2Let2Sell2Buy.Com Logo
espa˝ol Deutsch franšais russian norwegian
CALL US: UK: 01223 968 199 / Spain: 0034 968 979 876

Property Price Problem


In the current economic climate it is understandable that many people are looking to cash in any equity on their Spanish retreat, the only problem is just how much equity is tied up in the various properties available on the market today.

Q. Why are some property prices massively different?

A. Well, one of the obvious reasons is that every property is different; some people have made modifications to their properties by landscaping, building extensions, adding pools & changing the internal layouts. Another reason sometimes not taken into account by both buyers & sellers is the exchange rate at which the property was originally purchased at (see explanations below).

Difference In Property PricesFor the Seller: €150,000 changed back into pounds is £135,135 (current rate: 1.11*) whereas last year changing the same amount to pounds (previous rate: 1.40) you would only have received £107,142.

For the Buyer: A property for sale at €200,000 last year would have been around £142,857 (previous rate: 1.40) whereas this year (current rate: 1.11*) it will set them back £180,180 an increase of £37,323.

We (as well as local estate agents) are advising our clients to reduce the price of their properties if possible. Some sellers who bought their Spanish properties within the last 12 months are being forced to take a sometimes substantial loss on the sale price because of a variety of reasons.

For Example:
If 2 years ago Mr.A bought his villa for €140k (£93k - @ rate of 1.50) he can afford to sell it for €104k to get his money back, whereas Mr.B who bought his villa 6 months ago for €140k (£116k - @ rate of 1.20) can only afford to drop his price to €129k to break even.

* Current bank exchange rate provided by Currencies Direct & correct as of 3rd February 2009

Article By: Daniel White

More News
Camposol Travel & Tourism Website. Find Info On Events In The Area, Activities & Facilities Available & More!