Buying in the current climate

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This topic contains 32 replies, has 14 voices, and was last updated by Profile photo of Anonymous Anonymous 7 years, 1 month ago.

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  • #55261
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    Anonymous
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    Im trying to get a feel for the market at present. i have read all the forums threads until im blue in the face, but does anyone think that there are genuine bargains to be had regarding an upgrade on my holiday apartment to a villa. like anywhere in the world someones downfall is someones advantage and think that a 5 bed 5 bath villa built 5 years ago was 650000 is now on offer at 350000 fully furnished. seems good value?.
    i would appreiciate any input from our members.ps (cds)

  • #94755
    Profile photo of Anonymous
    Anonymous
    Participant

    Yes, there are loads of bargains and they seem to go quickly – do your own research, don’t believe the agents spin (but use one ) and be prepared to negotiate and not budge if you think the price is not right !! but, don’t expect great properties in great locations at 60% off; maybe 35%

  • #94756
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    Anonymous
    Participant

    Gary, without knowing a lot more about the property, location, etc it is pretty well impossible to tell if that is good value or not.

    One of the things I´ve seen a lot of over the last year is huge discounts (40-50%) such as you are saying. When you look at the properties more closely however you find they were never worth anything close to the ´original´ price.

    Bear in mind also that quite a lot of anecdotal evidence is suggesting that, where sales are going through, they are often at 30% discount from the asking price.

  • #94758
    Profile photo of Anonymous
    Anonymous
    Participant

    Hi Gary, agree with Ubeda,good property in good areas are down around 30-35% from there peak in 2005.
    You will have to work hard to find one though, despite what some are saying there is still a market here on ths CDS,Im here this week and I can confirm that brits are still buying.

    Given your position you may be able to part exchange your apartment, you often see ads in the local papers by older people trying to off load the big family villa for something smaller

  • #94761
    Profile photo of katy
    katy
    Spectator

    I would be interested to know where you could find a 5/5 on the CDS 5 years ago 😕 For that price.

  • #94768
    Profile photo of petej
    petej
    Participant

    Hi Garry

    We recently purchased and the only way for us to know if properties were good value was following the market for more than 2 years, plenty of visits, homework on areas ect, you then get a feel for what’s a good price, the genuine bargains then stick out like a sore thumb.
    We looked at properties in the same area at the same time, size, view, age all similar but there were up to 140,000 Euro between them so I don’t think you can put a discount percentage on all as some have had the discount applied by the vendor to shift the property
    The thing to also remember is that if it is a bargain you wont be the only one to notice so you will have to act fast are there are still cash buyers out there and it will go.

    Peter

  • #94773
    Profile photo of Fuengi (Andrew)
    Fuengi (Andrew)
    Participant

    @garry taylor wrote:

    Im trying to get a feel for the market at present. i have read all the forums threads until im blue in the face, but does anyone think that there are genuine bargains to be had regarding an upgrade on my holiday apartment to a villa. like anywhere in the world someones downfall is someones advantage and think that a 5 bed 5 bath villa built 5 years ago was 650000 is now on offer at 350000 fully furnished. seems good value?.
    i would appreiciate any input from our members.ps (cds)

    Hi Garry.

    Could you tell us the location, square meters, qualities. size of plot. is it overlooked. etc….

    I can appreciate you want some feedback but if you don’t supply the information you are only get to get very general opinions, which won’t help you too much.

  • #94780
    Profile photo of Anonymous
    Anonymous
    Participant

    garry
    from what I read from those on the ground, I would be temped to wait a while until we know what’s going to happen to the 1,000,000+ unsold properties and the debts that go with them?. The banks may well still be in a denial phase, desperately hoping that things will improve soon before they have to offload at almost any price to cut losses and recover something? If that happens it could send ripples through all property prices?
    At best, prices will probably stay similar for some time to come? I think you should bargain hard or walk away. Prices today could be far lower in the future with little to signal much recovery apart from positive talk from France, Germany and even the UK in some quarters?

