Castle Asia Share Discussion Threads

[waldron] 16/10/2005 09:37

You can't Sipp just anything

Only homes in 'low-risk' places can be 'wrapped' into your pension plan, says Graham Norwood

Sunday October 16, 2005
The Observer

Changes that will allow houses, including overseas homes, to sit inside tax-efficient Self-Invested Pension Plans from next spring may be exciting estate agents, but they are starting to alarm some property analysts.At first sight, the changes to Sipps are attractive. Business intelligence firm Datamonitor says 2 million Britons have second homes overseas, mostly in Spain and France, and many more may be tempted to buy following their holidays this summer. Treasury research suggests that there are now 100,000 Sipps holders, but this could expand rapidly after next year's changes make these plans more appealing.

But what are the problems?

1. 'High-risk' locations may be excluded

Trustees of Sipp funds must approve the location of a home bought for a plan. Decisions will be based on how similar a tax regime is to the UK's (thus minimising the buyer's international tax burden) and how clear the property purchase process is in terms of title deeds and transparent ownership.

'Markets such as Dubai may suffer due to the fact purchasers don't actually own the freehold to a property,' suggests Stuart Law of Assetz, a property investment firm. 'Emerging markets such as Bulgaria, Turkey and Croatia are also likely to concern them, since evidence of a strong resale or rentals market will be limited or non-existent.'

Sipp providers, such as Suffolk Life, say they cannot say which areas will be approved. This makes it very difficult for investors wanting to buy in nine months' time to make plans.

2. Investors may be sold slow-selling stock

'There's a risk developers and agents will view the change as an opportunity to offload inferior stock. A potential investor should select a property on its merits and only then look at purchasing through a Sipp,' advises Nick Dare, of Letterstone, a UK investment firm selling properties in emerging markets, particularly eastern Europe.

He says: 'Due diligence on specific markets and locations will become increasingly important. In Bulgaria, we believe there are still attractive investments, but equally there are a number of locations where we would advise against investing.'

3. 'Spanish practices' will have to end

It is thought many Britons let their overseas homes but do not declare the rental income to that country's or the UK's tax authorities. They will not be able to continue with this: Sipp trustees will require evidence of tax declarations and payments. So how many Sipps holders will include overseas homes if that means paying more tax than now?

Likewise, Sipp trustees will not permit the practice of 'under-declaring' a purchase price of a home. This is currently a common trick whereby sellers and buyers in many countries agree to declare an official purchase price, which attracts a minimal level of stamp duty. A higher sum is then informally paid by the purchaser, usually in cash.

So just what and where are the best overseas homes to buy for Sipps?

'France may sneak into the lead since it has a preferable capital gains tax policy,' says Assetz's Law. 'Spain would still apply 15 per cent capital gains tax to the sale of the property if it was purchased within the recommended company structure.'

'Established holiday locations - Costa del Sol, Costa Blanca and Mallorca - will be strong. That's where you have the greatest chance of a decent rental income,' says Shaun Powell of Lighthouse, an association for so-called ethical estate agents in Spain, who abide by a code of conduct to protect buyers from mis-selling and over-pricing, which are common in Spain's property market.

'There's also a trend in investors looking outside holiday destinations as they rely more on rental income and guarantee. As long as the investor is positively geared - achieving higher rental than mortgage repayments - they'll look at urban, tourist or rural locations,' suggests Damian Hamp Adams, of estate agency Colliers CRE.

Adrian Ware, of Cavendish Ware, an independent financial adviser working with estate agents selling overseas homes, says would-be investors need not wait. 'In principle, an individual can agree to exchange off-plan personally now, and then complete through the pension plan post-2005.'

But few investors have followed this route so far. Most agents report little interest from Sipp-holders, and expect that it will be late autumn before business takes off.

Then it will be all systems go - but only if investors make the right choice, in the right location. And tell the authorities the truth.

Assetz: 0161 456 4000; Letterstone: 020 7384 7484; Lighthouse: 0845 456 7867; Colliers CRE: 020 7344 6509; Cavendish Ware: 020 7493 6363.

Retirement homes

A SIPP is a tax-efficient 'wrapper' containing pension assets. Currently these include commercial properties but from April, houses and apartments can be included too.

Pension investors will be able to borrow the equivalent of 50 per cent of the value of their Sipp funds to buy property - so a fund worth £200,000 would be required to buy a property worth £300,000, with the remaining £100,000 borrowed through a mortgage.

