Good Morning

Currencies continued to trade in the familiar tight ranges for most of last week as the markets awaited the US Consumer Price Index (CPI) for May, which, when published, reported the highest core inflation figure for 30 years. Investors remain concerned with the inflationary pressures that appear to be growing as the developed world recovers from the pandemic and how quickly central banks will stifle uptick by tightening policy. Initially, the dollar rallied before falling back and then rallying again into the close on Friday as the US Bond market belatedly reacted to the CPI data and yields increased. The pound was buffeted by these outside influences and has opened this morning a little easier than last week at $1.4100.

Another potentially busy week lies ahead with key data from the UK and the monthly Federal Reserve Open Market Committee (FOMC) meeting. After last week’s surprisingly high inflation report from the US, pressure has increased on the Federal Reserve to tighten policy. The markets will hang onto every word Jerome Powell says at the press conference following the meeting for any hints to a change in policy. There is an avalanche of reports from the Office for National Statistics (ONS) over the next few days for the pound to digest in the UK. In the background, as so often, there is an ongoing Brexit dispute with the EU rumbling on. The so-called “sausage wars “seem likely to continue into this week as the tricky issues of the Northern Ireland Protocol remained unresolved. Hopefully, the Euro 2020 tournament will be less contentious!

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UK

The pound had a relatively quiet week last week but may become more vulnerable this week as the final easing of restrictions on the 21st June looks likely to be delayed and tensions between the EU and the UK show little sign of easing. However, as has often been seen, the EU likes to take negotiations to the last minute. So far, the impact of the dispute over the Northern Ireland Protocol has been muted, with sterling virtually unchanged against the euro in the last week at €1.1650. We have a data-packed week in front of us starting tomorrow morning when the ONS will release Average Earnings and hopefully Employment figures that are continuing to improve. On Wednesday, it’s the UK’s turn for CPI, which is likely to show a rise towards the 2% level whilst not rising as quickly as the US. The week closes out with May’s Retail Sales which several analysts expect to disappoint after April’s sharp rise. We will be listening to Bank of England Governor Andrew Bailey when he speaks tomorrow afternoon for any comments on the morning’s unemployment data.

Euro

As expected, at their monthly meeting last week, the European Central Bank played down any chances of tightening policy soon. Whilst not unexpected, the market turned against the euro, and some quite heavy selling occurred, which pushed the single currency to below $1.2100 against the dollar. It remained against sterling, but both currencies remain vulnerable to any breakdown in the ongoing talks over the trade issues surrounding Northern Ireland. An extremely quiet week appears to lay ahead with mainly second-string data on the docket apart from Eurozone Industrial Production this morning, German CPI tomorrow, and lastly, May’s CPI for the Eurozone on Thursday.

US

The highlight of the week for financial markets, generally not least the currency markets, will be Wednesday’s FOMC meeting. However, with the markets entering summer mode and volatility decreasing, it is unlikely that the Fed will want to rock the boat by discussing tapering; indeed, it is most likely that Jerome Powell will do all he can to avoid the subject at the press conference. Only two reports stand out on the data docket: May’s Retail Sales and Industrial Production, both of which are released tomorrow. The retail sales data may unsettle the markets as they are likely to be distorted by disruptions to the car market caused by the shortage of semiconductors. Away from financial data, President Biden will continue his travels this side of the Atlantic with what should be interesting meetings with President Putin from Russia and his Turkish counterpart President Erdogan.Scandi

Scandi

Even though macro-data came in worse than expected last week, the Swedish krona kept on strengthening confirming what many analysts had written earlier about its seasonal performance. We are now in official krona strong ground that usually lasts until Midsummer and sometimes until the last Riksbank meeting in July which is the last one until the long summer holiday ending in mid-August. This week sees no major data releases which means technical and seasonal traders may outnumber day traders looking for quick profits.

The macro data from Norway also provided some sombre readings last week, in particular the latest CPI figure which was much lower than expected. It prompted the financial press to seriously question whether a rate hike from Norges Bank Governor Olsen will come in September, some going as far as saying that the Norwegian krone now has become a two-way bet. Volatility against most G10 crosses is expected to remain high throughout the week until the Deposit Rate announcement on Thursday. The market expects Governor Olsen to stay put but will closely listen to what he has to say regarding last week’s low inflation figures during the press conference.

