Wednesday 25 July 2012

Currency Market Update

With so much movement in the currency market of late we have invited Keith Spitalnick of HIFX to provide us with a (mid-week) weekly market commentary so without further ado, their commentary:












GBP/EUR
Range of the week - 1.2708 - 1.2878
Variance on £10k - €170


Sterling /Euro reached 1.2878 on Monday, a rate of exchange not traded since October 2008 – clearly a great time to be buying Euros!!

In Europe this week we continued to see more of the same, looming bankruptcy for Spanish Provinces, dangerously high borrowing costs, and fears of further contagion.

A number of the larger Spanish provinces have now made it clear that they will need emergency funding from the Spanish Government as their income has plummeted, and unemployment costs have soared. A clear indicator that the overall health of the Spanish economy – right down to grassroots level – is weak.

This issue is now becoming more common across southern Europe, and the rate the markets are charging these countries to borrow is a clear reflection of their lack of confidence in the Governments/authorities to quickly and efficiently resolve the problem. Spanish 10 Year borrowing cost is now above 7.5% and Italian costs are not far behind.

So besides the better weather, Europe is having a worse week than the UK.

The Pound's rampage higher against the Euro was however stunted this morning as the first estimate of Quarter 2 GDP in the UK was released. The figure showed the economy has contracted by 0.7% over the last quarter – this is over 3 times worse than educated forecasters had predicted.

What does this mean for rates? Well, with rates hitting a high earlier in the weak and economic data locally disappointing, in the short-term some consolidation/profit taking is likely down towards 1.25 before slowly grinding higher in the medium to long term.


Do not hesitate to contact us if you need help with transferring currency or discuss further





Monday 16 July 2012

Three bedroom semi detached house in Benidorm

Via our collaboration with banks, we are able to offer some great opportunities to own property at a fraction of the price that they previously commanded.
Last week we (Steve and I) visited this property which is located in one of the most desirable residential areas of Benidorm, close to the theme parks of Mundomar and Aqualandia.
Take a look at the photos and if you are seriously interested we can arrange viewings at short notice so contact us now or telephone +34 966 112 773.
Oh and the price: 170.700





This is a three bedroom semi-detached property in an established development featuring 21 properties in total and with access to a communal swimming pool. The area and street is one of the nicest residential streets in Benidorm where similar properties were changing hand for in excess of 500.000 Euros a few years ago, it is  relatively flat and within easy walking distance of local amenities. In fact the beach is only one kilometer so very convenient too.



The property was vacated approximately six months ago, so the garden is a little overgrown now, and the property does need a good clean and redecorating.





The staircase leads to three bedrooms (two of which are ensuite) and one has access to a terrace with stairs leading to a small roof top solarium, featuring spectacular panoramic views.





The private garden has an outdoor kitchen area and established fruit trees plus there is room for a pool but of course there is already a communal swimming pool.




And finally, we always have clients looking for a garage to provide the solution to the storage problem!


For more information or to arrange a viewing, contact us now.

Thursday 12 July 2012

IVA (VAT) Increase

The Rajoy government yesterday announced an increase in IVA (VAT) so here is a look at what is means to us all (courtesy of the Typically Spanish website):-

The 4% rate – to be kept at 4%
This is applied to items considered to be of basic need. It includes basic bread, frozen dough, eggs, cheese, milk, beans and fruit and vegetables.
Books, magazines and newspapers.
School material with the exception of electronic items.
Medicines for human use.
Vehicles for the disabled, wheel chairs and collective transport for the disabled.
Prosthesis and implants.
Official protection housing.

The 8% rate – to increase to 10%
Foodstuffs in general, with the exception of those in the 4% band, soft drinks.
Animals destined for human consumption or breeding.
Items used in agricultural, farming and forestry activities, such as seeds and fertilisers.
Contact lenses and glasses. 
Disabled lifts and items for the diagnosis of illnesses.
Health assistance services, social services, and dental work.
Imported artworks and antiques.
Hairdressing.
The handing over of housing, including garages and annexes.
House construction (between promoter and contractor).
Services supplied by artists and technicians.
Sports, cultural and recreational services, exhibitions and fairs.
Funeral services.
Hotel and restaurants, cleaning of streets and public gardens.
Rubbish collection.
Transport of passengers and motorway tolls.

The General Rate – now 18% is to rise to 21%
All other products, including alcoholic drinks, tobacco, animals used in bullfighting, agricultural machinery.
CD’s.
Devices for the diagnosis and monitoring of pregnancy.
Television and radio services.

Tinsa €/m2