Anyone looking for a bargain in this market?

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This topic contains 37 replies, has 16 voices, and was last updated by Profile photo of Anonymous Anonymous 8 years, 1 month ago.

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  • #54417
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    Anonymous
    Participant

    Is there anyone looking to buy in this market, hoping to find a bargain? If so, what’s your general impression as you do your research and look around? Are you seeing falls in asking prices? Are you starting to see bargains, or at least reasonable value, or are vendors still dreaming in bubble-land?

    Mark

  • #87042
    Profile photo of Anonymous
    Anonymous
    Participant

    Mark slightly of the subject but still connected.

    The bargains in the economic sense may exist. The problem I have & others that I speak to is the illegal builds etc. A property may have been reduced by say 50%. What good is it, if it is illegal and can be demolished.

    The risk of legal/illegal properties could have been eliminated, if only the lawyers had honour, integrity & professionalism and protected their clients interest.

  • #87044
    Profile photo of katy
    katy
    Spectator

    A friend’s Son has just purchased an apartment in Sotogrande. They paid only a little lower than the asking price and are happy with the deal. Location they wanted etc. They looked at lots and said that the “bargains” were always for a reason, terrible location, building faults, paperwork etc. Most that they had chosen to view off websites they never actually went inside as they looked much worse in reality.

    I heard (from a horses mouth) that there are few people looking for a property bargain or not. Just no interest.

    I think it was Inez(?) who said earlier this year that the ones who have mortgages cannot reduce much.

  • #87051
    Profile photo of Anonymous
    Anonymous
    Participant

    @mark wrote:

    Is there anyone looking to buy in this market, hoping to find a bargain? If so, what’s your general impression as you do your research and look around? Are you seeing falls in asking prices? Are you starting to see bargains, or at least reasonable value, or are vendors still dreaming in bubble-land?

    Mark

    I looking for bargains.

    Main problems:

    1. As stated if they are cheap, they are usually cheap for a reason.
    2. As stated people with a mortgage will only go so low.
    3. The exchange rate is unfavourable for a buyer.
    4. Banks criteria for buying has changed so has the cost of borrowing.
    5. It takes time/money to bargain hunt and ‘true’ bargains are soon snapped up.

    Yes prices are falling, but the ER counts for certain amount (large percentage) of it.

  • #87052
    Profile photo of Anonymous
    Anonymous
    Participant

    The problem is there are plently of so called bargains out there on the type of stuff you wouldn’t want to buy – concrete structures in out of the way locations – mainly new builds – desperate developers etc

    But when you try to find the exact right property in the exact right location – centrally located, spacious and with views – resale apartments – then the discounts are less than expected. I have 1 Irish and 2 madrid people looking for such properties.

    But that said I have seen seen certain villas in the Mijas and Benalmadena area almost half in price from where they were 12-18 months ago – but even back then I would have said they were totally overpriced – didn’t sell then and they are not selling now. Prices are probably being distorted by sellers in deperate need of cash.

    Pricing is all over the place at the moment and that in itself is not helping matters leaving aside all other global problems and GBP/EUR rates etc. There is not enough transaction to get a real feel for the market.

    Also I think now you have a different type of buyer from the sheep that came on past inspection trips. I notice most are buying on word of mouth – ie an introduction from a friend and no estate agent involved and the price then seems to be fairer to both parties. Example would be an Irish guy with a holiday home on a development and bringing over a buddy who’s interested in buying and introducing him to another buddy on the same development who’s selling.

    These are just my own feelings and observations

  • #87054
    Profile photo of Anonymous
    Anonymous
    Participant

    I think that most people are pre-conditioned (by the constant glare of media publicity) that prices still have some way to go before rock bottom is reached.

    That may require corporate collapse of developers and subsequent bank sell-offs of entire swathes of land/property at pence in the pound. It may be that the english couple that wanted €400,000 for their villa can only get €150,000 and have to live with the consequences….or not move at all. But in a collapsing market the vendor is always hoping to get more than he can for a given property and therefore the bottom of the market takes longer to arrive than people thought.

