February 4, 2009 at 9:52 pm #54721ozmunkyParticipant
Thanks everyone for your posts a month or so back.
There is a spot I know pretty well in Marbella in between the Coral Beach Hotel and Victor’s and every year I check whats going on down there.
Looked last year at a flat (2 bed 1 bath balcony etc) almost first line but with a sea-view in the Coral Beach apartments which is very (really very) dated and needs work but not an overly large amount – maybe 50k.
When first seen in 2007, asking was €720k and last August was €650k and its still at €650k when checked last week.
I think this is overvalued by €150-100k at least probably more.
To me, given market conditions and the condition of Spain in particular (unemployment 14% etc) — why arent property prices at May 2004 like they are in London ? (or even 2005)
Appreciate this stuff is a discretionary purchase and for some, immune from the usual pressures.
I reckon its down to the nationality (and economy) of the seller — who in this case is German and has a different outlook on property due to resilience of German economy thus far unlike the UK economy.
Would it be when the Eurozone as a whole (incl Germany) starts to really hurt thats when Spanish property deflation on the beaches will gain speed ? — as the locals seem to be in quite a spot of bother.
Surely the “beach location will always hold, no bargains” attitude must break sometime?
To me, if you wait not too much longer it will crack wide open — it simply has to given the layoffs in the City etc and business in general is way down. The near term economic outlook is terrible.
Any thoughts from the more experienced folks ? (Inez ?)
Regards & Respect To All
February 4, 2009 at 10:46 pm #89965InezParticipant
Hi Munky, youve really answered it yourself and it all comes down to if the seller HAS to sell and if the property has equity at the real price.
Then there is a deal to be had.
More deals are coming on faster but not as quickly as I would have expected given the media scaremongering with everyone across the world having lost their jobs! 😆
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