Come Ons!

Hard times makes the real state business start looking at new ways of generating interest and whilst working harder, promoting better and improving service are all genuine there are some “come ons” that are rather less so. Here are a couple that need watching;

1.         Guaranteed rentals. Sounds like a great inducement to buy a property for investment. Buy today and get a guaranteed rental income. Better than money in the bank? Not necessarily. The trick here is for the seller to be either the developer or have an option to buy the property. They set the price to include the first years rent which they guarantee you so in effect they are only returning your money to you and in year 2 when the guarantee has run out, so does the rental income. 

In any case like this you need to look at the true value of the property as well as the promised rate of return. You also need to question what happens when the period of guarantee expires.

2.         100% Mortgages. In the current climate banks are very reluctant to lend anything to anyone and if they do give you a mortgage it will typically be for no more than 50 – 60% of the lower of purchase price or valuation. Where however the bank is in possession of, for example, blocks of apartments where a developer has defaulted they may well offer a 100% loan. It costs them nothing – you are simply taking over a portion of the outstanding debt due on the property and even if you should default in the future, every payment you make is a bonus. So surely this is a can’t lose deal? Well, maybe not.

In the past Spanish banks used to take foreclosures into their own portfolio at cost. They held the properties until market conditions recovered sufficiently to sell them on and recover what was due, avoiding the need to write down their book value or show losses in their accounts. This also had the added benefit of not flooding the market with cheap, distressed sales and further pushing it down. It was essentially dishonest because the value shown in the bank’s accounts was greater than the real market value of the asset but as long as they weren’t forced to sell, that could be covered up

Now compare this with what happened elsewhere, notably the UK in the recession of the late 80’s. Repossessed properties were sold at no reserve auctions, the banks took major losses and the whole market was undermined. On the face of it what the Spanish banks did was sensible. Today however this won’t work. The amount of repossessed and defaulted property is simply overwhelming. If it was to be shown in their accounts at a true cash value the banks would be bankrupt.

So, going back to the apartments with 100% mortgages, what are they really worth? What would they fetch on the regular open market? What would they go for at a no reserve auction? When you answer that it is immediately apparent that in a lot of cases the mortgage is an inducement to buy a seriously over priced property. It suits the banks because it justifies values in their accounts and provides a cash flow but what does it do for you? You may not have put any capital in but you are still spending money making the payments every month on a mortgage that is much greater than the value of the property.

Not all of these deals are bad; if the property is good, well located and suits your needs and you take a long view then it may be a good idea but for a great many people it is money thrown away.

There are great deals in the market today but your best bet is forget a highly touted come on and just look for a distressed seller. We have plenty and the properties you buy from them will be genuine bargains.

http://www.tickle-international-property.com/

Email: bill.tickle@tickle-international-property.com
+44 208 144 5525
+598 424 80 563
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Andalucia properties, Property for sale in Pruna, Seville

Featured Properties. 20,000K each.

The property of your dreams? It could be.

Some people like to buy brand new properties, they have no interest in renovation or restoring old properties, others though, they like to try their hand at a bit of renovation, restoring great properties to their glory days. Others like to knock down and rebuild on the same site. It's each to their own I suppose but I would like to point out the advantages of buying ruins and knocking them down and rebuilding on the same site.

The first advantage is that you can have the house that YOU want, designed YOUR way, you can add things to the design, features that you have looked for in other properties but not managed to find. You can use your imagination to create the Des-Res of your dreams.

Another advantage of knock down and rebuild is of course, the price.

I'm more than happy to point out to you a set of properties in delightful town near Seville called Pruna, it is a very traditional Andalucian town and there are two properties that are earmarked for demolition and rebuild, they have the architects plans and they have the licenses as well and what makes them even more attractive they are a piffling 20,000€ each!

Think about that, what a glorious chance you have to own BOTH of these properties in a fantastic location and you can build them YOUR way. Take a closer look and see what you would get or rather, what you could have for this very low price. Choice of 2 Ref: 3776

http://www.tickle-international-property.com/  
Email: bill.tickle@tickle-international-property.com
+44 208 144 5525
+598 424 80 563
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Getting a Bargain Property by Making an Offer

I want a bargain! That’s the message we get from every client and I’d like to help you get it! BUT you won’t get that deal just by scanning ads on the net and sending emails asking for the sellers best price.

I always say that we never know a sellers bottom line until he can smell the money! When a seller knows that an offer is serious and that a “yes” means he gets a deposit and a completion date, then we get his bottom line! It’s amazing how often people accept offers that they have assured us in advance are out of the question. So how do you get to this point? The answer, quite simply, is to make offers; nothing ventured, nothing gained and if you don’t ask you don’t get.

