The latest Investing Matters Podcast episode featuring financial educator and author Jared Dillian has been released. Listen here.
Again...backing up my point...
According to the National Institute of Statistics, sales in Malaga province rose just shy of 5% in the first quarter of 2018, compared to the same quarter in 2017. Both sales transactions and property prices are rising steadily. Property portal Idealista.com even quoted price rises of 12% in Malaga province, based on the portal's own sales data for the first quarter. Marbella was the leading performer, with an average house price now standing at 971,000 euros, according to estate agents Lucas Fox Marbella, who also reported that their sales, compared to 2017, more than quadrupled in the first six months of 2018.
The National Institute of Statistics report showed that the number of foreign buyers is steadily growing. The first quarter of last year saw foreing buyers account for 28% of the property market at the Costa del Sol, but in the first quarter of 2018 this share had risen to 31%.
Interestingly, Lucas Fox Marbella has seen a change in demographics, with buyers of Marbella property getting younger all the time. The average age is now 42, far younger than buyers used to be. As for nationality, in the last year buyers from Scandinavia dominated with 46%, followed by buyers from the UK, who accounted for 23% of the sales transactions.
During last year, there were 513,814 property transactions recorded, representing a 17 per cent growth against 2016. Foreign buyers accounted for 100,095 of those and showed a year-on-year acceleration of 14.2 per cent.
For countries within the European Union (EU), during the second half of 2017, the most active nationalities were British (14 per cent of buyers), French (8.6), Germans (8.2), Romanians (6.9), Italians (6.8), Belgians (6) and the Swedish (5.3).
The proportion of purchases from people outside of the EU was also high, with the Moroccans (5.5 per cent), Chinese (4.9) and the Russians (3).
Looking at the increases between 2016 and 2017, there are some surprising inclusions in the top ten which sees Moroccans recording a 36 per cent growth in purchases during that period. They are followed by Ecuadorians (33), Romanians (31), Portuguese (30), and Americans (27).
The only country that showed a decrease in their property purchasing was the United Kingdom
To add... 83% of properties still bought by the Spanish and this figure is rising as the economy improves. The number of UK buyers is minute in the national figure...
Hold on.... So 9000 bought by British out of 60000 and you think there will be a full blown crash if the UK market takes a tumble??? Can't see it mate. Anyway, I didn't buy there to sell on. Very happy with my purchase and what it is now worth but keep telling me it's crap... Haha... I expect no less from you cc.
Not wrong at all. The Europeans are picking up the slack mate. As the British pull out, others are taking their place. Look up 'La Cala Tropicana' on booking.com and tell me who has a 9.4 average review and is down as 'Guest Favourite'.... Sure, I'm doing everything wrong. You keep telling yourself that! Haha.
cc....I see BMN is 'breathing' lower by 4% again today...when will the breather end?
cc....contradictory as always. Obviously I am talking about prime Spanish areas. My place is near Marbella and prices will not go 'down the toilet'. I think you will find that as the Brits are being priced out of the market in Spain due to the fall of sterling, many other European buyers are taking their place. Prices are growing at around 7% annually with very healthy returns on holiday rentals. I have been full since early May and only one customer has been from the UK...if the Brits stop coming - it certainly won't make much difference to me. I would say 50% of customers are Spanish so I am seriously considering cancelling the UK stations I have at the apartment as the number of Brits turning up doesn't justify the additional expense. As far as Poland - it is developing at a frantic rate. The cities are filled with developments, new businesses and wealth. The towns are all undergoing regional development and are looking really nice these days! I think you should take another visit. Check out heron hotel in Beskid, Lemon Resort & Spa, Czarny Potok - all are world class. I agree that 10 years ago, Poland was awful and a lot of places looked straight out of a Borat sketch but the pace of change is lightning fast now!
News this week or will they wait for the interim statement around the 22nd Sept? Thoughts?
Dave...please have a read of the Polish story since 1989. Please also take a look at the Spanish economy over the past few years and look at property prices. The property I bought in 2017 has already doubled in value and produces 20,000 Euros holiday rental income per year! I talk from experience - you talk from...well, I will leave that for other people to decide! Since I moved assets to Poland and Spain, the collapse of Sterling (without any growth) has already made me over 20% richer in £ terms with a lot more to come.
Dave....In H1'17, a clear economic recovery in the countries of Central and Southeast Europe is visible, with a permanent decline in unemployment and relatively high GDP growth compared to the rest of the European Union.
