For 15 years, real estate prices in Spain soared. Then in 2007 demand slowed. By the time the worldwide economic crisis rolled through Spain and Europe, the real estate bubble had well and truly popped.
Because of this situation in Spain today you could buy a spacious condo in a high-end community with monthly payments from $483. That’s less than the rent you could charge for a one-week stay in summer. Heck, that’s even less than the $561 I’ve been quoted for my visit in 10 days—February is typically the quiet season.
You are buying for significantly less than the cost of the bricks and mortar that went into construction. It’s a bargain even before you figure in what the luxurious marble finishes, the garage space, or the high-end community you are surrounded by would have cost—they’re all included in that monthly price. As is the access to pools, the sandy beach, the luxurious ocean-view clubhouse…and, one of the Costa del Sol’s grand old oceanfront golf courses.
The condo is situated in the nicest part of Spain’s Costa del Sol.
Perched above a sandy beach you have dramatic views along the coast, all the way until Gibraltar rises up from the Mediterranean. You can walk for miles along these sandy beaches—and you have plenty of sand to spread out in privacy. The beaches here aren’t cluttered like some of those beaches to the east. Your neighbors are high-end homes and two excellent golf courses. You could happily live or spend time here without leaving the community.
You’d be missing out if you did that though. This coast is dotted with luxurious marinas and quaint fishing villages. Inland you have traditional Andalusian whitewashed hill towns.
You don’t have to drive far on the excellent coast road to find more to see and do. Within 10 minutes you can be kicking back over a lunch of freshly caught fish at Sotogrande Marina or in the town of Nuevo de Guadiaro, San Roque, or Santa Margarita.
There are 11 golf courses within a 10-minute drive include the world-famous Valderama, host to the 1997 Ryder Cup.
Gibraltar’s unique history, geography and quirky border crossing through the airport is just 15 minutes away. Malaga’s international airport is just 70 minutes away.
Just 30 minutes away at fashionable party town Puerto Banús, the jet set pays tens of millions of dollar for their homes. I don’t know why. Right here, where this condo is, is where I like to spend time. I’m not alone. That’s why the rental market is so strong. It’s also why the window of opportunity smart property buyers have here is set to close.
Sitting here as warm breezes rustle through your hair, it’s hard to believe Spain is in crisis—but that’s why I’ve been telling members of my Real Estate Trend Alert group how they can buy here for a shade more than one third of the sticker price the developer stamped on these condos.
Let me fill you in on the back story.
Because of their economic crisis the real estate market in Spain is deeply distressed. There are as many as two million too many homes in Spain…but very few are the type of place you would like to buy.
This should be a market heaving with opportunity (and it is, if you know where to look). But too often, the real estate prices here don’t reflect Spain’s crisis. Often when they do it’s for junk that should have never been built.
That’s not the case with the real estate I’ve found. The condos I’m talking about were delivered in 2010. Finishes are to a high standard. Prices at the time of completion ranged from nearly from €240,000 to €270,000. Penthouses listed for up to €400,000. Some were sold before the crisis hit. Then sales evaporated and the bankers took over…then the government took over.
In response to the banking crisis Spanish authorities set up SAREB (a so-called “bad bank”) with the aim of stabilizing the banking and real estate sectors.
But SAREB wasn’t very good at being a bad bank. In an effort to sell, SAREB jacked up the prices. Go figure!
I waited. And watched. Now, my patience has been rewarded.
SAREB have slashed prices on the properties it holds. It’s under pressure to meet their publicly stated sales target objectives. Because of its layers of bureaucracy, it doesn’t seem capable of quickly setting up a website fire-selling condos. That’s just the type of situation I look for.
Right now €86,900 buys you a two-bedroom, two-bathroom, 936-square-foot condo, with a 200-square-foot terrace. Condos come with a fully fitted kitchen.
You don’t have to put all the money up upfront. Foreigners can borrow up to 70% of the purchase price (subject to reasonable criteria). Your mortgage can run at as little as €353 ($483) per month for a 70% mortgage.
This is a great place to spend time—and a great locale for a second home. It’s a high amenity community in a First-World country surrounded by stunning geography and ancient history.
That’s why, as my experience has shown you, even in February one week’s rental could cover your mortgage check.
If this opportunity has your attention you need to act now.
Here’s my prediction. These condos will sell like hotcakes. By this time next year resales will list for as much as 30% more.
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