Sunday, July 20, 2008

Property prices fall

For anyone hoping to sell there property here now is definitely not the time. The only places that are selling are going at eye wateringly low prices. Some people just cannot afford to hang on any longer so are taking whatever they can get. With the inflation in UK and here dreams of nipping over every few weeks to enjoy time in a holiday home are fading fast. Flights appear to be more expensive too so that’s having an effect.
It’s ok if you want to sell and buy another place because it’s a sell cheap buy cheap situation. What we seeing happen now is those people who cannot get the use of their property here are selling to avoid continuing outgoings. Even if you are not coming over you still have bills to meet.
We have seen apartments as low as 37.500 euros, 2 bedroom apartments for 50.000.

Banks are foreclosing on mortgages too, we spoke to someone only yesterday who has sold and had to take out a loan to pay off the mortgage. There are over a thousand new unsold properties in Formentera alone. Property Developers are finding themselves in dire straights. Some unfortunate people who have bought off plan may never see their property built or their money refunded.
The glut of unused properties has also affected rentals. When we first came over 4 years ago 500 euros a month seemed to the going rate you can now get two bedroom apartments for 300-380 including utility bills. Good news for the low paid here at least and for young people who want to leave the parental home. As they say it’s an ill wind that blows nobody any good.

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