To buy overseas homes within a Sipp, a buyer will probably have to create an offshore company (those set up in the Netherlands, Luxembourg and Delaware in the US give the best tax breaks). This is likely to add significantly to the costs of running the pension.

A buyer has to convince pension fund trustees that the location and local market of the chosen home is stable, and that its management in the owner's absence will be adequate.

Source: HM Treasury

[grupo guitarlumber] 28/9/2005 13:36

Goldman Sachs Ups Spanish Utilities Targets

Wednesday, September 28, 2005 8:08:36 AM ET
Dow Jones Newswires



1152 GMT [Dow Jones] Goldman Sachs ups SOTP valuations on Spain's utilities, mainly due to an expected increase in profitability of the country's wind farms. Ups Iberdrola (IBE.MC) target to EUR23 from EUR19.7, Endesa (ELE) to EUR19.9 from EUR18.6, Gas Natural (GAS.MC) to EUR22.5 from EUR21.8, Union Fenosa (UNF.MC) to EUR27.5 from EUR26.9. Fenosa stays as preferred Spanish pick on valuation grounds. (DRB)

[ariane] 27/9/2005 15:08

Thales wins Moroccan govt contract to supply national ID card system - UPDATE

(Adds value of contract)

PARIS (AFX) - Thales said it has won a contract from the government of
Morocco to supply a system to produce and personalise national identity cards
based on contactless smart card tecnnologies.
A spokesman valued the contract at more than 100 mln eur.
Thales said it will manage production of the cards for four years, during
which 20 mln cards will be produced.
[e-mail]
afp/mjs/cml

[grupo guitarlumber] 03/9/2005 13:57

enjoy your weekend She...

[sheeneqa] 03/9/2005 10:04

Strange anyone wanting to buy a property in Morocco......Morrocans are willing to risk live and limb to get out.......

[grupo guitarlumber] 03/9/2005 09:51

Morocco and Turkey: the hot newcomers
(Filed: 31/08/2005)


Buying tips



Low-cost flights and a sense of adventure are enticing Britons to buy homes further afield. Catherine Moye discovers what the outer reaches of the Mediterranean have to offer

Think of British expatriates in Morocco and you tend to picture Sebastian Flyte from Brideshead Revisited stumbling into a den of iniquity, not buyers mulling over property particulars. Yet the North African country is not what it used to be.


Bright and beautiful: the hot dry climate and breathtaking scenery are drawing more foreign buyers to Morocco
A new generation of Britons is being drawn by its exotic romance, breathtaking landscape, hot dry climate and clean air suffused with the scent of wild herbs.

The number of smart UK estate agents that have moved into the Marrakesh area in past months alone shows just how sophisticated it has become. Casablanca is considered too industrial, and Tangier too seedy, and so it is in Marrakesh, and the lush Ourika valley, that most Britons are looking to build and buy.

Marrakesh
The recent boom is partly down to one man, Abdelatif Ben Abdellah, whose company has devoted much of the past 10 years to restoring dozens of old riads (houses with courtyard gardens) and palaces in the Marrakesh Medina or Old City. In that time, more than 650 homes (more than five per cent) in the Medina have been bought by foreigners - mainly French, though the Italians and British are fast catching up. Prices have soared and, for the Moroccan, real estate is the business to be in. Foreigners are targeted because they will pay more than locals; but, even so, a three-bedroom property with a couple of spare salons arranged around a planted courtyard will still set you back little more than £100,000. Try the internet to see what your money will buy - www.primelocation.com or the websites of the Bab Menara and Karimo Properties agencies are a good place to start.

Flights from the UK to Marrakesh take less than four hours, and access has improved greatly since Atlas Blue, the budget airline, introduced flights from Gatwick starting at £60 each way. Moreover, Marrakesh airport is only 10 minutes' drive from the walled city.

Marrakesh suburbs
Many Britons would prefer to be far away from the hordes of tourists, not to mention the touts who cling limpet-like to those tourists' forearms. The largest project in the Marrakesh suburbs is being built in the grounds of a five-star hotel. The 20 two- and three-bedroom riads and 20 three- and four-bedroom villas will feature typical Moorish architecture, with interior courtyards and fountains, private terraces and balconies. Starting prices for the riads are £350,000, while the largest 4,500sq ft villas, complete with staff quarters, will cost £850,000. Buyers can also opt for a "turnkey" package, with furniture and fittings included, making the properties easier to rent out. Available through Hamptons International.

