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I was in Tenerife earlier this year and I was shocked at the number of properties that were lying around, half completed. It seemed like every cove and beach al
by nagrom 16y ago
I was in Tenerife earlier this year and I was shocked at the number of properties that were lying around, half completed. It seemed like every cove and beach along the south and west coasts of the island had uncompleted holiday/retirement apartment buildings lying semi-built. I was also amazed that prices in the local agents seemed ridiculously high given the obvious devastation in the market. I would be extremely wary about entering the Spanish real estate market right now...
- wagerlabs 16y agoDevelopers are going out of business and don't have money to finish properties. Banks are saddled with large inventory of foreclosed properties and are getting rid of it very slowly, hoping not to show large losses, I think. The asking prices are set high all over the island in the hope that foreigners will bite. You need an official appraisal by the bank before you get a mortgage and you may then get 80% of the amount. Asking prices used to be exactly 80% of appraised value or less and people are still clinging to the high prices from the market top. Try negotiating, though, and you'll see prices come down rapidly. I rented a house a few months ago and the owner wanted 330K or so. I insisted on renting and the owner said that if the price is the problem then he could go down to 290, 280, etc. It's not even funny how prices in the US are more or less uniform, as if people are aware of property values around them and are trying to price them fairly. No such thing around here as people ask what they want and then negotiate down, down, down.