We all know the current situation with the property market. Prices have been falling steadily for quite some time now. The more experienced buyers know that a falling market opens the opportunity to buy a bargain that in the medium to long term will become a great investment. We have seen this happening every time the economic circle has a downturn, so this is the best time to buy. For those who don´t know the local market it is difficult to recognise when a property is a real bargain.
Here are some tips for anyone who wants to take advantage of the current climate and bag one of those deals before prices climb up again.
1- Firstly narrow down the area. The old cliché of location, location, location is there for a reason. Some areas depreciate less because there are always desirable spots in any case. This coast has different areas that offer different benefits. Decide those "must have" and find the area that covers your needs. You can then become a real expert on the area and track down the correct pricing.
2- Set out a budget from the start and stick to it. There are many properties on offer and it is easy to fall for a more emotional purchase rather than an investment which could tempt you to put your budget up spending more that you need to.
3- It is essential to find a good Estate Agent locally that can guide you through the prices. He will be able to show you comparable properties to those of your interest so you can identify when a price is good. He can also advise you on the average price of the square meter of the area and that will help you to see whether you are in front of a bargain or not.
4- Take your time finding the right property but if you see a bargain in the area you want, within your budget and it makes a good investment buy it there and then. Don´t forget you are not the only bargain hunter out there and if you don´t do it someone behind will, taking away your chance. It is perceived that there should be 1000s of bargains out there but the reality is very different. Private owners cannot afford to lose a lot of money for the sake of a sale and although they want to sell there are not going to give it away. Corporate owners (i.e. banks), tend to repossess those properties that had the highest mortgages (for obvious reasons) and the cost and time to repossess in Spain is very high, making to find a bargain property with them also difficult. Keep your eyes open, work closely with your Estate Agent and be ready to pounce when that opportunity arises.
The Property Overseas Group has prepared a selection of Distressed Property Sales and Bank Repossessions that stand out and offered below market value to comparables. If you are interested in viewing any of these or you would like further information, please visit our website www.propertyoverseasgroup.com