Credit Crunch Flat Costa Less

Sep 7 2008 Laura Davidson

John And Janet Pick Up Hot Deal As Dream Home Slashed By £37,000 Place In The Sun

The economic climate might put many people off buying property but John and Janet Wilson reckon they've clinched a credit crunch bargain in the Costa Blanca.

The price of their property was slashed by a quarter just before they bought it in April as housebuilders continue to woo buyers.

Janet said: "We're so pleased with our bargain. A saving of more than 25 per cent isn't exactly small change - it made a world of difference to us."

While the drop in property prices isn't good news for anyone planning to offload their holiday homes, it's great for new buyers.

Alot of agents say it is a better time than ever to purchase abroad. In many cases that's true but only if you're planning to buy a holiday home and hold on to your investment.

The economic downturn means the days of 'flipping' properties - buying them cheap at the building stage and then selling them on soon after - isn't bringing in the financial return it used to.

But that's not a concern for John and Janet.

She said: "We've dreamed of having a wee bolthole in Spain for years and now seemed like the perfect time.

"Although we're looking on our holiday home as an investment, it's first and foremost a place where we can go for a bit of sun.

"We're not looking to sell it any time soon so we reckon buying at a time when prices are lower was a great move. Our outlay isn't as big so there's less risk involved."

John, 55, a car parts salesman and NHS worker Janet, 54, of Mosspark, Glasgow, started looking seriously at property at the beginning of the year.

Janet said: "Our mortgage was paid off five years ago and I redirected our monthly payments into a savings account with a view to buying abroad. In spring we hooked up with Properties Spain after visiting their offices in Glasgow and arranged a fourday inspection trip for April.

"We liked the fact that we weren't given the hard sell. We were left to make up our minds."

The couple opted for an apartment in the Zeniamar 7 new-build development. At the start of the year, it had been on sale for £140,000 but when the Wilsons bought in April, it was slashed to £103,000, a saving of £37,000.

They put down a 30 per cent deposit from savings, taking out a Spanish mortgage for the rest, and picked up their keys in July.

The property has a large open-plan living and dining area with kitchen, two spacious bedrooms and a large balcony.

Communal facilities at the complex are first class with three pools, tennis courts, a play area and an underground gym.

Situated in the Orihuela Costa area, Zeniamar is between the busy town of Torrevieja and the resort of Campoamor. The nearest beach is a 10-minute walk and the resort is easily accessible from both Alicante and Murcia airports.

Janet added: "It's perfect for us and we're not reliant on a car.

"The idea of spending longer breaks there as we get older really appeals but for now it's great for holidays. We're delighted with it."

FACTFILE

Many experts say this is a good time to buy in Spain because we are entering a buyers' market with prices having dropped on average by 20 per cent.

Many believe this counters the effect of the weak pound against the euro.

Use an established estate agency and Spanish solicitor.

New laws introduced in Spain this year favour the buyer. They require builders to get planning permission before any construction work commences. This reduces the risk of buying illegally-erected buildings.

Have your finances in place. In most cases you pay 3000 euros to hold a property then a 20-30 per cent deposit within a month or two, followed by the balance when signing with the notary.

Most Spanish banks offer a mortgage of 70-80 per cent.

For more details, contact Properties Spain at www.properties-spain.co.uk or call 0141 637 3636.