Luxury Real Estate

Courtesy of Kirsty Bryson of Luxury Homes by VAPF

With the idea of trying to give the Spanish economy a little helping hand to get back on its feet, after the world crisis brought the construction industry in Spain basically to a halt, the Spanish Government has this week decided to drop the VAT tax on new home sales by 50%, reducing the existing rate of 8% to a mere 4%, and prioritizing the sale of new homes over second hand properties.

The news has been received with open arms by the construction companies, which have seen their sales dwindle due to the surge in sales of second hand properties. Many foreign residents had to quickly sell up their holiday homes in Spain to find extra funds to cover the losses their businesses back home were incurring and many jobs were badly affected as a consequence of the crisis, so many of these second hand properties were sold below their original purchase prices, as people were desperate to put their hand on the cash. Obviously, new properties were being completely overlooked.

Prices have certainly levelled out now, with the difference in prices between new properties and second hand ones not as obvious, especially taking into account the extra cost often required to renovate older homes. This new measure puts the new developments back on track, even if it is only for a few months, as the VAT reduction will only be applicable through the end of this year. Compared to the 7% transfer tax you pay on a second hand property purchase, the 4% VAT is certainly much more attractive, especially when the property is brand new.

For companies like Luxury Homes by VAPF, whose mother company VAPF has over 48 years of experience in the real estate development sector and has been through a crisis or two before this most recent one, this tax incentive is certainly well deserved and should contribute towards re-launching the residential construction industry in Spain, which is one of the main pillars of the economy, along with the ever-present and booming tourism industry.

Courtesy of Lucas Fox

Lucas Fox International Properties today release a formal analysis of the Spanish luxury real estate for the first two quarters of 2011.

Projections and data feature the regions of Barcelona, Costa Brava and Ibiza.

Key insights from the reports include:

• The lack of property finance available and changes to mortgage taxation have led to an overall slowdown in Spanish property sales in the first half of 2011, the luxury property market has shown more resilience than other sectors of the market.

• International buyers are acquiring luxury properties in Barcelona, the Costa Brava and Ibiza without mortgage financing.

• There is a growth in property investment in Spain from Russian, Dutch, and Swiss buyers and investors.

• Tourism growth in Barcelona, Costa Brava and Ibiza in 2011 has had a positive effect on demand for short-term rental properties.

Based on the analysis, Lucas Fox Directors offer forecasts for the remainder of 2011:

Barcelona Property Market

Alex Vaughan, Director of Lucas Fox said:

“While the first half of the 2011 has seen further drops on key housing indicators in Barcelona, the luxury end of the market has held steady in sales prices and seen some increases in rental price for exclusive properties located in the centre of Barcelona. The lack of quality luxury apartments and houses should mean that prices in this segment of the market will remain stable.

We predict that for the immediate future buyers will be able to secure Barcelona properties at competitive prices. Given the current economic conditions and lack of finance available to local buyers, international clients should be willing to hold on to their properties for longer as it will be several years before the next growth cycle. ”

Costa Brava Property Market

Tom Maidment, Director of Lucas Fox Costa Brava said:

“The high demand, for high end luxury properties in the Costa Brava region make these properties more price resilient than those in other parts of Spain. Demand for luxury properties continues apace, mainly driven by international clients from the Eurozone and a high level of demand for sea front villas from buyers from Russia and ex Soviet states.”

Ibiza Property Market

Alex Vaughan, Director of Lucas Fox said:

“We expect a very positive second half of 2011 with a large amount of transactions in the €1m plus segment of the market… We believe that the luxury property market on Ibiza has great potential and that there will be a return to annual capital growth next year.”

About Lucas Fox

Founded in 2005, Lucas Fox specialises in offering quality luxury properties, a professional approach and a high level of service. The company has offices in Barcelona, the Costa Brava and Ibiza.

Data: Collated from leading Spanish real estate portals, national and governmental statistics, and luxury buyers. Data in the reports is specific to Barcelona, Costa Brava and Ibiza.

Courtesy of Kirsty Bryson of Luxury Homes by VAPF

One of the most frequent questions asked by our customers when viewing our property portfolio at the Cumbre del Sol residential estate on the Costa Blanca in Spain is: “How far is it to the nearest private school?”

Well, this is a really easy question for us to answer as, situated within the residential estate is the The Lady Elizabeth International Junior School, belonging to the Laude Education Group. Colegios LAUDE, is a network of private and independent schools in Spain and England in which the learning experience goes beyond the walls of the classroom and the limits of the teaching programmes, with multilingual education at all school levels.

