Advice for British expats in Alicante

Advice for British expats in Alicante

Over 1 million Britons have bought a house in Spain over the last decade

Some are not prepared for when the “dream turns sour” according to a report in yesterday’s Telegraph. To remedy this British citizens that have gone the whole hog and moved to Spain will be able to take advantage of free advice surgeries following calls for help during the British & European economic crisis. The outreach programme is being held initially for people living in the Alicante region and is organised by the British Consular Service in partnership with Age Concern and the Department for Work and Pensions.

The surgeries will run every fortnight at two different venues across the region, according to the Foreign & Commonwealth Office (FCO). Launched by the UK’s minister for consular affairs, Gillian Merron, the move is set to benefit Britons who have relocated to Alicante and surrounding province.

The surgeries will offer a range of advice about pensions, UK benefits, healthcare, charitable organisations and moving back to the UK. Visitors to the sessions will also advised of their eligibility for Spanish unemployment benefit and other help. Those using the service will be guaranteed confidentiality.

Consular staff will run the advice surgeries in the areas where it is considered they are needed most. This includes running sessions from the Age Concern centre in Torrevieja.

On her visit to expat communities on the Costa Blanca, Merron said that many Britons living in Spain were not adequately prepared for when “the dream turns sour“, according to a report in The Telegraph.

Life happens and things go wrong whether people stay at home or move abroad,

. . . she told the paper.

The minister said that problems were exacerbated by the differences between the systems in the UK and Spain.

It is made worse out here, where people don’t have access to the services they are used to in the UK. The Spanish system is very different to that at home and people have to be aware of that and the problems it may bring.

We want expats to know they have not been abandoned by the British government,”

. . . said Ms Merron of the scheme which she hopes will extend throughout Spain and eventually other countries where there are a high concentration of Britons living abroad. But she said the priority must be on informing British people about the difficulties they may face before they make the decision to move abroad.

One of the biggest problems is that people don’t integrate into the local community. They have to be made aware that to make things work it takes strong commitment to learning the Spanish language and fitting in with the local way of doing things.

“Before people give everything up in the UK they should know what the deal is here. I want them to be prepared for difficult times and think twice before making the move.

Surge in holiday rentals

Surge in holiday rentals

Rentals increase out of necessity

Interesting article from the New York Times about the holiday home rental market in Europe.

Basically it was something we had to do” to cover the mortgage, says Mrs. Pearson who bought and renovated a house in the Lake District hoping for a profit. “We didn’t have a choice.” She adds.

The article goes on to add some 2008 survey data from holidaylettings.co.uk

  • 43% of respondents say they are renting to pay their mortgages, taxes and maintenance costs, according to the company’s survey of clients. The total was 30 percent in 2007.
  • A third of Holidaylettings’s clients have mortgages covering 75 percent or more of the value of their property.
  • 41% said they are renting their second homes as a way to generate extra revenue.

We’re seeing a far higher number of people who bought for lifestyle who are now letting out,” said Kate Stinchcombe, a spokeswoman for the site, which has seen the number of listings increase to 30,000 this month from 10,000 in January 2007.

Obama uses a holiday home rental

Obama uses a holiday home rental

Obama and family rent out holiday home.

Before taking on an almighty challenge of one of the most important and influential jobs in the world the new president of the USA, Barrack Obama took his Christmas holiday in Hawaii, where he grew up. Instead of checking into an exclusive hotel the family opted to rent a holiday home.

I can only speculate why Barrack Obama and his family chose to rent a holiday home from someone else for his very hard earned holiday, Maybe it’s because he appreciates the cosyness and space a holiday home rental has that most hotels can’t compete with. I guess the happy holiday home owner will be fully booked for the next few months thanks to these guests so he won’t need our tips on renting out a holiday home.

Travelling as a family, Obama’s kids would get their own room rather than sharing with the parents or adjoining rooms sometimes found in hotels. This was no ordinary holiday home rental though. A bit above average. 5 beds, 5.5 (?!) bathrooms, gourmet kitchen and here is the private pool:

Obama's Hawaii Holiday Home Rental

Obama's Hawaii Holiday Home Rental

How does strong Euro affect holiday home lettings ?

How does strong Euro affect holiday home lettings ?

As the Euro € gets ever closer to being equal to the Great British pound £
We look at how this can affect holiday home rentals.

A lot of holiday home owners rent out the weeks when they are not there with a view to covering the running costs of the holiday home. If these bills are in Euro and the revenue from rentals is in pounds these individuals might be having their own little budget deficit.

There might well be a dip in demand for your property, we are already seeing that airlines and holiday companies are cutting capacity so it’s more important than ever that your adverts are compelling and your holiday home is competitively priced – against the local competition (your neighbours !) and also versus package prices from tour operators. The good news is that the major tour operators have signalled they expect higher average selling prices thanks to the capacity cuts. Strongly consider an “investment” in a leading holiday lettings website like holiday lettings or holiday rentals..

Travel industry experts are predicting that hardest hit in 2009 will be the city break type destinations that people maybe took a couple of extra breaks to in addition to the classic beach summer holiday. We are already seeing this as bmibaby cancelled flights to Rome, Milan, Lisbon, Madrid and Bordeaux. This should indicate that beach properties in sunny Spain should do OK but that is before the Euro got so strong against the pound. Have a think about what you can list as “free” or “included” at your holiday home rental as that may tempt people to book. See the rest of our advice on letting out a holiday home.