Euro Exchange – the real cost to British Buyers in Canary Islands

Following the strong media exposure damping British buyers hopes of buying holiday homes in Spain due to the strong Euro, it is well worth further examination of the real cost the current exchange rates poses to those looking to take advantage of competitively priced properties on offer this year.

With the current exchange in the region of GBP 1 to Euro 1.26 compared to Euro 1.40 a year ago a property of 200,000 Euros now would cost 15,873 GBP more. This is based on paying the full amount using GBP of course, something which rarely ever happens as the majority of buyers in Canary Islands use locally sourced mortgages taken in Euros and take advantage of the Islands extended season for rental. Where the rental is payable in Euros the monthly mortgage repayments are not subject to any exchange costs.

John Goldacre from the Canary Islands property specialist Goldacre Estates points out, ‘in a typical scenario investors take advantage of the lower rates offered by Euro mortgages compared to Sterling equivalents. Where a 70% mortgage is offered locally, our clients only have to exchange 30% from Sterling to Euros, representing a minimal cost of exchange compared to paying 100% from Sterling.’

A 200,000Euro example then would actually only cost 4,762 GBP more than a year ago, not 15,873GBP. This realistic cost when compared to the localised markets of Fuerteventura and Gran Canaria www.goldacreestatesgrancanaria.com should be considered carefully. Currently Fuerteventura offers some of the lowest priced properties as it is still in the early growth stages compared to mature markets like mainland Spain or even Tenerife. Combine this with a long rental season due to year round letting capabilities and the media presented picture becomes less obvious.

John has this to say, ‘Shrewd investors have turned their attentions away from the more familiar markets of continental Europe towards smaller niche sectors offering less volume but higher quality and favoured positions. One such example is the Vista Mar project in Fuerteventura offering frontline sea view apartments of very high quality build and design that include many extras such as air-conditioning, fully fitted kitchens, 42m2 terraces, private garaging, gym facilities as well as a 25m pool for exclusive owner use. Products like this are exceptional in todays market and provide the best cover against recessions especially when there is only a 20% investment required today and then you look at local additions that make up the total investment picture such as additional investment in the airport, new golf facilities close by, a new marina, promenade, blue flag beach and ferry services to other islands close by.’

GoldAcre Estates can be contacted on www.goldacre-estates.com or e-mail info@goldacre-estates.com

Canary Islands most sought after for Apartments and Commercial buyers 8th February 2008

Apartments are the most enquired about property type on three of the four main Canary Islands, Fuerteventura, Gran Canaria and Tenerife, according to Kyero.com, with commercial premises being the most popular on the island of Lanzarote. Independent data from the Kyero Enquiry Report (July – Dec 2007) reveals that nationally 3 bedroom villas without a swimming pool and under €150,000 are the most sought after properties in Spain. It appears however that certain regions of Spain attract buyers looking for something a little different. The Canary Islands, located in the Atlantic Ocean off the north-western coast of Africa, is one such region. Popular, with north Europeans especially, as a summer and winter holiday destination, retirement hotspot and the ideal place to start a new life in the sun, the volcanic archipelago attracts around 8 million visitors annually. Currently ranked as the 8th most popular region in which to buy property in Spain on Kyero.com, property stock varies from bungalows, apartments and town houses to duplexes, villas and fincas but it is apartments by far which prove the most sought after in the Canaries with 42% of all enquiries. On the island of Tenerife for example 59% of enquiries are for apartments with town houses and villas trailing at 7% and 5% respectively. 64% of enquiries requested properties with swimming pools and 32% requested 2 bedrooms which currently average at €221,000 (Jan 08). These types of properties are ideal for a wide range of buyers, be they families looking for an affordable holiday home in the sun, retired couples looking to downsize and emigrate or buy-to-let investors seeking low maintenance, high demand rental opportunities. The Canary Islands certainly do offer something for everyone and the island of Fuerteventura is no exception as one of the least developed of the main/ well known Islands such as Lanzarote, Tenerife and gran Canaria, Fuerteventura offers some of the best value apartments within this archipelago, 3 bedroom sea front apartments can be found from as little as 195,000 euros further details can be found on http://www.goldacre-estates.com/
Data from Kyero.com reveals that commercial premises are the most sought after on Lanzarote, ahead of apartments, with 37% of all enquiries, opportunities to set up and run a business in the Canary Islands Spain are abound. Commercial premises available range in price from 25,000 euros- 1,000,000 euros plus, and range from hotels to restaurants and bars, offices, shops, hair salons, bakeries, car rental businesses and even swimming pool bars!

Source Easier Property

Vista Mar, Gran Tarajal, Fuerteventura Canary Islands. Special Incentive Program Direct From The Developer

Front Line Opportunity to the Sea, Fabulous views, Stunning Properties, 3 Bedroom 2 Bathroom, !00 m2 constructed with additional terraces of 40+ m2, also includes Fully Fitted Kitchen, Air Conditioning, Garage and Storeroom in the price all from 194,495 Euros.

Special Opportunity for all clients purchasing and placing a reservation deposit between 16th January 2008 and before the 31st January 2008 a special discount of 1,200 Euros discount will be available off the purchase price ( This is a limited offer that has been made to GoldAcre Estates via the developer and will not be repeated this year and only applies to deposits placed within the specified dates )

If you are interested in Buying one of the best seafront apartments in Fuerteventura today then now is the time to save on one of the best investments of 2008.

Special Payment terms to accompany this incentive offer 3,000 Euros reservation 10% in 30 days, 10% in further 30 days following the first 10% additional 10% in October 2008, Balance of 70% by either cash or mortgage on completion in march 2009.

For further details or our full color brochure call us today on (0034) 928 537 937or alternatively e-mail info@goldacre-estates.com or visit www.goldacre-estates.comor skype goldacre-estates

Fuerteventura Football Club Outclasses Lanzarote

At my age I should know better but yesterday in winter, in January, in the capital Puerto del Rosario under clear blues skies it was 25 degrees and I got sunburnt. Although a typical canarian winters day I was watching the best entertainment for years, UD Fuerteventura versus Lanzarote in the Spanish second division local football derby. This match had it all, physical contact on a par with ice hockey, two sendings off (one the Lanzarote coach) and Fuerteventura the victors winning in the 90th minute 2 – 1.

The Spanish are very passionate about their football, yet there is no segregation of supporters the bar is open all day and there are no crowd problems (unlike some countries). It was the most enjoyable afternoon spent for a long time, living here in Fuerteventura, lesson learnt though next time I take the suntan cream!

Want to know more about Island life or our great football teams contact me Phil Ninness at GoldAcre Estates.