Time to Buy at Polaris World

 

With a big uplift in sales activity and enquiries in the last six months the Polaris World resorts are very much starting to shape as two distinct markets.

 

1. People trying to sell close to prices of 3-5 years ago.

2. Buyers picking up bargains at up to half that price from the developer and from bank repossessions.

 

Depending who you speak to will determine the view you receive on the market! There is still a stock of unsold property held by resale agents - which two years ago was the place to get bargains. Now, the market has changed considerably.

 

Most owners can not afford to sell at today's market price, but the banks and Polaris World the developer can - with deals up to 30%-40% below 2005-2007 prices. Hence we are seeing the best deals at present with the developer and banks but they do get snapped up very quickly. Particularly as these organisations can offer 90% and 100% mortgages as opposed to the normal 70% on a resale property.

 

Not every agent is contracted to sell on behalf of Polaris World and the banks. At Villa Cashback we offer the full range of product (resales, bank and direct). Hence we get a comprehensive view of the market, can advise accordingly and find the best investment and property for our clients' needs.

 

 

We have seen a significant change in the market from twelve months ago. Confidence began to build through the middle of 2009 and took off later in the year. Realistically priced resale property has always sold on the Polaris World resorts. Currently the best priced resale properties for a particular home type tend to sell within a month or two. Those vendors realistic about their listing price tend to take offers perhaps 5%-10% below asking price.

 

We are now seeing some fantastic offers on bank repossessed properties and stock clearance direct from the developer. The advantage of these deals is huge price reductions - typically 30%-40% below prices of the last three years plus high mortgages of 90%. We occassionally have offers from the developer with 100% mortgages.

 

Interest rates on mortgages are around 2.5% per annum so you can buy a €90,000 apartment on a 90% repayment mortgage at less than €400 per month. That's comparable to the cost of a two week holiday package deal for a family of four in high season. Plus you are guaranteed your accommodation! Buyers need a good credit record, be able to demonstrate and prove income and their ability to afford repayments.

 

Whereas buyers were very cautious in early 2009 (and rightly so in terms of the world economy) that feeling now seems to be shifting to one of grabbing a bargain before the deals expire. Prices are now very affordable (for example frontline golf from 95,000 Euros, second line from around 87,000 Euros) plus villas can be purchased on established resorts from around 160,000 Euros.

 

Prices have stabilised recently and news in the wider market is that resale prices in Spain have started to increase in 2010. The Nicklaus Golf Trail is now established at Polaris World and with the new Corvera airport set to open next year (three airports will then service Murcia) and the possibility of the likes of Paramount Pictures building a theme park and studios in Murcia (with the land next to Condado de Alhama resort the most likely destination in Murcia) the region is set for exciting growth in the coming years.