planning permission have been granted and construction is underway on site with phase one scheduled for completion mid 2013. Santa Mónica Beach Resort & Spa offers a unique chance to purchase top-quality property in a prime location - while prices remain low.

Please click HERE for further details of the Santa Monica Beach Resort

Florida has been a tricky State for foreclosures. Not only does it form part of a group of US States where foreclosures are handled with judicial oversight, thus protracting the process, but it also has a higher volume of them. Compound this with the “robo signer” scandal and the system all-but stalled. But there’s good news, the kinks have been ironed out and it’s all systems go for Florida foreclosures.

Adam Cornwell, Managing Director of Feltrim International, is pleased with the progress, “Whilst more homes may be starting the foreclosure process as this period of limbo comes to an end, many more are also finishing it and hitting the Florida property market. Fortunately there are many investment buyers out there, particularly from Canada, Brazil, the UK and Far East, who are ready and waiting to snap up this flood of bargain homes. In fact a recent study from listing website Point2 showed that over 31% of foreign investors looking at the US for real estate homed in on Florida. And, with new home construction currently at a stand-still, existing stock will continue to be their preferred option.”

Adam continues, “It’s not just price that underpins the investment proposition in Florida, rental potential is a key factor that creates stability. 51 million tourists came to Orlando last year, many of them to explore Walt Disney World and short-term lets are booming. Meanwhile unfavourable mortgage lending, a lack of confidence and the need to wait for two or three years for a credit rating to rebound after a foreclosure, creates a huge local demand for long-term rentals. Investors can soak up 8 to 10% return on investment in rental income and wait patiently while the market readjusts and recovers – which indeed it already is. The US economy is improving and current unemployment levels are at 8.3%, a three year low. Fewer people are defaulting on their payments and property prices are on a natural rise.”

The “robo signing” scandal which came to a head at the end of 2011 centred around under-qualified bank personnel blindly signed thousands of foreclosure papers on a daily basis without verifying the authenticity of the paperwork - a practice that was inadmissible. The subsequent law suit stalled foreclosures while cases were investigated for fraudulent activity. Whilst this was good for the homeowner, delaying their impending foreclosure, it was frustrating for the property market. The result was the average time it took for a foreclosure to complete rising from 169 days in Q1 2007 to 806 days in Q4 2011 – well over two years. Fortunately, in February of this year, the five major lenders involved in robo signing came to a 25 billion dollar settlement agreement which paved the way for a fresh wave of foreclosures to hit the market.

According to RealtyTrac, one of America’s most trusted sources of foreclosure statistics, overall foreclosure filings in Florida, which include initial notices, notices of sale and repossessions, were 40% higher in February 2012 than they were in 2011 - but remember this is coming from a very low base. Florida is taking steps to increase the number of judges and administrators on hand to clear the paperwork and the hearings and flush the glut of foreclosures through the system. This is very much in the banks’ interest as all the while they are carrying the cost of securing, insuring and maintaining the homes on their books.

Florida’s housing market peak was in 2006 to 2007 and maybe it’ll take a while to get back there but prices are already moving back in the right direction, albeit slowly. The only time anyone can pinpoint the bottom of the market is when it’s out the other side, by looking in the rearview mirror and making the call, but conditions are most definitely stabilising and when finance becomes more readily available there will be a sharper upswing.




Detached House, Haines City, Florida

Bright 165m² three bedroom two bathroom home with a screened-in heated swimming pool, hot tub and shower to the rear. Spacious eat-in kitchen with all appliances, separate utility room and master suite with walk-in wardrobe. Private corner plot in a nice, gated community where short-term rentals are allowed.

Price: from 150,000 USD (approx 94,393 GBP)

Click HERE for further details

Detached House, Davenport, Florida

Built in 2005, this three bedroom two bathroom 165m² property has one of the keenest price tags you’ll see on a foreclosure in this area. Just three miles from the main interstate highway I-4 bringing you to Walt Disney World in 20 minutes and 30 minutes to downtown Orlando – a 13% net rental return on this property is highly reasonable after costs and taxes.

Price: from 65,000 USD (approx 40,903 GBP)

Click HERE for further details

When the Costa del Sol property market was at its peak in the mid-2000s, developers building in prime golf locations added a hefty loading to their price tags. Golf-side was second only to beachfront and a two bedroom apartment wouldn’t always give you change from half a million euros. In order to sell unsold inventory in today’s climate, that premium has been dropped but the benefits remain the same.



