First published on July 1st, 2012
Despite the Spanish real estate prices drop:
We are owner of a Spanish villa, we plan to sell it, but with the crisis, is it the right time? This question has come up frequently in the last year. And the first answer is simple: obviously, you will not sell at the price you could have expected five or six years ago. But during those years, you enjoyed your property, it is a satisfaction. Now, the second answer is twofold.
First, if you bought in Spain say five or eight years ago, then 2012 indeed is not the best time to sell your property, and we recommend that you enjoy it a few more years, unless you are a British citizen, planning to return to the U.K. and convert the price in sterling pounds. In this case, you should more or less find your money back, for the euro has soared against the sterling pound.
The glass: half full or half empty?
But let's have a look at the villa on the right hand, which was in 1998 in the INSERT catalogue with number V-7: 190 / 1,000 m² (2,040 square feet on a fourth of an acre), in a dominant location with a breathtaking panoramic view, sold for DM 225,000 i.e. € 115,000, which in this time was £ 72,000. If you have purchased such a property, the situation is different. Certainly, the price of comparable objects in the same place rose up to 400,000 euros (£ 280,000) in 2004 or 2005, but you can still sell it today for 250,000 euros at least (£ 205,000). While “losing” 150,000 euros (of 400,000), even if you have made renovations, you will still have doubled (in euros) or almost tripled (in sterling) your money in 17 years. And under these conditions, then yes, 2012 is a good time to sell.
And at INSERT, we will be delighted to look forward the conditions under which we can expose your northern Costa Blanca (between Calpe and Denia) property in our catalogue, with no obligation for you.