My views: Sotogrande property, the Spanish property market. Lifestyle golf, boating and padel tennis. Also Sandbanks,Poole Dorset my home town
Monday, September 10, 2012
Spanish property : Should I - Shouldnt I
To buy or not to buy
Growing concern over the Spanish economy is keeping prospective buyers in limbo.
The recurring question from all who come to see Spanish property is "has the market reached the bottom".
My response is that prices will still drop further but even at present there are real bargains to be had that are already rock bottom. Not so many to be found in the traditional upmarket areas because the wealthy cling on to their values for the simple reason they can afford to. Having said that there are a few and your 250,000 euros that would have bought you a distant sea view from the wrong side of the motorway may in this market buy you a waterfront marina home on the wealthy Spanish estate of Sotogrande.
Last year in Sotogrande I could count the true bargain deals on 1 hand and this year there have not been too many. People have dropped their prices by 30% believing that they are giving away their beautiful homes. The reality is that to sell the prices need to have dropped by 50 to 55% of the 2007 value. So when we eventually do get the villa that was once 2 million now 1 million or the 500k apartment now 270k there is a slight chance of finding a buyer but still not a gold rush.
This month we are still offering a modern first floor waterside apartment for 250,000 euros that was 525,000 and the owner is willing to throw in his 90,000 euro 10 mtr mooring and we also have a beautiful contemporary style villa in the heart of Sotogrande that once was 1.7 million which the owner will sell for 770,000 euros. Yet still people hesitate.
Why hesitate if you are buying into a lifestyle. If you buy for lifestyle you need to be certain that you are in for the long term. If you have been here a few years and really want to settle you need to establish your long term goal as its no good buying a villa if you intend in 5 years time selling up and buying an apartment as part of retirement. As a family man who moved here 5 years ago the lifestyle for us means there is no reason to go back to UK we love living outdoors, we play more sport, socialise 5 times as much and feel so much happier. The real problem here lies in the over priced property still on the market and agents showing these properties simply to prove to the client that the property they really want to sell them is cheap. The biggest issue for buyers is the little time they have to see property and the fact that they are usually not around when the bargain becomes obvious. The last home i will be looking to buy in my lifetime is the waterfront pent house apartment set in beautiful grounds hopefully I will bag a bargain but it will be the property that doesnt need to be an investment and will hopefully see me through a very happy retirement.