Assetsure News 25th April 2007

Buy to Let Buyers view Spanish Market - The recent announcement that Spanish house prices are cooling is good news for anyone hoping to buy a property in Spain and especially good for investors looking to snap up buy to let bargains. Spanish Housing minister, Antonia Trujillo recently announced that first quarter house price increases have slowed to 7.2% year on year and this seems to indicate that the Spanish market is slowing down. Buying a Holiday Home in Spain is still the dream of many Britons and for those that are hoping to get on the property ladder there in the next few years, the fact that price increases are slowing can only be viewed as good news. Perhaps the days of making a quick killing are over, the market is now maturing but astute buyers can still buy property and expect strong capital growth providing of course they pick the right areas. As with the United Kingdom , the same rules apply, location is the key, particularly if you intend to buy your property for letting purposes. Before making your purchase, choose your area carefully, it is thought that investors looking for gains in Spanish property in years to come will latch on to the growing holiday home or buy to let markets. These areas seem set to grow still further helped in part by the growth of cheaper European airfares. Assetsure can help you with your insurance arrangements; we can offer building & contents insurance policies as well as Travel & Expatriate Health Insurance.  

Dubai Growing in popularity for Holiday & Retirement Homes - The Brits have always favoured Spain as the place to buy a retirement or holiday home and it is fair to say that most Expatriates love the relaxed atmosphere and sunshine afforded by Spain. Along with France and Italy , Spain still dominates the market but information recently released by the British Embassy shows that an increasing number of over 50s are looking further than Europe when choosing a place for retirement. Dubai is becoming more and more popular with the over 50s and in the last 4 years the number of Brits living in Dubai has more than doubled to 100,000. Many of these it would seem are keen to cash in on the areas property boom coupled with the high standard of living that is afforded. Dubai is a tax haven and one of the few countries in the region that has introduced liberal freehold property laws for foreign investors. It is still possible to obtain property for as little as £60,000 in the country although these are becoming increasingly difficult to find. Dubai has much to offer, tax free living, high standards of infrastructure and investment and a strong return of property prices. Perhaps it will become the destination to rival Spain with us sun loving Brits.  

Assetsure- Popular Update  - Brits are building futures abroad and the following are popular destinations.  

Australia - when moving to Australia, few Brits buy property anywhere other than the major coastal Cities NOOSA is a very popular holiday destination, most Brits want to enjoy the sun and sea and the Gold coast as it is known is very popular. Property prices in Australia are fairly static despite many recent adverts trying to attract overseas investors. Many people feel that property prices may even fall slightly this year. This is a big country with plenty of land and plenty of building opportunities. Purchasing an Australian Property can sometimes prove problematic; you may it difficult without Australian citizenship or permanent residence status

Canada - Canada has always attracted a number of Brits who love the peace & quite and the great outdoors feel. The eastern seaboard regions are the most popular mainly because of the flying times from the United Kingdom are between 5 and 7 hours. Property prices in Canada are quite reasonable but because of the weather conditions most people want to try before they buy. You may find that your dream Canadian property is a little inaccessible in the winter months. The buying process is similar to that in France

United States of America - America has always been popular as a Holiday Home Destination and many Brits choose to retire here. Florida is the number one destination, it has wonderful weather and the world famous attractions make renting your property fairly easy. Property prices in the country have been a little depressed of late; there is a somewhat negative sentiment to American property in general. Much has been written about the American sub prime uk mortgage markets and this seems to be dragging property prices lower. Some prices have fallen by as much as 15% so this may be a good time to carve out a good deal for yourself.

France - looking for bargain property? then France has a lot to offer. There seems to be a never ending supply of property on offer and recently prices have been falling a little. Before purchasing a Holiday or retirement home in France , it is probably advisable that you spend some time in your chosen area, renting property in France is fairly easy but the cost of buying and moving is a little expensive, thus the French do not move as often as us Brits.  Outside of the Cote d’Azur , property prices are reasonable and many areas are now becoming popular with Brits, in fact one has recently installed a British Mayor. It pays to have a survey in particular if your property is located in an area known to be at risk from termites, New build home attract VAT at 19.6 % so make sure that this has been factored in to the any price that you are considering  

Spain - Spain has been the jewel in the crown for Holiday Home ownership for quite some time, property prices in the most popular coastal locations are at an all time high but there is recent evidence that they may start to fall back a little. Spain remains the number one choice for Brits wanting to retire abroad and people are now looking outside the coastal areas to discover more value.

 The Young Look at Spain - Many young British professionals are frustrated at the cost of getting on the property ladder in the Uk and thus they are looking abroad for greater value. Although Spain has seen some record increases, it is popular with young Brits and is seen as a stable developed property market. Many younger persons are tempted by the more esoteric eastern European markets but many feel this are not yeast mature enough to warrant investment. Although some fairly negative press has been coming out about Spain in recent weeks, this is likely to be a temporary blip, the country remains very popular and it is doubtful if many people will be put off by recent press reports. Spain has  top quality facilities & infrastructure and many young professionals view it as the best bet.

Tax Crackdown in Spain - If you own an overseas holiday home or a buy to let property in Spain then be warned, the Spanish tax man has you in his sights. If you own a property in Spain , then you need to make sure that non resident status is reflected by your tax arrangements. Many areas of Spain are now cracking down on potential tax dodgers who claim to be no resident but actually stay in the country in excess of the 183 allowed days a year. Non resident property owners in Malaga and Campo de Gibraltar are the latest to fall within the Spanish taxman’s radar and the Spanish authorities drive to cut out fraud has also extended to other areas such as Valencia . Alicante and Castelon. Last years initiative led to an increase in declarations by 16.7% and helped raise an extra 11.3 Billion for the Spanish taxman.  

Cancer Drug Insurance - it was announced yesterday that that WPA, an insurance company has launched a new insurance policy that will ensure that patients obtain cancer drugs that may possibly be denied by the National Health. The policy costs approximately £1.00 per each year of life, thus a 60 year old man would pay £60.00 + tax and any arrangement fee. Increases are expected for customers that smoke. At the present moment, many drugs are denied by the National Health because they are deemed not to be cost effective, often you can obtain drugs in Scotland and not in England and visa versa This would seem to be a bit of a postcode lottery but with the advent of an affordable insurance policy, the worry about not being able to receive cancer drugs is slightly diminished.

Uk Insurance Fraud - Figures recently released suggest that one fifth of the population believes that everyone e exaggerates their insurance claims. of greater importance is the fact that almost 8% admit to having  made a false or exaggerated claim. This consumer survey was carried out by Experian. The Insurance industry in the United Kingdom pays out on average 54 million pounds a day and most people do recognise that exaggerating claims is fraud but very few would actually do anything to report someone they knew had made a false claim. Insurance fraud is a major problem in the United Kingdom and it is estimated that it costs insurers over 1.5 billion pounds a year. In recent years insurers have tried to reduce the number of fraudulent claims by sharing information on customers via such initiatives as the Claims and underwriting exchange. Although Fraud is a serious offence, insurance claim fraud seems to be fairly entrenched in the British way of life, the cost of insurance is high and often having a claim is seen as away of recouping previously paid premiums. Insurance companies are often seen as a soft touch and the fact that exaggerating claims is a criminal offence is often overlooked. The general impression of the public of Uk insurers is not good, seldom do the good insurer claim stories reach the press, it is usually when they decline to pay a claim that attention is drawn to their service. It is worth remembering that if you make a false declaration to obtain insurance, it is highly unlikely that you will have claim settled even if the claim itself is legitimate. Making false claims or exaggerating claims is a criminal offence and you may find that you get more than you bargained for.