| FAIRWAY VILLA, PHASE 1 |
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| Location: HACIENDA DEL ALAMO |
| Floor space: 225 sqm |
| Bedrooms: 5 |
| Purchase price 795.000 Euros |
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| RESIDENCIAL SOL Y MAR |
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| Location: COMPLEJO - LOS NIETOS - MAR MENOR, MURCIA |
| Floor space: 102 sqm |
| Bedrooms: 3 |
| Purchase price 219.000 - 259.000 Euros |
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| FAIRWAY VILLA - ALHAMBRA |
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| Location: TRAMPOLIN HILLS GOLF RESORT |
| Floor space: 138 sqm |
| Bedrooms: 4 |
| Purchase price 299.000 Euros |
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| VILLA LOS BELONES |
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| Location: LA MANGA CLUB |
| Floor space: 390 sqm |
| Bedrooms: 5/7 |
| Purchase price 795.000 Euros |
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| VILLA LOS MOLINOS |
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| Location: LA MANGA CLUB |
| Floor space: 100 sqm |
| Bedrooms: 2 |
| Purchase price 345.000 Euros |
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| CORAL 4 E, PHASE 2 |
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| Location: HACIENDA DEL ALAMO |
| Floor space: 111 sqm |
| Bedrooms: 2 |
| Purchase price 269.500 Euros |
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Partly Cloudy
Temperature: 8°C
Humidity: 71%
Wind: WSW at 11 km/h |
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« Overview
| A BUYER'S MARKET AND THE RIGHT TIME TO BUY? |
September 11th, 2007 |
A BUYER'S MARKET AND THE RIGHT TIME TO BUY?
There are more than 750,000 British people who own a property in Spain
and if the opinion polls are to be believed a further 3,000,000 others
would like to join them. The million dollar question is, when, is the
right time to buy.
There is little doubt that the housing market in Spain has changed from
the boom years of the late nineteen nineties and early two thousands,
when sharp, often city dwelling Spaniards were buying coastal
properties for very low prices, many have since sold for a hefty profit.
On the surface, this change can be seen in a negative light. However,
these sometimes ridiculous prices and profits created a scary unstable
market, which could never be mantained. Today's market is a buyer's
market, situated in a very stable buoyant economy and political system.
Houses in Spain are stil a very good buy, by European standards,
currently increasing in value at 10% pe annum and Spain is still the
favorite choice of the British, who are looking for a place in the sun.
As stated above Spain has a very buoyant economy, with one of the
fastest growing of any of the big European countries and a very stable
political system. The Spanish stock market grew by 30% in 2006 and the
Spanish created the greatest number of jobs in Europe. This combined
with a slow rise in interest rates, both shows and predicts stability
within the economy. This must be one of the primary indicators to
consider when considering investing in a foreign country. When we look
at the Spanish property market we see a very complex picture. If we
were to believe some of the less than accurate reports in the British
press, we could be forgiven for thinking that the housing market in
Spain was in an appalling state. In fact the picture is very different
from region to region. For example the difference between the
properties demanding the greatest prices and those reaching the lowest
is fifteen fold. The houses in and around Cataluna are fifteen times
more expensive than Cuenca.
Te prices in the region of Murca are still quite low, at an average of
1,613 euros per square meter. Where one bed roomed properties are
sellng for an average price of 133,000 euros, two bed roomed, 180,000
euros, three bed roomed, 237,000 euros, four bed roomed, 277,000 euros
and a five bed roomed at 329,000 euros.
These are the average regional prices. But, in Puerto Mazarron, right
on the coast, probably due to temporary glut of houses caused by an
unprecedented building spurt, the prices are 14% below the regional
average. Bargains can still be found here and slightly inland, in the
beautiful Alama de Murcia where the prices are on average 28% lower
than the regional average. Where the houses are harder to come by, for
example in Leiva, five kilmeters from Mazarron town the houses command
59% above the regional average. There is a clear message in these
figures, do your homework and get knowledgeable Estate agent before you
buy.
Why you want to buy is also a crucial factor in where you look. Are you
an investor or do you want a home for some or all of the year? For both
investments and low cost entry into housing market, you could do
well to look inland. There are still some very good investments to be
made in the new golf complexes which are being built in large numbers
in the Murcia region. You can buy off plan at some very competitive
rates, particularly in the upper end of the market.
The companies, who are building these graded development complexes,
often around golf courses, have been listening to the buyers, they have
ticked all the boxes, providing a complete package, for as little as
155,000 euros for a two bed roomed property.
For low entry costs into the housing markets, to provide a home or for
rental potential, restoration is still viable. It is still possible to
buy a dilapidated townhouse in rural Murcia for 35,000 euros renovating
and sell it for 140,000 euros. Bargains like this can still be found in
Mula, Jumillia and Yelca, among other places.
Buying property in a Spanish city is also a very viable investment
which is as yet relatively untapped. Spanish cities have a huge rental
potential because unlike most European countries Spain has a very small
rental stock at about 15%. In Spanish cities there are a lot of people
chasing a few rental properties and there are still a lot of properties
in need of renovation.
Over the past view years the DIY retrail sector has moved into Spain,
cutting the cost of renovation and making renovation much easier.
Its not just prices that influence the choice of country, when
considering investment or major lifestyle change. The infrastructure of
the country is of vital importance and here Spain fairs better than
most. Spain seems of the time to be 'works in progress'. The
improvement in the Spanish road systems is the envy of Europe and the
new links from to the Costas in Murcia to the already establisshed road
network, makes travel to and from the numerous airports, with ever
cheaper airfares, all the easier.
Access to health care and local goods and services are also important
to the would-be buyer. Spain has an excellent health service which all
European senior citizens and children have free access to. Their cancer
care, particularly its early detection and prevention systems are the
envy of many of their European partners. Workers in Spain whether
employed or in business are also given free health care.
On the Costas, where the majority of the British live, there are
numerous British and Spanish businesses who employ English speaking
staff. Plumbers, painters, builders, architects, the list goes on and
even if you have little or no knowledge of Spanish there is little you
cannot achieve.
In short, Spain still has a lot to offer, when it comes to both
investing and living the dream. It's a buyers market and the property
is still relatively cheap and bargain can still be had if you look in
the right places. It's a modern liberal democracy, with economic and
social stability. It has a modern health care system, a modern
infrastructure and a long established and well tolerated international
community.
Is now a good time to buy? I think so.
PROPERTY & GOLF NEWS, JULY - AUG - SEPT 2007
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