Bargain property for Sale La Manga, Spain

40% reduction on price. 99,950 euro.

JJC Capital Partners are delighted to present this property exclusively through our network of collaborators.

The property, a long term JJC Capital client has decided to enter long term care, rather than to engage with investors who were offering her a usufruct arrangement.

The bottom line for our investors is that the property is now vacant, ready to move it (with a few touches needed first) and coming to the market with a price reduction of 40,000 since it was first listed in November 2021.

This home will be sold as a freehold deal with absolutely no obligation, usufruct, rental arrangement etc. It is key ready and the buyer can move in immediately.

The property

The apartment has three bedrooms, a big bonus for renting, two bathrooms, and stunning permanent sea views right over the Mediterranean.
Tiziano is a recently built building. It comes with a large communal area, family friendly pool, with access for the disabled, kids and everyone else and as you’d expect in such a market, well manicured garden areas.

This beautiful bright and sunny apartment is for sale in the area known as Tiziano, La Manga. It is situated on the sixth floor and more specifically located in the Veneciola area of La Manga, south east Spain.

Due to the location, the price drop, the condition of the property and the booming Spanish property market in 2022, we do believe that the first to view will buy.
We can arrange a virtual tour for any of our investors who are based outside of Spain and who do not want to miss out on the deal.

The area around the property is relaxing, mature and quiet. You’ll find the region perfect to soak in the sea views, relax and fall in love with living in Spain.How do you know you are getting such a good deal on your La Manga apartment?

How do I assess the value of this property?

(or any property in Spain for that matter)

The value of any property in Spain affects many stakeholders; the buyers, sellers and brokers. Depending on who you ask here, you’ll get three different answers, maybe more!  On a broader scale the real estate value of a property can determine the taxes owed in Spain, the Spanish mortgage terms or indeed rental prices.

When real estate investors are planning to buy a property anywhere, they need to assess the value. In Spain it is the same principle in order to make sure you are getting a good deal. Learning how to calculate the value of a property, especially in this Spanish market can be confusing. Here are a few models to use.

Assessed Value Of Property

As a starting point, you might try to calculate the real estate price by the assessed value. This is very common. Here in Spain, every property receives an assessed value from the local government. This value is used for property taxes and is referred to as the Catastral value.

However, as with so many aspects of investing in real estate, this value can be very misleading. Many times, the actual value of a property is higher or lower than this assessed value. Sometimes, as we see on the coast in particular, the town hall is just too far behind with all the property sales happening to keep up to date on valuations. 

The current price difference is caused by the changing market price since the last assessment of the property. Some of them have not been reviewed in ten years. 

By all means, use the assessed value to determine how much taxes will be owed. Factor that tax amount into your calculations, but don’t rely on this for the real property value.

Assessing Real Estate Market Value in Spain

Investors can determine real estate value using the market and this is more effective than any other means. By using a market based approach, you can perform a real time comparative market analysis. We check out properties for sale on Kyero, A Place in the Sun etc.  Here, you find similar properties to your desired investment.

Make sure they are in the same area, same number of bedrooms, compare penthouse with ground floor etc. Then, you should compare the sale prices of those houses in the past 3-6 months.

When you take into account all of the factors like the view over the communal pool, proximity to the sea, house condition, etc the value can be adjusted accordingly.

Market value approach is one of the best ways to calculate real estate value in Spain. A house is “worth” what someone else is prepared to pay for it.

Professional Appraisal of Spanish property

There are a number of professional companies who will give you a valuation on a property for less than 300 euro.

A licensed appraiser, like Tinsa, provides a professional’s view on the current market in Spain and the  value of the property to within 10% accuracy.

I’m not totally convinced they are any more accurate than a market based assessment but if you are getting finance from a Spanish bank you’ll need to engage with one of these companies anyway.

In theory, this real estate valuation should come very close to your own market value approach.

Assessing Income Property Value

Often investors who are buying rental properties in Spain can value the price based on the yield or the income. Like with many of our investments, the property itself represents a mini-business.

Our accountant can help but basically it is a formula of projected income less costs for repairs, insurance, maintenance and administrative costs.

Based on the total net income of the property after costs, you can calculate the real estate property for investment purposes. Clients aim to get around 5% yield.

This is very achievable, if you buy the right property.

Assess, then re-Assess the property

We think that you should regularly reassess any properties that have been on the market for a long time. Regularly, especially now, real estate markets and the prices of properties change.

Right now in Spain prices are booming. Covid and Brexit are driving buyers in 2022. An area like La Manga regularly heats up with lots of sales.

Many people want to live here and there are only a certain number of properties. Equally the prices can drop due to a surplus of houses in the market especially in some of the more Spanish areas.

Either way, you should reassess the current value of the house and look at the real estate trends in Spain to get a fair value.

When purchasing investment properties either in Spain or elsewhere, you need to have a current price to know how to get a good deal.

Property Features

A few features of this property in La Manga that we think makes it a wonderful investment:
  • The price has dropped for a quick sale by 40,000 euro.
  • Location on the famous La Manga strip.
  • A wide range of people want to live / holiday here; families, individuals, sports people etc.
  • Golf; being next to three PGA courses will only push the price upwards and it brings more potential buyers to the area when you decide to sell.
  • Options; Rent it long term, rent it for holidays, live in it, flip it for a profit. All of these options are on the table here for you, the buyer.
  • Accessibility; two international airports within one hour drive, Alicante and Corvera.
  • Sunshine; 320 days and more than they get in Florida to be exact.
  • The apartment itself, well presented, views, good size, location and of course the prestige of owning a property in La Manga.
  • Established area; Spain is the most popular country in Europe to holiday in and La Manga is one of the most popular regions within Spain.
  • La Manga Club; one of Europe’s most prestigious clubs on your doorstep.  https://www.lamanga.co.uk/

To make a good real estate investment, calculate property value carefully. When you find the right property however, act quickly.

We provide conveyancing service, legal help and taxation work too.

If you’d like to view this property or any of our investment properties, please just get in touch.

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