Time to Buy Property Yet?

When is the right time to buy property?

I have been involved in Real Estate for the last 30 years in a few countries in Europe and for that I have gained tremendous experience.  It goes without saying that most people that I have been working with, they built their empire with buying and selling properties. You may be buying and selling stocks, gold or properties, but if you ask the experts in each of those fields, when the time is right to buy or sell, the answer is practically the same! Buy when prices are low and sell when prices are high, and it’s really as simple as that. recession-graph Recessions have happened every now and then and every time they are followed by economy contraction, then Recovery and Prosperity (see the graph).  In every market we see these cycles and peaks happening over years but as you see in the graph the overall price of property always rises as it is almost still the most reliable investment, provided you make the right decision. Another fact that you can get from both charts is the timing to buy or sell, and again it can apply to gold as much as property.  Best time to buy a property would be when property market is on the recovery because you can still acquire the property for very competitive  prices and keep it until market reaches its peak.  So when is the time to sell? One of the best signs of market that indicates time for sell is unrealistic high prices.  One of the investors I have always worked with closely who is my close friend, sold almost all his properties in Spain, US, UK and France in 2006, except one in each country that was his own place to live in.  I remember having this conversation with him in Marbella, and we both agreed at the time prices were too good to be true and what a decision he made and over last few months he has been purchasing similar properties with huge reductions out of the deals I have available in the property market around Marbella. Recession-Graph2 Prices now are too low to be true, and I say that with huge amount of experience and research I do on the market.  We have been selling a lot of properties actively with prices around or below initial mortgage if they initially were financed from bank and this is a good indicator to show you, you can not go wrong with these prices.  The other factor to bear in mind is the Cost to Build, and again a lot of properties that have been selling quicker than the rest in the market over last couple of years are sold around the cost to build, in other hands, the builder in some cases is making non or very little money.  After all when a construction starts and completes, there is an array of business and service providers that need to get paid till the project receives the finishing touches, starting from surveyors, architects, engineers, workers, and on top price of land and materials used! As numerous sources indicate that market is recovering in Spain and most European countries, its evident that its time to buy now! As it is the case perhaps for most people, if you don’t buy for an investment and its only a second holiday home for you in Spain, still your best of buying it at low prices of today before it goes up too much and perhaps not affordable! Remember the Golden rule buy in Recovery time and sell before recession! Another Golden Rule, when buying a property think Location, and quality! Always buy in prime locations with good quality! Due to our clients’ demand now we have a great selection of  high end luxury apartments and villas around Marbella, Benahavis and Estepona with great prices of pre-recovery.  To receive more information about our best deals portfolio contact us. Author Max Pakbaz M.S. me Managing Director of clickclick

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