May 8, 2008 at 11:46 am #53929
With all of the current financial hassles, plus the falling number of sales, ( and I assume customers ) coupled with the excess supply vs demand scenario,…… what is the forum contributors opinion on the current level of prices…? I am looking specifically at new builds….
To be honest, I do not see any ‘dramatic’ reductions in advertised prices via web pages or road shows. Of course I’ve seen the PW campaign about ‘zero cost ‘ inspection trips, and £80k appartments,….but there are surely more developers , agents who need to shift the oversupply..?
Or am I mis reading the situation..?
I’d like to know what you guys think..?
May 8, 2008 at 11:53 am #82265
You wont see a dramatic reduction in advertising as developers dont want to give the impression somethings wrong – it may have the adverse effect.
Most agents will have developers on the books who will deal, most want to shift several units and will discount heavily to do so, some are more flexible but its a one on one approach
If you are looking to buy, go the development and haggle. Or ask your lawyer to. In some cases only certain agents will have the information re the discounted units and in some cases its where previous buyers couldnt afford to complete and so the developer discounts by the percentage received from the previous buyer.
There are deals out there and the other tip is if you see something then jump on it and be prepared to move fast – cant see it and not make a move for a week or so otherwise it will probably have gone
May 8, 2008 at 12:00 pm #82269
“You wont see a dramatic reduction in advertising as developers dont want to give the impression somethings wrong – it may have the adverse effect.”
What is mortgage situation in Spain? Is it really almost impossible to get one nowadays or it is just a bit harder than 2 years ago when it was too easy to get one?
May 8, 2008 at 12:04 pm #82270
Whatever discount you may be offered don’t buy an uncompleted property…it may never be finished in the present economic climate. Many developers put their prices up again this year (unbelievable!) so make sure what price the properties were when the new builds were first advertised. I have heard the developers are not budging a cent, typical spanish logic!
May 8, 2008 at 12:47 pm #82282
Mortgage situation is all over the place. One minute buyers get a yes, few days later its revoked!
Banks are now doing the checks they should have been doing all along and the BOS is carrying out inspections in the banks as well!
So, yes harder to get one! They are wiser to the false paperwork that was rife, either that or as I suspect they are not turning the blind eye ay more!
May 8, 2008 at 2:34 pm #82286
Excellent replies…………all of them.
Thanks for taking the time to read & reply.
May 8, 2008 at 2:52 pm #82287
“There are deals out there and the other tip is if you see something then jump on it and be prepared to move fast – cant see it and not make a move for a week or so otherwise it will probably have gone.”
Commercially wise words from Inez. I however would like to stress that no matter how quickly you need to move, do not over look the normal caution, due diligence, legals, etc. A subject well expanded on the forum.
At the height of the property boom people were in the same position, buy now or you will lose the unit. The pressure in the above situation is under different economic circumstances.
May 9, 2008 at 8:25 am #82302
Very true Shakeel and I should have put that in the reply. However now with Decree 218 in place anyone buying either via agent or internet can demand the nota simple and other details from the seller.
Whilst not cast iron as we know in some cases, it will afford at least a time saving device and then get a good lawyer to check paperwork prior to notary
May 9, 2008 at 8:44 am #82306
I am glad you agree Inez. Before rude, abusive & I know it all postings are made.
May 9, 2008 at 9:03 am #82310
KATIE: I have heard the developers are not budging a cent, typical spanish logic!
Got to agree with you there Katie. The developer I mainly sell for are a huge family business and have built 25000 places over the years. They havent taken off 1 Euro and won’t. They have the mentality that their properties are of too good a quality to offer a discount. They “announced” an exciting new project of villas recenlty – starting price 700,000 Euros!. And my enquires for these has been a big fat zilch!! Suggested that they start to build smaller places to lower the prices and it falls on deaf ears. They did offer a free furniture pack in December and then withdrew the offer at the start of the year. They seem to be living in a different world.
May 9, 2008 at 9:28 am #82311
Not a new build, but someone I know told me he put his house on sale 2 years ago. Bank valuation 750,000 so he asked 690,000, last year reduced it to 640,000. Still not having sold he decided to advertise privately at 595,000 or offers. No callers after 3 weeks of advertising!
So what is happening, not sure. Myself and many others I know feel that at the moment, that no-one is interested in buying unless its practically a give-away. This is what happened in the early 90’s even bank foreclosures did not sell.
It was said on Spanish TV a few weeks ago it has been Developers who have led increases for some years and then re-sales hiked their prices. The theory being that someone saw a new build advertised at 220,000 and the private owner thought ‘mine is bigger and better than that one’.
May 9, 2008 at 9:34 am #82312
One development in the Canaries we looked at has also just increased the price. All our enquiries for making offers on other new builds and units within refurbished complexes have also been rejected immediately.
May 9, 2008 at 1:04 pm #82320
“One development in the Canaries we looked at has also just increased the price. All our enquiries for making offers on other new builds and units within refurbished complexes have also been rejected immediately”
If the oil prices go way up, Canary Islands will be almost unreachable at a decent flight price.
May 10, 2008 at 6:04 pm #82338
With a school age daughter tied to school holidays I’ve never experienced the pleasure of a decent flight price anywhere! Last Easter 3 return flights from Birmingham cost us well over a grand !
May 10, 2008 at 6:15 pm #82339Villan wrote:With a school age daughter tied to school holidays I’ve never experienced the pleasure of a decent flight price anywhere! Last Easter 3 return flights from Birmingham cost us well over a grand !
There are plenty of flights to Madrid in August for less than 30 Pounds/person. From there you can take the train to anywhere in Spain.
Of course it is a hassle, but going from a grand to one hundred pound for flights (plus say one hundred for trains) is not bad…
OK, if you only want to go to the Canary Islands, then what I just said does not help…
May 10, 2008 at 6:31 pm #82340
A friend of mine took an AVE, from Malaga to Madrid €67, return and if he had bought it in advance it would have been much cheaper.
Check out RENFE, website.
May 10, 2008 at 6:35 pm #82341shakeel wrote:A friend of mine took an AVE, from Malaga to Madrid €67, return and if he had bought it in advance it would have been much cheaper.
Check out RENFE, website.
It can be about 27 Euros if you buy in advance.
I checked last week the RENFE site.
May 10, 2008 at 6:46 pm #82344
I was aware that it could have been that low. As I was not sure I did not want to quote an price which would have been way of the mark.
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