Returning to the topic for a mo, maybe Chris and the other agents could tell us how they think the oft quoted 1.5 million unsold properties in Spain will be sold and how long this will take,
mmm. always an interesting one. Let’s keep it to 2 points.
1. how long is a piece of string?
2. is there demand for those properties?
Many are in areas where there is no (real) demand, as the locations are just terrible. As many of you have probably read it could take 3 to 4 years for this stock to be bought up. All these forecasters are basing this on is the level of new property sales from the last years. I think many in poor locations will never sell unless they are price at foolishly low prices that someone will buy to simply sit on and wait till the market really picks up.
and as I’ve pointed out several times before would they agree or not the point I’ve tried making that once the buyer has bought, the property would need to rise in price 20 maybe 25% to break even should they try and sell and if so, how long would they expect that to take.
well lets see:
you buy for 100.000€
purchase tax: (11%) 11.000€
so far 111.000€
on selling you have to pay your plus valia,etc… after a year, so lets say 500€
if they are non-residents and don’t want to pay up for the 3% that needs to be added into the price.
In theory that would mean they need to sell for approximately 116.000€ to break even.
This is of course assuming you do not use an agent when selling. If you are then any agency will charge anything from 3% up to 10% (according to some posters). Then its up to the vendor to see whether they want to use an agent or not.
In regards to how will it take to sell the property. Comes down to how well priced the property is compared to its competition and whether the agency knows their ‘stuff’.
We doubters for our reasons are quite right though in our sceptism of the Taylor Wimpey article since thet are developers who’ve really struggled globally, likewise as Chris said quote ‘he is hardly likely to post anything negative’ so if that’s the case how dangerous could that be if a new client walks in and asks about the furure for Spanish property, will he be led to the negatives as well as the agent’s talking-up of the market?
Of course an agent is going to talk up the market. If we don’t sell we don’t make money. But one thing is pointing out what we see as good opportunities and something is is bullshit.
We all read/seen/heard the buy an off-plan with definite rental potential and our chart shows prices increasing by 20% per year for the next century.
Another thing is showing a property that ticks the boxes you are looking for, values up above the sales price by 20/30%, is better priced than competiting properties and so forth, and what sort of rental potential it has.
if this is too vague please ask me to clarify. got to shoot out will try and answer in a few hours.