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Hello due to business commitments I will be looking at buying a 3 bedroom villa /apartment in the Marbella region , I will not need to move until early next year can some one please tell us how long does the purchase take to complete ? should i hold off until winter in the hope of a price crash ?
Sincerely Mark & Sarah 8)
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markandsarah wrote:Hello due to business commitments I will be looking at buying a 3 bedroom villa /apartment in the Marbella region , I will not need to move until early next year can some one please tell us how long does the purchase take to complete ? should i hold off until winter in the hope of a price crash ?
Sincerely Mark & Sarah 8)
Certainly hold off, rent for a year. Research ,research, research.
Do not believe a word agents tell you. There is never another buyer ready to pay a deposit at 6pm that evening. Prices are not rising, they are falling dramatically where there are any sales.
Be careful and pick a good highly recommended lawyer, read this forum everyday to see latest pitfalls and recommended lawyers.
Caveat Emptor.
To answer another of your questions”How long does a purchase take” I would ask you ,How long is a piece of string? It all depends on the property that you consider buying, is the building finished? , if not you could be talking about years. Is it a resale and the seller is desperate to return to country of origin ? then it could be a week.
Hope this helps
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markandsarah
good advice from 135.
if you buy at the moment, you could lose a large amound of money. Nobody really knows the extent of the crash in Spain, or the recovery time?, and as long as prices are still falling i think it’s safer to rent. You would then be in a good position to pounce when things bottom out.
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markandsarah wrote:Another question
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Is there any where in particular you can purchase repossessions for cash? such as Local auctionsM&S
There are such auctions, but they tend to be sewn up for the mafia, or as a Spanish lawyer friend of mine calls them “Las Ratas” The Rats. Very difficult to get good info, but not impossible.
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I second that -good advice from 135.
I hope you consider renting, and if you do, bear in mind that there are a lot of people struggling to pay their mortgage and desperate for rental income. With that in mind, ignore the silly rental prices and bargain hard. When I lived in Sotogrande, some of my neighbors were paying E2500/month rent. I paid E1000 for the same property a few doors away -the difference was that my landlord saw that it was better to get the E1000 per month that have his property empty like the majority.
Also bear in mind that most landlords will not give you back the deposit so stop paying rent a few months before you leave.
I do not particularly enjoy renting, but I would estimate that I have saved my self a couple hundred thousand euros by doing so, and am now not stuck with a property that would be almost impossible to sell.
Trust nobody, especially not the English speakers, never take anyone’s word at face value and expect everything financial to be very different from the UK.
I wish you the best of luck. -
mark&sarah.
first off the advice thats already been given is quite correct.
Although it is worth noting that although prices dropped quite a bit from 4th quarter 2006 to 4th quater 2007 in marbella. from then till now supposedly, prices in Marbella have started rising. I beleive it was from an article in the Sur from last week or the week before.
There are also areas just outside of marbella, 5/10 minutes travelling distance where you might get more bang for your buck.
Rent first, and shop around.
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Good advice from the above. Should you decide to buy, make sure the building is legal, with Licence of First Habitation (LFO) in place, stamped by the Town Hall. Renting is by far the best track to go down. Buying in Marbella just now could be likened to dipping a toe in Hell…. you’ll probably have your toes burnt, big time. 😉
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markandsarah, the advice given is good advice, my advice would be not to buy at all in Southern Spain and if you do then wait at least a year or two. Spain is entering into recession, prices will fall much further, there is a huge oversupply of similar properties, prices are still overvalued by 30% in many cases, ask what commission is included in the purchase price (ask for evidence), many agents will still not tell the truth (they are very convincing though).
It’s a minefield down there and on the Costa Blanca, just be careful, but seriously think about it and don’t rush.
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Once again thanks for all the advice we are looking at making a long term investment and do not wish to rent, i have 6-9 months to decide i guess we should get a clear indication of the market by late spring 09 its going down but how far it drops only time will tell the long wait could be in my favour 😉 the spanish sun is calling me LOL but i will have resist a little longer 😀
Mark
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If you think you need finance it would be worth a good talk to an advisor as criteria has changed hugely and continues to do so – this may affect your budget.
I agree with most of the postings above, its only going to get worse. I dont know where they got that nonsense about Marbella prices rising – on what was it based???
However, owners in Southern Spain are a mixed bunch. Some wont need to sell and will hold out for their price, others will need to and already their prices are at rock bottom – ie to pay back the mortgage and few costs. These properties wont be any cheaper unless they go via official auction – and half priced villas will not be seen on the open auction market!
So – keep an eye on things and if you see what you are after for the price its worth to you, then put in an offer 20% below that and negotiate. Hold cash in front of their noses and keep your steel
Good luck – its really hot today!!!
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I have read with interest your enquire, I work as a Lawyer here and things are improving very quick in the area on Marbella , we have had very bad press for the last 3 years but we are coming to the end of the tunnel. What regards to the time to complete a transaction, all depends if you need a mortgage or not, in case not the transaction can be completed in 15 days. What regards to the property market, now it is very weak and it is a good time to buy as there are a lot of people who can not afford to pay the mortgage anymore and they are keen to sell for a lower price, there a some bargains which are worth to invest, so you are in a good position overall.
