adiep, from the people I meet JP1 is fairly typical of sellers at the moment. For most poeple selling, it is their holiday home that we are talking about. Most people did not buy at the top of the market and take out huge mortgages. Most people thought about what they were buying and bought something they would enjoy using as a holiday home i.e it’s in a good area that other people will also enjoy. Most people are are simply selling because they have had all the use they want out of their holiday home and it’s time to move on. They understand what has happened to prices and whilst they may, from a financial point of view wish they had sold a few years ago, they accept their fate, accept that they have had a few more years use and now want to sell at a price that they are comfortable with.
For JP1 at current rates of exchange that is 200k.
Now, having said that there will be some people who because of their financial situation need to sell a bit more urgently than people like JP1 and without knowing where his property is I suspect that if one looked you could find two or three cheaper apartments than JP1’s in the same complex. It is these type apartments that are selling. I don’t know how long it will take but lets say there are 3 better value apartments than JP1’s and they all sell this year. Jp’s apartment then becomes the best priced apartment available early next year and will sell.
You started a thread about some houses near Gibraltar on the market in excess of 200k and asked what you should offer. You need to research that area and I would suggest you will find similar houses priced anywhere from 180k to 250k. Clearly the one’s at 180k are being sold by people who have looked at what else is on the market and priced their properties to sell. They will be keen to sell and probably take offers at say 150k. I think the advice you received was to offer 50k which is just plain bonkers.
I think the question you really want answered is, are we at the bottom of the cycle or will prices fall further.
I am aware that properties are selling on the Costa del Sol and therfore it’s reasonable to suggest that we are at or near the bottom. I think we are seeing a normal, gradual climb out of recession and it’s only when we have the chance to look back will we see exactly where the top and bottom of the market is.
I suppose there is always a chance of something drastic happening to the worlds/Europes/Spain’s economy and perhaps the collapse of the Spanish Banking system and Euro etc would make me regret saying what I have and you would look back and say that now was a very bad time to be buying. However, it’s my honest opinion that that is not going to happen and this year will see more sales than last year and all the very best bargains will get sold. If you do not buy now you will be looking at properties that are not quite as cheap.
I bought here over 12 years ago and to be honest did not give much thought to whether or not prices would go up or down. I had some spare cash, fancied an apartment in Spain which I could use for a long time and bought something that I enjoyed for many years before moving over here and I now enjoy living in it. Buying a holiday home is a bit like buying other “luxury” items such a nice car. If everybody looked at buying a car in purely financial terms nobody would buy a brand new car because we all know it immediately goes down in value when driven out of the showroom. I am actually looking at changing my car and i’m thinking now could be a good time to buy with dealers wanting to do deals. Maybe things will get a bit worse before they get better and if I hold on I might get an even better deal but I know I am not going to get the car I want at 50% of today’s prices and as I want a new car now and have the cash available I think I will get one now. I would suggest you adopt a similat attitute to your holiday home, do you reserach, bargain hard but in a sensible way and get yourself a nice place that you can start enjoing.