News
Wealthy buyers increasingly attracted to Barcelona real estate market
Barcelona is attracting more wealthy real estate investors thanks to a reputation as a luxury lifestyle destination, it is claimed. Rich property buyers are looking to expand their portfolios beyond traditional property hotspots such as New York, Paris and London and are increasingly spending sums of €10 million and above. Agents Luca Fox International Properties said that affluent buyers are attracted by the lifestyle which has seen Barcelona transform itself into a prosperous, global city since the Olympic Games in 1992. The city is also regarded as a leading gastronomic hub with 23 Michelin starred restaurants, drawing in entrepreneurs and businessmen from all over the world, as well as some big name celebrities including Rolling Stones guitarist Ronnie Wood, who bought a property in 2013. Singer Shakira and FC Barcelona footballer Gerard Pique are currently building a home in the city’s outskirts, providing an additional glamorous vibe to this already buzzing coastal city and last year saw the launch of Barcelona’s superyacht marina, ideally positioned in the heart of the city and which regularly welcomes Roman Abramovich’s fleet of yachts. Barcelona’s fashion brands such as Desigual and Zazo and Brull have encouraged major international chains to make the city a key part of their strategy for flagship store openings in Southern Europe. There is also a growing number of tourists visiting the city. ‘Barcelona is a very seductive city. Progressive, creative and constantly re-inventing itself, it has always attracted a discerning, creative crowd but now we are seeing new wave of very wealthy investors, who recognize the city’s global appeal as well as its growth potential,’ said Lucas Fox co-founder Alexander Vaughan . ‘A number of high profile industry leaders, businessmen and personalities such as Ronnie Wood have chosen to buy through Lucas Fox in recent years and, as Barcelona continues to establish itself as one of the world’s leading cities, we believe this trend is set to continue,’ he added. Even at the lower end of the market buyers are spending more, according to a survey carried out at the recent Madrid International Property Show (SIMA). ‘Compared to previous years they have a bigger budget and foresee fewer difficulties in financing their purchase,’ said Eloy Bohua, managing director of Planner, the show’s organisers. The survey found that compared to the previous show a year ago the percentage of people looking for property at the cheapest end of the scale up to €150,000 has dropped from 36.5% to 22.1%. At the other end, those looking for property priced at over €300,000 have gone from 12.8% to 21.6% while 29% are searching for property between €150,000 and €210,000, and 28.3% between €210,000 and €300,000. Continue reading
Number of mortgages for UK first time buyers doubles in three years
The number of mortgage products available to first time buyers in the UK has doubled in the last three years, while rates have dropped by 1%, new research shows. Since 2012 the number of 95% mortgages available has increased by 448%, according to a study from online comparison site MoneySuperMarket. But the firm says that first time buyers should always be mindful of the whole cost of a mortgage and not be lured by a headline rate. The number of overall mortgage products available to first time buyers is currently 2,776 and this is partly due to the Government’s Help to Buy scheme. In addition, the average rate on first time buyer mortgages has dropped by 1% in the last three years to 3.26%. With the average loan to value (LTV) required for first time buyers remaining flat over the last three years at 79% compared to 78% in April 2012, those looking to get their first foot on the ladder would need to find a deposit of £31,500 on a £150,000 property. However, under the scheme a 5% deposit on the same property would cost £7,500. The research says there are 170 mortgage deals currently on the market available to those with just a 5% deposit, an increase of 448% since 2012 when only 31 products available. In addition, average rates have decreased by 1.04% to 4.72% on average. ‘The increase in the number of first time buyer mortgages, and the corresponding fall in interest rates, can only mean good news for those looking to get a foot on the ladder. Even better, borrowers who can scrape together a 10 or even 15% deposit will find they are able to get their hands on more competitive deals,’ said Kevin Mountford, head of banking at MoneySuperMarket. ‘The introduction of the Government’s Help to Buy ISA which will see the Government provide up to £3,000 towards a first time buyer’s deposit, could also help prospective home owners get themselves into a new LTV bracket, thus helping them secure a more competitive deal,’ he added. But he pointed out that for anyone looking to buy their first home, it’s important not to be led by interest rates alone when comparing mortgages. ‘Expensive fees can wipe out the potential benefit of a lower rate so it’s worth doing the sums first to ensure you really are getting a great deal,’ he said. ‘Whilst mortgage approvals were up 7% overall on March, this doesn’t mean that lenders’ criteria is becoming more relaxed. After the introduction of the Mortgage Market Review, borrowers not only need to have a strong credit score, they also need to prove that they can afford the mortgage they’re applying for, not only at its current rate but, if rates should rise in the future,’ he explained. ‘Finally, also think about whether you want a fixed or variable rate deal. Fixed provides security that your rate won’t change during the term of the deal. Whilst… Continue reading
