Media hyperbole

I’ve just finished reading an article on the about property in Spain and it actually made me laugh out loud. As with most media these days hyperbole and sensationalism to be the name of the game.

First of before we go any further most of you might remember that is was the that told countless brits what a great investment property in Spain was and called out such experts as Ocean Estates, Mac Anthony Realty, etc… to show how you could only make money and you would be a fool to not invest. Of course with all that lovely advertising on the side. And when the Costa del Sol fell out of favour, Dubai, Bulgaria, etc… became the new property hotspots.
Anyway the article starts with the wonderful intro “Ten years ago a new-build apartment near Puerto Banus would have sold in a heartbeat. Now agents struggle to shift them even after hefty reductions”. No, you don’t say??? I’ve spoken to people who bought properties back then for 120.000 Euros (the equivalent anyway as it was pesetas at the time). If they tried to sell that same property now at 290.000 they would have their arm ripped off! And that’s a 10% annual profit (incl. costs)
Buying on the Costa del Sol back then would be like buying in Morocco now, although there won’t be the property boom there as they missed the boat.
The article then refers to developers that had speculated in the market through the building of unaffordable holiday homes, with little infrastructure in the area, and how they are having to slash prices. Again considering how overpriced these properties were and the fact that many of these developers were relying on high commissions to estate agents to sell their stock, is it any wonder that they are having to ‘heavily discount’ now? Or better said they have had to price the properties more realistically now as the easy credit has dried up.
And then you get example of how you can now pick up properties near Marbella and Puerto Banus for 250.000 Euros. A quick search on my website 2 properties within walking distance of Puerto Banus.
Puerto Banus aparmtent 250.000 euros
Puerto Banus Penthouse 225.000 euros
Please note this are simply 2 examples based on a very quick search and they would be open to offers!

Then the article talks about the danger of banks not honouring bank guarantees before mentioning one of their regular advertisers… Looking beyond the blatant advertising, it is worth noting that some buyers have had issues in regards to getting banks to honour their guarantees. Spain’s central bank has recently been enforcing these rules and the vast majority of cases are being sorted out. Unfortunately quite a few buyers are now trying to pull out due to lack of funds for completion, which is not something covered by the bank guarantee. Also what many people did was wait until the completion dates was given on a project and then decide to pull out.

At the end of the day buying a property has not changed. You have a budget, and have an idea of what you want. It’s for us or which ever agency you use to find it, or the next best thing.

Andrew Belles

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