Bahrain reports increasing activity levels

Despite having a smaller property market than Abu Dhabi, Doha or Dubai, one can add Bahrain to the Gulf property boom, if reports are accurate.

The capital value of property traded during Q1 2006 was up by 25% to $378m compared with Q1 2005, reports the Bahrain Survey and Land Registration Organisation.

One in three Brits looking to invest overseas

Almost one third of Brits intend to invest in property overseas, according to fresh figures from the Halifax, which reveal that America, Australia and Spain are the top three destinations for UK residents seeking to invest in property abroad.

Spanish government in the dock

The Spanish government is being taken to court by the European Commission (EC) for alleged discrimination against non-resident property owners.

Under Spanish law, n on-Spanish residents who own property in Spain are required to pay a capital gains tax of 35%, when selling-off their property. However, Spanish resident vendors only have to pay a capital gains tax of 15%.

The EC believes that Spain's tax legislation does not conform to the freedom of movement of capital which is included in the EC Treaty, which does not allow discrimination against anyone on the grounds of nationality.

If the Spanish government is found guilty, then non-Spanish resident vendors may have a chance to claim taxes back from the Spanish government.

US holiday & investment home sales set new record

A record number of holiday and investment homes sold in the United States, made up 40% of the entire residential property market in 2005, according to the National Association of Realtors (NAR).

NAR's annual report shows that holiday home sales increased by 16.9% in 2005 to a record figure of 1.02m, compared to 872,000 in 2004. Investment home sales were also up, this time by 15.7% to a record-breaking 2.32m in 2005, up from 2m sales in 2004.

A total of 27.7% of all homes in the US were purchased for investment purposes in 2005, 12.2% of property purchases were holiday homes. 

The average holiday home in the US in 2005 was $204,100, up 7.4% from $190,000 in 2004. The typical investment property cost $183,500 last year, up 24% from $148,000 in 2004.

David Lereah, NAR’s chief economist said: “To begin with, the baby boom generation is driving second home sales – they’re at the optimum point in life when people become interested in second homes, they’re at the peak of their earnings, interest rates remain historically low and boomers want to diversify their investments.”