Mallorca Property Partners Blog

This is an addendum to our latest Mallorca Property Update which brings our October report up-to-date. Both reports discuss the direction of the Mallorca ( Majorca ) property market and detail the buying opportunity that is apparent at present.

This post talks more about the “tactics” or approach you should adopt if you are to secure a good deal on a property that is a solid and valuable long-term investment.

• Don’t necessarily go for the most obvious “bargains”. This is a point I made in the October update. It is an important one so I am repeating it here. Don’t necessarily go for the “best  bargains” judged purely in terms of % off original asking price. If you really want to buy based solely on the biggest price reductions then Mallorca is the wrong place to look – you should be looking on mainland Spain! However the best long-term investments and the ones that will “bounce back” most quickly when the economic environment improves will be the good quality properties in the most sought-after areas. Mallorca as a whole is a good bet, but there is a lot of variety within Mallorca and the areas I recommend focusing on are those that have been the most sought-after for many years. You can read more about this in the October update linked above.
• Be in a position to buy. Obviously the more serious the vendor thinks a buyer is the more seriously he will treat them and any offer they make. Buyers who have cash or have agreed finance in place are obviously in the best position. This does not mean however that you need to be rolling in cash to take advantage of the market at the current time. Whilst credit from banks is still tight, they are (believe it or not) eager to get things moving and will lend money to people who can show that they can meet interest repayments and that they are buying a property at a sensible price vs. the mortgage. This latter point should not be a problem at present as bank valuations are generally showing properties to be of a higher value than they can be bought for! There is one mortgage product in particular that allows you to purchase in Euros without exchanging the bulk of your Sterling until the exchange rate between the two currencies improves. You can see more about that on our web site here – Sterling / Euro mortgage product for properties in Mallorca – and also on this blog posting – Illustration of Sterling / Euro Mallorca property mortgage.
• Be prepared to move quickly and be decisive. Whilst the market is slow and properties generally are not moving fast, the genuinely good deals do move quickly. You need to be prepared to come out to Mallorca at short notice if you are to stand the best chance of getting the most interesting properties. If you have MPP looking out for opportunities you will be tapping into years of experience and an extensive contact-base within the Mallorca property market. We are the longest established no-cost property finder in Mallorca and have an enviable network of estate agent partners covering all areas. So we have more comprehensive coverage of the good property opportunities than any conventional agent. Furthermore we can assess opportunities on your behalf in advance, so that if you do visit to view it will be for good reason and you are less likely to have a wasted trip.
• Listen to the professionals. Of course estate agents are employed by the seller so buyers often take their advice with a pinch of salt, and in normal times this is sometimes the best approach. But these are not “normal times”. Estate agents are eager to make deals and will advise their clients (the owners) to negotiate to the maximum they think is realistic in order to get an agreement on price. So if the agent says the offer is “far too low” or that your assessment of the current value of the property is simply “not realistic”, this may well be the case. However, if you use the services of Mallorca Property Partners you can be assured of an experienced view on what offer should be made and what is likely to be accepted. We are completely independent, and our credentials and reputation are established on providing a valuable service to you as the buyer. We do this a) by finding you the best properties b) ensuring you get accurate information and genuine objective advice to help you in your decisions and c) providing direct access to all the supporting services and property professionals you might need at any point during the search and purchasing process.

If you are interested in buying property in Mallorca or if you have further questions on the market please, email me, or fill in the search form on our web site by clicking here – Mallorca property search. I hope this has been of interest and look forward to hearing.

Further information

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