Cheap holiday villas in Spain and other countries are always an attractive option to buy. Endless sun and blue skies are always going to attract buyers if the price is right. However how do you decide when the time is right? If you have a solid criteria then it really doesn’t matter what the price is as long as the price is what you are comfortable with. However, now is a great time to find that comfortable price on holiday villas in Spain and elsewhere because Spanish villa sales are starting to happen again.
Let’s look at a few things to bear in mind.
1) If you are buying a cheap Spanish villa for investment then a falling market is the best time to buy, just before the market turns of course. We are at that point although the turn will not be sharp. You have got to decide when the market is about to turn and use that to your advantage. Remember that the biggest real estate fortunes were made in a depressed market. The Rockefeller’s of this world made their biggest fortunes during the Great Depression. I am not saying that buying cheap holiday villas in Spain will make you a zillionaire but eventually you might make a decent capital gain Buy A Villa In Umbria.
2) It is nigh on impossible to buy at a good price in a rising market where confidence is high because offers you make on highly priced properties will not be accepted. Some owners of cheap holiday villas in Spain have still not realized the market has changed but most are now waking up and smelling the coffee and are prepared to listen to offers. Cheap holiday villas in Spain are available of course but be careful on looking as many are overpriced by sellers who cannot lower their prices as their mortgages are too high.
3) In a falling market with a lack of confidence the story is different. Sellers place their properties at a price to sell undercutting the competition and then accept offers more often than not on those properties. On estates where the properties are all the same or similar then it is the most desperate seller that sets the base price. This situation is happening on the coasts and it is there where cheap Spanish villas are most available. However it is not there where I would recommend you go for the best eventual capital return. Go to the cities and around them as they always have more demand than areas for second homes.
4) When prices and interest rates are low as they are currently then the best deals are available. Interest rates are expected to stay low for a time and allied to the low prices is attracting buyers back into the market.
Now where I am in Spain, I believe that the best deals are not necessarily through the banks because those banks have an ecosystem of investors around them meaning that the best deals here go to employees and investors who have the Spanish Enchufe (An “in” with the bank). The best deals come from motivated sellers in any market but in an international property market there are even better deals available if sellers can play the currency markets. Currently British sellers returning to the UK or selling their Spanish holiday homes are working with an unfair advantage compared with Eurozone sellers so it would be remiss of you not to take advantage of the fact and pick yourself up a bargain.