arenal duquesa

Hi there,

I am thinking of buying an apartment in arenal duquesa and wondered if anyone here owns an apartment there and what they think of it. Also, if anyone has an idea of costs then that would be great.

thanks,

Tony

The appartments look really nice from the outside.  I've not been inside one though.  The developer/bank has been dumping loads of these on the market recently for 110,000 euros, so don't pay more than that.  They were going for over 200,000 back in the good old days.

Here's one on idealista.com.  There's loads more on the same site.

Hi there,

many thanks for the information, I will contact the seller and see if he will budge from his 130k estimation. They are offering 100% mortgages on them so its tempting as its not a huge buy in (still need the 8% and fees). They claim they can gaurentee 11 months rental at 650 euros per month as well, do you think that sounds true?

Are there many properties over there with 100% mortgages these days?

many thanks,

Tony

Tony.

Who are you buying it from?  It looks like the ones on idealista for 110K are being sold by the bank or developer (if it hasn't gone bust).  If this is the case, they will usually offer you a 100% mortage, just to get rid of it off their books.

Not sure how they can guarantee 650 per month for 11 months.  It always sound dodgy when I hear this sort of thing.

There are hundreds and hundreds of properties up for rent in the Manilva area.  Many have been lying empty for years.  Rents have plummeted over the 2 years we have been here.  650 per month may have been realistic a few years back, but in reality, the best you could expect is 450-500 per month ( I've even seen beach front appartments in La Noria for 400 per month!)  You may even need to drop the rent further just to get someone in.

 Hi,

I was looking to rent apartment in Arenal, and I studied that Urbanisation pritty well  :)

Outside - Very nice garden, 4 clean and big swimming pools, but in my friends apertment the door entery system is not connected. So if you expected someone you have to go to the main gate to open.

Inside - I was in my friends 2 bedroom apartment. She has 2 not too big bedrooms with 2 (also not big enough) wardrobes and very nice 2 bathrooms. In both bedrooms she has king size beds, but have a problem with clothes and shoes. The kichen is not big, but big enough for everything you need. There is a small storage room for washing machine.

In living room she has 2 sofas (for 2 persons), TV table and dining table for 4 and there is no space for enything else.

The terrace is big and almost all terraces have sea view.

Those apartemnts are for 3 or 4 persons, but there is space for clothes and footwear only for 2. If you have books or computer(s), you should buy 2 apartments  :)

Bad: the walls are very thin. You can hear the neighbors talking or flushing toilet. But I think it is a common problem here. I got the same problem and I am in different Urb. You can avoid that if you buy penthouse.

Also, (only) penthouses have separate storage room (in the garage, I think).

Generally, I think 100.000+/-10% is a good price for that urb. on that position.

Hope you understand all, my English is not so good.

Hi all,

many thanks for all the replys, some very good information.The company selling these is called Restless Earth Limited. And I got the usual story that they are selling like hotcakes and better buy quick as even the bank employees are buying them fast!!!

I dont intend to stay there permnantly, I am just looking for an investment oportunity and somewhere I can go for 4 - 8 weeks a year. I have looked around and can anyone tell me the best website to go to for properties similar to this that are in that price bracket?

I also seen places for sale up the road in Estepona at 130,000 euro for 2 bed 1 bath in golf resort

cheers,

Tony

Hi Tony

To be honest I would always recommend you use a local agent. 

For other properties in the area have a look at Hamilton Homes.  They are good friends of ours and are based in the area.

And you are quite right to ignore the usual "selling like hot cakes" story.  Nothing is!

Best of luck in your search.

Justin

Dear All,

given that someone would want to live at Casares del Sol where you talk to your neighbours direct through the wall without raising your voice, then E350 per month after community fees and exes, would give a return of say E275.

at that rate, as a buy to let, values the property at say E66,000 assuming 5% return.

assuming lower return for Spain at 4%......E82,500.

if you have to supply good furniture as well your exes go up and the value drops.

interesting since I valued these apartments on sight at £70,000 at the time of offer to complete.

you would need half a dozen of them to equate to the E425,000 asking price.