The Ourika Valley
Domaine Dar Chmicha ("smiling sun") feels like a world away from Marrakesh, even though the development is all of 20 minutes by car from the city. The quiet surrounding roads are populated by old men on donkeys heading into sleepy mud-brick villages. Wrapped around an imposing Moorish mansion and surrounded by olive groves, Domaine Dar Chmicha belongs to Michael Dupree, a British developer. It comprises nine Moorish-style villas on generous plots, with swimming pools, courtyard fountains, domed master bedrooms, terraces and balconies. There are two golf courses nearby, and Club Med plans to open a few miles down the road. Prices for the smaller, 300sq ft freehold properties start at £340,000.

Foothills of the Atlas
Peter Roberts fell in love with Morocco when he took his wife, Caroline, there to celebrate her 50th birthday. They are now building nine houses at Bab Adrar d'Atlas, an old farm estate filled with cypress, olive, fig and orange trees in the foothills of the Atlas mountains, about 15 miles from Marrakesh.

Buyers will share the freehold and be entitled to use the houses for six weeks each year (four weeks peak, two off-peak), with priority rotating between owners. Prices start at £85,000 for fully furnished two-bedroom villas, rising to £110,000 for four bedrooms, and include a personal chef, domestic staff and a pool.

As well as the friendliness of the local Berber people who inhabit the desert and mountain regions, the Roberts love the cosmopolitan mix of the area. "You get all the benefits of the French and English cultures, so the food is fantastic and the communications and roads are very good for an African country," says Peter, "but there is a real sense of the exotic that so much of Europe lacks."

Essaouira
At the ancient fishing port of Essaouira, two-bedroom apartments close to the beach can be bought for as little as £17,000. But be warned: this can be a windy coastline, it's tatty in parts and most riads and many apartments need major renovation - so it's not an undertaking for the fainthearted. Available through Bab Menara and Karimo Properties or www.primelocation.com.

Buying tips
Generally speaking, French property law applies, with all transactions overseen by notaries. Expect to pay about two per cent of the purchase price on notary fees, and a further 3 to 4 per cent in land registration fees, stamp duties and other small expenses. Foreign investors are allowed to sell at any time and enjoy free repatriation of capital and profit, although there is a "taxable profit" on property (sale price less purchase price and fees) of 20 per cent. Foreign nationals may take a mortgage from Moroccan banks (up to two-thirds of the purchase price).

Contacts Aylesford 020 7351 2383 Bab Adrar D'Atlas Premier Resorts, 020 8940 9406; [e-mail] Bab Menara 0021 244 422 570; www.babmenara.com Domaine Dar Chmicha Through Marrak Villas, 01666 861049; www.marrakvillas.com Hamptons International 0870 458 3653 Karimo Properties 0021 244 474 500; www.karimo.net Other properties in Essaouira and Marrakesh www.primelocation.com

For sale



£136,000 A riad guesthouse in Marrakesh, with six bedrooms and bathrooms (Bab Menara)
From £85,000 Freehold timeshare villas at Bab Adrar d'Atlas, in the foothills of the Atlas mountains
£93,000 A furnished riad in Essaouira with three/four bedrooms and terraces (Bab Menara)

[grupo guitarlumber] 02/9/2005 06:20

Foreign cover hard to find
Helen Loveless, This is Money
1 July 2004
A GROWING number of people are choosing to buy a holiday home abroad but finding an insurer prepared to cover the property may prove more difficult.

In the last decade alone the number of people buying a second home has more than doubled, with many of these homes outside the UK. Figures published by the Government reveal 153,00 households with second homes in 2002–03.


For anyone considering buying a holiday home abroad, taking out comprehensive insurance should be a priority. Yet this could be harder than it sounds.


Very few insurers are prepared to offer buildings and contents cover on properties abroad. And the country in which you buy property will also have a bearing on how difficult or otherwise it is to find a UK insurer.


Halifax, Abbey National, Norwich & Peterborough and Barclays are among the lenders offering mortgages for people buying property in certain countries, such as France and Spain. Yet none actually offer buildings and contents insurance for foreign homes, although Abbey and Norwich & Peterborough say they will put customers in touch with a specialist broker.


To make matters worse, most if not all lenders will insist on borrowers having buildings insurance before they sign the deeds of the mortgage. This is to protect them in the event of a complete catastrophe: for example, if the property burns down or falls down just after they have lent you the money to buy it.