Dont forget if you wan to secure a rate now or want more information just let us know by clicking here  

Image courtesy of BBC

Most estate agents think that it’s ok to take their own photographs. Digital photography has improved everyone’s photographic skills, especially as it is now so easy to immediately check whether a picture is good enough to use for property marketing.
 

The trouble is, “good enough” is simply not good enough!

We believe that amateur photography is often sign of amateur estate agency. Our role is to maximise our clients’ sale prospects by ensuring that a property looks its absolute best. That’s why, when you instruct Lanjarón Property to help you move, we use professional equipment, not just, for example, our mobile phones.

 

Disgraceful!

There are many issues with property photography that are overcome by using a professional with the right skills, experience, creativity and equipment. If you look at many estate agents’ images online, you’ll probably see poorly colour-balanced pictures where whites come out a cold blue or jaundiced yellow. You’ll see hundreds of examples of converging parallels, where walls appear to fall outwards or inwards, or where entire buildings seem to be on the verge of falling over altogether. You’ll also see numerous underexposed shots which are light on detail due to the overpowering effect of a bright window in the shot, as well as untidy rooms because the agent has simply not bothered to think about the image being created. 
 
 

After the photo shoot

A professional agent will, in almost every instance, also enhance images using sophisticated editing software. They can work magic by, for example, removing unsightly rubbish bins, or vehicles and even insert a beautiful blue sky even though the photo might have been taken on an overcast day.
 
When marketing your home, you only get one chance to create a superb first impression – one that will not only attract the right buyer, but which can also have a positive effect on maximizing your eventual sale price. Ensure your property stands out when buyers are looking online, just email info@lanjaronproperty.com or call us on (+34) 643 821 326.

How do international currency exchange rates affect you as a homeowner?  Many home sellers do not realise how currency exchange rates can affect them in a property market that has a large number of international buyers.  We often think of this being something that relates to banking or big business and only notice its effects on monthly pensions or the cost of goods from our home country, however it does have a big impact when selling your property to foreign buyers.

How do Exchange Rates Effect my Property?

The Best GBP to Euro Rate

In 2000, the pound was very strong against the Euro at 1.752. This meant that if you came to Spain with £100,000 to spend, you could buy a property here worth €175,200.  £200,000 became €350,400 and £300,000 because €525,600. This meant the Brits were getting extraordinary value for money.

The Worst GBP to Euro Rate

In 2008, the global financial crash had far-reaching effects. On 30 December 2008, the pound was 1.02 to the Euro. This meant that any property purchases were nearly the same price in either currency. £100k was only worth €102k; £200k was worth €204k; and £300k was worth €306k.

British Keen to Buy

After the 2020 pandemic restrictions, there is a pent-up demand from Brits wanting to get back to Spain and buy property here once again. In fact, the demand is likely to have even increased in comparison as people want to escape the feelings of confinement and are keen to take the bull by the horns. If you need to sell your Spanish property, the good news is there will be no shortage of interest.

What’s the Better News?

If you bought your Spanish property for €175,000 in 2000, you might now only get €117,000 for it. People then think they have lost €60,000. If you’re going back to the UK with that €117,000 in your pocket, you’ve actually got the £100,000 you bought the house for in the first place. There’s no better time to sell than now.

How Can That Be?

After Brexit, the pound’s value fell by 16%. Yesterday, the pound was only 1.17 to the Euro. £100,000 was worth €117,000; £200,000 was worth €234,00; and £300,000 was worth €351,000. When the pound was very strong against the Euro, this helped to fuel the rise in European house prices. However, when the pound became weaker against the Euro, spending power was reduced for UK buyers. The power was reduced but the facts are that UK buyers are still spending the same amount.

Properties in town that have a more Northern European style are currently appealing to a much wider audience of buyers, with larger rooms and less stairs.  Whilst country properties are receiving the most enquiries, it is important to have all of your legal paperwork in place and this is something we can help with and check before you begin marketing and to ensure you receive the best possible price for your property. Contact Mathew on (+34) 643 821 326 or Amy on (+34) 695 398 679.

