From Ibiza to Pontypridd – One landlords thoughts on buying and selling in BREXIT
Why would you sell in Ibiza?!
On my recent visit to Ibiza I visited a property that was being sold by one of our clients. The property was a 6 bedroom villa boasting infinity pool, sea views and landscaped gardens, not to mention a second outdoor kitchen with sweeping patio area, 3 reception rooms and guest house with a license to rent out. The price of the property is 4million euros and is currently being marketing by a local agent on the island.
I asked the seller why on earth he was selling this beautiful property. His reponse was interesting and for two reasons he feels it’s time to sell. The first reason is that he felt that the property market in Ibiza has reached its peak and the price he would get today would be the maximum he could hope for in the next 10 years or so, he felt that the Ibiza bubble is going to burst one day and the Spanish governement is (oddly) not supporting the tourism aspect of the island. It could be argued that the tourism on the island is the only industry there and supports a big portion of the employment and income on the island, but I was told that the islanders have activily protested against it, citing noise, increased instances of crime and the general swell in numbers of people there suring the summer.
Uncertainty over BREXIT
The second reason he wants to get out is that he feels like now is a great time to invest in the UK. Brexit and uncetainty in the property market has made it a great time to BUY! This was really interesting to me, as I speak to sellers every day looking to sell up due to the uncertainty surrounding our economy.
Is it the right or wrong time to sell now?
For some landlords this is a great time to sell, I see properties selling quickly in our areas if they are priced correctly, and in order to reinvest in better deals, sometimes an asset needs to be liqidated in order to reivest the capital tied up it.
For some buyers, now is a great time to buy, deals are able to be negotiated and sellers are looking for a quick completion offer, especially if they are in a chain.
So I think that the interesting conclusion to this discussion is that it all comes down to personal preference, needs and wants. Buying or selling a property isnt necessarily a scienceand there is no right or wrong way of doing it, it needs to be right for you speciaifically, whether you are buyijng or selling a property.