Regards

Norman

Hi Norman,

am I reading your responce right and you value them at around 70,000 Euro for a 2 bed in this complex?

cheers,

Tony

Thanks Pitby, it looks exactly like the apartment I was offered. Are there any 2 bed 2 bath decent houses for sale with 100% mortgages and around the 130-150K, thats the question.

Or the other question is whether its the right time to buy in Spain, what do you guys think?

cheers,

Tony

Tony, there are plenty of bank stock apartments in the area at your price level and with 100% mortgages.

I know it pains us with properties that we paid considerably more for, but that is the reality.

Justin

tonygildea,

"Or the other question is whether its the right time to buy in Spain, what do you guys think?"

It's like asking "How long is a piece of string?"

Some say yes as prices have hit rock bottom, some say no that prices still have to go further down!

Some on here will tell you never to buy property in Spain no matter what the price!

The question is: What is a good value property?

A good value property is not necessarily the cheapest on the market right now!

There are thousands of 2 bed, 2 bath properties on the market right now, however most are small and situated in huge developments.

May I suggest that first you take your time!

Visit different areas and see for yourself what's on offer!

If your taking out a mortgage, think about what would happen when the interest rates go up, which has started by the way.

The main bits of advice I could give are:

Think "Can I/we afford the mortgage on our chosen property, and the community fees, without any rental money coming in?"

If the answer is yes, then you have found your price cap!

Then once you have your price cap, look at properties and think "If I/we came out here on holiday, would I like to stay here?"

Just because a property is cheap, doesn't mean it's any good!

Location, location, location!

Distance to local amenities?

Above all - Quality of build and size!

There are 3 bed properties available for the price some are asking for 2 bed - so don't just settle for a 2 bed - think bigger!

But keep to your price cap!

In answer to your original question: Is the time right to buy in Spain?

Looking at the prices of properties and the current interest rate - I would say yes!

Even if the prices to go down a little further, interest rates are on the rise!

tonygildea,

"They claim they can guarantee 11 months rental at 650 euros per month as well, do you think that sounds true?"

There is no such thing as guaranteed rental income - it's a scam!

If there was guaranteed rental income of 650€ per month, why are they selling it?

As I said in my previous post,

Can you afford the mortgage payments, and the insurance, and the community fees, without any rental income?

If the answer is no then you cannot afford the property and will ultimately over extend yourselves.

Interest rates are now starting to rise!

The current 12 month Euribor rate is just under 2%.

Banks will use the 12 month Euribor rate, plus a percentage of anywhere between 1% and 1.75% to calculate your mortgage repayments.

So a current mortgage on a property of say 110,000€ is between 275€ and 343€ per month (approx) interest only.

Then you will have community fees of an average 100€ per month on top.

So when it comes down to buying a property right now,allowing a little extra, can you afford 500€ per month, every month, without any rental income?

If the answer is no, then I suggest that you do not buy a property, as the rental market is saturated and there is no guarantee of any continuous rental income. You will undoubtedly get some, but do not rely on it to pay your mortgage!

If the answer is yes, and you intend to holiday there yourself, then now isn't a bad time to buy - as to the best tine to buy - who knows?

Don't forget though that the mortgage will only remain interest only for an average of 2 years, however you can push the banks on one of their own properties up to about 5 years interest only.

PS. Did this as a separate post as this is the most important factor when buying a holiday home.

Thanks Techno,

a good post and yes cost per month is high on my agenda. I have 4 properties in the UK and one in Ireland, but I am a virgin as far as Spain is concerned and rely on local knowlege from guys like yourselves who are willing to post and chat with others

I am attracted to Spain due to the weather and prices at the moment and I wouldnt mind holidaying there for 2-4 weeks a year, and I'm sure a few friends would take between 4-8 weeks off me as well for the right price.

I read recently that the 3 years grace several builders had will expire  shortly and that there will be more reposetions in the coming months, anyone else heard that?

If anyone has any links to bank owned 100% financed properties then send me the link please, or if you know of a good agent who represents a few areas

cheers,

Tony

tonygildea,

Sounds like I'm preaching to the preacher! lol

You obviously know the advantages to having a property portfolio, and also know to do your sums before you buy!

As Justin said, have a chat with the guys at Hamilton Homes.

They are good!

And I can recommend them personally, as I purchased my 2nd property (the house I live in) here in Span through them!