  • #94798
    Profile photo of logan
    logan
    Participant

    ‘Buying in the current climate’. Simple, don’t do it under any circumstances.
    Why? Because property has still a long way to fall in Spain. Reason. Massive over supply, a huge backlog of bank repossessions and abandon mortgages where the properties will end up in auctions. Value of the Euro/Sterling rate, increasing property taxes and community charges, falling rental incomes as clients go elsewhere, serious rising unemployment and crime. Holidays/living in Spain has become too expensive.
    I can’t think of a single reason why it would be a good plan to invest in this market at the moment unless you have a strong suicidal desire to lose money or you fancy a reckless gamble. Same thing.

  • #94799
    Profile photo of Anonymous
    Anonymous
    Participant

    “Don’t do it under any circumstances” is, I am afraid, like most broad generalisations not the best of advice. There are many circumstances where it makes perfect sense to buy right now. It depends what you are planning and how long you intend to retain the property for, and also what type of property it is and where it is located. I’d certainly be cautious about “apartments” and “development-type” coastal properties, at least in the medium term, but other sectors are not nearly so badly affected. There are some very good deals around if you look hard enough.

    Andy

  • #94800
    Profile photo of logan
    logan
    Participant

    Yes that was a generalisation. I am an investor and I tend to have tunnelled vision. I suppose buying now for a very long term holiday/retirement home may be just about OK, however choosing Spain for this above other destinations is in my opinion unwise. There are so many other places without the extremes Spain is currently suffering from.

  • #94802
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    Anonymous
    Participant

    I want to buy one of these bargains I keep on reading about.

    My specs are very undemanding,

    1/ Apartment
    2/ Walkable to a beach
    3/ Taxi journey away from an airport.
    4/ Lots of of low rent amenities, (supermarkets, cafes, bars, taxi ranks)

    I have Euros aplenty, (50,000 to 75,000)

    Where should I narrow my search down to inview of my pathetic budget?

    Dont mind if the apartment is in a skyscraper etc.

    Someone said to me the other day, Marbella Golden Mile and Bendiorm.

    Advice gratefully accepted.

  • #94813
    Profile photo of Anonymous
    Anonymous
    Participant
    66d35 wrote:
    “Don’t do it under any circumstances” is, I am afraid, like most broad generalisations not the best of advice. There are many circumstances where it makes perfect sense to buy right now. It depends what you are planning and how long you intend to retain the property for, and also what type of property it is and where it is located. I’d certainly be cautious about “apartments” and “development-type” coastal properties, at least in the medium term, but other sectors are not nearly so badly affected. There are some very good deals around if you look hard enough.

    Garry
    The thing is ive looked at a property which is a 6 bed 5 bath villa which is only 5 years old and only lived in for some 12 weeks of that.the property was 650000 new + taxes and ive offered 360 and i think i could do the deal. im very happy with the location plus the building is south west facing and fully furnished. i would like to purchase as a long term investment as well as been more private than my apartment.

  • #94814
    Profile photo of Anonymous
    Anonymous
    Participant

    OK Gary

    I love a bargain, on what you post it does sound a very good deal, however, million dollar question, where is it on the CDS.

    London for example you could have two identical properties in ajoining areas priced 300k apart!

    You say 6 bed 5 bath, how big? how many sq mtrs built how much land. is it one level(not good) or two.

    Is it Toreblanca or Marbella

    We need more to go on

    S

  • #94816
    Profile photo of logan
    logan
    Participant

    If you want an ‘investment’, ie: a annual increasing return on capital, with growth over the long term my post holds good. Don’t do it.
    Invest your money elsewhere, or if you must buy property try the Atlantic coast of Portugal as an example or coastal France.

  • #94817
    Profile photo of katy
    katy
    Spectator

    If you want a good investment stay out of foreign property. Shares have recovered well this year, money to be made and no hassle and upkeep!