    I am looking to buy, I admit I should have done it 10-12 years ago, but there is no way I would touch the market for another few years now. A good deal on a property in 6 months will get even better after if you wait another couple of years. As a potential buyer I have become immune to the sales nonsese about unique opportunity, one-off discounts etc. It’s all baloney. It is a hard fact of life that hundreds of thousands of properties will be available in a few years at well below their build price/well below what the owner paid for it. I don’t want to profit at anyone else expense, but why should I buy now only to face negative equity tomorrow.

    Then we have the thorny topic of legality which someone has to tackle in order to give confidence to the few potential buyers that are left. That is another reason to wait for a while, perhaps in a few years when the property market has collapsed the government will be forced to act on the legal/illegal build fiasco that has permanently tarnished the spanish property market.

  • #87056
    Profile photo of Anonymous
    Anonymous
    Participant

    I have a house near Mojacar in Almeria – one of 8 – very beautiful setting – cost me €240000. The others are now for sale at €216000. The reduction only reflects the exchange decline and I think they should be lower. For my part I love my house and the location enough to feel it was well worth it. For me this is what buying a home means.

  • #87058
    Profile photo of Anonymous
    Anonymous
    Participant

    @mark wrote:

    Is there anyone looking to buy in this market, hoping to find a bargain? If so, what’s your general impression as you do your research and look around? Are you seeing falls in asking prices? Are you starting to see bargains, or at least reasonable value, or are vendors still dreaming in bubble-land?

    Mark

    I can give you some examples (randomly chosen, just about some properties I have been following in the last 2 years or so):

    – 2 bedroom villa in La Torre Resort. 1 year ago the cheapest resale price was about 210K Euros. Now one can find for 169K beofre bargaining.

    – 2 bedroom villa in Mar Menor Resort. 1 year ago the cheapest resale price was about 220K Euros. Now one can find for 189K before bargaining.

    -2 bedroom apt. Roda Golf resort. 1 year ago the cheapest resale price was about 220K Euros. Now one can find for 175K before bargaining.

    – 2 bedroom apt. in Signoria di Roda. 1 year ago the cheapest resale price was about 180K Euros. Now one can find for 99K before bargaining.

    – 2 bedroom apt. in El Andalus , Vera, Costa Almeria. 1 year ago the cheapest resale price was about 170K Euros. Now one can find for 115K before bargaining.

    – various 1 bedroom in Costa Calma of El Cotillo in Fuerteventura have seen a 25% decrease in the last year.

    – Cabo Roig in Costa Blanca (one of the few places in Torrevieja area worth considering).
    Some 1 bedroom and 2 bedroom apts have fallen by 20% in the last year.

    – Monachil (Sierra Neva area). Some prices went down by 15% since June 2008.

    I do not know almost anything about the evolution of Costa del Sol prices. I only started looking recently there.

  • #87060
    Profile photo of katy
    katy
    Spectator

    Prices have gone down but are they really bargains…a while ago everything was over-inflated and were developer led.

  • #87061
    Profile photo of Anonymous
    Anonymous
    Participant

    @katy wrote:

    Prices have gone down but are they really bargains…a while ago everything was over-inflated and were developer led.

    None of the prices I mentioned are bargains!! I believe none of the mentioned apartments should be more than 80K Euros and the villas more than about 100K Euros. Then they would have fair prices in my humble opinion.

    Of course bargains mean something like 20%-30% below the fair prices in the adverse credit crunch condition we are living now.

  • #87062
    Profile photo of Anonymous
    Anonymous
    Participant

    Katy has summed this up

    “Prices have gone down but are they really bargains…a while ago everything was over-inflated and were developer led.”

