reas of Europe popular consequential rentals possibly
with holiday home buyers tailing off.
could see property prices
fall by ten per cent or more in ‘Some buyers rely on renting
the year ahead, according to their holiday home out as they
overseas property specialists take out a mortgage to buy', says
Tribune Properties. Roger Munns of Tribune
Properties, ‘and if they can't
2005 saw the first signs of a rely on this it creates doubt as
property slow down, and even the to whether to buy or not. Some
reverse of sharp gains in holiday buyers were taking the view that
home prices over recent years in they should wait to see what
Spain and Portugal. happens'.
With owners unable to sell their But it isn't just the possibility
property likely to drop their of more droughts and unreliable
asking prices in 2006 to secure a rental income that is beginning
sale, buyers will be in their to see prices drop in some areas,
strongest negotiating position according to Tribune Properties.
since the mid to late 1980's when
prices dropped by nearly a third The emergence of new European
on the Spanish Costas. markets in the former Eastern
Bloc has seen British, Dutch,
Europe's worst drought in living Belgian and German buyers head
memory had an affect on the for countries like Bulgaria where
markets in Spain and Portugal apartments and houses can be
earlier this year, with many bought at a fraction of the price
would be buyers wondering if they of Spain and Portugal.
would be able to use their pool
in years to come, with ‘Second home buyers are seeing
properties offered in Bulgaria at
less than half the price they The two countries they see in
thought they would need to own a Europe with growth potential for
home overseas, and the 2006 are the tax havens of
traditional markets of Spain and Andorra and Monaco.
Portugal are losing out.
Monaco and lesser known Andorra
Already we have seen villas in both offer no income tax for
Menorca drop in value by around residents, and Andorra has seen
ten per cent, and they could, and double digit property price
probably will, go lower still. inflation for the last two years,
with the 2005 figures likely to
In addition the rate of new match. After a slow start to the
builds on the Costa del Sol and year Monaco has seen strong
Costa Blanca hasn't slowed down buying in the last quarter.
to any great degree, and before
long there could be a price With the new government in
correction as there is going to Germany increasing the top rate
be quite an oversupply in the of income tax, Tribune forecast
market.' demand continuing through to
2006.
European Tax Havens
‘Andorra and Monaco are small
In contrast to lower prices on countries with little room to
the Spanish Costas and Menorca, build new property', says
Tribune forecast that prices on Tribune's Managing Director Roger
the Algarve and Malta are likely Munns, ‘Despite the German
to stay steady or increase as economy being slow for the last
their domestic markets are few years it remains a very
strong. important market. The raising of
the top level of tax will mean make provisional offers of
more Germans seeking residency in between five and ten per cent off
a country with low tax levels. the asking price on a shortlist
Andorra and Monaco are the two of three or four properties as
most likely candidates for them one owner is likely to accept.
to buy in and take residency'. Their longstanding advice is to
always employ an independent
Tribune's advice to potential lawyer to handle any sale and
overseas property buyers is to deposits.
find out how long a property has
been on the market for, and to
About the Author:
Tribune Properties produce a guide for Monaco and Monte Carlo, including the weather, a Monaco map, hotels and the Grand Prix at http://www.yourmonaco.com For Malta hotels, holidays, a map of Malta, flights, the weather and car hire visit http://www.yourmalta.com
Source: www.isnare.com