When young families relocate to other countries for whatever reason (normally, when it comes to choosing Spain, the reason for relocating is a better quality of life and the great weather), they look for an educational institution which will provide their children with a solid background so that they will be capable of choosing for themselves where they will like to live and work in the future. A multilingual education designed to allow students to perform skilfully in international and multicultural environments; a multidisciplinary education, integral and advanced, which will provide them with essential IT and multimedia skills, and which will encourage the creation of social skills through the sports and complementary activities promoted in each of Laude´s schools.

The School follows the British EYFS guidance and Primary National Curriculum, with the addition of Spanish for all pupils, and is accredited with homologation within the Spanish System. A wide range of extra-curricular activities including sports, arts and third languages (French, German and Russian) is also provided. There are Specialist teachers for Spanish, PE, ICT, Music, Drama and English for Speakers of Other Languages (ESOL). ESOL pupils have the opportunity to study for Cambridge English examinations. The School is also a Centre for LAMDA examinations in verse and prose. Take a look at the video featuring the schools installations on the following link: http://www.youtube.com/watch?v=Hf6GwxJZy7I.

Students and teachers alike at The Lady Elizabeth School can be extremely proud of the results of last year’s Cambridge International Examinations, with the following top places in the world ranking awarded to students at the school:

o Child Development: Top in the World.

o English Language: Top in Spain.

o Art and Design: Top in the World.

o Business Studies: Top in Spain.

o Literature in English: Top in Spain.

Luxury Homes by VAPF not only provides the customer with his/her ideal dream home, completely personalized to suit their individual requirements, but also the location and the services available, such as this prestigious international school, make the full package the ideal solution for worry-free relocation.

Courtesy of Kirsty Bryson of Luxury Homes by VAPF

One of the luxury modern villa designs by Luxury Homes by VAPF features in this month’s edition of the Hong Kong Tatler as one of the 7 most stunning seaside villas in the world.

The Spanish luxury real estate developer’s villa “Cala Moraig” was the only European property chosen to appear alongside other beachfront properties scattered around the world: Australia, Cambodia, Hawaii, Cayman Islands, Turks and Caicos Islands and the States.

The cliff top villa Cala Moraig stands out, not only for the magnificent views across the Mediterranean Sea, with 180 degree water views, but also for the unusual and modern design, which integrates well into the natural rocky landscape of the Costa Blanca coast, whilst maintaining traditional Mediterranean architectural traits.

The well thought out layout for easy modern day living and the glass frontage to make the most of the fabulous vistas are the 2 factors that really make this property highly desirable, or, in Tatler’s words, a “beauty”.

Click here to read the article.

Courtesy of Kirsty Bryson of Luxury Homes by VAPF

As promised in our press release dated the 24th of May this year, we can now proudly announce that the Spanish television channel Canal 9 screened the footage filmed at a luxury villa in the Cumbre del Sol residential estate on their program Interiors, on Saturday the 4^th of June at 3:30pm, straight after the afternoon edition of the news.

This TV program specializes in design and architecture in the Region of Valencia on the Mediterranean coast of Spain. The program centres on luxury villas, castles or unusual homes which stand out from the neighbouring properties because they have that extra something that makes them special.

They chose to film the luxury villa built by the Spanish construction company and developer VAPF Group because of the beautiful neoclassical design, that takes you back to the elegant buildings erected during the Roman empire, with large arches and majestic columns, and also because of the fantastic sea views that all the villas at the Cumbre del Sol residential estate enjoy.

In fact, when the team finished recording at the villa, they proclaimed that it had been the best property they had visited to date, and with an average of three properties per program with 30 programs behind them, that certainly takes some beating!

Check out the video to see for yourselves what living on the North Costa Blanca in Spain is like and, with the option of building a home to suit your own particular tastes and requirements, with the sound advice and experience of the VAPF Group behind you, then making a move to this outstanding location is as easy as just saying: ‘Yes! We want a better quality of life!’

Courtesy of Kirsty Bryson of Luxury Homes by VAPF

Although struck by the crisis, Spain is a solid economy, showing signs of recovery. Economic strengths and reforms lay the foundations of a sound and rebalanced growth for the Spanish economy. Take a look at just some of the reasons why purchasing a property in Spain is a safe bet:

Infrastructure:

- Spain has the biggest highway net in Europe and is the first European country and second in the world, behind China, in high speed railway line miles

- The Spanish Airports and Air Navigation Company AENA is the world's leading airport operator in terms of passenger numbers, handling nearly 200 million. It manages 47 airports and 2 heliports in Spain and participates directly and indirectly in the management of 28 more airports around the world. AENA is the fourth largest provider of air navigation services in Europe and plays a leading, active role in all European Union projects relating to the introduction of the Single European Sky.