    Now if you paid an over inflated price then your property value will fall against those that did not.( because you paid over the top and not its supposed value)
    Say I paid say 10% over the top but not as much as my neighbours 30% so say he looses 30% and I loose 10%( example only)
    Not exactly rocket science is it and a stupid question to ask unless it quantified and particular in this World credit thingy.
    Sounds just like someone trying to get anything negative to sell news with only parts that sells and is typical of news reporters.
    I have an illegal property so it worth X ( f—ck all really)so I loose 100%
    If its legalised tomorrow it may be worth Y
    If buyers cant get mortgages then I cant sell and they cant buy so its standstill.
    If I have something to sell and someone wants it and we agree a price then thats the start of any value.
    That will take some time to develop then the question can really be answered.
    Its a buyers market for most things at the moment so the situation from a sellers maket to a buyers market can easily go to extremes of scale.
    You have a buyer that expects something for nothing and you have sellers that need to get real ( Who is setting the reality of property values) neither moves then no sell.
    Same as the stock markets at the moment everyones in panic trying to find value.
    As we see this is changing by a massive scale almost everyday so lets give up on the forums expert opinions shall we and admit we can only begin to guess.

    Noted that its a buyers market due to the exchange rate ?
    WHY?

    Just Frank 8)

  • #87063
    Profile photo of katy
    katy
    Spectator

    I wasn’t really asking a question…just making a statement.

  • #87064
    Profile photo of Anonymous
    Anonymous
    Participant

    @Just Frank wrote:

    As we see this is changing by a massive scale almost everyday so lets give up on the forums expert opinions shall we and admit we can only begin to guess.

    I guess Mark asked us about the bargain prices in Spain and people put forward their personal opinion. Everybody has a definition for “bargain”.

    Sorry, I am not sure what is your problem with that…

  • #87065
    Profile photo of Anonymous
    Anonymous
    Participant

    Katy
    Didnt say you were asking a question just agreed on your statement for once.

    Flosmichael
    He may of asked and I answered so what s your problem. 🙂

    Afraid I dont post to keep any particular person happy.
    Whats wanted is someone saying that they bought some property that was supposed to be worth X and they bought it for Y so it was a 50% decline the property price.
    NEXT .”HEADLINES PROPERTY PRICES FALL BY 50 % IN SPAIN.”
    Reality is that he probably bought off someone who paid silly money in the first place or is desperate to sell.
    To have a bargain you have to have a value of something and at the moment there are to many variables because of a uncontrolled building boom with little reality to the value.
    How can you have 2 similar developments in the same area of equal specification that were up to 100,000 Euros more expensive at the same time and how do you start saying where the so called bargain is
    Is it 120,000 Euros over paid or is it 20,000 Euros for the one that paid the right price.
    The object of asking and trying to gain information is where you go to gain that information from.
    If your going out asking those that holiday once in a while in Spain and then becomes an expert and posts their expert advice which then in turn develops into an irresponible news articles then yep I have a problem with that.
    I have a problem with that because there are thousands upon thousands of people looking for real tangible advice and at the moment the media is only proving to be happy if the world ends.

    Just Frank 8)

    Kingy Still Ice cool man real freezing to the nuts ice cool 8) 8) 8)

  • #87067
    Profile photo of Anonymous
    Anonymous
    Participant

    At good Costa Del Sol location values then no wonder the developments you mention are struggling.
    I sold there at around the 130/140 Euro price after that it was stupid money.

    Just Frank 8)

  • #87068
    Profile photo of Anonymous
    Anonymous
    Participant

    @mark wrote:

    Is there anyone looking to buy in this market, hoping to find a bargain? If so, what’s your general impression as you do your research and look around? Are you seeing falls in asking prices? Are you starting to see bargains, or at least reasonable value, or are vendors still dreaming in bubble-land?

