£98K bonanza in Mallorca villas price blunder
By Sue Brown, 19 Jul 2007
Head for favourite holiday Island Mallorca where sea view villas, 500 metres from a lovely sandy cove are on offer for 55% below market value – because the developer factored in the wrong equity growth during the construction period.
Now with the first villas completed, independent valuations to fix mortgages for the handovers have shocked buyers and the developers – they are worth EUR 110,000 (£73,000) more than the official listed price of EUR 240,000 (£161,000).
First buyers, who paid a mere EUR 199,000 (£133,000), have made a massive 75% profit and there’s a good chance of a 100% mortgage when they move in. Prices have been increased steadily to peak at EUR 240,000, but no-one at the developers realised demand for property in Mallorca was driving up prices at over 3% a month.
UK brokers for the development, PropertyInSpain.Net said there were just 20 bargain villas left for sale at the headland site, where the homes nestle in a pine wood alongside a new golf course with a charming cala beach just 500 metres away.
Balearics manager, Ben Walker said: “We have never known a developer get the prices so wrong – we expect most of them will go to British buyers on a first come, first served basis. We are offering them to our registered buyers at the old price for a few days - with a copy of the official valuation. Any left will then go up by EUR 110,000.”
The 2-bed, 2-bath semi-detached villas come with luxury fitted kitchens, all appliances, air-conditioning, sun and shade private terraces, rooftop solarium and spectacular sea views. There’s enough room in the garden for a family swimming pool. The 164 villa development can be reached in 30 minutes from Palma airport.
Buyers can register by email at mallorca@propertyinspain.net and need to have £2,000 reservation to secure at the lower price and in 15 days a deposit of £30,000. A long-term interest only mortgage will cost £515 per month.
The villas are ideal for co-ownership using PropertyInSpain.Net Libertad co-ownership plan – divide the above amounts by the number of family and friends buying together.
Check the opportunity
PropertyInSpain.Net
0870 620 0034 or Madrid +34 918 292 715
info@propertyinspain.net
Spanish Property News Service