The economic recovery of Member States from Central and Southeast Europe (CSE) is confirmed by the analysis of the GDP growth rate. In the Q1, all countries from this region demonstrated a higher growth than the EU average (2.1 per cent). The highest growth was recorded in Romania (5.6 per cent – the highest across the European Union), Slovenia (5.0 per cent) and Poland (4.2 per cent). High growth, compared to the EU average, could also be demonstrated by Lithuania (4.1 per cent), Estonia (4.0 per cent), Latvia (4.0 per cent) and Hungary (3.8 per cent).
Dignity...True, keeping Sterling has allowed our Government to de-base our currency in order to keep the economy going - but at what cost? Every time I am in the UK my jaw drops that Supermarkets now sell apples BY THE APPLE! not, by the kilo! The price of meat, vegetables, staple foods and fuel are all 30-40% higher than just a few years ago! The cost of housing has inflated beyond belief and all to keep the system from imploding. Inflation, inflation, inflation. All it really means is people getting poorer and poorer. Sure, their assets are worth more 'Pounds' - but the pound is worth only around 60% of it's $ value only 10 years ago! The Government will continue the same race to the bottom until eventually, people can't afford to put food on the table. I do think there will be a major collapse in the UK for many reasons - not just Brexit. However, Brexit certainly won't help the situation and will just allow the Government to continue with the same policies in order to keep the lights on - like allowing the Russians, Arabs and Chinese to continue to flood the economy with funny money from their home countries - isn't there a major new law coming in in 2019 to counter this in the EU and is a major reason why rich tories want out of the Union?
Sheps85...I still keep a base in the UK for business but I spend much of my time in Spain and Poland. I think watching the situation from inside the UK is far different from viewing it from the continent! Many in the UK think the EU is collapsing but this is not the case. They are unified - even if some are making threats in order to create change. I am far more confident that things will get sorted on the continent than I am about UK prospects - which sucks as I am paid in £ and my spending power is already 20% less! I am starting to get work printed in the UK for export to Poland! Can you believe it? It is now worth going the other way! Two years ago, I would have laughed if someone had told me this would be the situation!
Beynon. The EU is flawed in many ways but it is a huge population and as such, the currency can take a much bigger shock - as can be seen from the massive QE program that has gone on while the EU has maintained it's value. Yes, there will be problems in the EU, but I personally feel that bringing the Union closer over the coming years will ease the situation and the growth of the major economies will be shared to help out those who are struggling. Time will tell but I would much rather have seen a UK fighting for change with a veto inside the EU than outside. Obviously, this is my personal view but I can't see anyone winning by us leaving.
With a bit of luck, Europe emerging from the doldrums and China and America speeding ahead will help a UK recovery in a few years time. It will also mean that oil is still in demand and CASP will benefit from this.
Dignity 1 post - welcome. Recession due to Brexit, insane level of house prices toppling as sterling falls and interest rates must be raised to combat inflation. Over-extended businesses living off of cheap credit finally waking up to the reality of the next part of the cycle....Many other factors but it is clear that the UK is on the edge now. It won't take much to cause serious economic problems with the extended duration of government easing policies. How much longer, for instance, can the government lend young people tax payer's money to use as a deposit on overpriced new homes from major developers? Surely this is just one of a number of crazy policies that will bring the economy crashing down?
Badge....I stopped investing in the UK a while ago. Thought about it again in Jan this year but had second thoughts. I have bought property in Spain/Poland over the past few years as the growth potential is much better and currencies are rising against the £. I can see a full blown housing crash on a no deal as I think inflation will go through the roof and the BOE will have no choice by to raise interest rates significantly. Just my opinion but the thought was enough for me to put UK investment on hold - I'm sure a lot of people feel the same way!
Strong US economy. Predictive text again!
Rhertig.... It isn't just Brexit... It is also the strong UK economy coupled with the increasing interest rates there. All of which is creating a strong dollar just when the pound is on its knees.
Cc... Stop baiting everyone! Why are you acting like this all of a sudden?
Gritster...Clive things slightly less that A5 so I would think 2500 - 3000bopd from 801 and 4000bopd once stable. Another 4000bopd from A6 and once MJF has been fully tested for reserves figures, we should be able to open up the wells and get 4000bopd from those currently. Next year will see a real step-up in production as we start in-fill drilling and getting around $45 profit per barrel...certainly the incentive will then be there to produce as much as possible to grow the company and pay those all important dividends. Clive feels the dividends will increase the share price greatly as the market will have to take CASP seriously if they start paying out 2-4p a share each year! The price will have to re-rate on that basis. Time to add and hold as when CASP takes off - it will be gone and people will be left speechless as it nears £1 imo.