    Mark

    Hi,

    I have been looking for something in Almunecar for some while now and I find the prices more or less the same as previously, and which are in my opinion overpriced. Some properties have reduced slightly (20k) but that was on the basis that the original asking price was a joke. I am hoping that I can pick something up some time and am prepared to wait and see what happens over the next couple of years. Most small villas are around the 500k EUR mark and have stayed at a similar price for the last 2 to 3 years.

    When/If the price gets to around 200k EUR for a 500m2 plot then I might be prepared to stump up the cash but not until then.

    Bill

  • #87073
    Profile photo of Anonymous
    Anonymous
    Participant

    @flosmichael wrote:

    @mark wrote:
    Is there anyone looking to buy in this market, hoping to find a bargain? If so, what’s your general impression as you do your research and look around? Are you seeing falls in asking prices? Are you starting to see bargains, or at least reasonable value, or are vendors still dreaming in bubble-land?

    Mark

    – 2 bedroom villa in La Torre Resort. 1 year ago the cheapest resale price was about 210K Euros. Now one can find for 169K beofre bargaining.

    So E210K at 1.5 = £140K, E169 at 1.28 = £132K. Its not fantastic discount land for a UK buyer especially given most other investments (stocks in particular even gold (to a lesser extent) have fallen apart in the period). The exchange rate adjustments wipe out much of any perceived gain. If the seller is mortgaged (via a Euro mortgage) they have caught a cold, the (UK) buyer unfortunately is not in big clover unless they mortgage heavily and anticipate favourable exchange rate movements or hold Euro deposits between the two dates.

    The best bargains were around when polaris were (quietly) offloading part paid properties approx. 6 months ago, but they were few and far between, some of the flash offers they had on were just rubbish.

  • #87074
    Profile photo of Anonymous
    Anonymous
    Participant

    Agree
    Now if we are talking about bargain property and exchange rates.
    If you are from the U.K and bought at say 150 exchange rate then you could afford to drop the price considerable and still come out O.K.
    If and If you get the price you want and the buyer is prepared to pay it then theres a result if you want to come home.
    Still if your one thats going to wait for a massive Villa for 50,000 Euros(CASH) 😯 YEP 50 big ones in cash 🙄 then think there may be a long wait somehow.
    Think it may be more prudent and informative if posters notes big falls on a development they may wish to follow it up with a reason if there is one.
    Then we may get some clues as to just how bad the situation is.
    I will start 😉
    I have one property one the Costa del Sol that I am supposed to complete on at 207,000 Euros .
    Worth possibly 150,000 .Reason .Its crap, full on dog s-it,dumped cars.poor finish,no legals some dreadful tenants.and about 25% of It missing.
    Changed my mind 130,000 Euros at top and falling.
    Even the exchange rate cant help on this one 🙁
    Just Frank 8)

  • #87079
    Profile photo of Anonymous
    Anonymous
    Participant

    I saw a property at El Valle (another polaris site) for E150K discounted from E235K (polaris discount not a resale), you could say CRASH CRASH, down 30%. I thought it was worthy of closer inspection.

    However, a UK buyer given ER movements will only see a 15% fall. Not looking so good now.

    Then on closer inspection (not on the sales particulars of course) this property was an (outside) ground corner, it was right next to a road, in fact 2 roads (corner) and i’m sure they had put a pedestrian crossing in front, very restricted golf views, it was second line with another block in front and of course no elevation as ground floor.

    So your CRASH CRASH is effectively a 15% discount on a ground floor non golf/pool view property with cars passing both sides (of your balcony at say 10ft away) and a pedestrian crossing directly infront of your balcony and garden.

    I though it was overpriced at E100K, I offered them E100K as I thought it would interesting to see a reaction, they (polaris) dismissed me out of hand.

  • #87080
    Profile photo of Inez
    Inez
    Participant

    A property is still only worth what someone else is prepared to pay for it. Period.

    I had this discussion, heated, last night with dinner partners. They were mentioing the market has dropped 30% I wanted to know from what benchmark??? Asking price, bank valuation, sales price or declared price?