To get the best response however you have to do things the right way. We get an awful lot of offers that in today’s market are discounted by sellers. They fail because they don’t get the juices flowing or the pound/dollar/euro signs whirling in the sellers mind;

a.         Offers in principal; “I’m curious, would he take x”. Sorry, no one takes these seriously.

b.         “I have to sell my house in the UK, Germany, wherever”. No matter how you dress it up this doesn’t work either. Property markets are bad everywhere and if you are so sure your house will sell fast, then sell it and come back when you have the cash.

c.         “I need a mortgage”. This is the most depressing one of all. The banks in Spain just don’t want to lend so unless it’s a very low percentage loan don’t expect any seller to get too excited. There is a huge gap between an offer in principal and an offer of money.

d.         Subject to viewing. What’s the point?

You might think that in a depressed market buyers would be more amenable but the difference is that whereas in a boom market interested buyers really will sell their house in their home country quickly or you really will get a mortgage, now no one believes in these things. Put simply it’s a case of “I’ll believe it when I see it”!

This might seem a bit off putting; no one wants to get on a plane to view houses if they don’t think sellers will match their valuation. This I understand and we do try and prepare the way.

1.         If we know that a seller will consider offers in your price range, even if the asking price is much higher, we will suggest a viewing. On the site I do try and identify these houses by saying things like “open to offers” or “try an offer”. 

2.         I will circulate all sellers with properties meeting your specification but out of your price range with details of your budget and ability to buy and ask if it is worth bringing you to view their property. In other words I am telling them you are serious and tempting them! If they say yes to a viewing it is an indication that there is some flexibility in their thinking and the chance that an offer will be accepted. 

3.         We will talk to sellers in advance of a viewing to prepare them for the likely offer. They won’t like it but it gets them thinking.

 

OK, to the offer. In the United States all offers are written and are binding on the party that makes them until they are rejected by the other party. Personally I think this is an excellent system because part of preparing the offer is confirming the terms and conditions. It is the terms can often decide whether an offer is acceptable. So how do you make an offer to give you the best chance of it being accepted?

A.        You should ideally have viewed the property. If you don't want to view make it clear that this is not important to you.

B.         It must obviously include the price you are prepared to pay

C.         Include your timescale; when can you pay the holding deposit to get the property out of the market, the balance of the formal 10% deposit and complete? These dates will of course be subject to your lawyer confirming that title is perfect. A quick 10% is always welcome because that means the deal is done, but some sellers might prefer a longer completion time so they can arrange a new home etc. Being flexible on this can help get the best deal.

D.        Include your financial situation (the money is in your savings account, bank in Spain etc). The seller therefore knows you can perform.

E.         Confirm what your offer covers such as furniture etc.

F.         Less important, but if you have a Spanish bank account, lawyer and /or an NIE already drop them into the equation; it again shows how serious and organised you are.

g.         Let the seller know that you are interested in other properties and set a time limit for a response.

Get it right and there has never been a better time to buy a home abroad. And remember that the best deals always involve sellers that NEED to sell, so when you are stealing that house and getting the deal of the century it’s good to know the other party is just as happy as you!

http://www.tickle-international-property.com/

Email: bill.tickle@tickle-international-property.com
+44 208 144 5525
+598 424 80 563
Skype; tickle.tip

Market Trends - Property Types

I am forever being asked what the property market in Spain is going to do and my reply is that there isn’t one market, there are many!

Madrid and Barcelona are different markets, subject to different forces to the costas or inland Andalucia for example. That’s why averages are of no help in telling you what is going on and why most figures given by the media are totally meaningless. It will be helpful however to look at the specific areas that I cover where there are some clear trends emerging.

There is strong demand for coastal property as long as it is cheap and well positioned. Unfortunately a huge number of apartments were built in the boom to be sold off plan that are disasters as homes. Build quality is frequently abysmal whilst layout and amenities are worse! Swimming pools tucked away in ugly corners and apartments over divided. What do I mean by this? Put simply the developers put a 2 bedroom, 2 bathroom apartment into a floor space that would have made a nice, spacious, 1 bed. This results in all the rooms being too small and cramped; kitchens you can’t work in, bedrooms without storage and so on. On the plans and in the artists impressions all was well but in real life…! So before jumping at a bargain take a moment to think what it will look like with furniture and people in it. Properties like this should be avoided like the plague.

