When is the right time to buy a property in Duquesa?

As one of the leading Estate Agents in Duquesa, Barrington Homes are frequently asked by our clients ‘When is the best time to invest in property in Duquesa?’ The answer of course is that no one really knows. What we do have indepth knowledge of are market trends, mortgage rates, property affordability, market forecasts and perhaps most importantly indepth local knowledge of the Duquesa area. With this knowledge we can advise clients on which developments in Duquesa are great buys, what property locations in Duquesa are great for rental income and the most important element in our opinion is matching our clients requirements to find them their perfect property. By considering this very important lifestyle choice our clients will always be happy with their property purchase whether they have bought for investment purposes, a holiday home or as a permanent residence.

Navigating the Duquesa Property Market

Are you thinking of ‘snapping up’ one of the many property bargains that can be found in Duquesa at the moment ? Are you unsure if now is the right time ? or what property you can get for your budget ? Here is the latest market news to help you;

Getting a Mortgage for Duquesa Property

It is currently well publicized that obtaining a mortgage in Spain in difficult. Gone are the days of easy finance. Banks are currently only willing to lend between 70 – 80% of the property purchase price and they also require numerous financial and employment documentation (including an Experian Credit report) in order for applicants to be successful. However, banks are seemingly recovering from the credit crunch and the number of new mortgages approved in July 2009 rose by 7.2% on the previous month. Their willingness to start lending again means that they are regaining confidence in the property market and applicants in a strong financial position are now more likely to secure the finance they require.

Euribor – Calculating the cost of your mortgage for buying a property in Duquesa

All mortgages offered by Spanish banks are based on the Euribor rate. This interest rate is applicable to all Spanish mortgages and the good news is that Euribor is hitting record lows every month this year ! Euribor is now a staggering 75% lower than it was this time last year leading to significantly more affordable mortgages being offered. Euribor is currently 1.334% and mortgage experts do not expect the rate to fall below 1%.


When to invest in Property in Duquesa ?

Property prices in Duquesa are on average at 7 year lows. Following the property boom in 2005-6 prices have fallen to the same levels of 2002. It is of course unclear when the property prices will rise again but industry experts predict prices will be well on the way to recovery by 2012. Barrington Homes have witnessed a steady increase in the return of property buyers in the Duquesa area all hoping to take advantage of the current pricing levels. Many clients have always wanted a property in the area but were previously unable to afford it. So, on the basis of a low Euribor, low property prices and the banks returning confidence in the property market now is one of the best times to invest in the area. As with any property purchase made for investment purposes Barrington Homes advise our clients to make a 7 to 10 year commitment to see the capital growth they would require. If you are interested in property in Duquesa contact Barrington Homes with your buying criteria and we can certainly find you a great value property that you will undoubtedly be very happy with. Taking the long term view property prices will significantly increase and in the mean time all you have to do is enjoy the property and the wonderful Duquesa area with its blue flag beaches, stunning Marina, international restaurants and championship golf courses……sounds great ?? It is !!

Devastating property crash or unique investment opportunity ?

As international property prices fall, buyer confidence at a low and banks tightening up on mortgage lending is it still possible to ‘bag a property bargain’ in Spain ?

Lets look at the facts:

3% fall in property prices in the 4th quarter of 2008: The mix of figures released by the Spanish Government and various official bodies can easily lead to confusion. The Spanish housing ministry have reported that year on year figures show only a 3% fall in property prices in the 4th quarter of 2008. However, I think it is very clear that the real figure is considerably greater than this. Many Estate Agents believe that the actual figure may be up to 35% from the highs of 2006/7.

Property transactions have fallen by 30%: This government statistic does not take into account property completions of new properties due to the long lead time of most new developments. However it is a clear indicator or buyer confidence in the Spanish property market which is obviously compounded by the international economic recession.

Mortgage lending has also fallen by 45%: Spanish banks have heavily reduced mortgage lending in 2008/9 due to international banking crisis spreading extreme prudence throughout the major Spanish banks. Some banks have even recently reported a complete halt in mortgage lending for any new clients!

Good News for Investors ?

Considering the aforementioned facts some savvy investors are already returning to purchase property in the Duquesa area. The significant fall in property prices now mean that property affordability (based on income to mortgage repayment ratios) is comparable to those at the start of the boom in the mid-nineties.
The weak pound has also meant that Spanish property owners who wish to return to the UK are greatly reducing their asking price meaning superb opportunities to buy heavily reduced property are now available.
For those in a strong financial position banks are willing to give mortgages and with the recent fall in the Euribor to 2.1% mortgage repayments will now be on average 200 Euros less per month. The drop in the Euribor make the rate return to its lowest since June 2005.

For those fortunate enough to be cash rich and looking for an opportunity for a profitable long term investment Duquesa now presents itself as a wonderful option. With savings interest rates being at a pitiful amount and uncertainty and record lows in the stock market people are returning to property as a viable long term investment as well as seeing an immediate return through good rental returns. At Barrington Homes we have 2 bedroom apartments from as little as 135,000€, 3 bedroom townhouses from 143,500€, 4 bedroom properties from 225,000€ and private villas from 400,000€. To keep up to date with the latest property news and bargains sign up to our News Letter or email Barrington Homes at info@barringtonhomes.eu

Barrington Homes are reporting an increase in property purchase enquiries as well as investor confidence quietly returning for those looking to take advantage of the low property prices and general feeling that savvy buyers can make very shrewd investments previously unheard of in recent years.