Property Purchase in Pollensa

[pollensa]

As the market is probably pretty slow at the moment this is just a reminder that we do feature most of the Property Agents on the main web site as well as Private Property for Sale in Pollensa

If anyone is selling their property at the moment you may like to advertise with us as well as with an agent (but do inform them if you have an exclusive deal) - see http://www.puertopollensa.com/advertise.html#adbusiness for more details.

If anyone is looking to BUY we take Propery Wanted Adverts free of charge & display them in http://www.puertopollensa.com/property_for_sale.html#wanted

Contact advertise@puertopollensa.com for more details.

 

[Beachfun]

Prices are still on the way down

Prices are still on the way down many apartment prices have dropped by over 50% and still not sold
Also not able to let for holidays, personal tax and inheritance tax also putting off a lot of people

 

[eleanor]

Hi Beachfun. I'm not so sure you are correct with this. My husband as an architect is very much involved with the property market mostly overseas. Yes the market has dropped in Mallorca but nowhere near as much as mainland Spain and other places. Mallorca because of its reputation and also Island status will hold its own. Many properties have not sold as they have not been priced as realistic. Our villa included!
( we tried to sell last year but thankfully changed our minds and withdrew from the market)

A few years ago it was so different but it was different everywhere. Properties were being snapped up overnight and mortgages were easily available. This obviously pushed the prices up. Now of course the situation is different. It has levelled out. Things are tough and money not so easily available so properties are staying on the market for longer. Also it doesn't help that property agents are charging between 5% and 7% to sell a property!

A large proportion of the market in Pollensa is British which wasn't always the case. This is beginning to change again with interest in the area coming from other nationalities some of who's money is the euro. It is also interesting that the 'big money' is beginning to be spent again in the South of the island especially with villas in the millions being sold everyday. (with investments/pensions etc not being a good place to put their pennies, property is still very popular). It has been stated by those in the know that the situation is turning around and prices in some areas are increasing again.

As for rentals, I can only go by our own experience as much as this is our best year yet. We advertise on 2 websites and have fully booked the villa for the season with very little effort. We have a number of friends who also own in Pollensa who have also echoed this. One actually in Pinaret doesn't advertise at all but books through recommendation. We also have a couple of weeks booked for next year already. This has not happened before at such an early date. Our friend in Santa ponsa rents all year with no trouble at all but he is very close to a golf course. A different market I know but we are talking about renting and he rents!
There will always be reasons why people invest in property and reasons why it doesn't suit everyone. As far as the tax situation is concerned, as always a good accountant will soon sort that out!
Anyone thinking of buying or renting should not be put off. Good research, the love of Mallorca and of course good advise as with anything is what should be considered. Michael Cunningham at MJC associates newsletter is very informative.
(will try to find link!)

 

[eleanor]

MJC Associates

Oh dear - where are you Bella - need help with this link lol

Sorry it hasn't worked but for anyone interested go to
Mallorca Estate Agents - Villas , Apartments, Fincas - MJC Associates

go into 'news' and you will see their new sheets over the past couple of years which give a good explanation of what has happened to the market over the past few years, what is happening now and their prediction of what will happen in the near future.

So sorry that trying to post these links are not working - need a quick course, I think lol

Oh just took a look - maybe i don't lack the basic skills after all - seems to have worked!!

 

[Belladonna]

Well done eleanor - its not an easy thing to master at all putting links in, took me years of being tutored! (Joke of course - that's just me being extremely slow on the uptake and now like a child love linking to everything!)

A very informative post though, and it just highlights the ups and downs of the property market. Its still all about location, location, location, with area preferences at the time determining prices of course. Agents tend to advise two selling prices; one to sell quickly - and reasonably, and one to just sit and wait if you're not in a hurry. This has been known to take up to 4 years with a property still on the market waiting for that high price to be taken up. I have absolutely no idea why anyone would want to do this, but its a relatively common practice. Obviously those just wanting to cash in on property can afford to hang on, whilst those wishiing to upgrade need to make a more sensible selling price.

 

[eleanor]

A light at the end of the tunnel!
This is taken from the Engels Volkers newsheet for this month.


"Over the past few years vendors have had to adjust their pricing strategy to sell in the current market and prices overall have reduced by an average of 15-30% depending on location. A two-bedroom apartment with views in Palma's attractive old quarter, where prices boomed until 2006/7, will now come to the market for around €450,000, a decrease of about 25%, whereas one without views will be around €300,000. In Pollensa, an area popular with British buyers, four bedroom villas have come down about 10% in value, with an average price today of €900,000. Prices are unlikely to decrease further and interest in the market has markedly improved with interest from overseas buyers oscillating between British and German speaking and Scandinavian buyers. "

 

[Tone]

Hi, we are planning to buy an apartment in Puerto Pollensa for a holiday home. 2 beds, 2 baths, central location. Have contacted different agents, but do they know every apartment which are for sale?