The availability of apartments (and they aren’t all bad – there are bargains about) and modern townhouses has impacted on the value of traditional village houses which have plummeted in price. There are some great bargains about just now.

Inland country houses and villas have also come down in price but nowhere near as much as village properties. That probably reflects the fact that the demand for them is stronger; most people would rather have a detached home, ideally with a pool, then a terraced village house. These are prime properties and prices are holding up much better.

The most striking feature of the current market however is that there are an awful lot of people sitting on the fence! They want to buy that home in the sun but they don’t want to commit until they are sure the market has bottomed. This indicates that there is a big pent up demand and once the market turns it will move up quickly. Unfortunately for these people it is never easy to catch the absolute bottom and we are obviously very close to it so if you see the house that suits your dreams and your pocket, get off the fence!

http://www.tickle-international-property.com/

Email: bill@tickle-international-property.com
+44 208 144 5525
+598 424 80 563
Skype; tickle.tip

Best bargain properties for sale in Andalucia

29,950€ for a 3 story Andalucia house? Someone has gone mad!

Bargain properties are sometime a little less than what they actually seem and the descriptions can be misleading but in this case when we say “Bargain Andaluciaproperty” we mean exactly that, this is a real bargain property.

Where is it? The property is in a delightful place called Algarinejo, close to Lake Iznajar and north of Malaga city and about 40 minutes from Malaga airport and about the same to Granada airport, very beautiful inland Andalucia location. The property has 3 bedrooms and 1 bathroom a good size kitchen and store room and even has a cave attached to it, the views from the sun terrace are beautiful.

The property is structurally sound but a bit of modernization is needed to bring it up to date, the services such as water, electricity etc are connected but re-wiring might be an idea, eventually.

The price for this 3 story Andalucia delight is a piffling 29,950€ and a trip to the Tickle International Website will allow you to see a lot more details on the property and more photographs. If there are any questions then please contact us direct. REF: 2769 Townhouse in Algarinejo

http://www.tickle-international-property.com
Email: bill.tickle@tickle-international-property.com
+44 208 144 5525
+598 424 80 563
Skype; tickle.tip

Property Investment?

Property Investment

Investment and property are two words that are put together far too often! I rarely offer “investment properties” because I am generally cynical about anything sold this way. Normally an “investment” is something that no one wants, so the only way to sell it is buy saying it is cheap and will go up in value or will produce an income!

Any purchase of property must inevitably have an investment element to it because no matter how cheap, it is a big ticket item! It takes a lot of hours work to buy the cheapest property and for anyone making this commitment there has to be a belief that the asset will at least retain its value.

During the boom there was a huge amount of misselling and misinformation out there. Property was being sold as a commodity rather than as a usable product. People were urged to buy on the promise that they could make a profit on a property just as they would by investing on the stock exchange, buying gold coins or putting their money into a bank savings account. We were constantly told that prices here, there and everywhere were rising by 20% pa. Why? Who was buying and why were they buying? If it was because people needed a home or wanted somewhere for their own holidays all well and good. Too often however this promise of market appreciation was no more than a way of selling people something they didn’t want! A typical example could have been the person who wanted a Costa del Sol villa. He can’t afford it so a clever salesman suggests he buys 5 off plan apartments in Bulgaria (properties he doesn’t want and will never use in a country he has no interest in). He is told that they will appreciate 20% pa and in 2 years he can sell them and buy the villa he wanted in the first place. Neat! Believable if you listen to the media hype! The reality is that a lot of people got their fingers burned.

So what makes a good property investment? Here are some questions that might help

1.      Who is the End User? Who wants to live in this property? If I wouldn’t live or holiday there, why should anyone else?

2.      Is there underlying value? Is it in an area people want to live? If it is then it will rent well and the underlying capital value will be safe. If the area is bad then so is the investment.

3.      Is the promised return on investment realistic? If it seems to be too good to be true it probably is. High returns usually mean high risks and just because you can’t see the risks it doesn’t mean they don’t exist. I have seen great returns offered in Detroit, USA for example but some easy research says that these are not good investments.

4.      Why are they selling to foreigners? If an investment is good surely the locals would be at the front of the queue to get a piece of the action?

5.      How will I manage my investment. Lots of people will sell me a property but how many will stick around after to make sure it is let.

Answer those questions and you will have a pretty good idea whether you are on safe ground or stepping off a precipice!

This is a starter on the subject of property investment and I will aim to cover some of the tricks of the trade in coming weeks.

http://www.tickle-international-property.com/
Email: bill.tickle@tickle-international-property.com

2, 4, 6, 8 Do We Want To Integrate?