    This has been my argument for over 5 years now.

    Certain owner will have to sell for what they can get, others can hang on. This is a very mixed market of owners, some dont have to sell, some do.

    There are some very well located proeprties out there with good views etc etc etc, you have to shift through the crap

    However, the Spanish WILL and DO buy the north facing, the east facing and the so called undesireable at a price- They havent yet cottoned on to the english mentality and thank goodness for that as its keeping the food on my table!

  • #87081
    Profile photo of Anonymous
    Anonymous
    Participant

    Inez 😆
    Exactley.
    How anyone can give figures with the mess at the moment is living on cloud 9.
    The buyer and seller will find the market values in time.
    Time will tell if those that are buying now will be a good time to buy or not.
    At the end of the day if you like something do your reseach and perhaps rent in that area before you buy then go for it if its right for you.

    Just Frank 🙄

  • #87082
    Profile photo of Anonymous
    Anonymous
    Participant

    Let’s get down to basics and reality.

    Based on the past 4 years of renting my 2 bedroom place I know i can achieve an annual rental income of £6,000. (To be fair this has fluctuated between £5,500 and £7,000.)

    I pay expenses of £1,800.

    I get a net income of £4,200.

    I pay Spanish tax of £1,500 (25% of gross income with no allowances as a non resident)

    Income after tax: £2,700. In other words a fully furnished 2 bed property would have to cost about £40,000 to £50,000 (6% post tax return?) to make sense if one complied with Spanish tax law, AND the property was bought only as a commercial proposition and had no value for personal holiday use.

    Even if you decided to be illegal and only pay UK tax, and deduct allowances before tax at 20%, your income after tax would only be £3,360. Even this implies a maximum price for a 2 bed unit of £50,000 to £60,000.

    Now these financials (if you play legal) mean there will be a disaster in the Spanish property market, unless the government gives favourable tax treatment to non resident landlords.

    This is completely different to the UK where, at a certain price point, BTL investors start buying because they can make a decent return on the property, due to being able to off-set mortgage interest and annual costs against rental income.

  • #87083
    Profile photo of Anonymous
    Anonymous
    Participant

    @ashtondav wrote:

    Let’s get down to basics and reality.

    Based on the past 4 years of renting my 2 bedroom place I know i can achieve an annual rental income of £6,000. (To be fair this has fluctuated between £5,500 and £7,000.)

    I pay expenses of £1,800.

    I get a net income of £4,200.

    I pay Spanish tax of £1,500 (25% of gross income with no allowances as a non resident)

    Income after tax: £2,700. In other words a fully furnished 2 bed property would have to cost about £40,000 to £50,000 (6% post tax return?) to make sense if one complied with Spanish tax law, AND the property was bought only as a commercial proposition and had no value for personal holiday use.

    Even if you decided to be illegal and only pay UK tax, and deduct allowances before tax at 20%, your income after tax would only be £3,360. Even this implies a maximum price for a 2 bed unit of £50,000 to £60,000.

    Now these financials (if you play legal) mean there will be a disaster in the Spanish property market, unless the government gives favourable tax treatment to non resident landlords.

    This is completely different to the UK where, at a certain price point, BTL investors start buying because they can make a decent return on the property, due to being able to off-set mortgage interest and annual costs against rental income.

    Totally agree, there is no investment potential in Spanish property in the main (obviously exceptions exist), especially as base rates/lack of liquidity (causing interest rates to increase) at the mo. and falling share prices (causing divi. yields to increase) make alternative investments more attractive and the cost of capital higher. The tax probs with Spanish property to add fuel to the problems.

    Its simple a question of wishing to own abroad (holidays etc)/buy for retirement etc. Its a ‘rich persons’ folly in some respects.

