We have taken the decision to start building up a portfolio of long term rentals in Marbella, given the that general level of demand has increased considerably. For us this will enable us to help clients who really want to rent so that they can get a feel for areas and specific developments they are considering purchasing. We have already started adding properties to our site and we hope to be able to have quite a considerable portfolio within a couple of months.

For property owners who have a well kept, good quality apartment and are seriously thinking about renting it, please email us directly on info@firstpropertychoice.com for a chat to discuss how we can help you get quality tenants.

A few years ago I was showing a beautiful, huge house on the beach in El Paraiso Barronal. When I say huge, it was over 2200m2. As the prospective purchasers were looking around, suitably impressed, I was left standing in silence with a not too talkative owner. I thought I would try and begin a conversation, so I started with the moronic opener, "do you live here?"

The vendor gave me cold stare and responded, "No, I live in a big house."

Small talk over.

The figures show some very interesting changes in sentiment for overseas property buyers over the last two years, in real terms the figures in 2008 won´t have been particularly great anyway so from the real boom times up to 2007, the polarity would be off the clock.

The biggest loser, so to speak is the United Arab Emirates whose searches have fallen by a staggering 80.08%! Bulgaria also has 64% less searches from two years ago.

The winners were the Netherlands with an actual increase of 36.99% and Germany with 31.72%.

Spain was in negative territory with - 11.57% fewer searches.

Currency fluctuation must have had a severe impact during this period given that in July 2008 the rate of Sterling against the Euro €1.24, then in the month of December it went down to €1.04.

The Chart below shows the top 10 winners and losers during the month of July

Interestingly search for Spain in heavily regionalised, Valencia and Costa Del Azahar gaining 21 places, with Andalucia dropping 2 places last month.

Another property in La Zagaleta has just been listed providing a lot of internal space for the money. Plenty of bedrooms and a really clear sea for under the €5,000,000 mark, competitively priced. The plot is private and as it is in one of the most mature areas of the estate, there will be no building within its proximity.

The house has an internal size of 1,397m2, with a plot size of 4,840m2 with an asking price of € 4,950,000.

The goal posts keep on moving at the moment, austerity or not austerity that is the question. This money has been found as it´s cheaper to service the debt than first thought. The Finance Minister, Ms Salgado still thinks that Spain is on track to meet its budgetary targets with deficits falling from 11.2% of Gross Domestic Product in 2009 down to 9.3% in 2012, then 6% in 2011.

Ms Salgado also went against her colleague, José Blanco Public Works Minister by stating that there was no need to hike up taxes in order to meet their targets. This is because the increase in V.A.T. imposed in July, has produced receipts higher than expected. Another miscalculation.

Well infrastructure spending is a subject close to my heart and to many living in the Marbella area. The road works for the San Pedro bypass have all but ground to a halt. The current messy contraflow style system is proving to be a bit of a nightmare, not looking forward to the school run on the 1st September!

Large La Zagaleta villa with Courtyard

We have added some more La Zagaleta villas to our website over the last few weeks, both of them offering different things to prospective purchasers. Our first and most expensive listing of the two really does have a cortijo style feel to it. Couple that with an immense amount of internal space, 1762m2 of it to be precise. One feature that stays in my mind with this property is the courtyard, providing a good source of light to the adjoining rooms and a place to enjoy your coffee in the morning.

  La Zagaleta villa with Potential to Add Value

The second La Zagaleta property does offer the ability to add value to it, with the possibility of extending the property by 238m2. The internal dimensions are already pretty good as it stands with 628m2 of internal space alreay availble. The plot size is good, with a total of 5444m2 allowing you to really enjoy the Andalucian countryside with absolute privacy.

There are clickable links below each of the photos that will take you to the main site, where you can see more details and enquire.

Tinsa, the property valuers have recorded a 4.3% decrease in Spanish house prices from July to July. This figure continues to fall on a monthly basis, so if the trend continues Spanish property may be in positive territory by the end of this year. Imagine!

Unfortunately, these figures are based purely on valuations rather than actual real life sales prices, so they can be taken with a pinch of salt. Similarly, the Ministry of Housing figures are equally as skewed, reporting a decrease in Spanish property prices from peak to trough of 11.4%. Absolute fantasy!

I was having a conversation with someone involved in the property industry the other day who still thinks that 2007 prices were correct, because "people were paying the asking prices and banks were lending those prices". Well excuse me, but surely the current situation we are seeing here, is a direct result of a bubble, therefore pre-bust asking prices just won´t cut it with todays buyers. Let us not forget, prices should be driven by what people are willing to pay, simple economics.

 How can you justify an apartment in Benahavis, with average build quality and only 85m2 selling for €450,000! Goldrush mentality and one hell of a bubble!

On the upside the Euro is losing ground against Sterling, so for UK buyers you are getting slightly more clout for your hard earned cash. Couple that with more reasonable vendors and much softer asking prices, in some cases, you can get a lot for your money.

For investors, this market is not for the faint hearted, so a long term view must be taken. You must know and understand the market here inside out before jumping in.

This is a totally unrelated subject to that of property, but should you know wish to view any articles from The Times online website, you are immediately prompted for a subscription. I suppose it was only a matter of time before this happened, but surely there are a million other resources online people can use to get their news fix via the web.

Use The Telegraph instead!

There have been a total of 33,581  property transactions in the month of June, that is showing a 5.5% increase from the same period last year, as shown from figures produced by the  INE.

During the first half of the year, property sales were up by a total of 9.4% compared with last year, however if you contast these figures to the first half of 2007, transactions were down by 50%.

On many occasions I am asked, "what kind of rental yield will I get from my apartment in Marbella?" This is such a vague question!  There are a number of variables that are within the owners control, that will directly affect just what you get from your property in terms of occupancy and profitablity. Read on to get some advice that will put you on the right track. 

Like Running Any Business There Are Several Factors to Consider

• Who are you aiming at attracting?
• Where will you advertise?
• What will make your property stand out above its competition? 
• How much effort will you be able to exert when it comes to trying to get renters and how will you get them to return or refer their friends?

Gone are the days when you could fill your rental property with some vile floral furniture from your Grans house and expect people to eat from plastic plates with 3 odd sets of cutlery. This will not wash anymore. With more and more people actually needing to rent out their property to help them cover its costs, you will need to think carefully about how you will attract and retain rental clients.

Tip One

Review your inventory and ask yourself honestly - is this the sort of stuff my ideal renters would like? You want the property to bowl over your guests and make them want to return. What type of people will be renting? Is it a family? If so, why not get a sand pit for the terrace and have adequate stocks of toys and activities lined up? Perhaps your property will appeal to Thirty Something couples who like clubbing, if so arrange to get them on the Guest Lists of the latest happening venues in addition to having minimalist, styish furniture. Skimping on the things that matter to your chosen demographic is a false economy, going the extra mile and giving guests every conceivable convenience will pay dividends - Think heated towel rails, big toasters, cooler boxes to take to the beach and reasonably good quality pans!

Tip Two

Could your property be targetted at niche holiday makers - IE culinary focused holidays, watersports, horse riding, mountain climbing etc. If so, you could look at advertising on associated websites/publications. It will also help if you share a specific passion, for example for culinary you could arrange a local chef to come to your property and conduct some lessons, include a days wine tasting in a nearby vineyard, coupled with reservations at a celebrated restaurant in the area. Think about what you would make you happy on holiday.  Be creative and remember people don´t neccessarily want cheap, they want value.

Tip Three

Ask for referrals from satisfied guests. Give them incentives that will encourage them to introduce friends. Referrals are the very best clients, so think of how you can get as many as possible.