January has got to be a marketing person's dream month if they are in the business of selling property in permanently warm and sunny parts of the world. There's nothing like a cold, dark, wet, dreary Irish month to awaken thoughts of sun and warmth and, possibly, one's own little corner of a warmer clime.
It is not surprising then that, along with the summer holiday brochures, comes an increase at this time of year in the promotion of property abroad. A convenient centre for finding out about some of what is on offer and the different options available will be the visit to Dublin this weekend of a London-based organiser of travelling roadshows which specialises in overseas property.
Worldwide Property Exhibitions Ltd is bringing some 20 exhibitors who develop or sell property in Britain, Spain and the US to the Burlington Hotel on Saturday and Sunday. According to the organiser, Mike Bridge, many of those present will be visiting Ireland to promote their properties for the first time.
The exhibition is geared primarily to investors: two of the exhibitors cover property in Florida and the remainder are divided evenly between Britain (mainly London but also with some holiday homes in Cornwall) and Spain (including the Canary Islands). The London exhibitors will include developers, such as Bellway Homes, and estate agents, such as Hampton International, and cover property in areas such as Hampstead.
While some areas of the London market have been hit by the economic gloom which has settled over Britain in recent months, Mr Bridge suggests that areas other than central London are worth considering.
"You don't have to go into Mayfair or Park Lane to make your yield," he says. "Anywhere there are good schools, you're going to find a shortage of good property. There are areas in London where there is a dramatic lack of property coming on to the market."
He argues that the rental market in England is going to require a significant increase in property over the coming years, an increase in demand that has been mirrored by changes in British law to re-balance the relationship between landlords and tenants. There was a view that it had become unbalanced in the tenant's favour but individuals are now being encouraged to "buy to let".
But those in search of investment opportunities outside Ireland who also feel ground down by the January blues may be more interested in some bricks and mortar on which the sun shines all year round. "We find a good few people saying there's nothing to be had here in Ireland anymore, so why don't we go and invest somewhere else," says Diarmaid Condon, of the Tipperary-based IPC Property Consultants, which specialises in property in Spain and the Caribbean. "Get a bit of sunshine out of it for a few weeks of the year and rent it out the rest of the time."
The property market's mantra "location, location, location" is as true for foreign as for domestic property. The exhibition will include property on the Costa del Sol, Costa Blanca and Tenerife in Spain and in Orlando and Naples, Florida, areas which are significantly different.
Spain has been experiencing a property boom in the past year, driven by local demand, falling interest rates (thanks there, too, to the euro) and outside interest. Germans have moved in numbers in recent months, fearing that their new Social Democrat/Green government may try to dissuade them from foreign property investment.
THE best established sun property area of Spain is the Costa del Sol which, to many people, is Spain. Its combination of sun, sand, mountains and picturesque scenery has made it the most popular area and, consequently, the most expensive. Further north, the Costa Blanca is the developing holiday property area, less scenic, marginally less warm in winter, and far less expensive.
Comparisons between the two areas show the difference in prices. Two broadly similar developments handled in Ireland by IPC at present are the Santa Maria resort in Marbella on the Costa del Sol and the Las Ramblas development on the Costa Blanca. Both are good quality developments close to the coast and on golf courses. According to Mr Condon, two-bed apartments start at Santa Maria at about £100,000 while at Las Ramblas they start at £55,000.
Buying as an investment obviously is different to buying purely for one's own use: there is less long-term investment risk in the better-established and more expensive areas, whereas if you want a sun property for your own use, the yield is not so important.
TENERIFE is generally a more dedicated investment area. Its holiday activities and its development potential are restricted by the fact that it is an island. But it has almost guaranteed year-round sun and high temperatures, making rents available throughout the year. According to Mr Condon, property there returns a net yield of up to 11 per cent.
Florida has long been the winter bolt-hole for many North Americans but it is an area that is still expanding, thanks mainly to Disney, competitive theme parks and an expo in 2002 to include a conference centre so big it will be seen, reputedly, from the moon.
Orlando is the centre of this activity, receiving some 40 million visitors a year, and developing a large short-term rental market.
The exhibition will include property in Orlando and in the Naples area on the west coast of Florida. The latter is, according to Sean Collins of Holiday Homes Abroad, an area which is ideally suited to Irish people who may be thinking of retiring to the sun for several months of the year but also want to have the option of renting. Prices for condominiums in both areas range from $105,000 (£72,000) to $115,000 (£78,000), while houses by golf courses and with pools range from $150,000 (£102,000) to $160,000 (£109,000). The net yields range from 12 per cent to 14 per cent, according to Mr Collins.
Buying property in Spain or the US is not the same as buying property at home or in Britain. Different cultures mean different rules and different practices and different pitfalls to be avoided. In Spain, for instance, mortgages are attached to the property so the unwary could inadvertently end up buying an existing debt with the actual property. The main safeguard for buyers is to deal with reputable agencies, get as much information as they can, and not to do anything without legal advice from a local lawyer.
