"The Campaign in Spain"

by Estela Lopez of Project Pegasus Inc.

The property sector has driven the Spanish economy for more than a decade, thus latest concerns resulted in a mighty effort by the Spanish government to bolster the failing property market in 2009. These efforts include a 3 billion euro credit line from the Institute of Official Credit, to assist Spanish property developers putting unsold houses up for rent, and real estate investment trusts (REITs) which they hope will boost investment.

The housing market hit the skids in 2008, caught with the double “whammy” of the global credit crunch and an oversupply that saw values plummet. Much of the glut was due to many high-density cookie-cutter-type apartments, in out-of-the way locations with no amenities or infrastructure. The market was saturated with small time developers who lacked proper backing, yet were too easily able to acquire funding, due to bad lending practices.

Is the love affair with Spain over for investors ?

Think about this... investors in property abroad have long chosen Spain as a favourite destination, for many reasons that have not changed. Spain boasts warm weather, rich culture, exotic locations, theme parks 146 total, and a booming tourist industry because of safe social and economic structures. Despite the current market, international mortgage firm Conti, reported an increase in customer enquiries for Spain, 22 per cent of information requests so far this year, second only to France and up from 14 per cent in 2008. Experienced investors can smell a good bargain, and Spain is ripe for the pickings.

*We have an Australian parent company, with affiliates in Europe and South America. A true international service involves a lot more than bi-lingual staff. Knowledge, resources, and connections, are needed to assist you invest or relocate, while marketing your property to foreign investors.

"The Lowdown Down Under"

By Estela Lopez of Project Pegasus Inc.

First home buyers in Australia took out 26.5 per cent of all housing loans in January - the largest proportion ever recorded by the Bureau of Statistics. They were seeking to capitalize on the government grant before it reduces by September 30th, from 21k for new property and 14k for established, to 14k new and 10k established.

The Australian property market has been on the move, auction clearance rates around 80% for Melbourne, 69% Sydney, 45% Brisbane. The shortage of stock on the market has meant strong competition for fewer properties resulting in prices rising in most blue chip suburbs. The savvy investors know it’s the right time, but the herd mentality investors, are still sitting on the fence. Sydney’s median price has increased from $565,000 to $593,000 a rise of 6.56% in the last quarter. Other capital cities also followed suit with Melbourne’s median price at $498,000 a rise of 5%, Brisbane $452,500 (2.1%), Adelaide $382,500 (1.3%), Darwin $475,000 (3.35%). The only exception to growth was Perth with a median price declining by 1.36% to $469,000.

So what should you consider as a buyer anywhere ?

• Areas with history of capital gains, likely to have more appreciation due to access to shops, schools, beaches, transport and lifestyle appeal.
• Buy at a price slightly above the median if you want quality.
• Don’t pay too much or become emotional.
• Use a Buyers' Agent, getting to the front of the queue to sniff out those hard to find quality properties.

Our team motto is simple, "We strive for Excellence Efficiency & Ethics", that's what gets us customer loyalty. We will make your property search or next negotiation much easier saving time, money and stress.

Next report will feature Spain as we arrive in sunny "Costa Blanca" next month.

Hasta Luego.