Regards,
Fairwaylawyers.com
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markandsara
there are desperate people who will try anything to convince those half interested that now is a good time to buy, lots of bargains etc. I would take this with a pinch of salt. With the emerging mess, developers going bust, buildings not finished or even wanted, demolition orders, court cases stretching out years, i think it’s likely to get worse before it gets better, and prices will more than likely reflect that. I would have thought it will be two or three years minimum before we know the extent of what’s happening now?
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fassulas wrote:
…. we have had very bad press for the last 3 yearsI totally agree, these journalists are absolute rotters for reporting about all those corruption trials, arrests of town hall officials – and mayors.
Just where is the respect for the ‘institution of the Town Hall’?
Still, what can one expect from blokes who live in flip flops.
fassulas wrote:
…but we are coming to the end of the tunnel.Careful ….. I think I hear a train coming.
fassulas wrote:
and it is a good time to buyYes, from a lawyer’s point of view I’m sure it is.
But from a purchaser’s point of view, do you not think it is wiser to wait? -
ha ha I had to laugh at the lawyers post. DO NOT THINK about buying until the point of maximum gloom in the market, probably still 3-5 years away when prices are half what they are now, it will be like the end of the last crash in the UK around 1990.
I remember the BBC journalist saying that property prices had been stagnant for years ‘have we seen the end of the days when a property would increase in value?’.
The property market is flooded with chancers which is why it lurches from boom to bust. The positive side of this is that it allows you to sell high and buy low if you can hold your nerve.
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I have bought a few properties in Spain & assisted my friends in buying. I have never used a lawyer in buying or selling. For reasons
1) I don’t have confidence in their integrity. ( I do have Spanish lawyer friends & they agree)
2) Lack of colegio de abagados to act.
3) The fees that they charge is totally out of proportion to work involved.
4) In cases they only make things difficult.
5) Lack of communication on their part, irrespective of how stressful the customer feels.
6) Will not trust them to forward them with the completion money, client account or not.
7) Demanding fee upfront when the property is not going to be ready for say 24 months.
8) The developers have a standard contract for all its buyers. The lawyers acting for you cannot get the contract clauses changed for a buyer.
I can go, but I wont.
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Fassulas, I would be very interested in your reaction to the article that shakeel posted in the thread “Risk against rewards”
Here is the link:
http://www.surinenglish.com/20080724/news/costasol-malaga/roca-from-tell-truth-200807241301.htmlPlease post your comments.
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@Inez wrote:
I agree with most of the postings above, its only going to get worse. I dont know where they got that nonsense about Marbella prices rising – on what was it based???
That was myself. I did say supposedly. It was on the local television about 2 weeks ago. It was something along the lines of, after a 30% drop of the last 2 years, prices have this years increase by 2%. I also believe it was based on the price for the town not the municipality.
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Hello to All,
Thanks for your comments but I think you did not understand my points:
1) good time to buy, there are a lot of people who are asking for 30 % or 40 % less than 2 years ago, there are developers who are asking just for the half of what they were asking 1 year ago. If the prices are going to conitnue dropping, I do not know I do not have a magic ball in my desk.
In any case , now a buyer has the opportunity to choose the property he wants for the price he wants to pay.2) Optimistic, yes because after 3 years of bad yellow press , I think it is enough or not??, I live in Marbella and I think this is wonderful place to live, we have had corruption with the politics ,it is very bad but unfortunalety happenss every where , in the UK as well. This is not an excuse . In any case the PGOU in Marbella is going to be approved in September and this will bring a lot of estability to Marbella.
3) In conclussion, I believe Marbella is a great place to live and invest once the pgou is approved.
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Speaking to someone I know and they said they have dropped their asking price (in marbella) from 1.1 million euros to 800,000. I was amazed that they had asked that in the first place. No expert but I would say it is only worth about 600,00!
Flicking through a spanish property magazine yesterday and many developers were offering rent with option to buy. Others were offering 10% deposits or pay the deposit monthly.
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@katy wrote:
Speaking to someone I know and they said they have dropped their asking price (in marbella) from 1.1 million euros to 800,000. I was amazed that they had asked that in the first place. No expert but I would say it is only worth about 600,00!
but thats just it. when people (whether agent or vendor) pull figures out of thin air and then drop the price by 28% after X amount of time, does it means REAL prices are dropping?
This person might of bought 4 years ago for 300.000€ and might in the end sell for 450.000€. So either its dropped 65% or he/she has sold for 50% more than he/she bought it.Normally when the media quote figures its based on information supplied by the notary. I know undeclared monies, etc… but these are the only facts available.
We’ve got a property on sale for 349.000€ (not marbella). A year and half ago it was on the books for 415.000€. We had an offer of 280.000€ 2 days ago. The owner bought in 2002 for 134.000€.
Huge drop or nice profit? -
@Fuengi wrote:
but thats just it. when people (whether agent or vendor) pull figures out of thin air and then drop the price by 28% after X amount of time, does it means REAL prices are dropping?
This person might of bought 4 years ago for 300.000€ and might in the end sell for 450.000€. So either its dropped 65% or he/she has sold for 50% more than he/she bought it.Normally when the media quote figures its based on information supplied by the notary. I know undeclared monies, etc… but these are the only facts available.
We’ve got a property on sale for 349.000€ (not marbella). A year and half ago it was on the books for 415.000€. We had an offer of 280.000€ 2 days ago. The owner bought in 2002 for 134.000€.
Huge drop or nice profit?Most sensible post I have seen on here. At the end of the day there has got to be winners and losers otherwise life would be too easy, and a loss on expectations is not a loss.
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