Spanish villa savings with early equity boost
By Kevin Barnett, 15 Nov 2011
Villa prices in Spain have dropped to their lowest level for a decade as bank-pressured developers step up their dash for cash with improved specification, hefty discounts and supportive generous mortgages from funders.
The Spanish villa savings with an expected early equity gain appeal to buyers for family holidays and to rent to record numbers of tourists – estimated at 57 million by the end of the year.
One bank-controlled developer in Costa Calida, a new hotspot due to the current EUR 3 billion investment in Paramount Park Hollywood attraction, new hotels, high speed rail link and a new international airport, has sold all available budget villas during the summer. Now there are international buyers competing for the best villa, high in the Mojón Hills overlooking the Bay of Mazarron, with a price tag of EUR 299,000.
Another developer located in the Paramount Premium Rental area for visitor accommodation – within 30 minutes drive of the front gates - believes when construction starts in the first quarter of 2012 that the full impact of an extra three million visitors to the area will boost property prices.
Bosses at Peraleja Golf Resort, 12 types of luxury villas around a Seve Ballesteros designed golf course, are so confident they have produced 20 key ready villas with top of the market kitchens and seven appliances, private pools, landscaped gardens with Andalucian-style water features and 10 other high level comfort features designed to appeal to discerning international buyers.
Prices from the 2008 start of construction have been discounted by at least 30% and local property experts are predicting an immediate equity gain of 10%-13% “when the first shovel breaks ground on the Paramount theme park”.
The international brokers for Peraleja Golf Resort – 15 minutes from Paramount and Blue Flag beaches of the Mar Menor – claim the villas are among the best value in Spain “considering the quality, luxury specification and potential for early equity gains due to upcoming Paramount theme park”.
A spokesman for PropertyInSpain.Net added: “We have obtained the developer's original 2008 price list and the 2012 discounts reflect the current state in the recovery of the Spanish property market. One 4-bed villa shows a discount of EUR 320,000 and we have six 2-bed villas with pools with savings of EUR 80,000 for buyers to choose from.”
All the villas are offered with a 20% deposit and 80% LTV mortgage with an optional management and rental service geared to golfing holiday packages. There are Fly to Buy viewings at Peraleja Golf Resort and 10 other golf-based developments in the Paramount Prime Rental area.
IMAGE: 2-bed Romero villa now from EUR 262,000 - discounted by EUR 80,000.
Spanish Property News from PropertyInSpain.Net