Good Time for Foreigners to Invest in Lanzarote (home mortgage loans)

September 28th, 2008 admin Posted in realestate |

By Roger Munns

The formerly red-hot property market on the island of Lanzarote appears to be cooling somewhat. This may indicate a slight downturn in the island’s economy. It may also mean that now is a good time for foreigners to invest in Lanzarote property.

Tourism officials and economists have certainly not written the island paradise off in terms of its real estate potential. The number of tourists visiting it has actually increased by 8.7 percent over 2007. This is despite reports from Spain’s National Institute of Statistics of a drop in mortgage approvals.

It appears that the increasing number of visitors is offsetting the economical hit coming from a softer real estate market. Lanzarote continues to thrive in its tourism sector. Hotels, bars, restaurants, clubs and other businesses haven’t reported any major downturns in business. Business owners on Lanzarote continue to keep a watchful eye on the real estate market though. They wonder when, or if, they will be hit by the cool market.

Just a few short years ago properties on the Spanish island sold almost as quickly as they were listed. Bidding wars were not uncommon. Investment properties made up a large percentage of its real estate market. Many homes, villas and apartments were purchased as vacation homes. They would be rented out to tourists when not being used by the owners themselves. Others were second homes to wealthy Europeans and Brits who were less inclined to invest in Lanzarote property for business reasons. They merely wanted guaranteed residence at peak tourism times.

Today, properties are languishing a little bit longer on the island. However, the market is still in a fairly healthy position, even though properties are moving slower. It’s likely that the cooling market is resulting from a widespread tightening on lending criteria for mortgages. Brits used to invest in Lanzarote property because of the area’s notoriously low interest rates. Today they are finding it harder to secure mortgages.

Lanzarote property is still a sound investment for those who can pass the rigorous lending tests. Short-term investments may not necessarily be advisable during this time. Long-term Lanzarote property investments will probably be able to withstand the small downturn. The market is best left for investors who won’t be anxious to unload their purchases in the next 10 years or so. The tourism industry doesn’t appear to be taking a dive, so rental property holdings are still worthwhile.

The island is famous with tourists for its volcanic origin. Foreign tourists make up the bulk of the island’s visitors. They come for the spectacular scenery and the balmy weather. Its temperature remains fairly constant year-round. While other parts of Spain can get uncomfortably hot, Lanzarote’s average temperature is around 22 degrees. This makes it ideal for tourists who enjoy abundant activity rather than just sitting around on the beach. The climate is conducive to all kinds of sports, including biking, horseback riding, water skiing, hiking and climbing. The island is especially popular with golfers. It’s home to several world-class golf courses. Visitors can enjoy mild weather and incredible mountain and ocean views while exploring the greens.

How long the Lanzarote property market will stay cool remains to be seen. It’s definitely a buyer’s market. Those who have every wanted to own a piece of paradise may find no better time to invest in Lanzarote property than now.

More information about Lanzarote and holidays there are available yourlanzarote.net

As well as travel and holidays in Lanzarote both todays Lanzarote weather and a 5 day Lanzarote weather forecast are in the guide.

Airlines who include cheap flight to Lanzarote airfares also are featured.

What to Look for in a Midway Realtor
By Art Gib

When you try to sell your Midway real estate, you are probably going to use a realtor. There are certain things you want out of the relationship with your realtor. You want to make sure that your realtor is qualified. If a realtor does not know what he is doing, your house might stay on the market for a long time.

Personable

When you are looking for a realtor, you want to make sure they are personable. If they are not outgoing, they are going to have a difficult time selling your Midway real estate. Realtor’s are a lot like salespeople, if they are not well liked, they are not going to be able to get the sale. They need to have the personality necessary to sell real estate.

Make Sure the Realtor is Accessible

You need to make sure your realtor will check in with you and let you know what is going on with your real estate. You want to get a realtor that will keep you updated so you know you have not been forgotten about.

Let your realtor know you want to know about all decisions regarding the advertisement and viewing of your home. That will allow you to be a part of the process instead of just finding out things after the fact.

A Proven Track Record

If you are going to sell your home, you also need to find a realtor that has a proven track record. Find a realtor that has been in the business for awhile and has sold quite a few homes. You want a realtor that has proven he can take Midway real estate and find a buyer. Without that, your property might end up sitting on the market.

Find Out about the Commitment

You also need to know how much time your realtor plans on focusing on your home. While a busy realtor is good because it shows they are in demand, you do not want one that is so busy they cannot take care of you. Make sure your Realtor can give you a commitment that they will spend adequate time on your home.

A realtor is incredibly important when selling your home, and you want to make sure you get the right one. Take your time and talk to several different reactors before you make your decision. That way, you will find the one that will work the best with you so you can reach the common goal of selling your Midway real estate.

Art Gib is a freelance writer for PayneSmootGroup.com (http://www.paynesmootgroup.com), a website featuring Midway Real Estate.

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