Apartment Reduced from 112k to 34k in Andalcia

For some time (4 years) i have been looking for the right place in spain.

Every time i have a look i see the same properties on the sites and of course more.

As an indicatior this property is one i keep seeing.

http://www.solvia.es/Duplex-en-Estepona-1-dormitorio/7146_2/vivienda_8385.html

In about 2011 it was reduced to 74k

second part of 2011 it was reduced to 64

first part of 2012 it was 54ish

and this was when people were saying properties have stabled out and will not drop in price futher.

I just did my regular look to see what junk the banks have to offload and its now at 34k

on that price i would be looking at offering 24k personally.

but lets just see over the next year what it drops to.

Sure its a dump and not the kindof place anyone would want to live but i just thought i would share my experience because this is my temperature guage sort of as i have been seeingit pretty much every time since i started looking for property.

 I notice it was built in 2006 and is labelled "para reformar". Kinda says it all, doesn't it?

With IVA now gone up to 10% on new builds, I suspect the bulldozers will be called in before anyone actually buys something like this, which clearly should never have been built in the first place. Meanwhile, buyers looking for a decent property in a decent location are expecting similar discounts, resulting in a totally stagnated market place.

well the reform is sometimes because when people get evicted they take everything including the electric cables from the walls.

or in some cases the neighbours go in and stip them.

so all the rest in the block could be ok but this one has been stripped hence the reform.

yeah you are right about pretty much every point you make. about the iva and stagnation.

if it wasnt so binding to offer a price in spain i would call them and see if they would take 17k for it just out of interest.

the area isnt  so bad and the actual building isnt the worst i have seen (meaning its not falling down or sliding down the hill yet)

if you think , average rent in andalucia is give or take 700 euros a month bottom end 8400 euors a year.

in theory that place could pay for its self in saved rent in  2 years maximum 4 to 5

 Fair comment about the need for reforming, but nevertheless I think it's also fair to say that anything built in or around 2006 was thrown up in a hurry and the quality could be dubious. The other problem with developments like this is that a large number of properties in it are probably bank repossessed, and community fees are probably not getting paid, so the overall development may be in a pretty sad state. Often the few that are paying their fees will be subsidising the majority who aren't, thereby paying well over the odds for poor facilities. But I haven't seen this particular place, so cannot judge.

As for renting - again, I don't know the area or the development specifically, so cannot make a genuinely informed judgement - but, even in the very centre of one of the oldest established and busiest towns on the coast here, there's a plethora of 1 bed apartments available for half the rent you mention now. I think you could get more for less in the centre of Marbella right now. And if it's rental yield you're looking for, even if you could find a tennant who would want to live out there, (never mind one who's actually going to keep paying the rent), I seriously doubt that you could get that kind of return - probably never could, although it was the promise of such unrealistic returns by the developers who build these places that encouraged so many to blow their savings on ill-fated buy-to-let investments.

All that said, there are certainly some very interesting offers around, and I wish you the best of luck!

I know this urbanisation well.  I remember photogrpahing it when they were building it in the early days of EOS.

It took me ages to find it and it looked all wrong perched on top of a mountain.  To be honest it's a bit of an eyesore and I was wondering why on Earth anyone would want to buy there.  There was nothing around it apart from some houses.  It may have changed since then but everything about it was wrong.  It should never have been built (in my opinion).

Therefore, I don't think it's a true reflection of prices as it's so out of the way and like I say, there's no attraction to being stuck out there, hence why they will struggle to even give them away.

Rents are also much lower than what you are saying.  For 700 Euros you can rent some lovely large townhouses.  Apartments on the outskirts of Estepona fetch less than 500 and for a 1 bed 250-300 is probably the max you could get...if you could get someone.

where are you finding these houses for for 300 euros a month?

i see people post on forums that they spent 70 a month on a electric and their rent is 300 euros a month.

but not one person i know is paying less that 700 euros a month for an apartment.

We are paying 380 per month for a 2 bedroom attached town house on 6 month let down in Dona Pepa - Quesada.

The rent was the going rent for the area - there were similar other properties at similar rental prices.

Angie

380

wow

how close is it to the beach and is there lots of employment opportunity in the area?

yeah roberto but is there is some real dumps in marbella center

one bedroom and sstuff but they are unbelivaably bad and there is no way you could get anything decent seafront in marbella for less than 700 definelty

you are looking at 1200 to 1400

i bedroom yes but how many of them are terrible.

when i say `show me an apartment`

i dont mean some grotty fleahole nowhere near the sea.

some of those places on the website are not sutibale for a dog

Seafront apartments in Marbella are always going to command a significant premium.

Our friends in Manilva rent a large 4 bed house for 400 per month, and that's only 2 mins from the beach.

There's a 3 bed villa with pool round the corner from us and the lady can't rent it for 500 per month, again, 2 minutes from the beach.  It's been empty for 4 months now.

It's all relative.

 Sorry, I thought we were comparing to the place out in the sticks that you originally posted about. I agree, there are some real sh1tholes, but there are no doubt some decent places available too. How about a nice 2 bed ático in Cabo Pino (a pretty nice dump) for €600? http://www.idealista.com/inmueble/25294411/

As for employment opportunity in the area - we are talking about Andalucia here. Zip. Even the "job" centres have laid off staff and the unemployed have to sign-on online now.

i am looking on idealists.com

and you are right

there is lots of places for 300 a month and even a beachfont in manilva for 340

they are grotty holes and i wouldnt put a dog in them.

but yes

i am wrong

get out of town roberto

there has never been a better time to make money.

 OK, now this seems to be getting a bit silly. You asked about employment opportunities, implying you were hoping to find a real job. If you believe there are any jobs out there, you're as out of touch with the job market as you are the property market. If you think it's a good time to make money by buying a property for €34K and renting it out for €700 a month, I have nothing more to add to this thread other than that it will be a long, long time (if ever) until Spanish property makes sense as an "investment" again, if for no other reason than the excessive costs of entering and exiting the market. Goodnight.

i was saying that apartment would be a replacement for my rent i pay of 700 euros and its the best i could find cheap.

for anyone who dosent know about it.

there is a place at the side of andalucia called Gibraltar.

Just one company here has 30 jobs listed

http://www.pokerstrategy.com/jobs/

and there is about 30 more companys hiring

Roberto
Gibraltar is an english speaking place.
It is actually part of Britian and its booming at the moment /

There have always been plenty of jobs in Gib.  If it wasn't for the bib rock most of the Brits from La Linea up to Duquesa and beyond would no longer be here.

It is a pain in the butt coming in and out of Gib every day but yes, there are jobs and salaries are much higher than in Spain.

I believe around 6,000 Spaniards work in Gib too, although I'm not sure where I got that figure from.