Portugal & Madeira news from Paul Abbiati:
Yellow weather warnings for rain, wind and sea issued for Madeira region by Institute of Meteorology (IOM).
Follow the weather updates and advice of the Civil Protection Authorities:
IOM website: http://www.meteo.pt/en/index.html
Madeira airport website: http://www.anam.pt/Default.aspx
Portuguese property market not dependent on the British: ‘Mail online’
“About 425,000 Britons have homes abroad, according to market research company Mintel, with 6.5 million more dreaming of owning a place in the sun. Four in five of these overseas properties are on the Continent, with half in either Spain or France.”
“If you have a property in these regions, should you hold tight or try to get out as soon as possible? Or, if you want to own a property abroad, is now a good time to grab a bargain?
Melanie Bien, director of independent mortgage broker Private Finance in London, says: ‘Anyone who owns a property in one of these countries shouldn’t panic. Ownership should be for the long term, with decisions to buy and sell not based on knee-jerk reactions to what is happening day to day.
‘Your property may now be worth less than the mortgage secured on it. While you may feel like cutting your losses and selling, this will only crystallise your losses and you might struggle to find a buyer apart from at a rockbottom price.
‘If you are in negative equity, you will also have to find cash out of savings to meet the mortgage shortfall. It may therefore be worth staying put for now and waiting for prices to recover.’”
Portugal and Spain remain popular. ‘As one of the world’s most established property markets, Portugal is not dependent on the British,’ she says.
‘Buyers from the Continent and Russia have kept the market buoyant. Even so, there are still bargains to be had, particularly where developers are struggling to sell new properties.’
While some lenders have restricted their mortgage offers and fixed-rate deals have become rare, you can still borrow up to 70 per cent of the value of the property. Spain is a riskier market to enter at present, says Nessling, but with so many banks holding properties on their books there are bargains to be had.
The Mail online full article: http://www.dailymail.co.uk/money/article-1337826/Should-holiday-home-owners-stay-PIGS-storm.html#ixzz18k04eAOq