Adam Cornwell, Managing Director of Feltrim International comments, “As Spain struggles to cope with the collapse of its construction industry, many properties now lie in the hands of the banks. Whilst many are below par at best, there are some genuine top quality homes within their stock including golf-front. As the Government aims to clean up and restart the banking system, lenders are being asked to recognise bigger provisions on their property portfolios which encourages them to offload the stock by dropping prices and offering significant financial incentives to purchase. This means that not only has the clock turned back six or seven years in terms of pricing, but also in terms of lending with 110% mortgages reappearing on bank-owned developments. Prime golf property is within reach once again.”

Golf property always has appeal, particularly on the Costa del Sol with its 70-plus courses, short flying times from northern Europe and reliable year-round climate. Owners soak up all the benefits of discounted green fees or rights of play, protected attractive green views, a well-maintained community, gated access and security, additional on-site leisure and social facilities and enhanced potential for rental income as golf continues to grow in popularity as a sport. These benefits used to come at a cost, but with the market at rock bottom that’s a thing of the past.

Adam continues, “It’s an ongoing debate - is the Costa del Sol property market at rock bottom? - and I can only say that if a bank is prepared to lend 110% on heavily discounted property it must have confidence in the long-term value of that home in that particular location. The inventory of unsold property in prime coastal areas for discerning buyers is dropping, demand is growing from overseas buyers and they are looking with a long-term lifestyle perspective rather than a short-term investment mentality. The new Government, sworn in in December 2011, has offered political stability and created reasonable expectations for the coming years which have instilled a degree of confidence and optimism in the market. If the price, location and quality stack up, there is no reason to wait to buy.”

Somewhere the figures do stack up is in the resort of Los Flamingos just to the west of Puerto Banús in a countryside setting yet a stone’s throw from the beach. Boasting an incredible three 18-hole golf courses, a driving range and an acclaimed American Golf Academy, Los Flamingos has hosted the European Senior’s Circuit final, no less than three Daily Telegraph European Seniors Match Play Championships and the 2010 Ladies Spanish Open won by Laura Davies. The focal point of Los Flamingos is the luxury five star 129-room Villa Padierna Palace Hotel, which in 2010 was home to America’s First Lady Michelle Obama, her daughter and friends for a few days holiday. Styled as a Tuscan Palace, the Villa Padierna Palace Hotel is known for its original pieces of art and antiques from the owner’s private collection, fine dining, luxurious Spa, wellness centre and exquisite landscaped gardens.

Directly overlooking the Villa Padierna Palace Hotel, Hoyo 19 is a top-end gated apartment resort finished in a refreshing contemporary style. Entirely orientated to the south and southwest, all homes have incredible views of the Los Flamingos golf and the Mediterranean coastline – a view that becomes ever more dramatic as the sun sets and night falls. The apartments themselves enjoy top specifications and qualities as well as private underground parking and storage whilst community facilities on-site include a Spa, putting green, tennis courts and two private swimming pools.

Now under bank ownership, the one, two and three bedroom apartments are being sold for half the developer’s price of three years ago with some incredible terms. Clients are able to take advantage of a specially negotiated 110% mortgage, to cover all closing costs, and take two years interest-only repayment terms with rates from as low as 0.25% plus Euribor – all for just a 2% commitment fee. Key-ready furniture packages are also available. Prices start from 238,000 euros (approx 198,500 GBP) for a two bedroom two bathroom apartment. For further details CLICK HERE and also see our other listings on the Costa del Sol HERE

As reported in International Estate Agent Today, Gary Kenny, chief executive of Coldwell Banker Feltrim and Feltrim International, says that Florida is a property hotspot once again.




A.

We’re already off to a good start this year. So much so that at Coldwell Banker Feltrim (Feltrim International's sibling in Florida) I’ve already appointed five new sales agents to cope with rising demand.

During the dark and dismal past few years, when the property market here totally collapsed, I always had confidence that this area would bounce back, and that faith is now being rewarded.

What’s particularly exciting for Coldwell Banker Feltrim and Feltrim International is that central Florida is now attracting buyers from all corners of the globe – two of my new agents are specialising in the South American markets, particularly Brazil and Columbia, where I see great growth for us over the next three years.

The Canadian market has also been a great success for us since we concentrated our attention there in October last year. By offering special exploratory tours where as well as inspecting a selection of properties, the prospective clients also meet with our in-house property management and rental divisions as well as expert tax advisors , we have large parties of Canadians booked to visit central Florida over the next few months.

In February alone, one of our agents has sold 10 resale units at our Tuscana Resort in Orlando to Canadian snowbirds, who head south to Florida for two to three months a year to escape their harsh winters.

