Strong price reduction on holiday homes in southern Europe.
The dream of a cabin by the sea or on the mountain lives in many Norwegians.
While cabins by the sea in Norway rise to high altitudes, the situation is different in southern Europe.
The financial crisis in the autumn of 2008 led to a close stop of the market.
In some areas, including in Spain and Greece, the fall in prices has been up to 30 percent.
And a new financial institution now makes the holiday home market to buyer’s market.
25 percent decrease in average
– Property prices have fallen a lot in Spain in recent years. However, it is more sophisticated than you might get the impression of through the media. Many price overviews show large areas in one and therefore do not provide a correct picture, says CEO Agnar D. Carlsen in Norsk Megling AS to bonytt. no.
He estimates that there has been about 25 percent decline as an average. Well-established areas and good quality objects are, however, still in demand and are being sold continuously, but secluded properties, within walking distance to the beach remain unsold, even with high discounts.
– Prices vary greatly with the areas, Carlsen emphasizes.
Here you will find the cottage-freak
– In the places our customers mainly buy, I would say that you from about 1. 4 million kroner get a good object, 2- 3 bedrooms, walking distance to beach, restaurants and one hour’s drive from the airport. Both on the Costa del Sol and on the Costa Blanca there are examples of well-established areas where you find good alternatives from this price and up.
There are many homes available for sale to under 1. 5 million kroner.
This Costa Blanca property costs $ 1 499 million, and this Costa del Sol apartment is worth NOK 1.5 million.
– As for Greece, the financial crisis has paved the way for the Greek real estate market, especially the holiday market, Carlsen explains..
New construction production stopped briskly two years ago and many builders have gone bankrupt. Greek banks are little willing to fund new projects and they are in possession of a large portfolio of unsold properties on the same line as Spanish banks. Prices have fallen in some areas by up to 30 percent compared with the prices the homes were sold for before the financial crisis. In Crete, prices have also been good.
– Here I advise people not to buy in projects that have not been completed. You should see that the houses are built. You never know if the developer goes bankrupt in today’s situation, “said Carlsen.
Think about resale
Everyday leader Jim Tindstad in Europe, who specializes in the Spanish market, recommends that customers think about location, activity throughout the year and that the home is easy to sell again. Terraces and outdoor areas are more importantly a living room.
Here the majority of Norwegians dream about buying a cottage
– Do not buy a house for the kids to come to visit. Buy what you need. When your visit comes, you can borrow or rent the neighbor.
Tindstad recommends furnished homes because you do not have much action, screwing and assembly. What you do not want, you just change.
All prices for accommodation in Spain are stated without VAT and document fees. With housing purchases there is VAT of 7 per cent and document fees less than 3 per cent.
Otherwise, there is a renovation fee of less than 800 kroner a year and any common expenses in housing that have a communal pool, informs Europe House.
Take your time
Chief Economist Jan Ludvig Andreassen in Terra tells you well can wait a year to buy in the injured economies. He believes it is easy to lure himself off cheap financing to make mistakes.
In France, Greece, Italy, Portugal and Florida, housing prices will go sideways next year, but probably fall by about 10 percent, he says.. “In other words, it’s hard to see that you have something to lose waiting.
– Use the next year to become well known in the area you want to own, the chief economist advises. For example, you can rent a three week time in the dream home, and spend time going through the house from the basement to the loft. But keep in mind that taxes are likely to rise in all these countries.
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