Hot VS Not
The Mojo guys are back with their latest property advice.
Starting a journey in the property market without the right support is like entering a maze with no plan. You’ll go around in circles, hitting multiple dead ends, and probably meet a few untrustworthy characters along the way who will point you in the wrong direction. Before you know it, you’ll be paying someone to airlift you out of the maze, €10,000 down and no further forward. Not very hot…
To help you navigate the property market, for the next few months, Per and Jacob, the charismatic duo behind The House of Mojo, will be sharing their tricks of the trade. From buying to selling, financing to lawyers, with years of experience in the real estate market, these boys really know what they’re talking about.
HOT - INVEST NOW!
Now’s the time to invest. Prices are low, people are willing to negotiate and this year the Property Transfer Tax (ITP) is offering a flat rate of 7% - that’s a up to a 3% saving.
Taking out a 70% loan is also more attractive, with interest roughly under 2%. “It’s a smart time to invest,” Per tells me. “Take the low interest rate and use it to your advantage, it won’t be long before the market starts moving again and you’ve missed your chance.” Instead of finance your dream home 100% yourself, you reinvest the 70% mortgage with a much higher return then the 2% interest rate on your loan – And BOOM you are making money.
NOT HOT - REGULATIONS
There’s no regulation when it comes to how much someone can sell a property for. You can do your research, negotiate if you want to, but depending on how quick of a sale the seller wants, they may just wait two years until the right person comes along with more money than brains.
It’s also not obligatory to have your house evaluated by the bank - though Per and Jacob will always recommend you do. “Why buy a house if you don’t know if you can even get a mortgage approved on it?,” says Per. It costs €500, so it’s understandable why some people may want to skip this step. And there’s so many agents on the Costa del Sol, sellers are bound to find one who’s happy to sell their house without it...
HOT - VILLAS AND THE RIGHT NEW DEVELOPMENTS
Villas are moving fast. Downtime during the pandemic meant a lot of people actually saved money, not to mention they’re more hungry for sun than ever before - especially the Brits, who have an 11% share of the total market, and the Nordics aren’t far behind. “Big windows, open plan living, large terraces, pools and sea views - that’s where the money is,” smiles Per.
There’s over 200 new developments in the Costa del Sol at the moment and the boys put a lot of emphasis on how important finding the ‘right’ new development is. “Investing in property when it’s just a drawing and piece of land can be risky,” says Per, “but that’s when you’ll get the best deal.” As the development progresses, the prices will go up.
Investing when developments are in stage one is one of the best things to do if you’re looking for capital appreciation, Per tells me - basically, are you buying with a view of selling in a few years? “It’s about making smart moves. And the right real estate agent will be able to help you make those moves with confidence,” says Per.
HOT - FINDING THE RIGHT AGENT
The Spanish market is hard to navigate, especially if you’re new to the area. At Mojo, Per, Jacob and their 16 people big team of experts will support you every step of the way - not to mention they can help you find those winning development sites. “Do your diligence and find the right agent. Don’t just go with the first one,” says Per. “We’re fair. We’re honest. But we’re not pushy.”
If you’re paying more than the asking price because it’s your ‘dream home’, they’ll tell you. If you want a home you can sell fast in a few years, they’ll find it for you. And while they’ll always support the client’s decision, if you’re making a stupid move they won’t hide it from you… ‘feelings or money’, meaning don’t fall blindly in love if you’re in it for the money as well, Per laughs, that’s what it comes down to.
Contact Per & Jacob for advice!
info@mojoestates.com
(+34) 951 774 547
(+45) 427 229 16
mojoestates.com