So where do you go? One option is to arrange cover with an insurer in the country where you are buying, or ask your solicitor to do this on your behalf. This may save you time and effort, but it could cost you dear, despite seeming initially cheaper.


A spokesman from Saga said buildings and contents insurance on properties abroad was 'up to 20%' less expensive than cover for homes in the UK. But not surprisingly there is a reason why.


'People will often expect insurance to cover the same conditions, wherever it is taken out, yet this is not always the case. Foreign cover tends to be a lot cheaper but it covers less.'


For example, buildings insurance on UK properties will normally cover the policyholder for 'alternative accommodation'. This means that if your home is flooded or burnt down, for example, the insurer will pay for you to stay elsewhere for a limited amount of time.


However, many foreign policies will not cover this where the property concerned is a holiday home rather than a permanent residence.


Language could also prove a barrier when it comes to understanding exactly what is and is not covered when you take out insurance in a country other than the UK.


UK-based insurance company Norwich Union offers building and contents insurance on homes abroad, but only as an add-on to its UK cover. This means you need to have your UK home insured with them before you can insure a property abroad.


It will cover homes in Ireland, France, Spain and Portugal. However, it must be a second home used only by the policyholder and their friends and family: property rented out on a commercial basis is not covered.


The insurer Saga also offers buildings and contents insurance for properties bought in France, Spain, Portugal, Italy and the Channel Islands. However, it will only insure holiday homes, rather than a home being used as a main residence.


Hiscox Insurance is another company that offers cover for holiday homes in France, Spain, Italy and Portugal.


There are several specialist brokers offering buildings and contents insurance on properties abroad. These include the Conti Financial Services, London-based Andrew Copeland Group, brokers K.Drewe and also Holman.


The main advice before taking out any insurance policy, whether with a UK company or a foreign provider, is to make sure you know what you are getting.


Liz Kennett, spokeswoman for Norwich Union, advises people to 'check carefully exactly what cover the policy actually provides', to avoid being left financially in the lurch if the worst happens.


This includes considering the occupancy conditions on different policies - this means the maximum amount of days the house can be left unoccupied in a row before the policy becomes invalid.


Norwich Union says the property must not be empty for more than 60 days in a row for cover to be valid, as do Saga. However, you can extend this to 90 days with NU by paying a higher premium. Saga also allows this to be increased, to a lengthy 180 days, but it will cost an extra 25% on your premium.


Kennett also recommends finding someone to check on the property frequently, wherever possible, to reduce the risk of theft and damage.


Other factors worth keeping an eye out for include emergency travel cover. For example, if there is damage to the property will your insurance pay for you to travel there in an emergency? Take out a policy in the country where the property is and the chances are it won't, because the insurer will assume it is your main residence and you don't need to travel.


Saga has a free guide to buying in France and Spain – 0800 015 0751


Insurers

• Norwich Union - 0800 015 7767
• Saga – 0800 015 4752
• Hiscox – 0870 127 1450


Brokers

• Conti Financial Services – 01273 772 811
• Andrew Copeland – 020 8656 8435
• K.Drewe – 01299 404 050
• Holman – 020 7977 8200

[grupo guitarlumber] 02/9/2005 06:17

Safe as (empty) houses
Adrian Lowery, This is Money
1 September 2005
THERE are various circumstances in which a property can fall unoccupied, and many householders get a shock when they find out their home insurance falls invalid as a result.



HOLIDAY HIDEAWAY: But while you escape to the sun, what's happening to your UK home?

A homeowner may be taken abroad by work for several months, and second homes and holiday homes often stand empty for prolonged periods. A house will be unoccupied when extensive renovation work is being completed or sometimes when it is on the market. And, of course, properties can suddenly become vacant when the owner dies or is taken into care.

Typical home insurance policies will not cover a home that is empty for more than a month, so you could even be caught out if you take a long holiday. By not notifying your insurer you could be contravening the terms of your policy and – unless the company shows goodwill - you will not be able to claim if you return to find buildings damage or burglary.

Some home insurance companies will be flexible if a house is going to stand empty more than 30 days as long as you contact them beforehand and agree to certain conditions. These are likely to include high standards of security, the water being turned off and maybe the electricity and gas, too (depending on mains-run security and whether freezing of pipes is likely). They will also probably demand that the house is regularly visited and that papers and junk mail do not visibly accumulate.