 

[eleanor]

No they do not Tone. There are many properties for sale not just in the Port but throughout Mallorca at present and this time of year is a good time to think about a purchase. You will have time to complete and get everything in order ready to rent out for the coming season. There are a number of websites now which offer free advertising to those wishing to sell and it would be a good idea for you to take a look at those. Also I would suggest that you have a drive around the Port as you will see many private sale notices. Most agents charge a 5% commission on the sale of a property which will be added into the purchase price. Therefore you might be able to find a good deal buying on a private basis.
Please be very careful and do take good legal advice before parting with cash. Also please ensure that the property you purchase has nothing written in to say renting is not allowed. We had a friend who bought from a well known builder and was told not to worry about this small print. He came unstuck and then had difficulty selling on.
Another thing to think about is that you should not be dependent on renting to cover the costs. You will find that there are many hidden things to think about and of course renting can not be guaranteed.
Having said all of this, Pollensa is a wonderful place to own and if all homework is completed realistically you will be fine. Good luck and I hope you find your ideal soon.

 

[Sparky]

Tone how exciting, do take a look here :-
Apartments, Villas for sale in Pollensa, Mallorca Majorca

 

[pollensa]

Hi Tone,

if you like you can place a FREE Wanted Advert with us (on the main website at http://www.puertopollensa.com/property_for_sale.html#wanted - we don't have any at the moment!) & then you may get contacted by Private Sellers as well as Agents (I will reply to your email!).

When we bought we chose a couple of Agents who then drove us around to see different properties. This gave us a good idea of what we did and didn't want. Although we had looked on the internet & in Agents' windows beforehand, when you actually view somewhere in its location and go inside, it is completely different. And in fact we ended up buying an apartment that we had initially rejected from looking at its details.

I'm afraid that nothing replaces coming out for a few days and seeing properties. And as mentioned in previous posts, do get a good solicitor - we have some advertising here puertopollensa.com/property_services.html#solicitors.

 

[sws97sdg]

Yes very exciting Tone, can we all come over and stay with you? Good luck and keep us informed of what you do, when are you next over?

 

[eleanor]

Tone I answered your post based on the fact that you said you had already been in touch with agents. As you knew what you were seeking and the area in which you would like to purchase I assumed you had already completed some ground work.
It would certainly be a good idea to place a wanted on this site. I wasn't aware that a free wanted covered a property so that is good news and certainly something you should do.
We have purchased two properties in the Port. The first we used an agent the second we didn't. I have family members who have purchased without an agent too which is fine if you know what you are seeking.
Pollensa's idea of spending a few days doing the rounds is an excellent one and will give you a very good understanding of how to go forward. My advice re checking the property allows you to rent still holds as important. By doing the rounds you will perhaps decide on a particular apartment block which you like.
If you do decide to use an agent please do take independent legal advice and I would suggest that the solicitor is not one recommended by the agent. There are some listed on this site.
Good luck with your new project.

 

[pollensa]

I wasn't aware that a free wanted covered a property so that is good news and certainly something you should do.

In case I confused you all, this isn't the Wanted section on the discussion forum but a Wanted Advert on the main website under Property Sales. A few people have used it in the past & have been contacted by both Agents & Private Sellers. We also have occasional Private For Sale adverts - but these are not free of charge.

 

[Tone]

Thanks Elanor for your information , we has just arrived from the Marbella area looking for an apartment, but did not find any area that we really liked. We used a Norwegian agent and he told us about everything important regarding buying a home in Spain. We also need a lawer. I think we will visit PP end June beginning July and combine holidays and watching different apartment. Really look forward coming back:- )))

 

[Tone]

Thanks Sparky, I have contacted all these agencies, and Pollensa has made an ad for me as well:- ))

 

[Tone]

I try to anser all your inputs and use the "quick reply to this message, but the message comes down here in the end?

 

[Tone]

Hi Steven:- ))) Of course, all friends of the PP is welcome to us :- Hopefully we will bee there this summer, and you?

 

[usandthewoof]

Hi Tone

I think I should have sent you an email from the link on the wanted site ?? If you don´t receive it please PM me and I will try another way !!!

Debbie

 

[sws97sdg]

Hi Steven:- ))) Of course, all friends of the PP is welcome to us :- Hopefully we will bee there this summer, and you?

Hi Tone, yes end of July start of August and last week of September

 

[Tone]

Yes Debbie, just received it, I will read it and come back to you:- )