Well it’s not me asking the question. This time it’s Citywire and Linton Chiswick reporting on what they say is rare good news for Spanish property owners.
So I’m not going to stop them. Lots of stats here, and comments about good value, plus firm buy investment, and views on how the market can only fall so far.
Mmmm… there’s plenty of argument out there saying that now could be the time, and certainly our buyers are more confident, happy in their purchase and referring more friends and family than at any time over the past several years.
Long may that continue, this is just more fuel to the fire, but as we will ourselves say again and again, it’s not a bonfire we are after, we want a stable, proactive, consolidated market. No thank you to Mr Boom and Mrs Bust anymore please, no get rich quick scenarios, just solid, real, delivered value and a great experience of ownership will do us fine, thanks very much!
And all you investment-type, sharp-suited salesmen, please stay in Dubai or wherever else it was you went off to after 2006. You’re not welcome back.
From my experience in and around Nerja there are already loads of expats trying to get rid of their white elephants. The problem is many of them bought too high, there are no tourists for most of the year to rent them to, and they are asking prices that do not reflect the current market. They are going to lose out one way or the other for sure.
Obviously dropping their asking price might give these sellers more chance of offloading but with so many brand new places being offered cut price, they will have to swallow a loss and in some cases a substantial one.
There will be buyers trying to take advantage, and no doubt trying to start the cycle again or else why would they be buying?
That’s interesting Nick, I don’t know Nerja too well, but we are finding further west along the coast from Benaldmadena to Sotogrande, that the expats actually have an advantage over many new build projects and in fact against the likes of Bank Repossessions even when it comes to selling. Of course it depends upon when they bought, but anyone who has owned since 2004 or before, if they take into account their original purchase price, and if British then the exchange rate at the time of buying, and now the exchange rate at the time of selling…. Well some in fact many vendors can sell at price which really puts the developers and banks a disadvantage. In fact the kings of the market right now, can be seen to be the vendors who have owned for 7-8 years or more. And well, there is always someone buying and someone selling. For everyone there is a wheel I suppose, and if you have to get off you hope it’s turned in your favour, right now if you want to get on, it looks pretty good.
I agree with you totally that sellers who bought their properties more than 8 -10 years ago are definitely in a strong position. They can undercut those not in that position and still make a healthy profit. Of course many of those may not need or want to sell (particularly if they weren’t tempted when the market was booming) – but if they do they are in a great position.
My comments were about those who got on the property bandwagon too late!
Yes, well I can’t argue with that, there are thousands everywhere, who will have to hold awhile, maybe quite a long time. I suppose (looking for some silver lining in that scenario) interest rates are half what they were, hopefully most people bought with the notion that here was a property to use and enjoy for many years, and well that they do both. I think this would be born out by the fact that listing instructions are at the lowest I would say in at least 12 years.