However, Graeme Trudgill of the British Insurance Brokers' Association says, 'Typically, up to a period of three months, most home insurers will agree to continue cover as long as their conditions are met. But even with these provisos, the escalation of risk for an unoccupied property is such that some insurers will either reduce their cover - removing for instance water damage, malicious damage, and even contents theft - or they may withdraw cover all together.'

This is where specialist unoccupied-property insurers come in. They will insure unoccupied homes with 'full peril' building cover and also often offer dedicated second-home policies. An unoccupied policy typically does not cover contents, only fixtures, fittings and white goods, while a second-home policy should cover contents up to a certain amount. It is assumed that owners of unoccupied properties will have cleared the house of valuable goods.

Paru Gohill, account executive at one such specialist insurer, Camberford Law, says 'Contents can be the tricky thing. If someone is going away for just a few months and does not want the hassle of moving their contents into storage we can often quote them for cover. But some insurers are likely to require a much-increased premium for the inclusion of contents in an unoccupied-property policy.

'Increasingly people are turning to storage, even if they are going away for just a few months – it's cheaper than the increase in the premium.'

These policies also come with conditions regarding security standards, switching off of utilities and the property being checked regularly. And they are typically annual, so you can't just cover for the unoccupied period.

Let properties are another case altogether and many home insurers offer specialist policies, which will be a pre-requisite of a buy-to-let mortgage application. These policies will keep cover going through periods of unoccupancy as well as covering for lost rental income, and other risks specific to tenant-occupied properties.

Trudgill at BIBA advises: 'Because of the various circumstances people can find themselves in, it is essential to consult a good specialist broker who will have access to many different companies and be able to find policies specific to your needs.'

• Unoccupied property insurers and brokers:

Camberford Law: 020 8315 5000
Lawley Insurance Brokers: 01753 537 100
Howe Maxstead: 020 8309 1717
Atkinson Smith: 01302 341 344

• Let properties and holiday homes:

Letsure: 0870 609 3606, www.letsure.co.uk
Towergate: 0870 242 2490, www.towergateunderwriting.co.uk

• British Insurance Brokers' Association: 0870 950 1790, www.biba.org.uk

[grupo guitarlumber] 01/9/2005 15:14

Ambitions in the DIY business

Spain's leading department store group, El Corte Inglés, wants to move into the booming Spanish DIY business, according to its president Isidoro Alvarez. The company's aim is to generate higher growth rates once again. In fiscal 2004 the group's sales increased by 7.1 per cent to € 15 bn, with profits rising by 6.1 per cent to € 611 mio. El Corte Inglés also plans to start selling furniture. In addition, the company's expansion abroad in Portugal is to be intensified and the group has its sights set on Italy too.

[ariane] 26/8/2005 15:39

Cuba tops for pound stretching

This is Money
26 August 2005 IF you want a cheap holiday next summer, head for Cuba. New research has found that the Caribbean island is the cheapest mainstream holiday destination in the world.



DRIVING A BARGAIN: Holidaying is cheapest on the Caribbean island of Cuba

WANT TO KNOW MORE?


TOOLS: Find cheap travel insurance
TABLES: Latest exchange rates
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Book flights at www.thisistravel.co.uk
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Beneficial exchange rates and the lower cost of basis means travellers to the island, famous for its 1950s cars and cigars, have more cash to splash out on extra items or activities.



Your money also stretches further in the increasingly popular destinations of Egypt, Morocco and Croatia, but the perrenial favourites of Greece and Spain come bottom of the list.

According to M&S Money's Ice Cream index, which calculates the cost of a list of popular holiday items such as a three course meal, a glass of beer and a 10-minute taxi journey, Cuba clocks up £38.34.



However, Spain checks in at £98.90, although it is cheaper to get to Spain and eats up less time than the 10 hour flight to Cuba.



A quarter or Britons take between £200 and £300 holiday cash away with them, but a family of four could pay as much as three times for their holiday basics depending on which destination they choose.

David Mackay, commercial director of M&S Money, said: 'To get the most of our hard-earned holiday cash, we need to be careful where we change our travel money.



'If holidaymakers wait until the airport to change their money, it could cost them as much as £36.40, or more than five three-course meals in Cuba.'

M&S Money's Ice Cream Index includes a postcard, entrance for one to a local attraction, car hire, a cup of coffee, a glass of beer, a bottle of wine, a 10-minute taxi journey and a three course meal for one.

