What is a Bargain Property in Spain for Brits?

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This topic contains 9 replies, has 6 voices, and was last updated by Profile photo of Chopera Chopera 3 years, 5 months ago.

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  • #57576
    Profile photo of angie
    angie
    Spectator

    What constitutes a bargain property in Spain for Brits? Aiming this at Brits because of the often overlooked poor exchange rate from Sterling to Euros.

    Is it what was clearly overpriced property in the first place of which there are millions, is it a cheap tiny building stuck up a mountain or in a remote area with poor connections, is it a cheap flat in one of many look-a-like bland blocks around the regions etc? Are there noise factors?

    If it’s cheap, is it a bargain, does the final cost including fees make it a bargain still? Do the community fees some of which are unpaid by others make it a bargain? Has it got potential to increase in price?

    If exchange rates reverted back to 1.50 euros or more per pound one day, would that bargain turn out not to be such a bargain for Brits wishing to re-sell and convert to Sterling? 🙄

    Developers have stocks of so called bargain new developments, but are they when you see hundreds of re-sales on same developments previously built and sold as investments then? 🙄

  • #117408
    Profile photo of Anonymous
    Anonymous
    Participant

    If you watch ‘A Place in the Sun’ a bargin means anything less expensive than a house in their UK hometown.

    example, a friend paid 100,000 euros for a place in 2002, how ‘cheap’ at the time. Not as cheap as it was advertised the year before with a Spanish agent for locals… the price was 10k.

    So what is a bargin then?…. something at 150k for a Brit but the Spanish are paying 60k for?

  • #117432
    Profile photo of angie
    angie
    Spectator

    That’s a very good analogy itsme, it shows too how careful people have to be before buying in Spain 🙄 Proves the need for accessible Land Registry info, and for property regulation there 😉

  • #117517
    Profile photo of Chopera
    Chopera
    Participant

    I’d guess that many Brits would typically consider a 2 bed apartment on a nice complex, established area, close to the beach, for anything under €50k to be a bargain.

    Obviously there are Brits out there interested in everything from derilict fincas to large private villas, but I’d say the above is the typical “bread and butter” property that many Brits would snap up.

  • #83973
    Profile photo of Anonymous
    Anonymous
    Participant

    to me a bargin is a property that has all i am looking for at a price i am willing to pay although in the area i want its hard to find something that matches what i want exactly although i have seen what i want but in 2 different properties.Maybe i need to build my own

  • #84493
    Profile photo of katy
    katy
    Spectator

    For myself it would have to be in a great location that I knew well and liked but could not previously afford.

  • #84646
    Profile photo of katy
    katy
    Spectator

    For myself it would have to be in a great location that I knew well and liked but could not previously afford.

  • #84806
    Profile photo of Anonymous
    Anonymous
    Participant

    What is a bargain for anyone?

    Theoretical scenario. If you buy today for 5 what cost 20 yesterday, is that a bargain? Not if tomorrow it costs 2, but yes if tomorrow it costs 10. So to judge a bargain you have to look backwards and forwards, not easy.

    Nevertheless, it’s always satisfying to buy cheaper today than yesterday. And in one sense it’s still a bargain (compared to the past) even if it turns out to be cheaper tomorrow.

    I think it’s also obviously a bargain if you get a high yield for little risk, for example an above average rental yield on a property with very reliable rental income.

    I think there are bargains to be had in Spain today, especially if you have Swiss Francs. But there is also lots of over-priced rubbish on the market, so you have to be very careful. The Spanish property market is not very efficient for lots of reasons.

    The big problems with bargains in Spain are the high transaction costs and the pesky tax man.

  • #84723
    Profile photo of Anonymous
    Anonymous
    Participant

    What is a bargain for anyone?

    Theoretical scenario. If you buy today for 5 what cost 20 yesterday, is that a bargain? Not if tomorrow it costs 2, but yes if tomorrow it costs 10. So to judge a bargain you have to look backwards and forwards, not easy.

    Nevertheless, it’s always satisfying to buy cheaper today than yesterday. And in one sense it’s still a bargain (compared to the past) even if it turns out to be cheaper tomorrow.

    I think it’s also obviously a bargain if you get a high yield for little risk, for example an above average rental yield on a property with very reliable rental income.

    I think there are bargains to be had in Spain today, especially if you have Swiss Francs. But there is also lots of over-priced rubbish on the market, so you have to be very careful. The Spanish property market is not very efficient for lots of reasons.

    The big problems with bargains in Spain are the high transaction costs and the pesky tax man.

  • #115001
    Profile photo of Anonymous
    Anonymous
    Participant

    I had dinner the other night with an old real estate hand in his ’50s who mainly manages real estate funds in the UK, but is now looking at Spain. He gave me this great definition for a bargain:

    If the price is below it’s replacement cost, and there is a market for it, then it’s a bargain.

    I thought that was a very pithy definition. 🙂

    There is plenty of property in Spain for sale below replacement cost with land at €0, but nobody will ever buy it so it doesn’t matter how cheap it is, it’ll never be a bargain. But if it’s product there is demand for, it’s a different story.

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