As I cheered Bradley Wiggins home to his win in the Tour de France I was struck by a thought. I haven’t lived in the UK for more than 16 years now and in that time I have probably not spent 2 months in total visiting. When I do go back to visit family I generally feel like a stranger in my own land; it feels foreign, alien to me and generally I can’t wait to leave. But, despite that, when they run the Union Jack up the flagpole, the anthem starts up and the team in white takes the field, or a Briton does something special I am at the front cheering! I don’t understand quite why but that’s the way it is. I also suspect that I am a pretty typical “expat” in that regard. We may leave our home country physically but there is always a part of us that can never leave.

This begs the question, if I am so programmed how do I relate to my new home when I move abroad and how do I fit in? I regularly hear people tell me that they are going to integrate in their new country, how they want to mix with the locals and keep away from expats in general and their countrymen in particular as they become part of the local community. The intention to “integrate” may sound admirable but when newcomers talk about it invariably older hands roll their eyes and look to heaven! Why? Well apart from the fact that it’s hard to integrate when you don’t speak the local language it also indicates that they have no idea of what it is like to be an immigrant. In some remote villages in Andalucia if you aren’t related or married to anyone in the village and don’t grow olives you won’t have much to talk about! One of my first business partners, a Chilean lady, told me that the neighbours in her village were very nice but all the ladies talked about was what they were cooking their family for dinner and the latest cleaning products. Flavia, after a career in real estate and property development, now lives near the beach on the Costa de la Luz and earns her living as an artist. Talk about different horizons!

The reality is that most arrivals come from a comparatively sophisticated, urban background. When they move abroad they want a better life but that should never mean leaving up the good things from “home”. So instead of thinking about giving anything up, you should move because you want more; wider horizons and new experiences. When I lived in Spain I ate raciones of calamares, pulpito and prawn pil-pil but that didn’t stop me enjoying an English breakfast on the sea front or even the occasional fish and chips! I enjoyed the Spanish way of life but didn’t have to give up being British or be ashamed of going back to my roots.

My best advice therefore to all new arrivals in any country is to see those who have gone before as a valuable resource. People who can tell you where to shop, where to eat, how to pay your bills or find a plumber and how to deal with bureaucracy. The locals don’t see the problem; they have grown up with the local way of doing things so everything is second nature and obvious. You however need to learn the ropes from scratch. As a result you will, as a new arrival, have more in common with German, Dutch and Scandinavian incomers than with the locals simply because you are sharing the experience of immigration. That doesn’t mean you should head immediately to an expat ghetto! On the contrary, I can’t imagine anything worse. Enjoy your new country but go into it with eyes open, take pleasure in the company of others journeying on the same pathand accept that you will find your place in your new community by being yourself rather than by denying your personal heritage.

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Email: bill.tickle@tickle-international-property.com
+44 208 144 5525
+598 424 80 563
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Is the Grass Greener

A lot of people move to a new country thinking that the problems in their lives will simply disappear, that a change of scene and a fresh start will somehow make your life better. I’m sorry to say that this won’t necessarily happen. If you didn’t like your wife and husband in your own country, you aren’t going to like them better somewhere new!

 The reality is that whilst moving or even buying a holiday home is a wonderful experience and for most people a huge amount of fun it can be stressful. In a new country everything is different; that’s the appeal but also the stress. A new language, new laws, new ways of doing things. Even the most mundane tasks take much, much longer than “at home”. When I first moved to Spain every time I paid a bill, got a document from the town hall or even changed a gas bottle seemed like a major victory. Personally I got enormous pleasure from finding my way into this new life but there is no denying that at times when things had to be done urgently it was difficult!

 It also has to be said that not everything in your new home will be done better than in your old one. It’s best not to get hung up on this. Forget “better or worse” and think “different”! For my part I never understood the siesta in Spain. Sure in August the middle of the day is hot, but what about the rest of the year? I’m an Englishman born and raised and I will never be able to have a siesta BUT I support it’s continuance 100%! Why? Because it’s part of the Spanish way of life. I moved to Spain to enjoy that way of life. I loved how relaxed people are, how they have time to chat (even from their car window with a queue behind), how people and family matter and how generally unhurried the pace of life is. If that means I have to accept the siesta then so be it!  You can’t have it both ways; streamlined super efficiency, extended office and shop opening hours and a go getting entrepreneurial drive doesn’t go with a relaxed, laid back lifestyle! So next time your shopping trip is brought to a sudden halt when the shops stop for that extended lunch break and siesta, don’t get angry or frustrated – go for lunch!