The Top Ten

1. Cuba
2. Egypt
3. Morocco
4. Croatia
5. Turkey
6. Dominican Republic
7. Cyprus
8. Portugal
9. Greece
10. Spain

[grupo guitarlumber] 20/8/2005 07:33

Where you live can change the growth of your pension
By Harriet Meyer
(Filed: 18/08/2005)


You will not lose any state pension you have built up in the UK if you retire overseas, but you will only get it uprated in line with inflation if you live in certain countries.

About 400,000 of those British pensioners who live abroad get their pensions uprated in line with inflation, but about 550,000 do not because they live in Commonwealth countries.

If you retire in a country that is in the European Economic Area (EEA) or that has a reciprocal agreement with the UK your pension entitlement will increase with inflation, and you should check that your pension is being increased accordingly.

The EEA is made up of all European Union countries, and includes Austria, Belgium, Czech Republic, Cyprus, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Italy, Latvia, Lithuania, Luxembourg, the Netherlands, Poland, Portugal, Republic of Ireland, Slovakia, Slovenia, Spain and Sweden plus Iceland, Liechtenstein and Norway.


The European Court of Human Rights in Strasbourg, where campaigners for pension equality are set to take their case
The UK has reciprocal arrangements with Barbados, Bermuda, Cyprus, Israel, Jamaica, Jersey and Guernsey, Malta, Mauritius, Philippines, Turkey, USA, Yugoslavia (and its former Republics).

Campaigners are arguing it is unfair that the state pension is raised if you live in certain counties, but not others.

The House of Lords rejected an appeal in May which may have changed things. The law lords' four-to-one majority ruling brought to an end a seven-year legal battle.

Annette Carson, 64, a writer who moved to South Africa in 1990, was selected by campaigners to be the test case.

Her pension is frozen at the 2001 level of £67.50 a week despite making full national insurance contributions, but if she still lived in the UK she would now be receiving £82.05, with a further increase due next April.


Annette Carson: court battle ended in disappointment
Some pensioners who emigrated to Commonwealth countries long ago still receive pensions as low as £6.75 a week against the current £82.05. Ironically, pensioners living in Spain, for example, are entitled to the Government's Winter Fuel Allowance on the same basis, but those in Canada are not.

The Department for Work and Pensions has estimated that it would cost up to £400m each year to give the annual increase to all British pensioners who decide to live abroad, a small sum compared to the total cost of state pensions of around £40 billion.

Campaigners are likely to pursue their case by taking it to the European Court of Human Rights in Strasbourg.

Graham Chrystie, of law firm Thomas Eggar, who represented Annette Carson, said: "It is expected it will go to Strasbourg. We feel we have a strong case to take to the European Court.

"Those affected have paid full national insurance contributions but are receiving a pension without indexation, and not even any of the other benefits such as national health and social security benefits.

"These people would not have paid their contributions had they known they were not going to get indexation and would have got a better deal putting their money into local pensions."

A spokesman for the Department for Work and Pensions said: "Annette Carson's case was a test case and the decision went against her. There are no plans to change the situation in those countries where pensions will be frozen. People should seek advice."

The Pension Service International Pension Centre (IPC) deals with queries about UK benefits payable to those living overseas. You can contact them on [phone].

[grupo guitarlumber] 15/8/2005 15:40

Life abroad can turn very sour
By Peter Upton
(Filed: 10/08/2005)


More than than half Britain's population would like to move overseas, according to a string of recent surveys and, for the millions whose dreams take them to foreign parts, where do most see themselves living the good life? Spain and, in particular, the Costa Blanca.

Apparently, about 40 per cent of new-builds on the white littoral are now bought by Brits. Add on resale homes and the figure is a lot higher. Other areas are attracting a similar stampede. Some have moved there to work, but tens of thousands have settled on Spain as their retirement haven, and countless others aspire to follow. Why?

Prices on the costas are now approaching those of Britain. There is nothing cheap any more. What's more, Spain has changed dramatically, as I know from experience.

A report by the Spanish arm of Greenpeace has complained that more than 90 per cent of the 8,000-kilometre Spanish coastline has been wrecked by unchecked development, underpinned by an infrastructure so fragile that it is only a matter of time before it implodes.

More than 99 per cent of coastal towns still discharge contaminated sewage into the sea, says Greenpeace - yet on beaches blue flags still flutter, imparting an illusory image of quality. And now the country is in the grip of the worst drought ever recorded there. Tap-water quality has improved, but there are always shortages.

