Gatehouse estates

Are We In Denial?

A trickle of second homes for sale turns into a flood.

The credit crunch has started to take effect on the second home market in countries where there are many new developments just coming to the stage of completion. When purchase decisions were made two years ago and consumer confidence was high, properties were increasing in value due to high demand, cheap local loans and high equity values in the primary homes.

It´s very different now. Many new developments are now coming up to the completion stage and the developers are asking their buyers to part with the balance owed, in return for the title deeds and the keys. Some buyers are choosing to cut their losses and sell for below perceived market value, but many remain in denial. The reality is that, to sell, offers of 20% below the asking price are likely and should be considered in most circumstances. The alternative is to keep the properties and hope to rent them out. Bluntly, there are not enough prospective tenants to fill all of these holiday homes.
For those, with property overseas in “Euroland”, there is the prospect of mentally off-setting some losses against the rise in the strength of the Euro against the Pound. In some cases, most people will get 10-15% more Pounds for their Euros when converting money back to the UK as the Euro has strengthened considerably against the pound over the last year.

Where´s the good news? It is predicted that the buyers who still exist will begin a buying frenzy this summer. The really smart buyers will pick from the crop now. If you have a property to sell, simply advertise it on a For Sale By Owner site like for just a few pounds, avoid the estate agency fee, and let the savvy buyer contact you direct. They´re out there, you just need to let them know your property is for sale.

Other pages you might find helpful:

Tell us what you think

This is your chance to tell Gatehouse Estates what you think of the above post, was it helpful?

You must be logged in to post a comment.

Gatehouse estates
Do NOT follow this link or you will be banned from the site!