Reply To: Long term, things don’t look too bad


Fuengi (Andrew)

@Just Frank wrote:

The slow down is the only option and one day the market may just catch up.
In poor areas I fear that this may be a very long time indeed.
One additional problem will be crime in developments with only limited occupancy.
Just had a friend who came back from Majestic Hills and breakins are common but only looking for cash.
Slept with a base ball bat alongside his bed and next door he had a hammer.
They will need to get on top of this or the way forward will never be good.
Just Frank 8)

this problem will only stop when these devleopments are no longer seen as only holiday homes. at the end of the day the people that break-in are opportunistic thieves.
and although i am quite positive about southern spains future, i don’t know if the market will catch up with prices. The reason i say this is that so many people bought at the end of the property cycle that they are simply never going to get a full return on their investment.
An example:
Ms X approached us about selling her off-plan property near Mijas Golf. She purchased it 2 years ago for 280.000€ (all cost incl.). ALthough from the plans & show flat it will be lovely, she can not expect to sell at anything close to that price. Problem is she can’t complete. Even without knowing hte original price, we valued it at a maximum of 210.000€. More than likely it will sell for about 190.000€.
Problem is she put in 30%, around 80.000€, so whether she sells it or pulls out she will have lost her entire investment.
At the current rates the area the property is in will not develope for alt least another decade if not 2, so no matter what happens the market is never going to catch up.
Wheareas someone who has managed to big up a ‘ganga’ in the last few years in one of the coastal towns, is going to make money on their property in the next 2/3 years.