It is demand like this that is driving Coldwell Banker Feltrim (and Feltrim International) not only to increase its staff but also to acquire more quality properties that we can market to this growing number of international buyers.

There is a real shortage of prime propertiy on the market in central Florida at the moment. Just this week I submitted a bid to bulk purchase 40 units in a resort that is in foreclosure and being sold off by the bank, only to find that we are competing with eight other companies looking to acquire the some homes!

One area that I consider will become a prime location in 2012 is Jacksonville, the largest city in the sunshine state.

In a new report by Metrostudy, a firm which boasts the most extensive database on residential construction in the US housing market, the growth of new jobs in this city has increased by 1.4% which is far greater than the Florida rate which is 0.6%. In addition, the construction of single family homes has increased here by 19.3% in the last quarter of 2011.

Despite its size, Jacksonville remains an untapped location for overseas buyers and yet is only a two hour drive from Orlando and its famous theme parks. Jacksonville itself, or Jax as its known locally, is a thriving tourist destination, known for its sandy coastline and outdoor lifestyle. It also benefits from a vibrant business district and retail thoroughfares.

We’ve had tremendous interest from buyers looking to find quality properties in the Jacksonville area, so much so that we’ve recruited two new, local agents. The location offers tremendous value and its economy is bouncing back at a quicker rate that elsewhere in Florida, but I believe prices will start to rise as the availability of good properties on the market remains limited.

We’re seeing a greater demand for single-family homes, rather than condos, across central Florida where builder confidence has doubled in the last quarter of 2011 which is terrific and, combined with the return to record visitor figures of 50 million last year, it’s a promising sign of more sustainable growth.

Prices for properties in Jacksonville, available from Feltrim International, range from only $140,000 (£88,250) for a single family, four bedroom home or $80,000 (£50,432) for a condo.

Jacksonville offers an alternative choice to the theme parks of Orlando, and it’s proving increasingly popular with buyers of all nationalities. We’re only seven weeks into the year and demand for property across central Florida is growing week by week, which is great to see.

For further information on properties in both Orlando and Jacksonville CONTACT US today.

Florida’s housing market reported gains in median sales prices and a reduced inventory of homes for sale in January, according to the latest housing data released by Florida Realtors®.




“We’re seeing positive signs of a strengthening recovery in Florida’s housing market,” says 2012 Florida Realtors President Summer Greene, regional manager of Better Homes and Gardens Real Estate Florida 1st in Fort Lauderdale. “In both the statewide single-family and condo-townhome markets, pending sales are higher and the statewide median sales price rose – up 5.3 percent to $129,000 for single-family homes and up 18.8 percent to $95,000 for condo-townhomes. Improving the availability of affordable financing to qualified buyers and investors would continue to stabilize Florida’s housing market and economy.”

The median is the midpoint; half the homes sold for more, half for less. Sales of foreclosures and other distressed properties continue to downwardly distort the median price because they generally sell at a discount relative to traditional homes, according to housing industry analysts.

The national median sales price for existing single-family homes in December 2011 was $165,100, which is 2.5 percent below the previous year, according to the National Association of Realtors® (NAR). In California, the statewide median sales price for single-family existing homes in December was $285,920; in Maryland, it was $222,934.

Florida statewide sales of existing single-family homes totaled 12,044 in January 2012, down 5.5 percent compared to the year-ago figure, according to data from Florida Realtors Industry Data and Analysis department and vendor partner 10K Research and Marketing.

Looking at Florida’s year-to-year comparison for sales of condos/townhomes, a total of 5,963 units sold statewide last month, down 22.6 percent from those sold in January 2011. According to NAR, the national median existing condo price in December 2011 was $160,000.

“Even though closed sales are down from a year ago, there are two really bright spots in Florida’s housing market,” said Florida Realtors Chief Economist Dr. John Tuccillo. “One is a significant increase in pending sales. In fact, pending sales have been up every month since May. The barrier that stands between pending sales and closings is the difficulty consumers are experiencing in obtaining financing.

“The second positive is inventories, which are now at a point close to a balanced market,” Tuccillo said. The months supply of inventory stands at 6.4 for both the single-family homes market and the condos/townhomes market.

The interest rate for a 30-year fixed-rate mortgage averaged 3.92 percent in January 2012, down from the 4.76 percent average during the same month a year earlier, according to Freddie Mac.

CLICK HERE for further details of our latest Florida listings

Spanish home loans have fallen for the 14th consecutive quarter. Data from the National Statistics Institute out in December 2011 showed that October lending was 43.6% down on the previous year and the lowest monthly figure since 2003 – beating even 2008, the year the ‘bubble burst’.