  • #87087
    Profile photo of Anonymous
    Anonymous
    Participant

    Ashtondav:
    Totally agree with you. I was hoping that when the capital gains was equalised between resident & non residents, This disparity of off setting cost would have been looked at.

    People, who buy to let, do not do it to have a rental surplus. They do it for capital appreciation. The only people who have rental surplus are the ones who have inherited a property. They of course do not look at the opportunity cost like most Spaniards.

    Spanish, Central & regional government has this mentally of extracting what ever they can from the non residents equitable or not !

    With so many properties lying empty, poor rent legislation’s and all the government is doing is skating around the subject & is not ready for a major surgery of the whole system.

    Sadly, Spain will never attract foreign investments like other countries do until, unless they review/change their thinking in respect of what the investor is looking for and in what kind of environment and frame work.

  • #87088
    Profile photo of Anonymous
    Anonymous
    Participant

    Totally agree with the last 3 postings.
    Think that most however didnt buy to rent and just looked at the 15/20% growth and thought they would have some of that.
    At the time it may have looked a good option as financial markets and pensions were showing big losses.
    Funny how things turn out as markets and pensions did go up and is now at near the same as when many people entered the Spanish Property maket .
    Many that kept there money save in Banks were not even spared.
    Where do you put yer money now with markets in termoil,property falling and interest rates on the way down.
    The problem now for Spain is they are in denial and heads in the sand.
    Unless properties are legalised,tax breaks given and Banks start showing basic common sence then hell is on the way.
    Getting back to the thread.
    How long will it be before actual factual figures are going to come on the value of property in Spain.
    The first stab was a joke and will Spain ever be trusted to post accurate figures even if they had them as we all now they can be very short in coming foward with the truth.

    Just Frank 8)

  • #87091
    Profile photo of Anonymous
    Anonymous
    Participant

    “The problem now for Spain is they are in denial and heads in the sand. “

    This is not the current problem now. This problem existed. No one can convince me that the powers to be in Spain knew that the graph does not keep on going up to infinity.

    This is a Spanish psyche, living for today and lacking maturity/foresight to see as to what tomorrow may bring.

    Of course if you want anything done than the “manana” comes into play.

  • #87092
    Profile photo of Anonymous
    Anonymous
    Participant

    @ashtondav wrote:

    Let’s get down to basics and reality.

    Based on the past 4 years of renting my 2 bedroom place I know i can achieve an annual rental income of £6,000. (To be fair this has fluctuated between £5,500 and £7,000.)

    I pay expenses of £1,800.

    I get a net income of £4,200.

    I pay Spanish tax of £1,500 (25% of gross income with no allowances as a non resident)

    Income after tax: £2,700. In other words a fully furnished 2 bed property would have to cost about £40,000 to £50,000 (6% post tax return?) age interest and annual costs against rental income.

    Ashtondav, you are verry, very lucky to get that kind of return from a 2 bedroom apt. Would it be possible to ask you which area is it?

    I stayed in Roda Golf over the Summer of 2008 and I paid £150/week at the end of July. And even at that price the 2 bedroom apt. was rented for
    about 8 weeks for the first 7 months of 2008 (this is then £1200 for 7 months i.e. at most £3000/year). This would imply an income after tax
    of about £1400 i.e 1800 Euros.

    Considering that the cheapest apt. there is now 180K Euros, this would be a return of 1%.

  • #87095
    Profile photo of Anonymous
    Anonymous
    Participant

    Where do you find those bargains @.

    Here in the US we have multiple sites to look at, by regions etc..

    Most of the sites I have found are in Spanish, and I have no clue what I am clicking on.

    Any good links to look @ ? thanks

    David

  • #87106
    Profile photo of Anonymous
    Anonymous
    Participant

    We’re in Frigiliana.

    Good sites for finding rentals are holiday-rentals, holidaylettings and ownersdirect.