Then there's electricity - sort of. Homes are supposed to enjoy a fizzing 230 volts but often only 195 volts manage to crawl in, leaving appliances gasping, and there's a good chance that the rush for air-conditioners in this year's heatwave will toss the country back into the dark ages.

Having second thoughts? Well, whatever you do, don't even think about buying an apartment unless you are deaf. Walls as protective as Japanese paper screens insist you enjoy your neighbours' every intimate sound, and at weekends Spaniards like to party until dawn.

Then there is the small matter of build quality, or rather lack of it. In fact, it's a miracle how many apartment blocks stay up, given what is referred to as "knitting-needle" reinforcement. Often they do not use steel girders in multistorey structures - they just pour concrete over thin steel rods. Houses of cards come to mind.

When it comes to build quality, many villas are even worse than apartment blocks. Constructors simply employ cosmetic cover-alls to make jerry-built properties look so mouth-watering that you've signed on the dotted line before your brain has kicked into gear. Post-purchase remedies are very costly.


And then there's the price of your new home. The chances are, if it is a resale property, that it will bear no relation to its real value. In Britain, agents charge vendors between 1 and 2 per cent for flogging their pile; in Spain, vendors usually state what they want and then the agents add on what they want.

Ten per cent is on the low side, and up to 20 per cent normal, but there have been many instances of agents adding on 50 per cent when the vendor is living overseas and has no idea what is going on. And the buyer pays.

Imagine buying a €450,000 property, only to discover later that €150,000 was trousered by the agent. No wonder there are more people selling houses on the costas than you can shake a stick at.

Still not put off? Well having bought your villa, you'd better be prepared to guard it with your life. For there is the not-so-trifling matter of the so-called "land grab" laws, most notoriously implemented in Valencia but also casting a shadow over Andalusia.

Ostensibly introduced by the Valencian government in 1994 to regulate the acquisition and development of land and to prevent excessive speculation, the effect has been exactly the opposite. Thousands of property owners, including Britons, have had land taken from them by developers paying peanuts in compensation; they have also been forced to part with hundreds of thousands of euros for new infrastructures such as roads and sewers.

Still set on Spain? Fine - but don't say you haven't been warned.

[grupo guitarlumber] 09/8/2005 06:36

We're off to sunny Spain and France and Italy...
As ever more Britons fly away to foreign hotspots in search of second homes, Harriet Meyer sees how to plan a purchase
Published: 07 August 2005
The appeal of owning a place you love in a climate you long for is sending more and more of us jetting off in search of a dream holiday home or permanent residence in the sun.

Accessibility and affordability have boosted interest in foreign property, with people buying homes as long-term investments and also as escapes.

The number of British households owning a second property abroad has risen by around 85 per cent in the past 10 years, from 89,000 to 165,000, according to research from the Nationwide building society.

Spain is the first choice for these people, ahead of France and Italy, while Cyprus, Dubai, the US and Australia are all popular holiday home locations.

With house prices still high here in the UK, it is no great surprise to find so many buyers going abroad, where prices can be a lot lower. You could, for example, get a two- or three-bedroom apartment near the sea on Spain's Costa Blanca for about £150,000, according to Sean Adams, the European manager of the international department of broker Savills Private Finance.

Before deciding to take the plunge, however, it is vital you do your homework. Viewing properties overseas may pose practical problems, but you must see what you're buying before making an offer. Take the trouble, too, to visit at different times of the day, or even times of the year. Check that the area where the property is located has all the facilities you need, such as medical services, local transport and shops.

When buying abroad, be aware that property ownership, conveyancing and tax rules vary widely - even within the EU. Make sure that you familiarise yourself with the relevant regulations. The key here is to get good advice from the start and to make use of recognised estate agents and qualified legal advisers throughout the process.

Once you have found your property, you need to decide how you're going to fund the purchase. This will come down to a choice between a UK and an overseas mortgage.

"If you have sufficient equity in your home in the UK, you could remortgage to a new lender with a better rate to finance the purchase," says David Holling- worth from broker London & Country. "Or you can secure the mortgage against the overseas property."

The good news, he says, is that several high-street lenders are now offering deals and mortgage products for homes overseas.