  • #94820
    Profile photo of Anonymous
    Anonymous
    Participant

    @logan wrote:

    If you want an ‘investment’, ie: a annual increasing return on capital, with growth over the long term my post holds good. Don’t do it.
    Invest your money elsewhere, or if you must buy property try the Atlantic coast of Portugal as an example or coastal France.

    Sorry use of wrong wording (investment) we like marbella area for hols and golf. if i get right price for mine then i pay right price for theirs ?

  • #94826
    Profile photo of logan
    logan
    Participant

    @katy wrote:

    If you want a good investment stay out of foreign property. Shares have recovered well this year, money to be made and no hassle and upkeep!

    Totally agree. As the recession fades stocks can only increase. Property is now a dead cat without the bounce! As I keep saying ‘the parties over’. It was not difficult to see the disaster coming 5 years ago. All except the Spanish bankers who walked blindly into the dark night.
    I can’t even justify buying property abroad any longer just for holidays. If you work out your buying costs in taxes, running costs etc, etc. Then compare 5 years staying in 5 star hotels in the same place your quids in not buying. It was different in the boom years capital growth alone gave you an edge but no longer. My advice to any property owner abroad is sell sell sell at any price your offered and put the cash into a managed stock portfolio. Then enjoy your holidays with the profits. Better choice of destination without the responsibility of ownership. It’s a no brainer folks.

  • #94827
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    Anonymous
    Participant

    I take minimum 12 weeks holiday.

    84 days.

    5 star hotel x 84 days ? say a minimum of £100 per night (usually more) so
    cost of holidays is £8400 plus 5 star food costs.

    So buying still makes sense for those who take long holidays!

  • #94828
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    Anonymous
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    @robertacg wrote:

    I take minimum 12 weeks holiday.

    84 days.

    5 star hotel x 84 days ? say a minimum of £100 per night (usually more) so
    cost of holidays is £8400 plus 5 star food costs.

    So buying still makes sense for those who take long holidays!

    plus dont think my dog would be welcome in 5 star hotel

  • #94829
    Profile photo of logan
    logan
    Participant

    @robertacg wrote:

    I take minimum 12 weeks holiday.

    84 days.

    5 star hotel x 84 days ? say a minimum of £100 per night (usually more) so
    cost of holidays is £8400 plus 5 star food costs.

    So buying still makes sense for those who take long holidays!

    12 weeks!! Lucky you. Are you a banker?

  • #94830
    Profile photo of Anonymous
    Anonymous
    Participant

    84 days – ye gods!

    Can I swap jobs with you?

  • #94831
    Profile photo of Anonymous
    Anonymous
    Participant

    Brian – You can swap jobs with me if you take on all my unsecured and secured loans and guarantees to the banks.

    Logan – You may transpose the ‘b’ for a ‘w’, any other similarity with bankers or finance people I might have would be coincendental.

  • #94832
    Profile photo of logan
    logan
    Participant

    @robertacg wrote:

    Brian – You can swap jobs with me if you take on all my unsecured and secured loans and guarantees to the banks.

    Logan – You may transpose the ‘b’ for a ‘w’, any other similarity with bankers or finance people I might have would be coincendental.

    😀 😀 😀

  • #94833
    Profile photo of Anonymous
    Anonymous
    Participant

    Stevev6, you wrote

    “You say 6 bed 5 bath, how big? how many sq mtrs built how much land. is it one level(not good) or two”

    Just wondered why you feel a single storey villa isn’t as good an option? I’d have thought it would attract a larger market – retirees, easier to maintain, larger plot (ie the same reasons why bungalows comand a premium over comparable 2 storeys in the UK)?

    Snowy

  • #94834
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    Anonymous
    Participant

    @Snowy wrote:

    Stevev6, you wrote

    “You say 6 bed 5 bath, how big? how many sq mtrs built how much land. is it one level(not good) or two”

    Just wondered why you feel a single storey villa isn’t as good an option? I’d have thought it would attract a larger market – retirees, easier to maintain, larger plot (ie the same reasons why bungalows comand a premium over comparable 2 storeys in the UK)?