 So the moral is that you should see any move abroad as a challenge and an adventure, not a panacea. It won’t make your problems go away but could give you a lot of pleasure, fun and satisfaction!

 One way you can however reduce stress and pressure is of course to buy your new home using our services! We will be pleased to see you over the hurdles and across the finish line (well the Olympics are starting soon) with all the support you need from our team.  

http://www.tickle-international-property.com/

 Email: bill@tickle-international-property.com
+44 208 144 5525
+598 424 80 563
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Campo or Pueblo?

A lot of people plan to fund their new lives in Spain with some sort of rental business and I always encourage them to go a little further and offer activity holidays. There is an almost unlimited choice of places to rent but a much smaller selection of people offering specialist vacations and as a consequence the prices you can charge are much, much higher. Some of the ideas that have been successful include mountain biking, walking, horse trekking, motor bike touring, language classes, photography, bird watching and of course painting. There are more but you get the idea. The big question is where to establish the business! It’s a choice of Pueblo or Campo for you!

Most people’s dream of country holidays usually involves a big country house with lots of accommodation on site. The reality for most people is that if you don’t have a huge budget this is unlikely to be a viable option. Big houses are expensive and planning permission to create extra accommodation is increasingly difficult to get.

This however shouldn’t be seen in a negative way. The reality is that for most businesses you will be better of in a town or village! Why;

The almost unlimited availability of accommodation. In a country house your accommodation is all you have. In the village if demand is strong you rent extra property as the need arises. Keeping the profit but without the responsibility to maintain units that will only occasionally be needed, for example in peak season. And this also means you never have to turn anyone away!

Catering. There are bars and restaurants in villages where your clients can feed themselves. In the country it will be down to you!

Entertainment. An obvious follow on from 2.

Even if you are happy to cater for and entertain guests the availability of back up is always welcome.

The cost of extending a successful business is cheaper. Village houses are comparatively cheap, especially in the present market, so picking up annexes and overflows as opportunities present themselves will be affordable. Selling them on should the need arise will also be easier as you can sell of individually whereas a country house requires one rich buyer.

Extending your business by buying extra houses means your growth won’t be blockd by planning restrictions.

OK, the village house option isn’t as romantic as rose cottage or even olive tree finca but if you are after making a good living it is often the way to go. Either way if you have some business plans then please get in touch to talk about them! 

+44 208 144 5525
+598 424 80 563
Skype; tickle.tip

http://www.tickle-international-property.com/ Email: bill@tickle-international-property.com

Independent and Trustworthy?

I  was recently quoted in the British Daily Telegraph telling the world why I liked Uruguay. I have never spoken to the journalist in question and I don't think that she has ever visited the country she was writing about. Instead her "authoritative" piece was nothing more than a lift from an International Living magazine article.

This set me to thinking. We tend to look to the media for advice and unbiased information, but how often do we get it? I long ago gave up on UK buying property abroad magazines because they were full of gushing puff pieces proclaiming the virtues of whatever project their biggest advertisers put in front of them. In depth, independent, questioning? You have got to be kidding!

TV Programmes like a "Place in the Sun" were equally unreal (remember when property prices were always going up by 20% pa everywhere they went?) and whilst in the past you could at least look at the scenery in the background, these days the cameras rarely leave the presenters! The best story I heard was of a special in depth documentary in which a lady from Yorkshire was ferried around Marbella looking at reduced price flats and prattling on about how she was looking for a bargain. Apparently she now lives on a mobile home site near Antequera, never had the money for an apartment and was never looking for one. The TV people needed a face and who was she to say no to being accommodated and wined and dined around Marbella?

The internet seemed to offer a real alternative but even here you need to be careful. From the USA there are a number of supposedly "independent" advice magazines and news letters. Unfortunately those independent reviews are nothing of the sort and all too frequently the journal is on the seller's payroll. How do they get away with it? Well the company that owns the journal has a "separate" real estate company. One does the promo and the other receives the commissions. Neat, what!

So who can you use or trust? Well, apart from me (obviously), follow your own instincts! Don't rely on one source for information and always compare and contrast. Talk to agents, look at those messageboards and Facebook groups, go to exhibitions and hear what people have to say and then apply common sense. The more you learn about your chosen destination the more other people will respond to you.

http://www.tickle-international-property.com/
Email: bill@tickle-international-property.com
+44 208 144 5525
+598 424 80 563
Skype; tickle.tip