Flats 90210

Of the 795 properties up for auction, just 60% were sold, making yesterday the worst Saturday to sell a house in Melbourne since mid-2005.

Last weekend the clearance rate was 68% and a year ago it was 84%.

The market was “more balanced” this year than in 2007.

Although vendors were not enjoying the same runaway prices, the market had moved to a more sustainable position.

Successive interest rate rises by both the Reserve Bank and banks acting independently, along with sharemarket volatility and the rising cost of living, have all contributed to the dip in consumer interest.

Recent REIV statistics show median values across Melbourne dropped for the first quarter of the year, which also adversely affected the market and gave buyers little reason to bid up flats & houses prices.

In the inner suburb of Abbotsford, Biggin & Scott passed in a two-bedroom terrace in leafy Charles Street, after failing to receive an offer from the 40-strong crowd.

The vendors paid close to $400,000 for the house three years ago, before undertaking a part-renovation. The house was expected to sell for more than $600,000.

Do not give up, and find your place! Cheers!

The Spanish property market has enjoyed good growth in recent years because the demand from overseas investors shows no sign of abating, it has been claimed.

A report from the Royal Institution of Chartered Surveyors (RICS) has pointed out that there remains the potential for growth in Spain, despite some concern that the country’s property boom could be coming to an end.

Acute housing shortages continue, despite all the building; demographic pressures still exist and there remains a seemingly insatiable demand among many Europeans for a place in the Spanish sun.

The Guardian backs up this view by pointing out that property prices in Spain grew by 14 per cent last year and currently offer 100 per cent increases over five years, demonstrating the continued potential in the market.

Spanish real estate has for many been a source of effortless wealth in recent years.

Britons often choose Spain as a favourite destination for a second home or flats and it seems that the attraction of the Spanish sun among Brits is helping to drive the continued demand for property.

Cheers buddies!

Affordability problems in the UK could be providing a boost to the overseas property market, an expert has suggested.

Since many young people could not afford to buy a property in Britain, some were opting to invest in flats abroad instead.

These people were continuing to live in rented accommodation in the UK, while saving the money generated from rental income.

The total gained from tenants, holidaymakers and the capital appreciation of the building could then be used to make up the shortfall in Britain and allow them to buy a home.

While land and housing prices in the U.K. have soared astronomically in the past decade, the world real estate market is a far different story.

The average property in the UK now costs about £187,100, making it more expensive than countries such as Spain.

Prospective investors in overseas property have been advised to consult a specialist before entering into a transaction.

Specifically, he said that it was often assumed that property owned abroad was not subject to the British tax regime.

However, as an asset owned by a registered UK citizen, it could still form part of a person’s estate and therefore make them liable to pay inheritance tax.

Taking professional advice can help to minimise the impact of these taxes.

He added that many factors had contributed to the surge in the number of Britons moving overseas, such as rapid flats price inflation in the UK and the weather.

The comments follow the release of official figures showing that during the year to July 2007, 345,000 people left the UK to live in countries such as Spain.

Cheers!

Low-cost airlines are becoming increasingly competitive about getting a slice of the Spanish tourism market, it has been reported.

Ryanair and easyJet are among the carriers who have plans to expand operations in the country, according to the AFP, fuelled by high demand from travellers looking for their own flats in Spain.

While holidaymakers make up a large part of the market, the carriers are believed to want to tap into the expat sector.

Overseas property investors are among the groups relying on low-cost carriers to transport them between the UK and their investment.

HiFX, the currency firm, recently noted that Spain’s appeal as a property investment destination has something to do with the low-cost air links between the country and the UK.

An abundance of low-cost airline routes, a two-hour flight time and the great weather mean that Spain will always be a favourite with British buyers.

Cheers mates!