It’s already May and we’re enjoying the quiet before the storm of summer tourists invading the island. And talking of storms, our first article, Global Dawning, is a fascinating look at the impact that global warming will have on the overseas property industry – and how Tenerife will fare. The marketing department are now recovering from preparing presentations for the 2007 property awards, and our second article is a light hearted look at testimonials. We also update you on some interesting tax law changes that may (positively) affect you, as well as catching up with the building progress of Royal Marina Golf... and of course some titbits from the local news. We hope you enjoy the newsletter, and remember, if you have any suggestions for how to improve it, we’d love to hear from you.

An important ramification of this climate change is the prediction of huge population movements, as weather becomes increasingly severe in many parts of the world. The changing weather will affect food supplies as crops fail and widespread disease will blight various parts of the world. People will be forced to pick up sticks and move to areas which are less affected by the extremes of weather.

If you imagine great hordes of impoverished refugees in makeshift shelters, then you are probably correct. But many of the affluent will also become a type of refugee. Even now many people choose to live in countries like Spain, because of the good weather. They are still refugees, albeit less desperate. This type of lifestyle refugee is set to increase exponentially over the coming years, and the areas that they move to will therefore undergo an equally exponential growth in demand, triggering selective meteoric price rises in certain parts of the world.

We are not talking about a time far in the distant future. These are predictions for the next two decades. Because the rate of weather change is accelerating, this future is going to be here not only within your lifetime, but well within the term of an average mortgage. For this reason, property buyers will need to wake up to what is happening in the world and relate it to the decisions we make about property buying today.

So the question is, where is the weather going to create the most clement climate? With the predicted desertification of Portugal and mainland Spain and the Mediterranean becoming an algae soup, the traditional European getaways are not going to fit the bill. Signs of these changes are already evident: massive water supply crises on the Iberian Peninsular and species extinction in the Med are constantly in the news.

Continental climate types are likely to be ravaged by storms and suffer the highest extremes of temperature. Islands, whose weather is tempered by large bodies of water surrounding them are likely to suffer less. However, Islands are often low lying, and rising sea levels will wash some away entirely. Another factor is their whereabouts. The Gulf Stream, which controls our weather with a ‘conveyor belt’ of warmth, is at risk. A location too far from the Equator may see freezing gales.

We, in Tenerife, are fortunate. An island, well above sea level, close to the equator and economically part of Europe is as close to the ideal as you will find. Climatologists predict that we may suffer more tropical storms, but by and large the weather will remain unchanged. Our main concern will be the sheer numbers of people who will want to live here. Spanish from the mainland, and indeed Europeans from all over the community will be clamouring to own a piece of Tenerife.

Property pundits have yet to wake up to the implications of global warming, but it is only a matter of time until it dawns on them. When that happens, it will become evident that today’s darlings of the overseas property market – Spain, Dubai. Bulgaria, Portugal and all the rest, will suddenly become yesterday’s news. The best advice you can get is to make sure that when that happens, there’s a piece of Tenerife you can call your own!

We in the Marketing Department have been slaving away, putting together information for the benefit of the 2007 International Property Awards. One of the main factors that the judges show keen interest in is testimonials – letters from satisfied clients.

Testimonials are great to receive. They give us a great boost and, like everyone, we always like to know we’re appreciated. Some companies aggressively solicit them from clients, but we prefer a more laid back approach, it means so much more when it comes from a client’s heart. But when it comes to collating them for the purposes of awards, our Marketing Department have to be quick!

Here’s an example. As you can see from this first picture, the intrepid Marketing Executive set up the photo with the outside of the card and the box of chocolates that the client kindly sent us.








Then they were distracted. (This easily happens to members of the Marketing Department, you just have to wave something shiny in front of us).



















By the time they came back to take the second picture, showing the inside of the card ...










The evidence had been eaten!

Now, we don’t want to discourage anyone from sending edible testimonials. On the contrary.

This is a plea from the Marketing Department. If anyone would like to send choccies... please send them directly to us in marketing... and we’ll send them on.

Honest.

Work is well underway on the Royal Marina Golf development in Amarilla Golf. Foundations should be completed during the course of June, and then the development will start to take shape. If you’re coming to Tenerife soon, and you are looking for a two bedroom apartment, then call us to make an appointment to see the site. The developers have erected a viewing platform at first floor level, which will give you a clear idea of the glorious view of the marina and ocean from your apartment.

The Government has delivered a considerable tax bonus for British people owning property overseas for private use, by scrapping UK tax on property bought through a company

Holiday home owners often purchase a property abroad through a company in order to avoid local inheritance laws, which makes them a Director of the company owning shares in the home, which they can pass on as they wish upon death.

However, they have been subject to an annual tax in the UK as the property has been classed until now as a “benefit-in-kind”. This tax is based on the rental income that would have been achieved if the property was let at the local market rate.

This charge is being scrapped from 2008, resulting in thousands of pounds of savings for the average international property owner who bought through a company. They will also be able to claim tax back retrospectively.

This latest Government u-turn is great news for property investors and holiday home owners overseas, who have until now been penalised by the UK tax system, even though buying through a company is often simply the only way to buy abroad.

The inheritance laws in Spain are different from those in the UK and many of our more wealthy clients may prefer to be subject to UK inheritance tax laws, where they may have made some contingency plans.

Individuals who have already bought could be in line to receive considerable pay outs from the Inland Revenue next year, for any tax paid previously. The idea of buying homes overseas through a company will become even more popular following this u-turn.

Siam Park
Siam Park, Europes largest water theme park, is undoubtedly going to be a huge incentive to visit Tenerife. News has been released that the 18.5 hectares of park will be also unique because the water will be heated, a mammoth project. In order to save emitting some 3000 tonnes of CO2 and14 tonnes of SO2, natural gas has been chosen as the power supply. You will be able to learn more about the construction of the park on TV soon, as the Discovery Channel are featuring it in a programme about extreme engineering projects.

Mainland Spain running dry...
Spain’s Environment Ministry has warned that they cannot guarantee the water supply to some 300,000 new homes being built there. If you’re considering buying on the mainland, it will be well worth checking up on how this might affect you.

Elections
Billboards seem to have covered every spare space of land in the lead up to the local elections on May 17. Resident Europeans are able to vote, and they are being courted by the local candidates. One party is fielding a British candidate, while another proposes setting up a series of offices to help foreigners through the minefield of paperwork.