 

 

Property experts share ‘the worst thing’ to say to an estate agent when selling your home

Local property experts, Lanjarón Property, have shared their top tips on how to sell your home. Most people will sell their homes using an estate agent (inmobiliaria). Now, our local experts have revealed what you shouldn’t say to an estate agent when trying to sell your home.

Selling your home can be a long and arduous process that can take months in Spain. From taking the right photos, to setting the right price, there’s a lot to think about when you’re looking to sell-up. Local property experts, Mathew Wood and Amy Beth Reynolds, have recently shared their top tips for homeowners looking to sell.

The property gurus often share their tips and advice on their You Tube Channel:  Click Here to see their channel

Mathew, a property expert of many years, said, “If your house has been on the market for a long time and you haven’t had many viewings, then it’s likely overpriced.”

He explained what sellers need to tell their estate agents from the beginning to avoid disappointment later on down the line.

He said: “Everything – whether it’s on a busy street corner, behind a local bar, has a goat farmer pass by with 100’s of animals – you will be able to sell it. You’ve just got to price it right.

That’s it. If you want to sell in a reasonable time frame, it’s all about the price.

Tell your agent that upfront. Explain that you understand the time to sell is relative to it being priced realistically and just be straight about what your expectations are.

Quite a lot of people think their home is worth more than it actually is. That’s normal, I get it.

But if you’re serious about selling, you do need to take the advice of a good agent because they will know what it’s worth.”

Mathew also said if you’re looking to sell your home for “top dollar” then you may miss out on the type of properties you want to buy.

“Everything is relative in a market,” he added.

 

“If everything is going up, that means whatever you sell for, is relative to what you’re probably likely to be purchasing.”

The property expert said if you’re selling your home then you should trust the advice of your estate agent.

Mathew also revealed “the worst thing” you can say to an estate agent when you’re looking to sell.

He added: “They will advise you accordingly, and do listen to them.

The worst thing you can do is say to an agent, ‘I want you to put it on for this price because I believe it’s worth this much’.

“It [your home] will just sit there.”

Amy Beth agreed and said estate agents are the market experts for a reason.

“You wouldn’t tell a pilot how to fly a plane”, she added.

Amy Beth also said good photos are especially important when selling your home, particularly when they are likely to appear on property portals. It is essential nowadays to have a video tour and for virtual viewings to be available at any time.  Buyers, especially from other countries, are used to 24 / 7 access to information on properties and will quickly move onto other properties if their enquiries are not dealt with immediately.

You can find some examples of this modern style of marketing by visiting the Lanjarón Property website here.

 

 

 

Are properties still selling during the pandemic and multiple lockdowns?  This is a question I am currently being asked on an almost daily basis. The simple answer is: ‘Yes’. However, like most things in life, the answer is rarely actually this simple.

Our area of The Alpujarras, Lecrin Valley and Padul, has of course been hit by various restrictions due to the coronavirus. Despite this, there have been a continuing number of enquiries from new and active buyers in the market, creating a very positive start to 2021.

 Pandemic opportunities

Many people have been spurred by recent events to escape to the countryside for a more relaxed and open way of life. Now that working from home has become normal for many people, the thought if being cooped up in a city for much longer is not a thought people wish to entertain.  This is true across all types of buyers both the Spanish and those from the UK, northern Europe and the rest of the world.

Methods for attracting buyers

Embracing the modern methods of marketing and those which clients from abroad now expect as standard makes a very big difference to the ability to sell a property nowadays. Video tours, quality photography and virtual viewings.  In fact, we have already sold a property to a foreign buyer from a virtual viewing and they have not even visited the property before completing the purchase. This is how effective these modern marketing tools can be and why they are an essential for today’s sellers.

Clearly, there are fewer buyers able to visit the area and we are not sure when this will ease up. However, there is still a lot of activity and interest in the market.

Looking forwards

So, what does 2021 hold for house sellers?  There are many positive aspects to the market if two main features are met. Firstly, the property must be priced correctly (gone are the days of one price for locals and one price for foreigners). Secondly, the property needs to have the correct marketing to meet modern buyers’ requirements.

If you are thinking of selling your property in 2021 and would like free, informal and confidential advice on the best way to do this, do not hesitate to contact us by calling (+34) 643 821 326 or email mathew@lanjaronproperty.com