When to Buy Property in PP

[Luckyone]

I am quite new to posting on this site so hope I have started in the correct thread?

We have been coming to PP for 25 years, firstly in a couple of hotels, many apartments and now we enjoy renting a villa.

After all these years of getting to know and enjoying PP in June and September (we holiday long haul in the winter to ensure we get hot sun and clear blue sea), we are looking to buy property in PP to enjoy holidays as often as we can at all times of the year until we can move over on permanent basis.

I have been watching property prices; some agents are now reducing prices whilst many apartments have been on the market for one to two years at the same price. Do sellers hope to get the asking price no matter the market or time it takes?

Is there a percentage range you can offer in the region of?
Do properties with a rental licence cost more?

All thoughts more than welcome. I am even more keen to holiday in the winter as Sparky's weather reports are so tempting (keep them going).

Thanks all.

 

[Sun Properties]

Over the years the Puerto Pollensa property market has tended to follow the UK market. The main overseas purchasers are the Brits and in times of a buoyant UK economy and 'reasonable' euro/sterling exchange the market was very active with the feel good factor spurred along with the additional equity people had gained by the year upon year increase in the value of their UK homes. This property inflation was also seen in most overseas property markets and PP was no exception. Then 2 years ago we all witnessed the 'realignment' coupled with the strength of the euro/weakness of sterling. Given the recent rises in UK property prices this will IMO be reflected - eventually - in prices in PP however the main problem (as the UK) is the availability of mortgages. As with the UK there are some sellers desperate to sell and unfortunately unless they can afford to 'hang on' bargains will be around for at least the next 12 months. Finally the/your ability to purchase in sterling or euro will have a bearing on the price.

 

[Rab]

What a wonderful position to be in just now! I think like any house purchase it all depends on what your reasons are for buying. If buying a flat in PP as a family home/second home then (if you can afford it) buy the one thats right for your family in the right location anytime. If you are buying with a view to renting it out and hopefully gaining long-term capital growth then Im sure there are a few bargains to be had, however like any town there are parts of the town dearer than others and this will be reflected in any rental income you get.

From what I can tell, without being an avid price watcher most properties that were on the market for the last year will still be on the market without the asking price being reduced. It seems to me that those who wish to sell dont have to sell and as such are prepared to wait for a turn in the market. Please do your research and take into account the split between black and white money and the tax you and the vendor will have to pay. A rough rule of thumb is to add 10% onto any purchase for taxes/fees etc.

Good luck!

 

[Luckyone]

Thanks Sun Properties and Rab for sound advice and information.

We are not intending to rent so will be looking for an aparmment that will suit us long term and hopefully we may be lucky and purchase in sterling.

Lucky.

 

[Labore]

In my opinion it is a very good time to buy in Mallorca at the moment providing you are a cash buyer or have plenty of equity to make up the 30% or so shortfall that the banks won't lend.You will also need an extra 10% or so on top of the purchase price for fees and taxes that you will also have to pay up front.Those not desperate to sell are hoping to weather the storm but those who unfortunately have to sell are accepting lower offers than normal.