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A very Happy New Year to you, I hope you are not being too badly affected by the snow and cold weather. In fact there is a cold snap in Mallorca too at present with snow in the mountains, so we are not completely escaping the wintery weather. No doubt the blue skies will return soon though and if you are still thinking of buying a property in the sun then 2010 looks set to offer a similar level of deals and opportunities as the second half of 2009.
In essence the market conditions have not changed during this time. There is hope of economic recovery but precious little evidence of such in either the UK or Spain. Some sellers are prepared to weather the downturn and stick close to asking prices, but most are prepared to negotiate and some are offering substantial reductions. Our last market update gave examples of some very good buys made in 2009 – purchases that should represent excellent investments as well as being super homes. If you missed it you can read the report here : Dec / Jan Market Update.
The report also has links back to previous market updates with guidance on buying tactics. It is actually quite easy to pick up a property for significantly less than the asking price, but this does not necessarily mean it is a good purchase. The final price relative to comparable sales values in the area and to the future investment potential of the property are the important things to assess.
Furthermore, unless you are buying solely as an investor, it is important to remember that this is a lifestyle purchase and should fit your personal criteria too. Finding a property that will prove to be a good investment in this context can be more challenging. If you have not read the previous reports they are worth looking through, the advice in them is just as applicable now as it was last year.
As predicted the seasonal factor is also affecting prices and more reductions are being advertised. Here are a some that have been added to our blog since our last update.
≈ Sea view villa with separate guest apartment, Santa Ponsa. This property is in the market for Euro 990,000 which is a keen starting point for a property with good sea views in this location.
≈ Villa for sale in Mal Pas-Bonaire. Reduced from Euro 595,000 to 450,000. Located in Bonaire which is one of the best residential areas in the north of Mallorca, this villa could be a very nice holiday home or permanent residence.
≈ 3 bed apartment for sale, Puerto Pollensa. The holiday apartment sector has been one of the most affected by the recession, particularly properties at the more affordable end of the price scale. Rather than go for the biggest reductions in the lesser resorts our advice is to go for the best-established and most popular locations such as Puerto Pollensa. There are still some very good opportunities and future prices will strengthen more quickly. This apartment is an example – the asking price has been reduced from Euro 335,000 to 295,000.
≈ Apartment for sale, Puerto Pollensa. Another example of a good apartment in a very nice community. This one has been reduced from 380.000 Euros to 320.000 Euros.
≈ Substantial price reduction on country house in Calvia. This property is in probate and consequently has been reduced from Euro 3,600,000 to 2,100,000. It needs some works to the house and grounds but the location warrants the investment. Prime estates in this area are highly sought-after regardless of the economic slowdown.
These are just examples of what is available and, as I say, it can take time and a lot of work to find the best opportunities that specifically match your own criteria. Using MPP can fast-track you through the process – this is what our service and network is designed to do. So if you are coming out then please do email or call me a few weeks in advance and we will start looking into the options for you.
I look forward to hearing.
