Click on one of the article headings below to read more. These articles were written by Chris Garwood for various publications such as Living Spain Magazine and Spain Magazine.
The Costa Blanca Property Report
December 2008
Here, around Moraira on the Costa Blanca North, I can report that the death of the local market has been greatly exaggerated! It is weak, but not really that bad; as with the last issue's contributor to this article, we too are finding that the biggest frustration is the log-jam of the UK market. We too, have a growing number of immensely frustrated 'would-be' buyers, very keen to leave the UK and purchase here, if and when they sell their UK homes.
The Spanish banks seem to have adopted a much more disciplined approach. Consequently, they do not seem to have been hit so hard here and are still readily granting mortgages of 60-75% on property valuations to credit-worthy applicants. Likewise, most local builders here are long established family concerns and are well enough funded to ride out any market turbulence; they would rather wait for a sensible price in a year or so, than sell at distressed prices & add to their bank deposits. Euro interest rates have fallen dramatically, so it’s very cheap to borrow, and equally, a disincentive to deposit with banks. Similarly, many resale vendors are digging their heels in and waiting for the local market to recover. Rather conveniently, the 'need to sell' faction tend to be UK returners; now this is the current 'hot scene' where the best bargains are found, for several reasons. Their need to sell usually revolves around family or personal health issues, so they require a quick sale. By returning to the UK they will benefit from drastically reduced house prices, and again, low interest rates. They will also enjoy the major windfall of the weak pound. Consequently, these properties often represent great value. Do BEWARE though; some bounders are using this market to offload some dreadful properties, often targeting bargain hunting ghouls who are looking to prosper from the misfortune of others: their greed dictates that they crudely calculate value by the percentage off the asking price they achieve - if only it were that simple!
Now, as always, buyers need to enlist the knowledge and guidance of local specialist practitioners.
