Assetsure News 27th April 2007

Spanish property Bargains - Sit tight and wait for a bargain that’s the message filtering out to Brits wanting to get on the property ladder in Spain . Property prices maybe under pressure at the moment but that doesn’t distract from the fact that Spain remains the number one destination for Brits wanting to buy a holiday or retirement home.  The market will settle down but the coming months could provide a time for locating bargains in the market. Long term investors such as those prepared to buy to let should be able to pick up property at decent prices and realise a profit but over a longer period of time.   Of course the drop in Spanish property prices is not going to be of too much concern to the Expatriate community, after all, your home is where you live and and rise or fall in it’s value is academic to a certain degree. If you are still looking to buy a holiday home in Spain , ( and many people are, consider the following;  

1. Take your time; don’t rush in to any purchase particularly in times of market uncertainty. Spain remains very popular and if you are looking to make a long term investment it still represents an excellent choice.,

2. If you like the Spanish lifestyle, trying moving and renting for a while, this will make you ideally placed to pick up a bargain or be in the right place when the market turns.

3. If you are a buying property purely for speculation, consider how long you can afford to wait to realise a profit.

4. Be prepared to negotiate especially in a buyers market, remember, there is a glut of property for sale

5. Remember, Spanish property is cheaper away from the main coastal resorts.

6. Always obtain quality independent legal advice.

Home Information Packs - Peter Marsh the vice president of the law society has expressed concerns about the home seller’s information packs. It is believed that the information contained within the packs, may not be sufficient to meet the needs of banks, building societies, and solicitors. It is thought that many people may end up having to pay to have certain documents redone prior to any house dale being completed in order to make them accepted.  These fears have been echoed by the Council of Mortgage lenders who have expressed doubts as to whether those preparing the packs would have full access to the information.  Home Information packs become compulsory from 01st June 2007 for anyone selling a home and it is thought that the cost of the packs is likely to be several hundred pounds at least, rising to in excess of £500.00 in some areas.   At the heart of the concerns are the “ searches”, a procedure that is compulsory when a property changes hands, it is thought that the new style searches will not be as comprehensive as those carried out by a local authority and it is worried that valuable information such as new developments and compulsory purchase orders may not be picked up. Although producers of Home Insurance packs are supposed to carry insurance against errors, a scenario could develop whereby they cease trading and the homeowner is left with little right of recourse. Critics including, The Law society,National Association of Estate Agents, CML, The Royal Institution of Chartered Surveyors have been lining up to criticise the home insurance packs and there is an outside change that implementation will be delayed. More news on this subject to follow.

Bicycle Thieves - in many household or home insurance policies, there is a separate section that offers cover for Pedal Cycles. Compared to the cost of standard contents insurance, the price to add on pedal cycle cover can seem rather high. Anyone wondering  the reason for these costs, may be interested in recent figures released by Halifax Insurance. Unbelievably Bicycle thieves are now stealing goods worth almost a third of the total revenue of the UK cycle industry. There are 439,000 bicycles stolen every year in Britain worth nearly £146 million ponds.  In 2006 cycle thefts increase by 10% meaning that a bicycle is stolen once every 71 seconds. London leads the way as the Cycle Theft Capital and insurers are starting to increase rates even further for Bicycle Insurance.  

1. If you have a Bicycle, check your home insurance policy coverage; don’t assume that because you have an All Risks section added to your policy, it will automatically be extended to include a bicycle.

2. Check you policy excess, you may find it is higher than you expected

3. Advise  the total value of bicycles you want insured

4. Help to prevent Theft by investing in some good quality locks.