Yet banks will lend more than 100% on their own stock to high quality borrowers and Feltrim International has access.

Managing Director Adam Cornwell comments, “Whilst Spanish mortgage lending is not expected to recover in 2012 due to high unemployment and limited bank funding, financial institutions have to optimise their balance sheets. Recent reports from a leading risk adviser say banks have around 30 billion euros-worth of property that they can’t sell. To incentivise quality buyers they are prepared to offload these homes at rock bottom prices and with the highest mortgages. At Feltrim International we have a luxury beachside development close to Marbella at 50% off the developer’s 2007 price plus a 110% mortgage option with two years interest only – all the more incredible given the financial crisis.”

Of course Feltrim International is not interested in Spanish property in the middle of nowhere or the cheek-by-jowl cheap coastal homes – both of which are worth literally nothing - it is the desirable areas that are proving to be most popular with repossession hunters.

Adam continues, “If a bank is prepared to lend all of the money, more than 100%, on a project that has fallen to 50% of its value five years previously then it must have the confidence that first the market has reached the bottom in this particular location and second the property will regain its value in the not too distant future. Ironically we are now in a situation where the best units in these marked-down resorts are selling fast, just like in the heady days of the property boom when the best off-plan units were snapped up fast – albeit now they have the peace of mind of something complete and tangible. Investors can buy using very little, or none, of their own capital with the risk being entirely taken by the bank – this simply does not happen in any other distressed market in the world. As the phrase goes – if you see the bandwagon, you’ve missed it – so best to act early.”

Marbella is as “safe” a location as you’re going to get in Spain. It already has a fantastic infrastructure, licensing issues have been resolved under the new urban plan (PGOU) approved in 2010 and the tourists come in a steady stream attracted by more than 70 golf courses, year-round sunshine, endless beaches and no frills flights. In 2009 RyanAir established a base at Málaga Airport and the carrier now operates 39 routes whilst over recent years Delta Airlines has added a direct flight to JFK, Saudi Arabian Airlines direct to Jeddah and Riyadh and significantly a selection of airlines, including Aeroflot, have introduced direct flights to the several Moscow Airports. Marbella now has true global appeal.

Perhaps the single best piece of news in Marbella for 2012 is the announcement that a 109 million euro plan to expand Marbella’s fishing port has been given the green light. The long planned transformation of La Bajadilla into one of the most luxurious marinas on the Mediterranean can now take shape after the Junta de Andalucia, Marbella town hall and the Nasir Bin Abdullah & Sons Consortium signed a contract allowing construction to begin. The plan, which is expected to take four years to complete, includes a commercial area of 23,000m², a five star hotel and three times the current number of moorings including access for cruise ships and megayachts. The mayor of Marbella, Angeles Munoz, said “it is a great opportunity not to be missed.”

The new Rajoy Government may have to implement some unpopular policies to drag Spain out of economic turmoil, it has already announced an 8.9 billion euro budget cut across all Government departments, but the long-term result will be a stronger more optimistic country and the market will return to normality. Meanwhile property is cheap, tourism is recovering and the investment opportunity is there for the taking.

On the Market - Soto Serena, nr Marbella, Costa del Sol
Designed by signature architect Melvin Villarroel who has been responsible for many of Spain’s iconic hotel, shopping and residential projects; Soto Serena sits in over 34,000m² of beautiful landscaped gardens with large freeform swimming pools, a feature waterfall, fully equipped gymnasium and sauna and a bar/restaurant area. The apartments are fully furnished to high specification, have large terraces with superb views, fitted hot and cold air-conditioning, parking and storage and immense rental potential. Ideally located just 300 metres from the beach with beautiful Mediterranean and golf views, the gated community of Soto Serena is just 12 minutes drive from chic Puerto Banús and even closer to nearby Estepona with its shops, bars and fishing marina. Local agents project that 16 weeks (high season) rental income should keep the investment cash neutral in the first five years leaving 36 weeks personal use at no extra expense. We are able to offer an incredible finance deal on this luxurious development to include a 50% discount off the developer’s price plus a 110% mortgage option (including closing costs) with two years interest only at rates from 0.25% plus Euribor.
Price 184,000 euros (approx 158,233 GBP) for a one bedroom penthouse (was priced at 368,000 euros in 2007 – half price)

Contact Feltrim International on UK Freephone 0800 862 0280 or telephone +44 (0) 20 7183 4045, email info@feltriminternational.com or visit www.feltriminternational.com.