    Snowy

    347sq mtrs 2 levels

  • #94835
    Profile photo of Anonymous
    Anonymous
    Participant

    @katy wrote:

    Shares have recovered well this year, money to be made and no hassle and upkeep!

    The stock market advice is so March 2009. 😀 We all got 50% return since then. Now it is time to burn the money with property. 😀

  • #94842
    Profile photo of Anonymous
    Anonymous
    Participant

    Robertacg, I couldn’t disagree more with you when you say ‘buying still makes sense for those who take long holidays’.
    I spend 12 to 14 weeks every year in Spain. Stay in 5* hotels only (would love to know where you get 5* (not 5T or whatever tour companies call them) hotels for £100 per night unless always off peak).
    Let’s go further. Free internet, free air con, free heat, free light, free TV and music, free cleaning daily, free laundry daily, free toiletries daily. Just add that lot up and see what it comes to.
    Why do you say about 5 star food costs. Are you saying that if you took a holiday in your own place you would eat in lesser standard restaurants.
    How many people have their heat or air con on 24/7 in their own places?
    So buying still makes sense?
    The market slumps and your house value drops, does it then make sense?
    The adjoining property is let to say, not what you like to have as neighbours. Does that make sense?
    What about that large extension or new building in front of you, does it still make sense.
    The 5* hotel. Anything too drastic you don’t like, just go to reception, check out and on to the next.
    How many have their own place which if they had time again, they wouldn’t have chosen where they did, because of what has happened around.
    Let’s say a 5* star holtel 84 nights (use your figures) £8,400
    I assume that if you pay to stay in a 5* hotel, you will want comfort and luxury. So buy a nice apartment say £300,000
    Now, what is the loss of interest on the money you have parted with?

  • #94846
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    Anonymous
    Participant

    Timmy I routinely stay in 5* hotels, all over Europe (although not the Costas) and usually pay less than 100 pounds per night. For example, my next trip is to Berlin in a couple of weeks time. There I´ll be staying at the Hilton. The rate I have for a double room is 84 euros. This includes all taxes and charges but not breakfast. Cheapest prepaid rate for the same dates, even on the hotel´s ´lowest price guarantee´ website, is 165 euro.

    The secret? None really. Just do some research then use http://www.priceline.co.uk and their ´Name your own price´ option. Before doing so you need to research what people are paying. The best site for this is http://www.betterbidding.com.

  • #94848
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    Anonymous
    Participant

    Sorry, I thought the discussion was related to Spain and not Berlin or elsewhere.
    I know some cheap 5* hotels in USA, but didn’t think it applicable to the thread.
    Prices booking direct with hotel websites is normally the most expansive way of doing it, as experienced travellers like yourself know.
    So using ‘bargain’ prices, assuming Spain (but Berlin prices).
    84 nights x £80 = £6,720
    I assume that if you pay to stay in a 5* hotel, you will want comfort and luxury. So buy a nice apartment say £300,000
    Now, what is the loss of interest on the money you have parted with?

  • #94849
    Profile photo of Anonymous
    Anonymous
    Participant

    Timmy, are you sure you’re not secretly itching to buy? why post on property buyers/owners forum?? take the plunge and don’t be so timid timmy !! ps it’s a great time to buy if you know how!!!

  • #94850
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    Anonymous
    Participant

    UBEDA, I have 6 residential properties for personal use in 5 Countries, perhaps I am timid in your eyes as you are obviously a multiple property owner yourself. I am always prepared to learn so if you are prepared to pass on your ‘know how’ from your experience and knowledge, I will be only too please to read.
    Why post on a property buyers/owners forum. Just responding to a comment made.
    As a property owner aren’t I allowed to contribute, if so please let me know as I don’t want to be where not welcomed.
    If I am in the wrong, sorry to all.

  • #94851
    Profile photo of Anonymous
    Anonymous
    Participant

    @UBEDA wrote:

    ps it’s a great time to buy if you know how!!!

    It seems many on this site say the same thing “buy if you know how”.

    Could you please share with us, the novices, some insights? Please.

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