Re: Re: The Spanish Property Market in 2012?

#111913
Anonymous
Participant

@JWhite wrote:

After nearly 3 yrs on the market and reducing our apartment on the Costa Blanca many times (we are 12 miles from the coast in a small spanish town), we have now recently sold for 57% off the price we paid in 2004.

Talk of prices only having fallen 30-40% since the peak in 2007 is not believable in my opinion, if this were true we would have got between 60 and 70,000 euros for our apartment, we got 40,000 !!!

If you sold for 57% off the price that you paid for it resulting in a sale price of 40,000 euros then you must have purchased your apartment for 93,023 euros which means that you have effectively lost 53,023 euros (£42,418). Ouch that must hurt man!.

In fact you would have lost even more than that because you probably paid the 10% sales tax on the new build or 8% on the resale of the apartment when you bought it meaning that you lost about 9,302 euros when making the purchase in the first place, which means that combining the sale tax you paid together with the loss you made on the sale means that your total transaction losses amount to 62,325 euros (£49,860).

Err… thinking of ever buying another property in Spain, perhaps when things have settled down abit maybe?