For those wanting to buy in Spain, for example, the Norwich & Peterborough building society - a lender specialising in home loans for Spain and Gibraltar, will lend in sterling. Among the mortgages on offer is a deal fixed at 3.84 per cent for two years, or 5.19 per cent for five years. N&P will lend up to 75 per cent of the valuation on a property bought for £60,000 or more, and loan terms are up to 20 years.

Alternatively, you could use a specialist overseas mortgage broker, such as Conti Financial Services. Conti sources loans in the local currency from foreign banks in a host of countries. Taking this route can have its advantages: interest rates tend to be lower on euro and dollar mortgages than on sterling loans. However, your repayments will vary in line with the exchange rate.

As well as the mortgage, you must budget for the extra costs involved, such as legal and registry fees, stamp duty and local taxes.

If you are thinking of buying in Spain, for example, expect to pay about 10-12 per cent of the purchase price to cover various taxes and legal fees.

Mr Adams of Savills Private Finance says professional help is essential: "You would be well advised to speak to a notary or lawyer in the country you wish to buy in, as well as a tax adviser in the UK."

[grupo guitarlumber] 30/7/2005 13:07

Only next door.

[spectrum7] 23/7/2005 07:26

Aanyone want to buy a villa.....been on the market for a year now !! hopeless

[waldron] 23/7/2005 06:34

Britons in Spain get £200 winter fuel payments
By Brendan Carlin, Political Correspondent
(Filed: 21/07/2005)


The winter fuel payments scheme instituted by Gordon Brown has handed out around £7 million to pensioners living in Spain and other southern European countries, it emerged yesterday.



The Liberal Democrats urged a review of the system after discovering that thousands of recipients of the £200-a-time payments were resident in the sunnier climes of countries such as Portugal, Cyprus and Greece.

Under arrangements which apply across the European Union, Britons living abroad can "export" state benefits to their overseas homes.

It means that expatriates resident as far away as Iceland, Poland and Lithuania now get help with their winter fuel bills.

But by far the largest number of overseas claimants are those living in Spain, with more than 31,000 payments since 2002-03 or just over £6.3 million in total. The number of payments to Britons living in Spain has trebled in the past three years.

France has the second highest number of pay outs at just over 12,000 (£2.4 million), with Ireland third at 4,424 or £884,000.

David Laws, the Liberal Democrat work and pensions spokesman, who obtained the figures, questioned why "some quite affluent pensioners living abroad" in what in some cases were "quite warm Mediterranean climates" were receiving the help.

The issue arose as two reports published today warn that the number of people who struggle to meet the cost of heating would rise.

The National Energy Action, and the National Right to Fuel Campaign blame increases in the cost of fuel and relatively static incomes, especially for the elderly. However, a separate report from the Government, also released today, shows that fuel poverty dropped from 6.5 million households in 1996 to two million in 2003.

The Department for Work and Pensions indicated last night that there were no plans to review the winter fuel system as it affected Britons living abroad.

[waldron] 03/7/2005 08:04

Revenue gets new power to hunt down tax evaders

Conal Walsh
Sunday July 3, 2005
The Observer

HM Revenue & Customs is to step up its campaign against tax-evaders after being given new powers to snoop on bank accounts held abroad.
Officials at Britain's tax-collecting agency hope that the EU savings directive, which came into force last Thursday and allows EU states to exchange more details about bank holdings, will help the Exchequer recoup around £70 million annually in lost taxes. According to some estimates, the figure could even rise well above £100m.

In a further blow to evaders, tax havens and dependent territories in Europe, such as Luxembourg and the Channel Islands, are also required to disclose bank account details under the directive.

In most circumstances it is illegal to keep money offshore in order to avoid the taxman, but thousands of - mainly wealthy - investors are thought to do so. In the past, offshore bank accounts have also been a favoured destination for City bonuses.

The EU directive coincides with a drive by Gordon Brown to crack down on tax evasion and avoidance, which is thought to cost the public purse tens of billions of pounds every year.

'We already have a very sophisticated intelligence-gathering operation to find people who aren't paying their fair share of tax,' a Revenue spokesman said. 'The new directive is a small but important part of that ... This, though, is not a revenue raising issue - it's about fairness.'

The government has closed numerous tax loopholes in recent years. Last month it targeted wealthy Britons who had gained 'temporary non-resident' status and avoided capital gains tax by living in certain European countries.

Last month's Finance Bill also attracted criticism from multinational companies, who complained that its provisions against corporate tax avoidance were too swingeing. The bill also contains measures likely to increase the tax bills of insurers and venture capital firms.