Quality:

- First European country with the highest standard of living for expatriates

- 2nd most valued health system in Europe (HSBC Expat Explorer Survey)

- Spain now has 511 Blue Flags on its beaches, more than any other European country. The Blue Flag recognises the high quality of beaches and coastal waters. 104 of Valencia's beaches, 66 of Andalusia’s and 63 of the Balearic Islands' have received the awards.

Performance:

- 2nd tourist destination in the world by revenue and 3rd for passenger arrivals.

- Spain is one of the leading global economic powers: the 4th largest recipient of FDI among developed countries. Spain's appeal for foreign investors lies not only in its domestic market, boasting considerable purchasing power, but also in the possibility of operating in third-country markets using Spain as a base, courtesy of its privileged geostrategic position: it belongs to the European Union and is the gateway to North Africa and Latin America (due to its strong economic, historic and cultural ties in this latter case). Furthermore, Spain is a modern knowledge-based economy with services accounting for 71.09 percent of economic activity. The country has become a centre of innovation supported by a young, highly-qualified work force and competitive costs.

- The number of housing transactions (491.000) tends to recovery, partly due to fiscal incentives, partly because affordability indicators are once again at historically low levels. Foreign demand is starting to react to price signals, acquisition by expats in Spain has increased over 20% in 2010.

Courtesy of Michel Cruz of Rimontgó

Located right in the historic heart of Madrid, the Mercado de San Miguel (San Miguel Market) occupies a square immediate adjacent to the famous Plaza Mayor. Though covered markets like this can be found in other parts of Spain, the Mercado de San Miguel is in many ways unique.

Originally built at the beginning of the 20^th century, this beautiful steel construction exudes all the gentleness of style and proportion from the Art Nouveau era, complete with visible support structure and finely worked wrought iron detailing. But this is above all a haven for foodies, not just lovers of architecture.

With styling inspired by Les Halles de Paris, the market functioned like many others across the country, providing an indoor fresh produce market to the local community in the old centre of Madrid. For almost a century, this was where people came to buy fish, seafood, vegetables, fruit, meat and other delicacies.

The fact that the San Miguel market is also one of the most beautiful and architecturally valuable markets of its kind in Europe inspired stall keepers and the local authorities to raise the funds necessary for a thorough beautification project that has resulted in a particularly tasteful mix of classicism and modernity.

In general terms the industrial style structure with its Art Nouveau touches was stylishly restored to its former glory, but updated with modern facilities and finishing points that bring it fully up to date. Now a daytime market with a bit of a gastro feel it really comes to life in the evenings, when it turns into a fun venue for lovers of food, drink and socialising.

Since Spaniards are quite possibly world leaders in the joyful art of outdoor socialising, the Mercado becomes a lively hub where you have an amazing choice of Spanish, continental, Japanese, Asian and other delicacies accompanied by your favourite tipple. What’s more, with a diverse clientele from across the age groups the Mercado de San Miguel is also a welcome escape from crowds of rowdy youngsters.

Courtesy of Michel Cruz of Rimontgó

While many bemoan the state of the property market, it is good to know that there are real estate companies that are recording good results. The success achieved may have been hard-fought, but it provides an encouraging sign that those who are willing to innovate and adapt – and are well-prepared in terms of marketing, organisational structure and the service they provide – can do well.

In terms of significant sales, i.e. the sale of so-called important properties, Inmobiliaria Rimontgó recorded four such transactions in its home market area in 2010. These included two luxurious villas in Jávea, along Spain’s scenic east coast, a large villa just off the city of Alicante, a little further south, and a grand property in the region of Elche.

But in addition to such ‘local’ transactions of note have come the fruits of the international cooperation that Rimontgó has worked so hard to develop, and which finds itself embodied in EREN (European Real Estate Network) and the other international organisations that the company belongs and contributes to.

Most notable among these are a luxury Vienna apartment bought by an American-based

couple that was being transferred to the Austrian capital. Working closely with its EREN partner in Vienna, Marshall Immobilien, Rimontgó succeeded in finding its transatlantic client a beautiful new home and concluding the multi-nation deal in an efficient and transparent manner.