  • #87196
    Profile photo of Anonymous
    Anonymous
    Participant

    The answer is that no one is looking for a bargain. According to my “contacts” in the real estate offices their phones stopped ringing for the last time in May and that there is no one looking to buy – bargain or not. There was a flurry of big purchases (twelve, each over €5m by Russians, East Europeans etc) but that has dried up now. There are many local investors with big cash hordes but they are not tempted to buy real estate here or anywhere at the moment.

    My guess is that if you are a bonafide buyer you could negotiate big price cuts in even the best areas now. The thing is no one knows because no one is bidding!!…………

    Estate agents have left the coast by the thousand leaving a trail of abandoned black BMW’s and negative equity flats!!

  • #87197
    Profile photo of Anonymous
    Anonymous
    Participant

    Here in the North, the local paper recently reported a 13% fall in prices for new build properties in 4 of the major areas; Gijon, Aviles, Siero and Langreo but there was still a 5% raise is prices in Oviedo, the capital of the principado so I guess location is everything….

  • #87198
    Profile photo of Fuengi (Andrew)
    Fuengi (Andrew)
    Participant

    @UBEDA wrote:

    The answer is that no one is looking for a bargain. According to my “contacts” in the real estate offices their phones stopped ringing for the last time in May and that there is no one looking to buy – bargain or not. There was a flurry of big purchases (twelve, each over €5m by Russians, East Europeans etc) but that has dried up now. There are many local investors with big cash hordes but they are not tempted to buy real estate here or anywhere at the moment.

    My guess is that if you are a bonafide buyer you could negotiate big price cuts in even the best areas now. The thing is no one knows because no one is bidding!!…………

    I disagree. Now in case anyone does not know, i do work for an estate agency, so you can either believe what i am going to say, based on my previous post or treat it as “estate agency talking up market, etc..”

    Although it has been a good summer with several deals being done. 1 property at 170.000€, the other at 270.000€, the third at 330.000€. the first & third went to compeltion in under 6 weeks. The 2nd one, owner has run into some difficulties as a large part of his funds were tied up in shares in british banks.
    In the last 2 weeks, we had an irish buyer who we had been in contact with. Placed a deposit on a property within 48hrs.
    Have another buyer interested in a villa of over 650.000€. All monies in place, just waiting on certain paperwork from the vendor.
    Another buyer (british) viewed several properties and make offers on 3. Whoever accepted first, he would buy. In this case as he thought to make LOW offers. The properties were already (in our opinion) competitively prices and all 3 turned down the offer.
    Oh nearly and took another deposit on a property 3 weeks ago (more or less) on a property at 350.000€, accepted offer 300.00€. Private contract signing tomorrow.

    Please note i’m not trying to promote a specific area, or anything like that. All buyers are cash buyers or require small mortgages only. 50% or less.

  • #87205
    Profile photo of katy
    katy
    Spectator

    Ubeda, exactly what I am hearing too. Hear people saying they have sold this and that 🙄 but privately from people I know in the trade there is absolutely nothing moving, not even at low prices.

  • #87208
    Profile photo of Fuengi (Andrew)
    Fuengi (Andrew)
    Participant

    @katy wrote:

    Ubeda, exactly what I am hearing too. Hear people saying they have sold this and that 🙄 but privately from people I know in the trade there is absolutely nothing moving, not even at low prices.

    could that not be due to la lack of good properties/staff/locating/marketing?

    Even according to Mark in the Intelligence section there are sales going on. Maybe not a previous high levels but that was never sustainable.

    Or when the next quarter figures come up do you think the stats will say that 0 properties have sold over the 3 months?

  • #87210
    Profile photo of Anonymous
    Anonymous
    Participant

    Fuengi, I’m only reporting what I hear directly from the big guns in the Marbella area most of whom were here during the last downturn in the early nineties – They claim to be doing nearly nothing and are scared stiff.

    Obviously there are sales going on as there are always “hot” agents(you?) that do a few sales whilst others hide under their desks praying.

