drastically reduced

The Five stages of Spains property price recovery

The 5 Stages of Property Price Recovery in Spain, the Canary Islands, Mallorca and Menorca

So many people are trying to figure out exactly when Spanish property prices are going to reach the bottom, because that’s the moment when they want to buy. This article is our opinion and we could be proved right or wrong but as we are enjoying our best year since we started Girasol Homes and with Spain the number 1 market we are fairly confident things are on the upward trend with the properties we are seeing sell.

It is not an exact science as some properties will just be un saleable whether the market is good or not and everyone even remotely connected has an opinion. Regardless of which method you choose, at the end of the day it often just boils down to guesswork, instinct or experienced good timing. However, armed with an understanding of the 5 stages of house price recovery, you can remove most of the guesswork and make sure that when you come to buy, you are doing it at the best possible time.

Here is a simple graphic illustration of the 5 steps to property price recovery and remember we specialise in Property Bargains so we would expect to get you a brilliant buy whatever the market conditions and especially now.

1) The bargains are selling in some quantity, and although the bottom of the market has been reached, these last bargains force the statistical prices slightly lower as they are sold at prices even lower than market value.

2) The statistical bottom is reached. By now almost all the ‘bargains’ (properties being sold below market price) will have been sold.

3) Prices start to rise, however due to the lag in gathering and reporting statistics (and Spain is worse than most places at this), readers of the press will still be seeing reports showing that the market is still at position 1.

4) Prices in ‘real time’ are now solidly rising as tentative demand returns. Press reports now show that the market has reached stage 2, and this will also encourage buyers. The bargains have all but disappeared.

5) ‘Real time’ prices are now 6 months past the bottom. Buyers are now seeing stage 3 statistics and for the following months, price rises will accelerate. Although properties bought in this time will gain in value, clearly those who purchased at stage 1 and 2 will have had the greatest benefit.

Things to get right

Get yourself organised – if you need a mortgage get one before you view, we have a mortgage department who will get you a Decision in Principle within 48 hours

If you are planning to purchase a property do the groundwork with us before you go out and view, our property search form is the initial “eyes and ears” that our large network of “property finders” will use to search for your ideal home.

If you are going to transfer a large amount of Sterling speak to our personal foreign currency expert as soon as you can

Commit to working with a good and experienced property company who have the network of property professionals on the ground (yes that’s us) if you commit to us we will commit to you and work as a team. We have heard and seen so many horror stories that we want to work exclusively with every client on a professional one to one basis.

We are always trying to present our buyers in the best possible light so let us get your buyer profile right, you as a buyer armed with evidence of mortgage/cash, a good idea and budget for your property options and with the right information for our local people spells success. If we can get these items aligned correctly and work as a team, we are very confident you will get the very best property.

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Las Vegas is identified as a USA hot spot by Girasol Homes as homes roll back to 2000 levels

Las Vegas Summary ~ it is a great time to buy for foreign investors

A multitude of real estate investments exists in Las Vegas today. Residential properties represent some of the better current bargains, especially in the range below $200,000.

We are not defining a “bargain” as a decrease from the high-flying 2005 and 2006 years either. Rather, home prices appear to have over corrected on the downside and are below the long-run trend that existed ahead of the bubble.

By several measures, such as median home prices and the S&P/Case-Shiller index, we have reset prices back to the early 2000’s. In some home segments we are probably further back, even to the early 1990’s…and that is before adjusting for inflation. In recent months, prices have leveled out. Chances are one’s wages, while possibly flat for the past couple of years, has still not fallen to early 1990’s levels, presenting a real opportunity to purchase housing by those that are employed.

By such fundamental measures such as price/rent or price/income ratios, we have returned to some very reasonable levels of valuation. Affordability like this has not been achievable in years. While employment has been weak, for those that are working and seeking a home, it is a good time to shop around. Investors have noticed this as well and are purchasing homes for rentals. Many of these properties cash flow quite well, so they are performing assets even in the absence of near-term appreciation. We have calculated cap rates in the six to twelve percent range so there are some great investment homes in the Las Vegas Valley. Any appreciation back up to trend is just an added benefit (This is a return to the old paradigm of buy low and sell higher instead of buy high and sell higher which everyone thought they could do just a couple of years ago. IE: things make sense!).

As an example, a home like 1521 Splinter Rock could be purchased for $142,000 and would likely be rented for about $1300 per month. Factoring in expenses like taxes and maintenance as well as a vacancy factor, a home like this should yield around $10,000 (on the conservative side since its been remodeled already) in net operating income per year. It’s also already been remodeled so its move-in ready. It properties like this that are relatively easy to manage and are within a size range that makes them suitable for many renters, making them a good choice for foreign investors.

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100% mortgage villas on Luxury Resort in Almeria, Spain

Desert Springs Resort

At Girasol Homes, we strive to negotiate discounted properties and investment deals to appeal to everyone. We have secured a 4 bedroom villa on the luxury Desert Springs Golf and Country Club Resort Almeria.

90-100% MORTGAGES ARE AVAILABLE SUBJECT TO STATUS

NOW ONLY 329.000 EUROS! WAS 600,000!

DESERT SPRINGS, ALMERIA, SPAIN

Country Cottage Type El Paso
4 bedroom, 3 bathrooms,
135m2 constructed ; 425m2 plot; community swimming pool. Underground parking space, views of the Golf course, Discounted Desert Springs Golf Membership Included

List Price: 600.000€

This fantastic 4 bed, 3 bath villa on the luxury resort of Desert Springs, Almeria has just been reduced by the resort for JULY ONLY from 600,000€ to a bargain 329,000€

This great resort also has 2 of Britains best known sports personalities who own property here, Sir Ian Botham and Daley Thompson who are keen advocates of the lifestyle and active life on the resort.

So for the month of July only you can get a 4 bedroom villa with 3 bathrooms on an award winning golf resort with famous neighbours close to the sea, magnificient golf course, other sports facilties including football, cricket and tennis. Was 600,000 euros now 329,000! High % mortgages available subject to status. Book now to avoid disappointment.

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