Other enquiries for international real estate that came through Rimontgó’s award winning website and which were successfully concluded with the EREN partners in Switzerland,

Portugal, New York and Florida respectively, are:

· A record sale to a Danish citizen of an estate in Lugano listed at CHF30 million

· A beautifully restored city apartment bought by a French family in Lisbon’s historic Chiado district

· The close working relationship with its partners in New York was also emphasised in the purchase of an important apartment by a Venezuelan national

· When a Florida resident wanted to sell his property in the Oliva Nova Golf Course near Valencia, without having to travel to Europe. Powers of Attorney were issued on behalf of Rimontgó and the proceeds from the sale of the property to a Madrid family were wired to the seller, who was very pleased with the service received

It all proves that international cooperation between likeminded companies can produce excellent and mutually beneficial results. For Rimontgó, the good results of 2010 serve as further encouragement and reward for the hard work and dedication they have shown in pursuit of a clear and effective market strategy.

Courtesy of Nick Horton of Luxury Real Estate New Zealand

Changes to the Government's business migration scheme will make it easier for rich foreign investors to qualify as investor migrants.

These include a reduction in the number of days a $10 million investor has to spend in the country from 73 to 44 days, and recognizing investments in bank bonds and equity, Immigration Minister Jonathan Coleman announced yesterday at a breakfast meeting in Auckland.

Business migrants will also need to only meet one of the two requirements of either having managed a business with five full-time employees or a business with at least a $1 million annual turnover, instead of both.

But what immigration advisers say will attract investor migrants, especially those from China and the rest of Asia, are that funds can now be transferred through foreign exchange companies and not just banks, and the recognition of residential property, other than their own home, as an "acceptable investment".

The focus would be for these investors to build new subdivisions, houses and apartment blocks to increase the total housing stock available to New Zealanders, Dr Coleman said.

"The marketing of our business migration package will target key OECD markets including the United Kingdom and the United States. We're also looking at the major developing markets in India and Southeast Asia," he said.

Annually, new migrants add $1.9 billion, tourists $9 billion and international students more than $2 billion in foreign exchange.

"Given these compelling figures, my number one priority has been to ensure immigration is contributing to the Government's economic growth agenda," Dr Coleman said.

Immigration was working closely with New Zealand Trade and Enterprise to link high-worth migrants with New Zealand businesses, the minister added.

Stakeholders in the immigration industry have welcomed changes with some saying it could attract hundreds of new investor migrants here.

The scheme, set up a year and a half ago to promote greater investment, has attracted $562 million.

“International investors are comfortable with investment into residential property so we expect this new opportunity to be well received” said Nick Horton, co-owner of Luxury Real Estate New Zealand. Horton is part of a group of companies who regularly run international seminars attracting investor immigration applicants, and through their website www.investorimmigration.co.nz

Investor Immigration scheme changes

* Investors with $10m need to spend only 44 days instead of 73 days during the three-year investment period.

* Residential property, bank bonds and equities now acceptable investments.

* Transfer of funds can be made through foreign exchange companies, and not just restricted to banks.

* Rules around level of business experience relaxed.

Courtesy of Frederick Peters, President of Warburg Realty

Sitting on the plane flying home from London, I am thinking about the ways the British system of selling real estate differs from ours. I met last week with a firm of high end estate agents, who do a significant amount of business in both rentals (or “lettings” as they are known in London) and sales. More than anything else, I am fascinated by the way their system apparently disadvantages buyers AND sellers, because their low commission rates lead to a lack of co-brokerage. (Of course the same thing, minus the low commission rates, can be said about much of Brooklyn.)

In New York City, all Real Estate Board members are required to co-broke their listings with all other Board members within 24 hours of receiving a listing. This leads to an orderly marketplace. In London, by contrast, co-brokerage is voluntary. What that means is that, more often than not, an exclusive agent who has a hot property will keep it within their firm so as not to be required to share the 2% or 2.5% commission. So, as a buyer, unless you happen to be in touch with an agent from that firm, you do not see the listing. Dual agency is not permitted, so if you go directly to the seller’s agent you have no buyer’s representation in your negotiation. And if you want a buyer’s agent, more often than not you have to pay them yourself. Unless you are willing to pay them yourself, or contact the listing agent directly, you simply do not have access to the property.

To me this system seems like the height of inefficiency. The seller has no guarantee that he is receiving the highest and best price for his property, since it is likely that many in the pool of appropriate buyers may never learn about the listing (of course the Internet has alleviated this problem somewhat). Similarly, the buyers cannot select a trusted agent and count on that agent to show them everything, unless those buyers are prepared to pay their agent a fee. And even then, exclusive agents often prefer not to have to deal with another real estate professional.

Our system may not be perfect, but in it I believe everyone wins. Brokers on BOTH sides of the transaction are fairly compensated for making sure their clients, be they buyers or sellers, get the broadest possible market exposure with expert professional advice before making a decision.

You can read more on www.warburgrealty.com/blog.