    But, there is NO noticeable drop in comparable asking prices which has happened in other markets; ie the UK, most parts of USA………. so maybe vendors still have their heads in the sand or the agents are failing in their duty to tell us vendors that we need to lop off 40/ 50% off the dizzy heights that never existed –

    The lawyers I know (heads of firms) hardly go in these days many having enrolled at local gyms and taking up other interests whilst their staff stare out the window wondering when the axe is coming!!.

  • #87211
    Profile photo of Fuengi (Andrew)
    Fuengi (Andrew)
    Participant

    @UBEDA wrote:

    Fuengi, I’m only reporting what I hear directly from the big guns in the Marbella area most of whom were here during the last downturn in the early nineties – They claim to be doing nearly nothing and are scared stiff.

    i can’t say what is going on in in Marbella, we’re not based there. Ubeda, i’m sure you are just repeating what they’ve told you.
    I just like how when these same agents claimed doing severla multi-million euro deals, no one beleive them. Now they say their not doing business and lo and behold everyone believes.
    You either trust what certain people say or you don’t.

    @UBEDA wrote:

    Obviously there are sales going on as there are always “hot” agents(you?) that do a few sales whilst others hide under their desks praying.

    We are surviving. But considering how the market it, we’re quite happy with that and open to improve on it.

    @UBEDA wrote:

    But, there is NO noticeable drop in comparable asking prices which has happened in other markets; ie the UK, most parts of USA………. so maybe vendors still have their heads in the sand or the agents are failing in their duty to tell us vendors that we need to lop off 40/ 50% off the dizzy heights that never existed –

    I disagree. there have not been no sudden drops recently. But there has been a steady decrease to over the last 3 years. I used a example in a previous thread, but i mentioned the property also above. The property that sold for 270.000€ was on the market 3 years ago at 430.000€. It has stedily dropped and an offer got accepted.

    @UBEDA wrote:

    The lawyers I know (heads of firms) hardly go in these days many having enrolled at local gyms and taking up other interests whilst their staff stare out the window wondering when the axe is coming!!.

    Again i don’t deal with Marbella lawyers. Maybe they grew too fast simply due to agecnies giving them business (for a %) and not on their own merit?

  • #87218
    Profile photo of Anonymous
    Anonymous
    Participant

    About bargains:

    – I received some advertisement about some Isla Canela (Huelva) properties.
    I have never been there but the beach there seemed magnific, I was almost tempted to
    give it a try.

    But then I observed that the “bargain” advertised cost was actually for about
    3000 Euros/m^2 which is enormous for a mostly undeveloped region. Also, lookign at
    holidaylettings site I saw that there are 150 properties to rent on Isla Canela
    with 8 months of the year at about £150/week and almost nothing occupied even at that
    cheap price.

    So there is a no brainer that prices there are meant to fall far from the current “bargain level”…

    – Looking at holidaylettings I saw that most of the properties around Cabo Roig, Villamartin, Campoamor, Zenia barely have 1-2 weeks of rental in the next 6 months.
    And some are asking £80/week to £100/week ( which might be a BETTER price than paying electricity and heating in UK when staying home). I guess £100/week barely covers the owners cost of electricity/water/communal charges.

    If they cannot rent at £100/week, why would anybody buy in that region? I think that
    property there is truly unsaleable unless people dump it on the market at ridiculous prices to get rid of it.

  • #87219
    Profile photo of Anonymous
    Anonymous
    Participant

    To go back to the thread – no, there doesn’t seem like anyone is looking for a bargain – of course sales are happening; people marry, die, divorce, move town etc …

    Don’t forget that the current monthly sales report from the ministry of housing counts completions, which includes sales agreed years ago on off plan projects and many re sales agreed three months ago ………

    In the same way that the agents drove the prices up they now have a responsibility to drive them down – the agents that achieve this will be the agents that survive – the others will fall by the wayside over the next year – or when the kitty runs out!

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