Welcome to my Puerto Duquesa blog

I've been visiting Puerto Duquesa three or four times a year for the past 20 years and have seen the area change enormously in that time. Where once there were dirt tracks and open countryside, there are now two lane motorways and apartment complexes. And whilst the area has changed and grown dramatically, it has still retained its small town, or should that be 'small marina' feel, which keeps me, and thousands others, coming back year after year.

Since I am currently in the USA it is a slightly odd time to start a blog about Puerto Duquesa, but the reason for doing so is simple - I may actually have some time to write some stuff! Most of the things I'm going to write about are things I like doing in the area or places I like going. Clearly I am not going to be able to cover everything, but hopefully I can give you a taste of what makes this such a special place and give you some ideas for your next trip.

If you can't immediately find what you are looking for, please scroll down and look in the blog archive (click the triangles to expand the list of articles). You might also want to start with these articles: Puerto Duquesa: the basics, Favourite (best?) restaurants in Puerto Duquesa, Puerto Duquesa beaches and Holiday accommodation in Puerto Duquesa. Want to get to know the area? Try A walking tour of Puerto Duquesa.

I welcome contributions, comments, criticisms and...well...praise.

If you want to link to me or you want me to link to you, that'll work too. If I think you're a good local company and you're prepared to part with a few euros, you might be lucky enough to advertise on the blog (which, fyi, is page rank 3 on Google - just type in puerto duquesa at google.com).

Thanks / Gracias

Chris (chris@cdgsmith.com) (March 2007)


Tuesday, April 24, 2007

Puerto Duquesa property - what next?

I've noticed an increasing amount of 'chatter' on the internet recently about the bursting of the property bubble in Spain. Two articles in particular caught my attention. The first is from The Resident and reveals that properties on the Costa del Sol now take on average 35 months to sell (that's nearly 3 years!) and that prices have been falling in recent months. The second is from Bloomberg and discusses the impact on the Spanish stock market of the recent collapse in confidence.

Sellers

The outlook for sellers is pretty grim. Since there are now so many properties on the market - and currently being built - in the Puerto Duquesa area, it has become a typical case of supply exceeding demand. However, if you can afford to hold on to your property in the medium to long term, there is every chance that once the building finally stops, the supply-demand balance will be restored. Moreover, more people in the area should translate into improved infrastructure and an increase in the variety and quality of amenities being offered. There is also no shortage of people wanting to move to Puerto Duquesa and the Costa del Sol.

Buyers

Timing the market is a very dangerous thing to try and do, but now, or in the next year or two, could be an ideal time to pick up a bargain. Distressed sales are the new hot commodity on the Costa del Sol. They typically arise when a buyer has put down a deposit on an off-plan property and (a) hasn't been able to sell it on before completion at a profit (this is known as flipping) and (b) cannot afford to raise the finance to complete. Rather than lose the deposit, the buyer must find someone to buy very quickly, which leads to deep discounting.

Tips

Whether you want to buy a property in Puerto Duquesa now is going to depend on your ability to negotiate a good price and your appetite for risk - maybe the market is nearing the bottom, maybe the downward slide has just started. As with most things in life, it's hard to look into the future, but I would suggest the following common sense tips:

(1) If you are purchasing a property using a mortgage, ensure that you can afford the repayments comfortably if interest rates rise by a couple of per cent. For security, you may wish to chose a fixed rate mortage.

(2) Do not rely on holiday rentals as a guaranteed source of income to help pay the mortgage; consider them a luxury. The reality is that unless you have an excellent online presence or unique way of attracting holiday-makers, there are far too many properties for rent and not enough people to fill them.

(3) Do consider buying a property if you want a full or part time home away from home in Puerto Duquesa. Do not consider buying a property solely for investment as there are, at present, better and more secure places to put your money.

You may also find the following article useful: Buying property in Puerto Duquesa.

1 comment:

Raj said...

Nice post Off plan property investment is one of the easiest and most profitable methods maximizing gains in the property market. Buying off-plan, or before new property that has been completely constructed, offers some of the best finance options in the market. Investors can purchase property at below market value price, allowing for greater capital appreciation. The earlier investors buy into a project, the greater the potential returns. Using this plan as a buy to let plan is especially profitable in tourist areas.