U
Unregistered
Guest
Trying to sell in Spain, anyone else having these problems?
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[broken link removed]
Hi
Re-selling off-plan units in the Costa del Sol is not currently so easy. There are a number of reasons. Firstly, agents have little interest in re-selling these units as they receive far more commission from new off-plan sales. I know of many developments where agents have been selling new off-plan units to their clients despite re-sale off-plan units being available (in the same development) at 20% discounts! If you shop around I believe you can still find good value and in some cases good initial equity. The second problem is that with off-plan investments there is pressure to sell within a fixed time-scale. If the owner doesn't resell within this time period then she/he must complete the purchase or forfeit the deposit (which is usually 30-40% of the purchase price). Many owners did not budget for the cost of owning the properties as they assumed they would sell before completion. Many realise that they won't afford the mortgage payments. Therefore, the closer the time gets to the deadline the more pressure they are under and the higher the discounts they offer. Thirdly, the commission of the agent for off-plan re-sales is usually about 7%, which eats into the potential profit. If you can find owner sellers then you can usually negotiate or split the 7%. Fourthly, with some property markets such as the UK and Germany currently under pressure, buyers do not have the same domestic equity that previously drove the Costa del Sol real estate market. Therefore, the rate of increases have cooled substantially.
However, despite all the negatives you can still find reasonably priced properties and a good lifestyle. It is a buyers market where if you shop around you can buy units at good discounts.
Regards,
Paidi
Re-selling off-plan units in the Costa del Sol is not currently so easy. There are a number of reasons. Firstly, agents have little interest in re-selling these units as they receive far more commission from new off-plan sales. I know of many developments where agents have been selling new off-plan units to their clients despite re-sale off-plan units being available (in the same development) at 20% discounts! If you shop around I believe you can still find good value and in some cases good initial equity. The second problem is that with off-plan investments there is pressure to sell within a fixed time-scale. If the owner doesn't resell within this time period then she/he must complete the purchase or forfeit the deposit (which is usually 30-40% of the purchase price). Many owners did not budget for the cost of owning the properties as they assumed they would sell before completion. Many realise that they won't afford the mortgage payments. Therefore, the closer the time gets to the deadline the more pressure they are under and the higher the discounts they offer. Thirdly, the commission of the agent for off-plan re-sales is usually about 7%, which eats into the potential profit. If you can find owner sellers then you can usually negotiate or split the 7%. Fourthly, with some property markets such as the UK and Germany currently under pressure, buyers do not have the same domestic equity that previously drove the Costa del Sol real estate market. Therefore, the rate of increases have cooled substantially.
However, despite all the negatives you can still find reasonably priced properties and a good lifestyle. It is a buyers market where if you shop around you can buy units at good discounts.
Regards,
Paidi
U
Unregistered
Guest
Thanks for the reply Padi.
T
tonka
Guest
Carriglee said:
All true, unless you are a seller of a part finish as I suspect the thread starter is, the mods probably are too so they will delete this
De Tonk, a natural bottom feeder, is inclined not to buy at ALL....just yet and buy further north anyway but del Sol is a marker market .
The Lifestyle is fab for sure but that can be rented .