Re: Re: The Spanish Property Market in 2012?


GJ: I have spoken to Taylor Wimpey. I feel the price is higher than I would be willing to pay. The block is released in different phases. This phase is near the San Perdro main road South of N340 but not as near as perhaps the final phases would be. There are no storage units and it is my undestanding that the blocks will be in a “U ” shape facing north i.e. not sea facing. Ground floor will have shops & if a Bar is opened the buyer can kiss a quite life good bye. The buyer will pay VAT at 4% on the deposit and exchange of contract say 30%. The 70% of the price will be at the higher VAT rate and there is no mortgage facility offered by them.

The move by Taylor Wimpley is a clever one for reasons that
a) They must have bought a prime land at a very good price as there is no mortgage on the purchase so a heavy discount would have been extracted..
b) The final phases i.e. closer to the beach will be priced much higher than the current phase that is released
c)They will get a lot of sub contractors tendering at a very competative price.
d) Their Market is mainly UK buyers so they are cushioned from the Spanish buyers.
e) They must also be expecting further € weakness as there is generaly agreement on this in the financial press.